Why a big discount during Black Friday sales isn't necessarily a great deal

This year Black Friday falls on Friday, November 27.Cyber Monday, which typically marks the end of the sale period, is on November 30.It is becoming hard to miss in Australia, with competing offers vying for our attention in emails, texts, app notifications and shop windows.Black Friday sales originated in the United States as a way for retailers to make money after Thanksgiving Day, says Sara Quach Thaichon, an associate professor in marketing at Griffith University on the Gold Coast/Yugambeh language region.But it has now become part of the Australian retail calendar and November is "almost a whole sale season" with deals beginning weeks in advance, Dr Thaicon says.You can expect retailers to promote offers of "up to 50 per cent off" and "up to 70 per cent off", but most discounts fall closer to 20 or 30 per cent off, she says.Mark Serrels, the editorial director at consumer group Choice on Gadigal land in Sydney, says the Black Friday "behemoth" is expanding every year.But before tapping a card or clicking "buy", Mr Serrels and Dr Thaicon recommend considering the value of the purchase to you, its quality and how much you're spending — rather than just how much you are saving.Why percentage discounts can be deceivingWhile there are savings to be made, Mr Serrels says, there are "a million different ways retailers are using Black Friday to their advantage"."[For example], they're trying to get rid of stock. They're trying to get rid of older models. They're trying to get you hooked into giving your details so they can reach out and sell more things down the line."Sometimes products are advertised as 50 per cent off the recommended retail price (RRP) during a promotion period, but it might normally be 40 per cent off anyway."You've got to be wary of those markdowns," Mr Serrels says.Sara Quach Thaichon says, "the biggest advertised discounts may only apply to a small number of products, while site-wide sales can exclude popular brands or new season items." (Supplied: Sara Quach Thaichon)Dr Thaicon says the percentage discount can make us feel like we've scored a bargain but "doesn't actually tell us whether the final price is good".If it's an inferior product or something you simply don't need, you've wasted money buying it, even if it was 70 per cent off, she says.Mr Serrels says that an expensive pre-sale RPP price does not equate to quality."Sometimes you might think, 'oh great, that TV is 50 per cent off', but it's a shit TV, so don't buy it," he says."We've had coffee machines that cost $200 that outperformed $2,000 [machines in testing]."Finding a good dealDr Thaicon recommends focusing on how much you're spending and what you're getting for that money."Instead of looking at percentage, compare the final price across different retailers, think about the quality of the product, how long it will last and how often [you will] actually use it," she says.Research the product and compare prices before sales begin, particularly when it comes to white goods and electronics, Dr Thaicon says.When we don't know much about "big ticket" products we tend to use price as an indicator of quality, she says.Electronics and appliances tend to be the "most heavily promoted categories", Dr Thaicon says, and major retailers have previously offered discounts of as much as 70 per cent off on some specific products.Mr Serrels says you should decide on the exact product you want to buy — such as the model of TV — beforehand.This gives you the opportunity to check reviews and the product's historical pricing.Recognising scamsSlowing down is "key", Dr Thaicon says.Mark Serrels says scam sites pop up more frequently during the Black Friday sales period. (Supplied: Choice)Mr Serrels says to try to avoid the influence of time pressure when shopping during sales, such as "you've got four minutes to complete this transaction" or "this sale only lasts for 12 hours"."Worst case scenario it's a scam. Best case scenario you're getting bullied into buying something you're not really 100 per cent sure you actually need."A spokesperson for the Australian Securities and Investments Commission's Moneysmart program says to check who you are buying from."With an unfamiliar online retailer, look for independent reviews and make sure you are using the genuine website rather than a look-alike site," they say.How to prepare and shop during Black FridayAhead of Black Friday, Moneysmart also suggests:Making a list before you start shoppingSetting a spending limitShopping around and comparing pricesChecking the full cost of an item, factoring in additional costs such as delivery and international transaction fees.Being careful with buy now, pay later services and making sure you can afford repaymentsMr Serrels cautions against embracing sales with unbridled "consumer lust"."Don't feel like you have to buy [a product] right now. There's always another sale around the corner," he says.