Written by Liana Lorenzato

Whether you shop in-store or online, you won’t have to look far to find a sale. Brands go on sale for several strategic reasons, primarily to drive sales, manage inventory, and attract or retain customers. But when does the act of “going on sale” start to dilute your brand, rather than using it as a tool to boost your bottom-line?  

IMPACT spoke to Liana Lorenzato, General Manager and Chief Marketing Officer for sexual wellness brand, VUSH, to break down the sales strategy.  

Q. When is the right time for a brand/product to go on sale?

A. The right time for a brand or product to go on sale depends on several strategic factors, including market trends, inventory levels, and customer behaviour. Some ideal key moments include:

• End of Season: As seasons change, many brands discount seasonal products to clear out old inventory and make room for new collections. This is common in fashion, home goods, and other industries with seasonally driven products. 

• Holiday Periods and Special Events: Major shopping holidays like Black Friday, Cyber Monday, or year-end sales are prime times for brands to offer discounts. Customers expect deals during these periods, and brands can capitalize on the increased shopping activity. 

• New Product Launches: When launching a new product line, it’s often a good idea to put older products on sale to create buzz and anticipation. This helps clear inventory and allows customers to focus on the new offerings. 

• Slow Sales Periods: During times of the year when sales tend to dip, such as post-holiday slumps or off-peak seasons, offering discounts can help maintain cash flow and keep customers engaged. 

• Excess Inventory: If a product isn’t selling as expected or if there’s excess stock, putting it on sale is a strategic way to move inventory quickly and avoid storage costs or obsolescence. 

• To Meet Sales Targets: If a brand is falling short of sales targets for the quarter or year, a well-timed sale can boost revenue and help hit those goals.  

• Customer Acquisition and Retention: Offering sales during key customer lifecycle moments, such as a customer’s first purchase, anniversaries, or loyalty milestones, can help attract new customers and reward existing ones, building long-term relationships. 

• Competitive Positioning: If competitors are running sales, it can be an opportunity to join in to stay relevant and competitive in the market. Monitoring the market and adjusting accordingly helps maintain a competitive edge.  

Ultimately, the best time to go on sale is when it aligns with broader business goals, customer expectations, and market conditions, ensuring that the sale strategy supports the brand’s overall objectives.

Q. Is it ever a good idea to always be on sale? What roles do flash sales or limited-time offers play in creating urgency, and how do they differ from a continuous discount strategy? (e.g. a Valentines Day discount vs an all year-round student discount)  

A. Having a brand or product always on sale can be a double-edged sword, with both benefits and drawbacks. Some pros include inventory turnover, constant sales flow and attracting explorers or bargain hunters. Cons can include customer conditioning and can erode profit margin if not laddering up to an overall business strategy. 

Flash sales and limited-time offers are powerful tools in creating urgency and driving immediate action from consumers, distinctively different from continuous discount strategies.  

In contrast, continuous discount strategies can make consumers accustomed to lower prices, reducing the impact of sales and potentially damaging brand perception over time if not managed correctly. Often resulting in a less dynamic response from customers.

Q. Does a sale build brand loyalty?  

A. Sales can be a tool for building brand loyalty, especially when used strategically to reward loyal customers and create positive experiences. However, it’s important to manage sales carefully to avoid devaluing the brand or creating a dependency on discounts. Balancing sales with a focus on maintaining value, delivering exceptional experiences, and building long-term relationships will be key to fostering genuine brand loyalty.

Q. How do you balance customer expectations of discounts with maintaining premium brand perception? 

A. Maintaining a premium brand perception while meeting customer expectations for discounts requires careful curation of promotional activities. By limiting the frequency of discounts, offering exclusive access, emphasizing value-added promotions, and reinforcing brand storytelling, you can strike a balance that satisfies customer desires for deals without undermining the premium status of your brand. The key is to make promotions feel like a rare privilege rather than a standard expectation, ensuring that your brand remains aspirational and highly valued.

Q. How do you balance customer expectations of discounts with maintaining premium brand perception? 

A. Maintaining a premium brand perception while meeting customer expectations for discounts requires careful curation of promotional activities. By limiting the frequency of discounts, offering exclusive access, emphasizing value-added promotions, and reinforcing brand storytelling, you can strike a balance that satisfies customer desires for deals without undermining the premium status of your brand. The key is to make promotions feel like a rare privilege rather than a standard expectation, ensuring that your brand remains aspirational and highly valued.

Q. How do frequent sales impact a brand’s ability to invest in innovation or product development? 

A. While frequent sales can boost short-term sales and help manage inventory, they often come at the cost of long-term investment in innovation and product development. Brands that heavily rely on discounts may find it challenging to allocate sufficient funds for R&D, reduce their ability to build brand value, and struggle to support sustainable growth through innovation. 

Q. What are the potential risks of relying too heavily on discounts for driving sales? 

A. While discounts can drive short-term sales, relying too heavily on them can pose significant risks, including decreased profitability, brand devaluation, and customer dependency. A balanced approach that integrates strategic discounting with a strong focus on value, quality, and brand integrity is essential for maintaining long-term success and stability.

Q. What can brands do instead of discounting?  

A. Instead of focusing on discounts, brands can drive sales and foster loyalty by enhancing the customer experience, offering value-added products, and emphasizing quality and innovation. Building strong brand relationships through personalized offers, community engagement, and exceptional service can create lasting customer loyalty and support long-term growth.

Q. Do the same discounting principles apply to a B2B product? Any watch outs? 

A. Discounting principles in B2B and wholesale contexts share similarities with consumer retail, but require additional considerations related to brand perception, financial impact, and customer expectations. Strategic discounting, clear communication, and alignment with long-term business goals are essential to ensure that discounts drive value. 

To learn more about how to leverage your sales strategy with communications support, contact Nicole Webb at nicole@impactagency.com.au.