Yesterday, a former Walmart employee told me something shocking that made me think twice about hunting for deals this Black Friday. He said that many of the products with impressive deals are “fake”.
He claimed that TVs with the best deals are typically lower quality versions.
I had to do some research of my own to figure out whether or not this was true. Turns out, it is.
Ever wonder how you can purchase a $300 TV on Black Friday for $100? That’s because it’s not the $300 TV, it’s a derivative.
A derivative is a product model that is made with cheaper material and design that mirrors an original product. Often offered as limited edition models, stores purposely advertise these models front and center on Black Friday to increase profit margin.
Whose to blame for derivates? Both retailers and their suppliers are behind this scheme which psychologically influences consumers to alter their purchasing behavior. And it works — according to a study completed by the Statistic Brain Research Institute, consumers in the US spent about $68 billion in stores last Black Friday.
Products that are the most susceptible to being sold as derivatives are in the tech and fashion industry. Since derivatives are made with cheaper material, they typically don’t last as long and often break.
To make sure you’re not being scammed on Black Friday follow these quick steps:
- Check the product specs
- Determine if the same model is sold at other stores
- See if the product is only offered for “a limited time”
Black Friday is coming soon. Don’t risk purchasing derivatives, spend time with your family this holiday season instead.
Remember: If you think a deal is too good to be true, that’s because it probably is.