The Psychology of a “Deal”: How Black Friday Tricks You Into Spending More

Every year, the day after Thanksgiving arrives with a familiar buzz. The turkey leftovers are barely packed away before the entire country shifts focus to one thing: Black Friday. The supposed Super Bowl of shopping. The day when every retailer claims they’re offering the “best deals of the year,” even though many of those deals mysteriously reappear again in February, Memorial Day weekend, and pretty much any time they feel like clearing inventory.

This year was no exception. My wife and her friends made plans weeks in advance to hit the premium outlets. You’d think they were training for a marathon with how seriously they approached it—coordinating which stores to visit first, predicting the longest lines, even discussing which snacks to pack like they were preparing for a long-distance hike. Meanwhile, I tagged along mostly for moral support and, let’s be honest, for the entertainment value. Watching people shop during Black Friday is like watching human psychology unfold in real time.

At one point, the group ended up inside Michael Kors—one of those stores that always seems to have a sale that looks too good to be true. And not in the “rare amazing find” way. More in the “I’ve seen a sale sign here every day for the last 10 years” way. You know exactly what I mean.

While the women were scanning shelves and racks for the best “deals,” one of my wife’s friends picked up a belt and asked me what I thought about it. But if you’ve ever asked someone like me what they think of a fashion item, you already know the answer I was looking for first: the price. I could care less about the buckle design, the stitching, or whether the color matches someone’s fall aesthetic. I want to know how much money we’re talking before I even pretend to evaluate the quality.

The original price on the belt was listed as $128. Okay, seems expensive for something whose entire job is just to keep your pants up, but sure—designer brand, premium outlet, whatever. My wife’s friend then said the magic Black Friday words:

“But it’s 70% off today!”

According to the tag, that dropped the price to around $40. But wait—Michael Kors wasn’t finished with their “generosity.” There was an additional 30% off the ticketed price. That brought it down to roughly $30. Now this is the moment where retailers want your brain to fire off that little spark of dopamine. The moment when your mind goes: Wait… from $128 to $30? I’m basically winning at life.

And if you stop thinking right there, congratulations—you’ve just fallen into one of the oldest tricks in retail history.

Because here’s the thing: that belt was never really $128. The chances that any human being has ever bought that belt for $128 are about the same as the chances of someone paying full price for a mattress. The “original” price is basically a fairy tale number—one thrown onto the tag to create the feeling of a huge discount. They could have listed the belt at $30 from the start and still made a profit. But would it have felt like a bargain without that big percentage sign slapped on the tag? Probably not.

This is the psychology of discounts. You walk in thinking you’re saving money, but the only thing you’re saving is the retailer’s inventory space.


Why Your Brain Falls For Fake Deals

Let me break this down because it’s both fascinating and infuriating.

Your brain loves the idea of a deal. It’s wired to appreciate perceived value. When you see something listed as $128 and then discounted to $30, your mind doesn’t think, “Oh, okay, $30.” Instead, it thinks, “I’m saving $98!” That difference—completely made up by the store—is what creates the intoxicating feeling of getting more than you paid for.

It’s the exact same reason people buy things they don’t need during a clearance sale. You weren’t planning on buying a belt. You probably weren’t even thinking about belts. But suddenly you see “70% OFF” and your brain switches to opportunity mode.

What if I don’t buy it now and I never get this deal again?
It’s basically free at this point.
I’d be stupid NOT to buy it.

Except you would have spent exactly zero dollars if you’d just walked out.

Retailers know this. That’s why outlet malls are built like mazes. That’s why they pump out “Black Friday” sales for two full weeks. That’s why stores put giant signs in red lettering—a color that signals urgency and triggers impulsive behavior.

And the funniest part? When you tell people this, they still insist they “got a great deal.” No one wants to believe they got tricked. Your brain will protect your ego faster than it protects your bank account.


Outlet Pricing: The Illusion Of Luxury For Less

Here’s another detail many people don’t realize: premium outlets are not the same as retail stores. The whole purpose of an outlet is to sell items that are:

  • Overproduced
  • Made specifically for outlet stores (often lower quality)
  • Leftover from previous seasons
  • Designed with cheaper materials to justify larger “discounts”

Many designer brands manufacture items solely for their outlet locations. These items may share the same logo, but they almost never share the same craftsmanship. So when you see a $128 belt at an outlet store with giant red numbers slashing through the price, you’re not seeing the original price. You’re seeing the imaginary price they want you to compare it against.

Think of it like those restaurant menus that list a lobster dish for $89 just to make the $29 shrimp pasta seem reasonable by comparison. It’s psychological anchoring.

That belt probably never touched a real Michael Kors retail boutique. It was born and raised at the outlet. It existed in a world of permanent fake discounts. That $128 price tag is there only to trigger your bargain-hunting instincts.


The Spending Mindset Of Black Friday

Walking around the outlet that day, I saw the same pattern everywhere. People weren’t asking themselves:

“Do I need this?”

They were asking:

“Is this a good deal?”

Those two questions might sound similar, but they are worlds apart.

Black Friday makes people switch from “normal buyer” mode to “treasure hunter” mode. When you’re treasure hunting, your goal is not to get what you need—it’s to find something that looks valuable. You’re not shopping based on usefulness; you’re shopping based on discount percentages.

This is why people will buy:

  • A coat they’ll never wear
  • Shoes half a size too small
  • A bag that doesn’t match any outfit
  • A random kitchen appliance that will collect dust

But hey—if it’s 80% off… why not?

Because in the moment, the feeling of saving money feels more important than the reality of spending it.


Real Savings vs. Fake Savings

I’m not against buying things. I’m not even against buying nice things. But I am against tricking yourself into thinking a purchase is “smart” just because a price tag says you saved a ridiculous percentage.

Real savings mean:

  • Not buying something you don’t need
  • Not being manipulated by fake discounts
  • Knowing the actual value of an item
  • Spending your money intentionally, not impulsively

Just because a store creates the illusion that you’re winning doesn’t mean you actually are. Sometimes not buying something is the biggest discount of all.


Back To The Belt

So what happened with the belt, you ask?

Once I explained my perspective—that the belt was never worth $128 and the discount was basically a psychological trick—the friend paused for a moment. But in the end still purchased it because she was getting a bargain. She didn’t care about my perspective, she still wanted the belt and all the other things because she was getting a discount.

And honestly… I feel bad for my wife’s friends. They all seem to care more about looking rich then trying to save for an early retirement.


Final Thoughts: Don’t Let Discounts Do Your Thinking

Black Friday will always exist. Retailers will always find ways to manipulate prices, exaggerate discounts, and create artificial urgency. And people will always fall for the illusion of saving instead of understanding the reality of spending.

But once you start recognizing these tricks, shopping becomes a lot clearer. You stop chasing percentages. You stop feeling pressured by flashy signs. You stop confusing “cheap” with “valuable.”

You start asking the right question:

“Is this actually worth what I’m paying?”

Because the truth is, a discount doesn’t automatically make something a good deal. A low price doesn’t make something worth buying. And a sale doesn’t mean you’re saving money.

In the end, the best bargain is learning to think clearly—especially when stores are trying their hardest to make sure you don’t.

theunemployedinvestor
theunemployedinvestor
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