Black Friday and Christmas Sales: Should You Discount or Hold Your Value?
When November rolls around, business owners start feeling the Black Friday buzz. Your inbox fills with offers, competitors are slashing prices, and everywhere you look someone is shouting about “unmissable deals.”
But here’s the thing: just because everyone else is running a sale doesn’t mean you have to.
For some businesses, discounting is a fantastic way to boost cash flow and win new customers. For others, it can erode margins, cheapen the brand, and attract the wrong crowd.
And this isn’t just about retailers. Whether you’re a professional offering packages, a creative selling your work, or a retailer moving stock, the pressure to discount is real.
Let’s help you weigh up the pros, cons, and smarter alternatives - so you can make a confident choice this sales season.
Why Businesses Run Sales at Black Friday and Christmas
Black Friday and the Christmas lead-up have become peak shopping times in Australia. Big retailers like JB Hi-Fi, Myer, and Kogan splash huge discounts, and customers are ready to spend and primed to hunt for bargains.
Here’s why many local businesses feel the pull:
Shift old or slow stock. If the previous seasons lines haven’t moved, now’s the time.
Boost short-term cash flow. Extra revenue before Christmas payroll or supplier bills can be a lifesaver.
Attract new customers. A sale can be a low-barrier way for customers to try your brand.
Stay competitive. When the majors are discounting, small businesses worry about being left behind.
The Pros of Discounting for Black Friday or Christmas
Running a discount can give you:
1. Immediate Sales Momentum
Discounts create urgency and excitement. Just look at how The Iconic runs 24-hour flash deals, it keeps customers refreshing their carts.
2. A Way to Clear Excess Stock
If you’ve over ordered / produced stock, a Black Friday clearance can free up space for summer arrivals.
3. A Gateway for New Customers
Shoppers are more willing to try a new brand when the price feels “risk-free.” Many retailers use Black Friday as a way to get first-time customers who might return at full price later. Service providers and professionals can use discounting to attract new clients with a low cost one off booking or a 10 pack, for example.
4. Visibility in a Busy Market
At a time when everyone is competing for attention, a sale can put you back in the conversation. Even smaller brands can stand out with clever promotions.
The Cons of Discounting During Black Friday
On the flip side, discounting isn’t always the smartest move:
1. Discounts Erode Your Margins
What looks like a big sales day can leave you with very little profit.
2. Customers May Wait for the Next Sale
Australians are savvy shoppers. If they know you’ll drop prices in November, why would they buy in October? This is a trap many online fashion and electronics stores have fallen into. Many people do all of their Christmas shopping during the sale period, leaving business owners with higher priced stock they struggle to move & boxing Day sales just aren’t what they used to be.
3. It Can Damage Brand Perception
Constant discounting can make your brand feel “cheap.” That’s why some premium Aussie brands (think Zimmermann or R.M. Williams) rarely discount - they’d rather protect their value.
4. Not All Customers Stick Around
Some buyers are only here for a bargain. They’ll take the deal and disappear, which obviously doesn’t help build long-term loyalty.
Should You Run a Sale? Questions to Ask Before Deciding
Before jumping in, ask yourself:
What’s my goal? (Cash flow, customer acquisition, clearing stock?)
Can I afford smaller margins? (Do the maths first, don’t assume volume will make up for it.)
Will this attract my ideal customer? (Or just one-off bargain hunters?)
How will this impact my brand long-term?
Alternatives to Discounting: How Businesses Stand Out
Not keen to slash prices? Plenty of businesses are finding smarter ways to capture Black Friday attention without heavy discounting.
1. Bundle Products or Services
Instead of dropping prices, offer packages. For example, wellness brands often pair products (“buy a yoga mat, get a free strap”) to boost perceived value.
2. Offer Perks Instead of Discounts
Free express shipping across Australia, gift wrapping, or a small bonus gift can be just as compelling as a discount. Adore Beauty often leans on giving away free samples to sweeten the deal.
3. Reward Loyalty
Give VIP customers early access or exclusive bonuses. For example, you could send your loyal email list with a 24-hour head start before going public with new products.
4. Create Scarcity and Exclusivity
Limited drops - “only 20 made” - create urgency. Aussie streetwear brands like Culture Kings have built entire empires on exclusivity, not discounts.
5. Focus on the Experience
A seamless checkout, quick shipping, and beautiful packaging can often beat a small discount. Customers remember how you made them feel, especially during the chaos of holiday shopping.
Long-Term Thinking: Protecting Your Brand
Black Friday and Christmas might be big moments, but they’re only part of your business calendar. What you choose now should align with your bigger goals:
Premium brands may actually strengthen their image by not discounting.
Service-based businesses (like accountants, consultants, or tradies) may find that bundling or bonuses serve them better than price cuts.
Retailers can focus on loyalty and experience, knowing that repeat customers are worth far more than bargain hunters.
Remember: your strategy doesn’t need to mirror JB Hi-Fi’s. Your edge is being nimble, personal, and values-driven.
The Bottom Line
Discounting for Black Friday or Christmas isn’t inherently good or bad. It’s simply a tool.
Yes, it can help you shift stock, gain cash flow, and bring in new customers. But it can also eat into profits and create habits you don’t want.
Instead of feeling pressured to join the discount race, ask yourself: What’s the smartest way to connect with my customers right now, without compromising my margins or my brand?
When you decide with clarity (not panic), you’ll head into the season strong, confident, and in control.
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