Hi Reader,
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As we approach the holiday season, you might be considering how you can increase your sales this year, and whether a discount is the way to do it. But does a Black Friday or Cyber Monday discount truly serve your brand?

The origins of Black Friday come from the USA as that pre-holiday season buying date so you can do all that seasons’ shopping at a discount the day after Thanksgiving. Then it ballooned to stampede tier midnight shopping and now the online shopping version exists too. For us in New Zealand its also a pre-summer shopping bonanza while those in the northern hemisphere might include some personal winter preparation. Same same but different.

While people end up now buying a whole bunch of their fave brands at this time of year, it didn’t start that way. Even service businesses offer discounts this time of year. Ans sometimes I wonder if the volume of sales all at the same time just waters down the market.

In New Zealand we have a homewares icon: The Briscoe’s lady. She has a warm, sentimental brand. She’s been the host of the Briscoe’s ads for over 30 years. I had to Google her to find out her name: it’s Tammy Wells. Briscoe’s The Store on the other hand has a notorious brand of having constant sales. You simply do not buy things when they’re not on a 40% off sale, unless you really have to for some strange reason. It’s homewares, so you can probably wait for a new duvet most of the time. This notion spans generations and is synonymous with the brand itself. But it actually means people resist purchasing when they first need something.

That’s likely not what you want for your small business since you can’t do the high volumes to make bank. And as a business, the moolah is what keeps things moving.

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As our cost of living rises, its reasonable to expect that people’s shopping will decrease versus previous years. There might be less impulse buying this year, because people have less of a budget. Instead, I’d hope for everyone’s overdraft that they shop more mindfully and intentionally. We should be planning accordingly, in line with our perfect (and existing) customer.

So…

How can your business best serve your customers at this busy time?

As a shopper, I love brands who do an annual sale prior to Black Friday. They’re being truthful that it's the one, or biggest, sale of the year, so I know I’m getting the most bang for my buck. Sometimes I’ll want to buy those things that would usually be a stretch without a discount.

I also enjoy those who do their biggest sale at the most relevant time of year for them. Black Friday is all about pre-summer and gifting buying for me, and also the time of year I buy the tech I’ve been waiting for a sale for. For so many brands I shop with, it simply doesn’t make sense for them to have their biggest discount this time of the year anyway, and budgeting wise, I prefer to spread it out.

For many businesses, there is a time of year that is best suited to a sale. That might be because you sell calendars and by the end of February they are worth a little less, and you don’t want to keep storing them. Some businesses are better off to provide a pre-order discount, where those customers who buy early (and help you reduce your risks) get the item a little cheaper than those who buy after you can ship instantly.

For others, you might promote a service before raising the price, so people can get it at the old rate with your prior warning.

You might also choose to go ahead with a discount, but restrict it to those who are on your email list by providing them with a discount code. It’s like a reward!

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If you do choose to offer a holiday discount at any point over the coming months, take a moment to think about how you can promote it most strategically. Think about where you could promote this sale to keep the ROI from going through the floor. Does buying in bulk make the most impact for you, so the best discounts are based on multiple item purchases? It’s all about how you structure the deal.

Consider how you offer payment plans or apps like Klarna, Laybuy or Afterpay and if this discount can make purchases more accessible. You can then decide how much you push those payment options on the basis of your brand too so you don’t stimulate buyer’s remorse. Also take a moment to check how much purchases via those tools costs you over time.

Free Returns might be a great way to entice new customers who may want to buy two versions of something and send back one. Ultimately it has a cost for you, and buyer’s remorse makes those returns all the more common.

To avoid sales season FOMO, consider:

• Are your customers likely to spend more, or simply buy more at once to get the discount, then not purchase again for a while?
• Have you previously seen a drop in orders after a heavily discounted sale?
• Might this truly attract new ideal customers?
• How can you reward your existing customer base instead?
• Does a different time of year suit your brand better?
• Could you only discount stock you want to move, or offer a free gift with purchase?
• Does a Buy 2 Get 3rd Free discount feel better than a 30-35% discount for you?

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Also a reminder to check the rules and regulations around discounting your particular product or service.

No matter how you choose to promote your products and services over the coming months, I hope you see the results you’re looking for!

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Check out these new podcast episodes

Customer Interviews: Conversations that shape marketing strategies with Kathryn McGarvey Listen here

Crafting Connections: Word of mouth and relationship marketing with Rachel Andersen Listen here