Black Friday arrived in Brazil just over a decade ago and has become the country’s biggest commercial event. What started timidly in 2010, with a few stores testing the model imported from the United States, has become a billion-dollar phenomenon that mobilizes all national retailers and dominates the November sales calendar.
For most companies, however, the date is a trap that looks like short-term growth while eroding margin, brand and relationships in the medium and long term. Revenue rises and the graphics are impressive, but the numbers hide a silent deterioration in the structure that supports the business.
The account that doesn’t close
Consider a product sold for R$1,000 with a 40% margin. Each sale generates R$400 in profit. On Black Friday, a 50% discount drops the profit to R$100. To preserve the same financial result, the company needs to sell four times as many units. The operation becomes heavier, logistics becomes more stressed and the team works harder to deliver a profit that does not grow at the same rate.
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Even with some idle capacity and low marginal cost, the question that decides the strategy arises: how many of these new customers return paying full price after the promotion? The most common response is discouraging. Few return. The discount anchors the perception of value at a lower level and reduces the willingness to pay in the future. The business trains the customer to only buy when there is a price stimulus.
Price communicates value
When a product costs R$2,000 in March and R$600 in November, the message is clear. The customer comes to believe that the true value is closer to the promotional price than the full price. Those who would pay R$1,500 decide to wait. The loyal customer feels deceived. The occasional buyer starts to consider the acquisition acceptable only with a large discount.
This phenomenon is a classic case of price anchoring. There are legitimate exceptions: true clearance sales of discontinued inventory, past collections, or seasonal items justify discounts without destroying credibility. The problem is that, in practice, retailers tend to apply reductions on current products or on previously inflated prices. The consequence is the erosion of trust and positioning.
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Who do you attract and who do you push away?
The narrative that more sales means more success ignores the makeup of the audience. Black Friday tends to attract the transactional buyer, one who is price sensitive and not likely to engage in relationships. This customer has a low LTV and returns only when the promotion reappears. The company dedicates scarce resources – attention, operations, capital – to serving those with lower long-term value. Meanwhile, the loyal customer, who pays full price and recommends the brand, faces queues, worse service and a silent message that they should have waited. The hierarchy of priorities is inverted.
Companies that rely on buybacks feel the shock more acutely. Fashion, beauty and electronics are clear examples. LTV falls, the purchase window shifts to promotional moments and the frequency of repurchases reduces. The organization sells more in one day and loses predictability throughout the year.
Thank goodness
The impact depends on the economic structure of the business. The effect is devastating in three situations: when there is high dependence on buybacks, when margins are tight or when positioning is at a premium. Discounting destroys exclusivity, congests operations and dilutes the brand’s core message.
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In segments with marginal costs close to zero, such as software and digital courses, the operational damage is lower. Black Friday isn’t a deal breaker, but it still takes its toll. The reference price moves downwards and part of the public that would pay more ends up captured by a reduced ticket.
Infoproducers are in this “least evil” group. With marginal cost close to zero, each Black Friday sale is direct profit. Yes, many make millions. The business doesn’t bleed like traditional retail. But less evil does not mean good business. The relevant question is not “did you make a profit?”, but rather “how much did you leave on the table?”. If 20% of buyers would have paid full price, you gave hundreds of thousands of dollars as a gift.
There is an exception within an exception: single-purchase products without a progressive portfolio. A preparatory course for ENEM fits here. The purchase is unique, the marginal cost is low and there is no future LTV to preserve. The customer does not return because the product solves a specific problem. In this specific case, the damage is contained. Even so, organic indications weaken and the market learns that the reduction is worth waiting for.
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Artificial scarcity
Black Friday explores the scarcity trigger. When scarcity is real, it works. Limited batches, single editions or classes with defined vacancies create legitimate urgency. The problem arises when scarcity becomes an act. Recurring countdowns, last units respawns, and weekly flash discounts turn a powerful psychological engine into predictable noise. The customer notices the manipulation and trust deteriorates. And trust cannot be bought back the next day.
Alternative paths
You have two options that won’t destroy your business. The first: do Black Friday only for those who are already customers. Early access, real benefits, no theatrics for unknown discount hunters. Another option is to clearly communicate that the company is not participating in the date and maintain stable prices. Brands that adopted this stance strengthened their identity and attracted consumers who value consistency.
Some organizations chose to subvert the event code. REI closes its stores and encourages the public to enjoy the day outside of consumer centers. Patagonia reinforces purchasing moderation in campaigns that ask for reflection. In both cases, the core message is preserved and brand equity expands.
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Participating is not an obligation. It is a strategic decision that needs to consider the effect on margin, recurrence and value perception. Selling more does not equate to creating value. In many contexts, saying no to Black Friday is a direct way of saying yes to the future of your brand.
Conclusion
Black Friday is a race to the bottom. Everyone enters because everyone enters. The result? Melted margin and a customer that only comes back when you bleed again. It only makes sense in specific niches: those with very low marginal cost and no need for subsequent relationships. For the vast majority of companies, it destroys what sustains the business over time.
The relevant question is not whether Black Friday generates revenue, but what is the price of this revenue for the company’s health.
