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There’s a popular brand of high-quality raincoats that, famously, never has sales. They never offer promo codes; they never decrease their stock when it’s in low supply. Except—
Black Friday.
Once a year, on Black Friday, the brand has a huge raincoat sale with markdowns on every style, color, and size.
Understandably, a lot of customers wait all year to buy the raincoats in November. It’s predictable. It’s safe. It’s known.
So…is the company making a lot of money by holding this promotion? Or are they losing money, because customers are waiting to purchase the coats only at the reduced price?
It’s difficult to figure out how to effectively utilize and spotlight seasonal markdowns. So, as we head into the busiest shopping season of the year, we wanted to offer a few insights.
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