Are You Running Too Many (Bad) Sales?

The temptation to frequently discount products is strong. With customers always on the lookout for deals, it might seem like running sales more often is a surefire way to boost revenue. However, too many sale periods can actually harm your brand, erode customer trust, and ultimately impact long-term profitability. As we move into a new year, it’s crucial to plan strategically, ensuring that your major sale events—Memorial Day, Fourth of July, Labor Day, and Black Friday/Cyber Monday—are leveraged to their greatest effect.

The Perils of Overusing Sales

While offering discounts can drive short-term revenue spikes, overuse of sales can lead to several issues:

1. Decreased Effectiveness of Key Sales Periods. When customers are conditioned to expect sales frequently, the impact of your major sale events diminishes. The excitement and urgency surrounding these key periods weaken because shoppers assume they can always get a discount at another time. Memorial Day, Fourth of July, Labor Day, and Black Friday/Cyber Monday are already ingrained in consumer habits as peak shopping moments, and they should be utilized effectively. Running too many discounts outside of these windows can make your major promotions feel less special and reduce the likelihood of customers holding out for them.

2. Becoming a Commodity Instead of a Brand. If your customers only engage with your brand when there’s a discount, your brand positioning becomes about price rather than value, quality, or uniqueness. Instead of differentiating yourself through strong brand storytelling, exceptional customer experience, or product quality, you risk becoming a commodity that shoppers will abandon the moment a cheaper alternative appears. Brands that rely too heavily on discounts often find themselves caught in a race to the bottom, where price is the only factor driving purchase decisions.

3. Customer Expectations Shift to Permanent Discounts. When sales happen too frequently, customers become conditioned to expect them. They delay purchases, waiting for the next discount instead of paying full price. This behavior not only erodes your margins but also makes it difficult to sustain regular pricing. If customers believe another sale is always just around the corner, they’ll be hesitant to buy at full price, making it harder for your business to maintain healthy revenue outside of sale periods.

Alternatives to Discount-Driven Engagement

To build long-term brand loyalty and sustainable revenue, brands must create compelling reasons for customers to engage beyond just discounts. Here are a few ways to achieve this:

• Offer Value Through Content. Instead of focusing solely on sales, provide educational or entertaining content that resonates with your audience. Blog posts, how-to guides, and behind-the-scenes looks at your products can create a deeper connection with your customers.

• Focus on Product Innovation & Exclusivity. Launching new products, offering limited-edition items, or collaborating with other brands can keep customers engaged without relying on discounts.

• Loyalty & Rewards Programs.  Encourage repeat purchases through loyalty programs that offer perks beyond price reductions, such as exclusive early access to products, VIP experiences, or free gifts.

• Community Building. Leverage social media and events to create a community around your brand. Brands that engage customers through meaningful interactions build loyalty that goes beyond price sensitivity.

Keep Your Sale Simple (KYSS)

When you do decide to run a sale, simplicity is key. Confusing discount structures, complicated checkout processes, and restrictions on which products are included can frustrate customers and lead to cart abandonment. The best approach is a straightforward, sitewide discount that requires minimal effort from the shopper.

Here are some KYSS principles to keep in mind:

• Opt for Sitewide Sales. Customers appreciate clear, easy-to-understand discounts. Sitewide sales are the standard because they eliminate confusion and maximize engagement.

• Avoid Complex Promo Codes. If a sale requires customers to enter a code, some will inevitably forget or get frustrated. This can lead to abandoned carts and missed opportunities.

• Minimize Exclusions. If a customer finds out at checkout that their chosen item isn’t included in the sale, they may abandon the purchase altogether. Transparency is crucial.

• Keep the Shopping Experience Seamless. Ensure your website, checkout process, and customer service are all optimized for a frictionless shopping experience during sale periods.

Final Thoughts

Strategic planning around sales is essential to maintaining a strong brand identity and sustainable profitability. Overuse of discounts can devalue your brand, reduce the impact of major sale events, and condition customers to expect constant markdowns. Instead, focus on providing value beyond price reductions and ensure that when you do offer sales, they are simple and impactful. By being intentional with your discounting strategy, you can create excitement, maintain brand integrity, and ultimately drive long-term success.

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