This year’s Black Friday has come and gone, but what it says about the economy and consumer spending has deeper meaning for real estate agents.
Black Friday isn’t something that needs to be explained. You’ve undoubtedly taken advantage of it yourself in the past. But over the past few years, something has felt a bit different about it, right?
There are few to none of the stampedes and chaos we’ve come to know that day by. The deals don’t seem quite so great, and some people are even saying that Black Friday is dead.
Of course, the real questions here are why am I even talking about this and what does it have to do with your business? I mean, real estate agents don’t sell cheaper houses on Black Friday.
The answers (as all the best answers normally do) come from the data and what that data implies about consumer spending habits.
In this blog, we’ll take a look at some of the metrics released about last week’s Black Friday sales, what they mean about today’s consumers, and how you can use that information to increase your own sales on any day of the year.
Ready to roll? Let’s dive right in…
Black Friday: Inflation Style
Here we are again, talking about inflation…
Sure, inflation is said to have decreased overall since the beginning of the year, but people are still feeling its effects coupled with high interest rates on mortgages and loans as well as the hit the past few years have had on their savings.
People are strapped for cash, which means they’re being more conscious of what they spend their money on. A poll taken last year said that 40% of shoppers went to grocery stores for Black Friday deals.
And consumers aren’t the only ones hit by the cost of inflation – businesses are hurting too.
If you did check out a retail store this past Black Friday, then depending on where you live, you may have seen the stores practically empty. That’s because many retailers have completely abandoned those massive 80% discounts, opting instead for a meager 25-30% off. Some are even posting stickers with “BLACK FRIDAY SALE” showing the exact same retail price.
So… Deals are down. Consumers are tight on cash and cautious of where they spend their money. One would assume that overall spending is down, right?
Life Doesn’t Stop Happening
Despite everything that might suggest the opposite, 2023 Black Friday and Cyber Weekend online sales hit a record $38 billion. That’s up 7.8% from last year!
People are still spending, even though deals aren’t as great as they once were. This suggests that people recognize the hard time America is going through and a modest 25% discount is something they can no longer ignore (don’t worry, I’m not going to suggest that you offer seasonal discounts on your services). It’s no coincidence that the most purchased items of this year’s Black Friday were the ones with the steepest price cuts.
If this is a surprise to you, it shouldn’t be. Because I promise you, no matter how hard the economy may be at any given time, life doesn’t stop happening. The holidays are still coming. People still need gifts. They still need stuff – just like they will always need to move for one reason or another.
But if people have less money and they’re spending more than before, that means… You guessed it! Credit card debt is also at an all-time high. As you probably know, I’m strictly against allowing yourself to fall into debt, but it goes to show you that people have to find a way forward even in difficult times.
Let’s recap what we’ve learned:
- Prices are higher and deals are smaller than they used to be
- People have less money and are conscious of where they spend it
- Regardless, they’re still spending at a record rate
- Credit debt is at a record high
Now, let’s talk about what this means for you…
You’re Not a Store
The retail market sounds a lot like the housing market right now, doesn’t it? High prices, high demand, less good inventory…
But no matter what, buying and selling never takes a day off. Life happens and when it does, you’re the one who is there for people who want to buy or sell.
What’s most important is that you get very clear about what it is you do and what you’re selling. You’re not a store that sells products – therefore, you don’t offer specials. What you are is a specialist, an educator, and a negotiator who is responsible for your clients’ financial well-being.
Until people fully understand that, it can seem as if you’re a resale store charging an unnecessary fee when in reality, your job is to save and earn your clients more money back. You are the discount – a long-term one that returns dividends over a lifetime.
What You Can Do About It
For starters, you need to show social proof that having an agent to represent them will actually save them money when buying or selling a home. On top of that, it’s vital to show the financial advantages of renting vs. buying.
Case studies are an amazing way of clarifying your role in people’s lives, and they can come in more ways than you’d expect. Some of our Rockstar clients are having phenomenal success sending out “Before & After” postcards showing the staging transformations they’ve done to properties before selling them for record prices. Now, with how effective those are, what do you think would happen if you created HGTV-style social media videos that show what you do? Yeah…
Get in front of people. Do Annual Equity Reviews for all your past clients where you inform them that you are their financial advisor in all things real estate and your job is to help them create long-term wealth.
And of course, share regular social content about what’s actually happening in the market.
The truth is that the best time to buy products is usually Black Friday, but the best time to buy a home is almost always as soon as you can.
Also, the rise is debt means that it’s more important than ever to prequalify your clients. Don’t forget this.
Speaking of Black Friday Deals…
I know I started by mentioning how deals usually aren’t so great anymore, but did you think I’d really follow that pattern? Just like you, I’m dedicated to providing as much value as possible for the lowest possible price. And oh, do I have some value for you…
We’ve extended our Black Friday/Cyber Week deals all the way to this Friday at midnight PT.
That means you still have time to sign up for one of our three training Programs starting in January at 50% OFF when you use the code FF-CyberMonday at checkout.
Explore each one and choose what you need:
These aren’t just one-time gifts… These are purchasable skills that will increase your GCI over the course of your career. I suggest you take advantage if you can.
Hope this has been helpful!