Americans will each spend a record $169 online this Black Friday, experts predict. But how can they ever really know they’re getting a good deal?
The holiday sale has developed a reputation in recent years for rampant marketing and exaggerated discounts that make it extremely difficult for shoppers to judge whether a price is a good price.
There are still plenty of good deals for savvy shoppers, but it’s no wonder experts are urging households to be wary of too-good-to-be-true deals this holiday season.
“A tactic that is widely used by many retailers is to raise the regular prices of a product so that you can then advertise it at a deeper discount,” Jie Zhang, professor of marketing at the University of Maryland, told DailyMail . com.
‘It really plays into consumer psychology and makes shoppers feel like they’re really getting a good deal. I would advise people to always be careful with discount percentages.’
An audit by DailyMail.com found that several promoted Black Friday deals from retailers including Amazon, Walmart and Target were not the lowest price a product had received in recent months
Websites exist that allow customers to track the history of a product’s price to assess whether they are really getting a good deal.
Online tracker Honey allows users to search for products from major retailers and compare the current deal with prices from the past three months.
An audit by DailyMail.com found that heavily promoted Black Friday deals from several online retailers were not always the lowest price a product had recently received.
In many cases, this year’s Black Friday deals only matched the lowest price of the product, and in some cases the products were recently cheaper than the Black Friday price.
For example, a Target TV stand with storage is currently selling for $54 in a Black Friday promotion. According to the tracker, it was available for the cheaper prices of $48 on August 13, or $51 more recently on October 28.
A Keurig brand coffee pod machine is now on target sale for $139.99. But shoppers could have bought the same product for $40 less on Nov. 20, when it sold for $99.99.
The tracker also revealed that a red Microsoft Xbox Wireless Controller, which retails for $45 in the Walmart Black Friday sale, was available for $35.99 on August 2 and $40 on September 22.
A set of three Tappio brand patio chairs is also on sale at Walmart for $95.99, but shoppers could have picked it up for $79.99 on October 27.
A pair of Sennheiser Momentum wireless earbuds, meanwhile, are selling in the Best Buy Black Friday sale for $179.99. On October 11, they were $35 cheaper at $144.99, according to Honey.
The website camelcamelcamel allows users to search Amazon products and compare their current price to the lowest ever.
For example, a Google Nest Thermostat is being advertised among Amazon’s ‘Black Friday’ deals at a price of $89.99.
But on October 14, shoppers could have bought the same product for almost $30 cheaper, at $60.99.
A curling iron set, meanwhile, is listed for $49.99, but could have been picked up for $39.99 on August 13, the tracker revealed.
These retailers aren’t the only culprits: there is a widespread practice where sellers also offer a ‘sale’ price that is the exact same price as an item a few weeks earlier.
Zhang notes that a large number of companies – both in-store and online – are guilty of rapid price fluctuations around sales seasons.
“Several major retailers have had lawsuits filed against them over these types of issues,” she said.
‘But online is like a wild west, there are many more unknown retailers and sellers to be aware of.’
Andrei Vasilescu, founder of the savings website Do not pay in fulladvises shoppers not to get caught up in a ‘Black Friday frenzy’.
He told DailyMail.com: ‘Be skeptical of deals that seem too good to be true.
‘Don’t just focus on the discount percentage. Consider the overall value of the product, including its features, quality and warranty. A product with a smaller discount can still be a better deal than a product with a larger discount if it has more to offer.
Jie Zhang, a professor of marketing at the University of Maryland, told DailyMail.com that many retailers will artificially inflate prices in the weeks before sales to make discounts appear larger.
Before purchasing, read other customers’ reviews to get their opinions on the product. ItIt is important to stay calm and avoid impulse purchases. Only buy things you really need or want and stick to your budget.’
The Federal Trade Commission (FTC) has some guidelines that prohibit misleading pricing.
Its guidelines state: ‘Where an artificial, inflated price has been set for the purpose of facilitating the subsequent offer of a deep discount, the advertised ‘bargain’ is false; the buyer is not getting the unusual value he expects.”
However, enforcement of these guidelines is left to the individual states.
In California, JC Penney is facing a class action lawsuit over claims that it used “false reference pricing schemes.”
Meanwhile, Foot Locker in New York is facing accusations that it created false urgency about products by telling customers they were about to sell out.
And Amazon is currently facing a landmark antitrust lawsuit in 17 states. It claims the retailer has an illegal monopoly that is stifling technological innovation and driving up prices for Americans.
Amazon spokesperson Maria Boschetti told DailyMail.com: ‘It is completely incorrect to suggest that we are trying to deceive customers in any way. Amazon’s priority every day is to earn and maintain customer trust and deliver a world-class shopping experience that delivers choice, value and convenience.
“All deals at Amazon must communicate savings based on validated reference prices, whether it’s Black Friday or a regular shopping day. That said, our Black Friday and Cyber Monday shopping event is a great time to shop millions of deals.”
DailyMail.com reached out to Best Buy, Target and Walmart for comment.