Always On Sale? Why Businesses Should Rethink Discount Overload

It’s easy to believe that a flashy “SALE” sign is the key to bringing in more customers, but whether you’re running a boutique in downtown St. John’s, a coffee shop in Corner Brook, or a hardware store in Gander, leaning too hard on constant discounts can seriously undermine your credibility - and your bottom line. 

Look, we get it, business is hard! Especially nowadays with costs increasing and margins being razor thin. Understandably, business owners and managers are afraid, they’re fearful of layoffs or even closing for good. 

With that said, fear could, ironically, lead to the doors closing. Smart pricing and marketing strategies will beat the perpetual sale cycle every time. Here’s what we mean:

1. Discount Fatigue: Your Brand Deserves Better

If your business always seems to have something “50% OFF,” customers start to wonder: Was it ever worth the full price in the first place? Constant promotions signal that your products or services are overpriced, or worse, junk. And customers are too sharp to fall for that game.

Take businesses like The Travel Bug in St. John’s or Lighthouse Picnics in Ferryland. They rarely rely on discounts. Instead, they highlight quality, experience, and authenticity. People pay for the value they offer, not because of some arbitrary markdown.

2. Customers Aren’t Gullible (At Least Not Forever)

Endless sales might trick customers once or twice, but before long, they’ll catch on. If there’s a “limited-time offer” every week, is it really limited? With an eye for a good deal and a healthy dose of skepticism, customers will soon wait you out. Worse yet, they may stop trusting your brand altogether.

Remember J.C. Penney’s disastrous discount-heavy strategy in the U.S.? Customers got so used to fake markdowns that when the retailer tried to shift to honest pricing, the customer bailed. Trust, once lost, is tough to win back.

3. Say Goodbye to Healthy Profits

For small businesses, especially on an island where shipping costs are no joke, profit margins matter. Constant discounts can shrink those margins to the point where your business is barely treading water. Sure, a big sale might bring in short-term cash, but what about long-term growth? You need solid profits to reinvest in inventory, staff, or that new sign you've been meaning to hang up.

Preserving healthy pricing means keeping your business sustainable. Remember: you can’t grow if you’re always giving away the farm.

4. Loyalty Isn’t Built on Bargains

Customers who flock to discounts aren’t the ones who’ll stick around. These bargain hunters chase deals, not relationships. But businesses thrive on loyalty and community — whether it's regulars at a coffee shop or folks who swear by their favourite craft shop.

Better Ways to Get (and Keep) Customers?

Next time you’re tempted to slap a red “SALE” sticker on your storefront, ask yourself: Is this helping my business—or just training my customers to expect less from me?

So what’s a better strategy to increase sales without the on sale message? Instead of chasing the discount chasers, build relationships through genuine value and service. Think loyalty programs, personalized service, or exclusive perks for returning customers. It's these connections that keep the lights on. We’ll deep dive into this in our next blog, where we give you concrete solutions! 

Happy to Help

We’ve been creating marketing plans, strategies, and demonstrating return on investment within our agency for more than eight years now - not just for our clients - but for our own team’s growth too! If you want to chat with a small business with big goals about how you can make the most of those marketing dollars, get in touch. We’re always happy to help!

Coming Soon: Tired of the Discount Trap? Let’s Talk Real Solutions!

The fear of losing customers or falling behind is real — but endless sales are costing you more than you think. The good news? There’s a smarter way to win your customers’ hearts and keep your cash flow healthy.

In our next blog, we’re going to break down actionable strategies that will help you:

• Build loyalty that lasts (without slashing prices).

• Stand out with genuine value and service.

• Create marketing magic with techniques that grow trust and profits.

We’ll explore loyalty programs, personalized touches, and exclusive perks that turn casual shoppers into devoted regulars. Plus, we’ll share real-world examples of businesses that are thriving without the discount crutch.

Ready to transform your approach and ditch the sale sign for good? Stay tuned for the full breakdown or get in touch to pick our brains about how to avoid the discount dregs.