Episode 25

It's Sale Season - Should You Have a Sale?

Published on: 1st December, 2024

Welcome to this weeks’ episode of The Australian Small Business Show!

In today’s timely episode, we briefly chat about the impact of the Black Friday Sales and 5 tips for any business owner thinking about offering a discount or having a sale.

Offering discounts can be a great way to attract customers and boost sales, but it's important to approach it strategically. Here are five key considerations for businesses planning to offer discounts on their products and services:

  • Understand Your Profit Margins: Before offering any discount, ensure you know your profit margins. Discounts can significantly reduce your profit per sale, so it's crucial to calculate how much of a discount you can afford to offer without harming your bottom line.
  • Target the Right Audience: Not all customers are motivated by discounts. Tailor your discount offers to specific customer segments, such as new customers, loyal customers, or those who have abandoned their carts. This targeted approach can maximize the effectiveness of your discounts.
  • Set Clear Objectives: Define what you aim to achieve with your discount strategy. Whether it's clearing out old inventory, attracting new customers, or increasing sales during a slow period, having clear goals will help you design more effective discount campaigns.
  • Avoid Over-Discounting: Frequent discounts can lead to customers expecting lower prices and waiting for sales, which can devalue your brand and reduce perceived product quality. Use discounts sparingly to maintain a balance between attracting customers and preserving your brand's value.
  • Monitor and Analyse Results: Track the performance of your discount campaigns to understand their impact on sales, customer behaviour, and overall profitability. Use this data to refine your strategies and make informed decisions about future discounts.

By considering these factors, businesses can use discounts effectively to drive sales and enhance customer loyalty without compromising their profitability or brand value.

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* Disclaimer: The information shared on The Australian Small Business Show is general in nature and does not constitute professional advice, legal or otherwise. We recommend consulting with your advisors on your specific circumstances

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About the Podcast

The Australian Small Business Show
The Australian Small Business Show has been created by small business owners, for small business owners.

Your hosts Matt Heighway and Kristy-Lee Billett, who have both been running businesses for over 15 years, will bring our first hand experiences to offer insights, advice and inspiration to help you build a successful small business.

Each week we’ll discuss one specific strategy, topic, resource or tip that’s relevant for every small business, and we’ll be inviting along some amazing guests and friends in business to share their expertise with you.

Whether you're starting out, scaling up or a seasoned small business owner, this Australian Small Business Show is the show for you.

About your hosts

Kristy-Lee Billett

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Kristy is a nationally recognised HR expert, passionate small business advocate, podcast host, mum, wife, beach lover and runner.

She has spent more than 20 years now working in the field of Human Resources, People Management and Recruitment.

For the last 10 years she has dedicated herself to exclusively supporting small to medium sized businesses, those who employ less than 100 staff with all aspects of their HR, recruitment, people management and resource structures.

She founded her first business in 2006, and today she continues to direct this business, which is now known as People Powered Business.

Today She loves working with businesses inside our People Powered HR community to help them gain the knowledge, tools and resources to handle absolutely anything when it comes to their teams, with complete confidence.

Matt Heighway

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Matt is a CPA who has been working with business owners in multiple capacities for well over two decades. After commencing his career as an Accountant and Business Adviser, his own national start-up won numerous business awards and was featured in BRW fast 100. Since the business sold, he has been working with small-medium business owners helping them with business growth strategies and holistic business coaching.

Matt also is the Director of Lifetime SMSF, an accounting practice that specialises in Self-Managed Super Funds. Helping Australians manage their retirement nest eggs has been a lifelong project for Matt and he continues to get joy from helping.

Matt is a lifelong learner who loves to chat with other business owners. he is passionate about small business and always wants to see them win. He is at his best when things need turning around though, and gets his motivation helping small business owners come back from a set back.