If retailers love Black Friday,

why not make every day Black Friday?g

Anthony Sanchez, Chief Marketing Officer | Infinite Buyer | infinitebuyer.com

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BLACK FRIDAY CREEP IN 2015 IS

PROBABLY THE WORST IT’S EVER BEEN.

The National Retail Federation (NRF) reports that as much as 57% of holiday

shoppers started making holiday purchases in early November. (NRF) Thanks-

giving Day sales are expected to rise by 18.8 percent up to $3.8 billion in sales.

(Twice.com) Some retailers began their “pre-Black Friday” sales weeks early,

and some will continue with Black Friday weekend, Cyber Monday, and beyond.

Why do retailers want to discount their goods for so long?

Price reduction is really the only tool retailers have to accelerate revenue.

Even if it is at the expense of margin or profit, many retailers would rather

make $10 profit per item than $40 per item if they think they can sell more

items.

The option to make a guaranteed smaller profit over a larger, more unpredict-

able profit makes sense. However, retailers really have no other choice right

now than to place an item on sale for everyone at the same time with the

same discount. What if we created a new model that can accommodate

unique pricing per individual?

57% OF HOLIDAY SHOPPERSSTARTED MAKING HOLIDAY PURCHASES IN EARLY NOVEMBER

http://bit.ly/Z4S7NpResearch shows that 71% of shoppers believe they will get a better deal online

than in stores. (Selz.org) As an online shopper, what would it be like if the first

website you land on has the product you’re shopping for and is able to sell it to

you at exactly the price you want to pay – every time?

Most consumers would be very happy about that. It would definitely save time,

and if the product is at the price they were willing to pay, then obviously that

would be a good deal for them. The shopper would buy the product, be satis-

fied with both the experience and the price, and probably return for future

purchases.

Why don’t online retailers do this? Isn’t it obvious? There is no way to have

enough information to know what everyone is willing to pay. And, even if you

did know the ideal price point, the seller would need to have different prices for

different people. Even if you could have a different price for each consumer,

there’s no way to match up what someone is willing to pay with the price a

seller would offer them.

71% of shoppers believethey will get a better deal online

THE BEST DEAL THE FIRST TIMEJ

71%

Fortunately, there is a model that solves this problem, but it requires retail-

ers to start thinking a little differently about how buying and selling happens.

Think back to the last time you bought a car or a house. With big-ticket items

like cars and houses, there is a “suggested retail price” or “sticker price,”

right?

Does anyone ever pay that published price? No, not really.

What happens in a transaction for a house is the buyer researches the

market, learns about the house they want, takes the asking price into consid-

eration, and then decides what they are willing to offer the seller.

If the seller’s asking price is way too high, the buyer might not even make an

offer, and the seller would never know. If the buyer’s asking price is competi-

tive, the buyer and seller negotiate towards a mutually-beneficial purchase

price and the deal is complete.

The other benefit to retailers in this negotiated model is they can sell the exact

same car to two different people on the same day for two totally different prices.

When you don’t have to sell everything at a published fixed price, it frees you to

sell at every different price. This has many advantages to a seller. You can poten-

tially be selling some items to buyers at or above the retail price if they highly

value the item. For example, if a husband is in a hurry and needs an item right

away for his wife’s birthday, he may be willing to pay above a published fixed price

to ensure delivery before her birthday (and before he’s dead meat).

WHAT IF YOU COULD TAKE THAT SAME

THINKING AND APPLY IT TO ALL

ONLINE RETAIL SALES?

http://bit.ly/1bfQc8g

CAN SHOPPING CART ABANDONMENT

BE ELIMINATED?JA 2013 study reported that mobile shopping cart abandonment rate soared as

high as 97 percent. (Radware) Before we just assume shopping cart abandon-

ment is a mobile device issue, desktop shopping cart abandonment rates also

reported to be between 70 and 75 percent. As an online seller, what if every

website customer converted to a sale because you were able to negotiate a mu-

tually agreed-upon price every time?

Now, this assumes every buyer is rational, and we can probably not count on that.

Some visitors would probably think they can buy a television for $2.00. Of

course,that is not a reasonable offer, and those kinds of buyers will not play well

in this model. In fact, they would probably be penalized or at least marked as irra-

tional buyers and eventually be weeded out of the community until they change

their behavior.

For the normal shoppers, removing the most difficult obstacle of too high a price

can dramatically reduce, maybe even eliminate, shopping cart abandonment.

With an individually negotiated price, both retailers and consumers can enjoy a

true win/win.

SHOPPING CART ABANDONMENT SOARED AS HIGH AS 97% IN 2013.

Losing Profits

Online retailers may not realize they are losing more than they have to by using

the existing published fixed price model. If the published fixed retail price of a

digital camera is $299, then everyone who is willing to pay $299, $309, and

even $349 would buy it. However, those who are willing to pay $249 would not

buy it.

The problem with sales like Black Friday discounts is that they lower the retail

published fixed price of the camera for everyone to $249. This is why so many

people buy the camera, because at that price, those who are willing to pay

$249 or more will buy it.

Unfortunately for the seller, this also includes the people who would have paid $279 or even $309 or higher.

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HTTP://WWW.STATISTA.COM/STATISTICS/472886/ONLINE-SHOPPING-DISCOUNT-TACTICS-USA/

Published discounts mean the retailer just gave up margin he could have po-

tentially received from a buyer willing to pay $289 but not the $299 full price.

With 64% of consumers waiting to make a purchase until the item goes on sale,

think of the lost or delayed revenue during the waiting period.

With a new retail model, a custom price per transaction would allow everyone

to make the deal they want with vendors who offer a negotiable price. A seller

that can implement this type of pricing system might not reach 100 percent

conversion, but almost certainly this pricing option could increase their conver-

sion above the standard one or two percent conversion rates most retailers get.

If the seller is equipped to sell at individual custom prices per person, where

each person paid only what they were willing to pay, they might make a sale to

more buyers.

You would think that a society that can send a man to the moon, split the

atom, map human DNA, and create the Internet would be capable of making

such a change. We believe it is possible and we would like to tell you, as an

online retailer, more about how to take advantage of this coming retail revolution.

The Revolutionary Way to Make Your Deal

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