Why Most Sales Are a Race to the Bottom
I’ve seen it a hundred times across Brisbane. A shop owner in Chermside or Bulimba feels things are a bit quiet, so they panic. They print out some big red '50% OFF' signs, stick them in the window, and wait.
Sure, the shop gets busy. But at the end of the month, when they look at the bank account, there’s hardly any extra cash there. They’ve worked twice as hard, moved twice as much stock, but their profit has been cannibalised.
If you’re just cutting prices because you think that’s the only way to get people through the door, you’re losing. You’re training your customers to never pay full price again.
I want to show you how to run promotions that protect your margins, clear your slow-moving stock, and—most importantly—put more actual profit in your pocket. This isn't about being the cheapest; it’s about being the smartest shop on the block.
The "Margin Killer" Trap
Let’s be blunt: if you have a 50% gross margin and you give a 25% discount, you have to sell double the amount of product just to make the same amount of gross profit.
Do you really want to work twice as hard for the same money? Probably not.
Instead of slashing prices across the board, we need to look at how to turn shop visitors into customers without sacrificing your take-home pay.
1. The "Bundle" Strategy: Increase the Total Spend
Instead of taking $10 off a single item, bundle it with something else.
For example, if you run a boutique garden centre in Brookfield, don't just discount the pots. Sell a "Potted Perfection" set: the pot, the premium soil, and the plant together for a set price.
You might give a small discount on the total package, but because you’re selling three items instead of one, your total profit per customer goes up. Plus, you’re providing a better service because the customer leaves with everything they need to actually get the job done.
Why this works: It shifts the customer's focus from the price of a single item to the value of the whole solution.
2. Use "Loss Leaders" to Get Them Inside
Every big chain uses this tactic, and it’s time you did too. You pick one specific, highly recognisable item and price it very aggressively. This is your "bait."
Its only job is to get more customers inside your shop. Once they are there, your job (and your staff's job) is to sell them the full-priced items that go with it.
If you’re a hardware store, you might sell a specific brand of drill at cost price. But you make your real money on the drill bits, the safety gear, and the tool bags that people buy while they’re standing at your counter.
The Rule: Never run a loss leader unless you have a clear plan for what else you’re going to sell that customer once they walk in.
3. The "Spend More, Save More" Model
This is my favourite way to protect margins. Instead of "20% off everything," try: Spend $100, get $10 off Spend $200, get $30 off Spend $300, get $60 off
This rewards your best customers—the ones who spend the most—while protecting your profit on the small, everyday purchases. It also encourages people who were going to spend $80 to find one more item so they can hit that $100 threshold. It’s a simple way to increase your average sale value without much effort.
4. Leverage Local Events (Without Slashing Prices)
In Brisbane, we have heaps of local festivals, school fetes, and sporting events. Most shop owners ignore these or just put a generic sale on.
Smart owners turn local events into sales by creating exclusive "event-only" offers that aren't necessarily about price. Maybe it’s a "Game Day Pack" for the local footy finals or a "School Formal Kit."
By tying your promotion to a specific time and reason, you create urgency. People buy because they need it now, not because it’s the cheapest it’s ever been.
5. Stop Discounting Your "Best Sellers"
This is a massive mistake I see all the time. If you have a product that flies off the shelf at full price, never put it on sale.
Sales should be used for three things: 1. Clearing out old stock that’s taking up space. 2. Introducing a new product to the market. 3. Attracting new customers who haven't shopped with you before.
If you discount your best-selling items, you’re just giving away money that was already coming to you. Keep your winners at full price and use your promotions to move the "dust gatherers" or to reward loyalty.
6. The "Added Value" Alternative
Sometimes, the best "sale" isn't a discount at all. It’s an extra service or a free gift.
Professional Services: Instead of 10% off, offer a free 6-month check-up. Retail: Instead of $20 off, offer free gift wrapping or a small accessory. Tradies: Instead of a cheaper quote, offer a free gutter clean while you're on the roof doing the main job.
These things often cost you very little in terms of actual cash, but they have a high "perceived value" for the customer. It makes them feel like they're getting a win without you having to cut your hourly rate or your product margin.
How to Measure If It Actually Worked
Too many business owners judge a sale by how "busy" they were. That’s a vanity metric. To know if your sale was a success, you need to look at three numbers:
1. Total Gross Profit: Did you actually make more dollars (not percentage, but actual cash) than a normal week? 2. Average Transaction Value: Did customers spend more per visit than usual? 3. Customer Acquisition: How many of the people who bought during the sale were new customers who might come back and pay full price later?
If you were busy but your gross profit didn't budge, you didn't run a sale—you just volunteered your time to the public.
What to Do First
If you're feeling the pressure to run a sale, don't reach for the red marker just yet.
1. Identify your "dust gatherers": Find the stock that hasn't moved in 90 days. That’s what you discount first. 2. Create a bundle: Take one of those slow-movers and pair it with a best-seller. 3. Set a goal: Decide exactly how much extra cash you want in the bank by the end of the promotion.
Running a profitable shop in Brisbane is tough enough without giving away your hard-earned margins. Be strategic, be firm on your value, and stop competing on price alone.
If you want a hand figuring out which of these strategies will actually move the needle for your specific business, we can help. At Local Marketing Group, we specialise in getting Brisbane businesses more customers without the fluff.
Ready to grow your shop the right way? Contact Local Marketing Group today.