Black Friday is one of the biggest shopping occasions in South Africa. This is particularly the case online when scores of people buy a range of items, including electronics, clothes and home appliances.
But while there are great deals to be found, it's important to shop smart and not overspend.
Although it’s easy to find yourself justifying spending money on deals during Black Friday, South Africans should maintain an “if I can’t afford it, it’s not my bargain” mindset and keep their credit score at the forefront of their minds, advised Ayanda Ndimande, of strategic business development at Sanlam Retail Credit.
She also suggested setting up a vision board in order to remain focused on long-term financial goals.
“Sanlam Credit Solutions offers a free dashboard to help you set smart financial goals and build a healthy credit score,” she said.
To make the most of this significant spending day, Ndimande shared a few tips:
Be careful with credit:
Be careful about signing up for multiple lines of credit in a short period as it could harm your credit score, Ndimande warned.
“Instead, transfer your salary to your credit card and spend only the money you have. This way, you can avoid accumulating debt and earn credit card rewards.”
Make a budget
Your bank statements provide an honest reflection of what you can afford, Ndimande said, adding that shoppers should create a budget based on their financial affordability.
“Keep where you can see it, so you remember your financial limits and with this budget in mind, make a wish list in advance to avoid getting caught up in the hype.”
Check prices carefully
Retailers often inflate the base prices of items before the sale to make the discounts appear more significant.
Ndimande advised that to ensure you’re getting a genuine deal, consider using tools like Scrapy, a free Chrome extension that provides the price history of products from major South African stores.
“This allows you to track the average prices of your desired items, determine a fair discount, and secure the best deals on the day.”
Know the returns policy
Ndimande recommended familiarising yourself with the purchasing and returns policies before making a purchase. “This ensures that you are aware of the possibility of returning an item if needed.” She added that shoppers should keep all receipts and proof of payments, and consider emailing virtual copies to yourself for safekeeping.
Exercise credit caution
When you use a loan or credit to make a purchase, you end up paying interest on the borrowed amount.
“Although the monthly payments may seem manageable, the long-term cost can exceed the upfront price of the item,” Ndimande said.
She suggested opting for lay-by, which often has no interest, can be a better alternative.
“Additionally, lay-by prevents sellers from increasing the price of the item while you’re paying it off.”
Don’t fall for all the deals
Retailers often highlight a few exceptional deals to create the illusion that all their bargains are equally great.
“However, it is important to see through the marketing tactic. Not all deals are as exclusive or limited as they may seem, as many have been available during other sales throughout the year.”
“This is known as the scarcity effect.”
Unsubscribe from marketing emails
To avoid temptation, consider unsubscribing from marketing emails that might make you want to buy things you don’t need, Ndimande suggested.
“Stay focused, stick to your budget, and keep your vision board in mind. It’s great to work toward buying one or two worthy items on sale while trying hard to avoid debt and continuing to work toward the future. That’s how you can shop with confidence this Black Friday,” Ndimande said.