• Business Growth & Optimisation

Black Friday: How Small Businesses Can Make a Profit

7 min. read17.11.2021
By Team Zeller

Discover how to cash in on Australians’ urge to splurge.

Whether you run a brick-and-mortar retail store or an online shop, Black Friday presents a large opportunity to reach new customers and grow your profits.

With almost 9 million Australians set to open their wallets for the sale weekend, and up to $3.8 billion predicted to be spent, this is one sales event business owners won’t want to miss. And with whispers of upcoming sales already dropping into consumers’ inboxes, now is the time to think about your Black Friday strategy and how you’ll cut through the noise with a compelling offer — while improving your bottom line.

What is Black Friday?

In short, Black Friday is the first Friday following Thanksgiving in the United States. It’s commonly known as the first day of the Christmas sales season and, while the holiday itself is an American invention, it has steadily become a frenzied day of discount shopping here in Australia.

Black Friday has quickly become a shopping phenomenon; in 2020, just 4% of Australians had never heard it. Every year, millions of dollars are spent in shopping centres, high streets and — increasingly — local shops. In fact, last year’s total retail turnover rose by 13.3% in November, compared to the year prior. There’s no denying that this well-known sales event is a drawcard for shoppers.

Why do shoppers love Black Friday?

One word: discounts. Everyone loves a bargain, especially when Santa lists are being drawn up.

In fact, PayPal’s most recent EOFY Sales Trends Report shows the hunt for a bargain is increasingly becoming part of the human condition. One of the reasons Black Friday is becoming increasingly popular is because customers are growing less and less willing to pay full price. PayPal’s EOFY Sales Trends Report this year revealed that almost half (46%) of all Australians say they have watched an item they wanted and waited until it went on sale before buying online.

This is why businesses need to invest in brand building and storytelling – so they can deliver on value while still enjoying sustainable year-round sales without compromising on profit. If they can get their strategy right, brands can carve out a greater slice of market share, capitalising on the ‘revenge spending’ phenomenon gripping the country.

When is Black Friday?

The Black Friday sales are commonly considered the kick-off to the end of year sale season. Traditionally slated for the end of November, it’s followed by Cyber Monday the following week, before then ushering in a month of Christmas and Boxing Day sales only days later.

In 2021, Black Friday will be on November 26. This year, however, the date aligns with the easing of retail restrictions across the country. While it’s been a trying two years, The Drum reports that Australians have stockpiled more than $140 million — money that’s expected to be injected into the economy through shopping, dining and travel.

This makes Black Friday the perfect opportunity to cash in on consumers’ appetite to spend.

Do you have to participate?

Like all sales events, participating in Black Friday is not compulsory for small businesses. However, it has become increasingly popular in Australia; many consumers hold off purchasing until the sales hit, ensuring they’ll bag a bargain.

This brings us to an important point: many savvy shoppers wait for a better price. This explains why 30% of all retail sales occur between Black Friday and Christmas — because consumers are essentially promised a good deal.

Participating in an event like Black Friday could convert a number of purchasers who are on the fence or deterred by high prices. And, if you invest in your marketing, you could also attract a new customer base during the sales event.

Therefore, when it comes to participating in Black Friday, the question you should ask yourself is, “will it pay to miss out on this opportunity?”.

How to bankroll Black Friday

As we’ve already established, when consumers go shopping on Black Friday, they’re out for a deal. Yet at the same time, if it isn’t an equally lucrative opportunity for businesses, then merchants wouldn’t be participating.

This year in particular, shoppers are keen to spend their money locally and reinvest in small businesses that have suffered during the pandemic. In fact, more than 50% intend to support local businesses with their dollars.

If you do decide to participate in Black Friday, here are six tips to make sure it's a success.

Make your offer clear and compelling

Some of the most effective Black Friday campaigns advertise either ‘up to X% off everything’ or ‘spend and save’. Both promotional formats drive purchases — one by promising a discount across the entire store, while the other rewards higher spending.

Which one works for you depends on your products and target customers. A blanket discount can entice passersby into your store, in the hopes of nabbing a bargain. Spend and save sales are limited-time sales that work by persuading customers to purchase more to save more, and are typically used by high-end retailers.

Once you’ve decided your offer, it’s recommended that you shout it from the rooftops (or at the very least, on all of your social media accounts). That way, you’re making the customer journey more seamless, as well as profiting from the SEO benefits.

Be strategic with your profit margins

The last thing you want to do is lose money from Black Friday sales. Some business owners fall into the trap of ‘slashing’ prices to gain a bigger share of sales spending. It’s only until they count their pennies later that they realise they’d all but removed the product margins.

The average savings on Black Friday sales are 37%. That said, you should refer back to your own business plan to calculate the sweet spot between consumer appeal and profitability for your specific circumstances.

Leverage each sales transaction

Sales can be just as valuable for merchants as they are for shoppers. If you’re offering big discounts, consider introducing a ‘subscribe to save’ strategy that collects customers’ contact details in order to unlock the discount. It could be something as simple as a newsletter sign-up at checkout. This allows you to market to them in the long-run with exclusive offers, sales events and new releases, potentially converting them into repeat purchasers or even loyal customers and brand advocates.

It’s critical that you communicate the benefit of signing up clearly — both in-store and on your socials — to encourage subscriptions.

Open early

In order to leverage the sales frenzy and maximise your Black Friday revenue, consider opening your doors earlier than usual. In 2020, Deloitte reported that 36% of customers planned to visit stores between midnight and 6am, and 46% between 7am and 10am. So, if you choose to open at 10am, there’s a sizeable chunk of spending you could be missing out on.

Should you decide to open outside of your regular hours, you need to get the word out that your Black Friday sales will be extending store hours to really make it worth your while. This includes updating your socials, Google My Business profile, and website. You might even like to consider investing in Facebook ads.

Have a wireless, roaming EFTPOS terminal

While Black Friday can be hugely profitable, it can also be hugely stressful. Long queues and extended waiting times are likely to create anxiety for some shoppers as we continue to navigate our way through the current pandemic — which is why it pays to prepare your store early, and ensure staff are comfortable enforcing social distancing and store capacities to ensure your shoppers feel comfortable and confident.

Another way to trim lines and wait time is with a wireless EFTPOS terminal that allows you to accept payments at multiple points throughout the store. Zeller Terminal can be picked up and taken wherever your customer is, allowing you to streamline transactions and disperse queues. Plus, you can use it to accept card-not-present payments over the phone — negating the need for people to enter the store during your Black Friday altogether, leaving space for someone else to squeeze in.

Ready to get started with Zeller?

Sign up now

Relish the changing ways of retail

Some small businesses exclusively offer discounts during peak sales periods, like Black Friday, which trains consumers to only ever buy at specific times of the year. These businesses are also likely to only invest in advertising during these periods — which means they’re competing against countless other brand messages, leading to low bang for their advertising buck. And then there’s the risk of having a products’ recommended retail price being considered ‘over-priced’, because it’s always on sale.

For any of the above reasons, you may decide that Black Friday isn’t for you. Fortunately, it’s only the beginning of the sales season — which means there are countless opportunities to cash in on Australians’ urge to splurge in the weeks ahead.

Now that you understand the wealth of opportunity that Black Friday presents, it’s time to optimise all other aspects of your business. Sign up to our Business Blog to cash in on valuable insights sent straight to your inbox.

Meet Zeller: we’re reimagining banking for Australian businesses

Accepting payments, managing your finances, and paying recipients should be simple. Unfortunately, this isn’t always the case. Our research shows the majority of Australian business owners are dissatisfied with their business banking. The truth is, most merchant services solutions aren’t built to help your business thrive. That’s where Zeller comes in. Today, we’re launching Zeller — giving Australian merchants affordable, accessible, and innovative tools that enable businesses to get paid, access their money, and manage cash flow — without ever having to set foot inside a bank. We’re reimagining business banking through powerful new technology, backed up by local support and personalised service. An innovative SME alternative to business banking “Innovative” isn’t a word usually heard in the context of merchant services. Finding integrated financial solutions to grow and support your business often requires you to weave together multiple products from different providers, which typically means longer processing times, more paperwork, and a more frustrating experience. Large enterprises benefit from financial solutions tailored to their specific needs; traditional banks have shown that they’re more than willing to pour resources into supporting big business. However, this comes at a cost to the everyday Aussies behind our small to medium sized businesses. SME owners are typically forced to fit the traditional banking mold, suffering through archaic onboarding processes only to be hit with high fees, lock-in contracts, and slow processing times when the paperwork is complete. For new business owners, this can present what seems like an insurmountable hurdle to starting and growing a venture. With 67% of businesses stating they would prefer a non-Big 4 bank, it’s clear that Australian business banking is fundamentally broken. A lack of innovation from the incumbents means merchants like you are overlooked and underserved, at a time when they should be thriving. Businesses need new tools, technology, and support to grow. And that’s why we built Zeller. What’s in the box Zeller is all-in-one payments and finance solution for Australian businesses. It helps to accelerate your business cash flow by giving you a next-generation EFTPOS terminal, a free business transaction account, and free business Mastercard, all in one box. 1. Zeller Terminal Our research revealed that 71% of business owners using clunky EFTPOS terminals regularly consider switching providers. High costs and expensive fees, slow deposits that impact cash flow, and a lack of local support are all common reasons for businesses looking to switch. The majority of Australian business owners are dissatisfied with outdated EFTPOS technology currently on the market. Zeller Terminal is an all-in-one card payment and EFTPOS solution. Our next-gen payment terminal allows you to accept every payment from every customer – Zeller Terminal accepts contactless devices, contactless cards, chip cards, magstripe cards, and will soon also accept alternative payment methods such as Alipay and ZipPay. As new payment methods continue to emerge and shape the way Australians pay for products and services, Zeller Terminal will adapt to support Australian businesses to grow. Read more about Zeller Terminal . 2. Zeller Transaction Account We understand that being able to effectively manage and access your cash flow is key to the long-term survival of your business.  That’s why we make sure your funds are available as quickly as possible after taking payment from a customer. Zeller Transaction Account is included free when you sign up for Zeller. Your account is instantly ready to use, giving you real-time visibility over your settlements and spending — no lengthy paperwork required. When you take payment through Zeller Terminal, funds are settled directly into your free Zeller Transaction Account within the day. You also have the option of sweeping your funds into any existing bank account, and they’ll be accessible as soon as your bank allows. Read more about Zeller Transaction Account . 3. Zeller Mastercard By giving you the tools to accept payments, store and settle funds, and spend your money, we're significantly reducing the time it takes for you to get access to your funds. According to the Australian Bureau of Statistics, more than 60% of small businesses close within their first three years — and the most cited cause for business failure is poor cash flow. As a business owner, fast access to your funds to pay your staff, suppliers, or buy product, is imperative. Read more about Zeller Mastercard . By seamlessly combining these services into a fully integrated solution, Zeller significantly reduces the time businesses spend on finding a merchant services provider, completing lengthy applications, getting set up, and connecting disparate payments and financial services solutions — all while speeding up your business’s cash flow. Watch the video to see how Zeller works in more detail. Your business, your way Merchant services should work the way your business needs, allowing you to pick and choose the business banking products you need to sustain and grow a profitable business. With Zeller, you have the option to choose the parts you need – Zeller Terminal, Zeller Transaction Account, and Zeller Mastercard work just as powerfully together as an integrated solution as they do alongside your existing products. Learn more about our EFTPOS machines and how our newly launched products are changing business banking for the better.

9 Questions to Ask When Buying an EFTPOS Terminal

Here's what you need to know about finding the right EFTPOS terminal. Searching for a next-gen EFTPOS machine that accepts modern payment methods, processes payments quickly, settle funds into your business account as fast as possible, and looks good on your countertop? Finding the right terminal for your business is important – you’ll rely on it for secure, fast cashless payments that keep your cash flow looking healthy. Some terminal providers will lock you into long contracts, with expensive termination fees, so knowing what to look out for is key. How much is it to have an EFTPOS machine? The EFTPOS machine you choose will depend on variables such as your budget, sales volumes, Point of Sale (POS) software, and fees associated with your merchant account. It costs $259 to own a Zeller Terminal outright. There are no hidden fees or charges, and no lock-in contracts. When you sign up for Zeller, you also receive a free Zeller Transaction Account (into which funds accepted via Zeller Terminal are settled nightly) and a free Zeller Debit Card — so you can pay suppliers and make business purchases with ease. Keep reading to discover the nine questions you should keep in mind when comparing EFTPOS terminals. 1. Do I understand the fees? Many business owners don’t realise they are agreeing to pay hidden fees, such as expensive terminal fees, until it’s too late. Sign the dotted line and you could be agreeing to pay a lot more than anticipated for your EFTPOS machine — and lock-in contracts usually come with hefty fees for early cancellation. Otherwise cautious business owners fall victim to hidden EFTPOS terminal fees time and time again. However, these fees are required by law to be disclosed somewhere – you just need to know where to look. Make sure to go through the terms and conditions with a fine-tooth comb; never solely rely on a verbal quote. If you’re already using an EFTPOS machine, check your merchant statement as this will tell you the processing fees and other fees you’re currently paying. It’s also important to remember that, in most cases, if you decide to rent your EFTPOS terminal you won’t own it at the end of the payment period. You’re simply paying for the privilege of using it, and will be left empty-handed when the contract ends. Although renting may look like an affordable option at first, it’s a tactic designed to get business owners to pay far more than what the terminal is actually worth. Zeller Terminal is yours to own for one low payment of $259. There’s no lock-in contract or hidden fees; we know you’ll keep using your Zeller Terminal because you love it, not because you have to. Learn more about Zeller Terminal and whether it’s the right solution for your business. 2. Will it be easy to use? Taking payment is usually the last interaction a member of your staff has with a customer. However, time wasted teaching staff the intricacies of a confusing system is time that could be better spent on other parts of the business. The ease with which staff process a payment affects the customer experience at every business. Your EFTPOS payments terminal needs to be easy for all staff to use, with minimal training. This is especially important if you run a retail store that hires casual staff during peak holiday and sales periods, or in another business that regularly hires new workers. When shopping for an EFTPOS terminal, consider whether it has been designed by a team that understands your business. Are the prompts straightforward? Is the user flow intuitive? Your terminal should feel natural and simple to use. If it is, your staff will save time with every transaction – and you’ll save time training them how to use it. 3. Can I customise it to suit my business? Some EFTPOS payment terminal providers will force your business to work their way. This is related to the point above: if you choose a provider who understands your business, you’ll likely find there’s no need to change your internal workflows. An EFTPOS terminal should fit the way you want your business to work. When selecting a terminal provider, consider how well it fits with your established processes. For example, you might want the ability to: restrict the ability to provide a customer with a refund to a small pool of staff, such as managers charge your customers a surcharge enable tipping customise your receipts Choose a provider that gives you the power to customise the way you accept and manage your payments and you’ll save yourself from needing to retrofit your processes to fit the tool. 4. What happens if my internet cuts out? Your business needs to be able to continue processing cashless payments even during periods of internet outage. You don’t want to have to send your customers to the closest ATM, or have them scrambling for cash. Occasionally, small periods of service downtime will be unavoidable. Your internet provider might be down for routine maintenance or there may be a power cut to your area, or another technological issue may impact how your EFTPOS terminal connects to the internet. However, any period of downtime has the potential to negatively affect your business — the impacted customer may never return. That’s why, when you choose Zeller Terminal, you have the option to switch to another network. If you’re experiencing issues with your Wi-Fi provider, it’s simple to connect via 3G to another network and continue processing payments using your SIM card. 5. How often will I need to charge it? These days, many businesses are run on the go — so a mobile EFTPOS terminal is a must. Cafes and restaurants that take payment from the table depend upon a long-lasting battery to get through the day. For a retail store, a long-lasting battery provides the flexibility to take payments from wherever is convenient for the customer. For mobile services such as trades and beauty technicians, having the ability to take payment on the go saves you the hassle of returning to your computer, sending an invoice, then following up until payment is finalised. It’s essential that the EFTPOS terminal you choose has enough battery life to give you peace of mind that you’ll never miss out on crucial transactions. 6. How fast can I put my funds to work? Depending on which payment services provider you choose to use, you could access your funds the same day you earn them – or you could be waiting upwards of three business days. The speed of settlement can have a big impact on your cash flow. Choose a provider that’s slow to settle, and you may find yourself in the frustrating situation of needing a business loan to tide you over until your funds are released. When you use your Zeller Terminal in combination with your free Zeller Transaction Account , you’ll get same-day settlement for your funds so you can spend using your Zeller Debit Card . Or, if you want to use your existing business bank account , your funds will settle the next business day. 7. Is there setup and ongoing support? Painful setup, hard-to-follow instructions, and uncontactable customer service representatives are headaches you simply don’t need. Some EFTPOS terminal providers are intuitive enough to use out of the box, whereas others come with a booklet of instructions you’ll need to follow. Or, you may be asked to book a technician to manage the setup on-site. Once you’re up and running, having multiple ways to ask for help – whenever you need it — is important. If your business operates in the evening and on weekends, look for a provider that offers extended support hours. If something goes wrong and you need answers fast, you need to feel confident that someone will pick up the phone on the other end. 8. Will it protect my business? Fraud is a risk for businesses of any size. Recurring chargeback fraud , in particular, can be costly for a business. When considering any financial services provider, it’s important to check whether it's backed by a team of security experts. You’re trusting this business to handle your money. Zeller’s Support team monitors transactions round the clock — 24 hours, 7 days a week — to prevent fraud before it happens. Backed up by intelligent machine monitoring, our team works to identify and respond to fraudulent attacks in real-time. 9. How soon can I get it? If you’re ready to start selling your products or services now, choosing an EFTPOS terminal that takes weeks to be delivered is an unnecessary setback. Why eat into valuable time you could be turning a profit? Ideally, your EFTPOS terminal will be available for delivery quickly. Even if you’re not ready to start accepting payments at your business, getting your EFTPOS payment terminal as soon as possible will give you extra time to get up to speed with its features and options for customisation. We offer fast, free shipping anywhere in Australia, for all Zeller purchases. Sign up for Zeller in minutes. Zeller Terminal and accessories can be purchased online from the Zeller Shop with free express shipping and same-day dispatch. Once you’ve considered these 9 questions, you should have a good idea of the non-negotiables you need from your EFTPOS terminal provider. Remember to always read the fine print and understand what you’re really paying for when you sign the dotted line.

How An EFTPOS Terminal Can Benefit Your Business

Considering a card machine? Here's what to weigh up. Having a reliable card machine and accepting card payments is becoming increasingly important to Australian businesses. Contact payment is now the norm, so when you’re starting up a business, one of the first things you’ll need to consider is whether to get EFTPOS (Electronic Funds Transfer at Point Of sale). While there has been a rapid decline in cash payments over the past decade, the rise in payment technology means it’s crucial to be informed about the various EFTPOS options that are available to your business so you can make the right choice. Looking for more information about what EFTPOS is and how it works? We’ve written a handy article explaining exactly that. Let’s take a look at the advantages and disadvantages of using EFTPOS in your business. What are the advantages of EFTPOS? The advantages of EFTPOS include faster transactions, encryption for security, quicker access to your funds, the ability to offer multiple payment methods for your customers' convenience, and proof of payment with a digital or hard-copy receipt. Faster transactions A card machine has the superior ability to speed up transactions, which means you can create a better service experience for your customers while also lowering your labour costs. For the hospitality industry, increased efficiency is the key to handling rush hour. This is the time your business will be making the most money so it’s important to be able to keep customer satisfaction levels high while finalising transactions quickly. Having EFTPOS machines handy helps your employees keep up the pace during those frantic peak times. More secure EFTPOS machines offer businesses a much higher level of security than when you’re dealing with cash and keeping large quantities of it in your till. Thieves primarily target businesses that make a lot of cash quickly. By having card payments where the funds transfer directly into your bank account, you are more likely to avoid being a victim of this type of petty crime. Quicker access to your funds Instead of making a time-consuming trip to the bank to deposit cash, then waiting for it to hit your account, you can accept funds through Zeller Terminal. The money will conveniently settle in your account by the next business day. If you sweep the funds into a Zeller Transaction Account, they can be available even sooner. This helps increase your business's cash flow. Some card machine providers have setups that take longer, so if fast access to takings is important to you, look for a provider that prioritises this. Accept multiple payment methods EFTPOS terminals can accept a wide variety of payment methods, including contactless technology. Options include AMEX, Apple Pay, Google Pay, eftpos, and more. Letting your customer choose what’s convenient for them will ensure you meet their needs. It's a key part of providing exceptional, memorable customer service as a whole. Proof of payment An EFTPOS terminal will provide your customer with a physical receipt, which proves what, when and how they purchased goods or services from your business. Some providers, such as Zeller, will also allow you to email or text a digital receipt to your customers, so they can keep it for their records. Even if your customer doesn’t take the receipt, you’ve got details of the transaction to ensure there’s proof of payment. There’s no need to count your till when a customer says they think they paid with a $50 note, but your staff gave them change for $20, either. Disadvantages of EFTPOS Merchant services fees Each time a customer makes a card payment, you have to pay a transaction fee. When you’re being charged a different rate for accepting AMEX cards, eftpos, and the rest, it can become very difficult to work out how much you’ll need to pay your merchant services provider at the end of the month. This is one reason why the typical merchant statement can be tricky to understand. However, you have the option to pass that off as a surcharge. Look for an EFTPOS terminal provider that charges one flat rate, so you can anticipate your charges. Every card tapped, dipped or swiped on Zeller Terminal costs just 1.4%. You can easily toggle surcharging functionality one or off anytime, from Zeller Dashboard . Risk of downtime EFTPOS terminals rely on a working internet connection to make the transaction happen. Some internet downtime is unavoidable, whether due to service interruption or upgrades — it’s out of your control. When this happens, you won’t be able to accept payment. This is extremely frustrating for a customer and potentially harmful to your business reputation. Decoy Cafe , in Melbourne CBD, was experiencing multiple internet dropouts at peak periods. This rendered their card machines, provided by one of Australia's big four banks, useless — and forced staff to ask customers to return the next day to pay for their purchases. However, since making the switch to Zeller Terminal, Decoy has resolved its downtime issues. Zeller SIM Card (powered by Optus) provides backup internet connectivity, in the event your WiFi cuts out, so you can continue taking payment. Should you get an EFTPOS machine for your business? Without a doubt, you should be operating your business with a quality EFTPOS machine that’s available to your customers however they pay. Every EFTPOS machine is different, from the speed of settlement to the merchant services fees. Make sure you consider all the pros and cons before you make a purchase so you select the card machine that’s right for your business.

What’s the latest?

Fresh resources, offers and updates in your inbox every month, to help your business succeed.