Have you ever felt swindled by Black Friday "discounts"? In this episode from "The Daily" podcast, host Michael Barbaro speaks with Nathan Burrow of Wirecutter about unveiling true deals. Burrow explains how Wirecutter's team of journalists rigorously evaluates sales claims, using data to distinguish real bargains from misleading markdowns on inferior products.
The discussion delves into revealing retail pricing tactics like inflated list prices and manufacturer policies that restrict advertised prices. Burrow also shares insights on categories with the best and worst Black Friday deals, preparing listeners to shop Black Friday sales with discernment.
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Wirecutter's team, consisting of around 100 journalists, meticulously reviewed 147,712 potential deals last year but endorsed just 1,344 as truly good discounts, according to Nathan Burrow. They only recommend deals offering substantial savings on quality products compared to the lowest prices tracked over the year.
During sales like Black Friday, Wirecutter scrutinizes apparent discounts against inflated list prices. Burrow warns of discounts on lower-quality TVs that create the illusion of value. To avoid this, Wirecutter uses "street price" as a benchmark for genuine discounts.
Retailers may time sales before Black Friday to limit deeper discounts on the day itself, taking advantage of price protection policies that many consumers neglect.
Burrow explains that manufacturers' suggested retail prices (MSRPs) often differ from the actual "street prices" retailers charge. Retailers create list prices independent of MSRPs, using them to make discounts seem larger.
Minimum advertised price (MAP) policies restrict how low retailers can advertise, making comparison shopping harder. Algorithmic price matching also leads to a "race to the bottom" that rarely goes below MAP.
Burrow notes that small kitchen appliances and older electronics models often have the best Black Friday deals as retailers clear inventory. But the latest tech sees smaller introductory discounts – better deals come later.
Some brands like REI skip Black Friday, instead hosting their own sales events where customers can find the year's best deals on their products.
1-Page Summary
Wirecutter's meticulous approach to deal hunting involves a large team and a selective endorsement strategy, ensuring only the best discounts are recommended.
The Wirecutter team, comprised of around 100 journalists specializing in different areas, dedicates extensive effort to separating the wheat from the chaff in the online marketplace. Over the course of last year, they meticulously evaluated 147,712 potential deals in their search for genuine bargains.
It is significant to note that, of the vast array of deals scrutinized, Wirecutter advocated for merely 1,344. This tiny fraction, approximately 1%, aligns with the pattern they've seen consistently year over year. Nathan Burrow, weighing in, emphasized the strict criteria for a product to be endorsed by Wirecutter—it needs to present a substantial discount on a quality product. Wirecutter does not simply compare prices to the manufacturer's suggested retail price; instead, they gauge whether the deal offered is equal to or bet ...
Wirecutter's deals review process and scale
As consumers prepare for sales events like Black Friday, understanding the difference between an apparent bargain and a genuine deal is crucial.
Nathan Burrow warns shoppers that Black Friday may bring discounts on items of lower quality, especially TVs. It's common for retailers to advertise substantial discounts on these items, making consumers believe they're getting a deal when in fact the products are simply cheaply made.
To combat this illusion, Wirecutter employs the concept of "street price," which is the average everyday price of an item, as a baseline to determine if discounts offered are truly significant. Street price takes into account the usual pricing fluctuations and serves as a benchmark to recognize real value in discounts, avoiding the influence of sometimes drastically inflated list prices.
Shoppers are urged to be diligent in researching the specific models and features of the products they intend to purchase. Some sale items may look similar to high-quality versions but differ in features or build, misleading consumers about their de ...
Identifying true vs. misleading deals
Retail pricing strategies can be complex, and consumers may find it challenging to discern the best deals due to various tactics employed by retailers and manufacturers.
Nathan Burrow describes how retailers ignore manufacturer's suggested retail prices (MSRPs) in favor of setting their own pricing approaches. This results in the creation of list prices that are independent of the MSRPs. Often, MSRPs are used to give the illusion of a significant discount. Burrow refers to this strategy as another form of discount manipulation, which capitalizes on the perception rather than the reality of a deal.
Minimum advertised price (MAP) policies are another layer of complexity that affects how consumers shop and compare prices. These policies can limit how low a retailer can advertise a product price, making it harder for shoppers to comparison shop and identify the true best price. Because of the restriction on advertising, consumers might not immediately see the most competitive offers and must put in extra effort to discover the actual prices retailers might be willing to offer.
Retail pricing tactics that make it hard for consumers to find good deals
Nathan Burrow shares insights into which products likely offer the best deals on Black Friday and which ones might not be worth the wait.
Small kitchen appliances and certain electronics like TVs and laptops generally have the best Black Friday discounts. Retailers often aim to clear out their older inventory in these categories, which allows them to offer more substantial discounts.
Burrow notes that many electronics are refreshed annually, leading retailers to unload older models at significant discounts as newer versions are released. Similarly, the higher profit margins on kitchen appliances mean that they can be deeply discounted during sales events such as Black Friday.
Shoppers looking for the newest high-tech gadgets may be somewhat disappointed during Black Friday sales.
For those always seeking the latest technology, Burrow advises that Black Friday may not be the best time to buy. Products like the most recent iPhone or laptops with the latest processors might only receive small, introductory discounts. He suggests that these items should be given time to age on the market before better de ...
Product categories with the best and worst Black Friday deals
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