It’s All In The Name 

The power of name recognition has always fascinated me. The fact that people will buy something, even if it’s more expensive, just because it’s name brand is something worth diving into.

People buy based on name brands for a number of different reasons. The feeling of safety, status, longevity, and many more come into the fold.

My favorite example of this is bleach. Clorox has been making bleach for generations and people trust them. Meanwhile there are generic brands that are cheaper and do the same thing.

Why do people spend the extra money on Clorox? Bleach is bleach, right? They both accomplish the same goal.  

The name recognition, that’s what.

Brands spend lots of money to build trust like that with their consumers. It takes years of building your product. It’s crucial for everyday items like paper towels and cereal.

Big ticket don’t escape this fate either. Let’s use luxury cars as an example. If you could afford one which one would you pick? Mercedes? BMW? Lexus?

Why did you pick the vehicle you choose?

That reason is the trust one of those cars has built with you. Whether it’s luxury, reliability, or another quality, that brand has made an important connection to what matters to you (the consumer)

What other items does this apply to?

As always, thanks for reading.

The Death of an Empire

Another Thanksgiving gone, another Black Friday has passed.

Not too long ago Black Friday was a time when shoppers could get the best deals of the year. TVs, game consoles, and many other items were flying off shelves faster than your grandmother’s apple pie. This year black friday sales haven’t been successful as previous years.

Why is that?

There are many. A lot of people, including myself, would rather wait and do all of our shopping on Cyber Monday. It’s easier, more convenient, and you don’t have to end Thanksgiving Dinner early to go stand in the cold. Other factors have contributed to the decline of Black Friday as well. Many stores started their sales weeks before and even extended them. People are finally realizing that Black Friday is nothing more than hype now. After seeing post on social media over the years of fights and other disorderly instances happening in stores, people would rather stay at home and shop later. Throw in the fact that many people are starting to realize people actually have to work on Thanksgiving just so they can save on a few items probably isn’t the best way to build karma.

I say all that to say this:

Black Friday is dying.

When Black Friday was all the rave there was one key component to its success. People can get a great deal but the window was small and the supply was minimal. I wasn’t too big on economics but I do know that the smaller the supply the more demand there is for it. If Target only has 25 TVs for a low price then the demand (people showing up to buy) will increase. By starting sales early and keeping them throughout the holidays lessens the need to stand in line late Thursday night. People can buy the same TV online or go to the store when they have the time.

Who knows, Black Friday may one day become obsolete.

As always, thanks for reading.