BFCM: Chasing Revenue or Real Profit?

November 17, 2024

by an investor from Massachusetts Institute of Technology - MIT Sloan School of Management in Miami, FL, USA

Every year, consumer brands pour massive energy into Black Friday/Cyber Monday, but let’s be honest—it’s rarely a material driver of profit. For most, it’s about making revenue look a bit more attractive for investors or stakeholders.

This year, the stakes are even higher. With the presidential election dominating attention in November, ad costs are set to skyrocket as brands scramble to hit numbers that already feel out of reach.

This year, BFCM isn’t just about hitting targets—it’s about survival. For many brands, the reality is stark: if they don’t generate enough cash to carry them into next year, it could mean game over.

Thoughts?

Reply by a professional
from RWTH Aachen University in Denmark

I agree that BFCM is especially important this year, but I don't agree with the thought that it's typically just to make revenue look cute for investors without any real profit behind it. BFCM is one of the most creative moments of the year for E-Commerce brands. The campaigns run during this time give insights, test results, UGC, product reviews, and an all-round boost to the company's entire systems. These rewards are seen immediately, and long term as well. While some brands make it to next year with BFCM revenue, others use it to test, shift and grow. All brands, regardless of their size, will benefit from this time of year (every year).

Reply by an intermediary
from City University of New York, Bernard M. Baruch College in San Francisco Bay Area, CA, USA

Brands are always trying to balance increasing sales, while maintaining profits also trying to "Hitting the number" that they told the marketplace. Unless you are dealing with new technology and not expecting to make a profit for a number of years(Internet, a few year back and MCI vs ATT), you will continue to fight the battle. Market share is always going to be the buzz word for brand and stockholders, but the brands have to be careful at what costs. I'm old school, if I spend $1, I want to come up with $###-###-#### Brands shouldn't recreate the wheel, but do it more efficiently.

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