Discounting on a national shopping day is the obvious move and frequently the wrong one for a small business. Margins are already thinner than a large retailer’s, and competing on price against businesses that buy at volume is a contest you lose. The South African operators who have used these days well have mostly done something other than cut prices.
The approaches that have worked locally divide into three: give the discount to someone other than the customer, use the day to say something about what the business stands for, or ignore the discount entirely and use the attention.
Redirect the discount to your workers
One of the more effective South African examples paid service workers substantially more for every hour worked on the day, at no extra cost to customers, rather than discounting. It cost the business its margin for a day and bought something a price cut cannot: a genuine reason for customers to choose it, and a visible commitment to the people doing the work.
Use the day to make a point about the product
A business can turn the occasion into something specific to what it sells, an event, a challenge, a themed campaign, that gets customers participating rather than just buying. That costs almost nothing, differentiates from every competitor running the same percentage off, and produces material the business can use afterwards.
Renaming the day is a positioning move
Operators who give the occasion their own name signal that they are not participating in a race to the bottom. It works where the brand has a clear identity that the alternative name expresses. It looks like avoidance where it does not, so this one depends on having something to say.
Check what the discount actually does to margin
A percentage off a selling price removes a much larger percentage of profit, and on thin margins a deep discount can mean selling at a loss on every unit. Work the number out per product before committing, and remember that advertised prices and any claim about a saving must be accurate under the Consumer Protection Act, published on the government’s services portal.
Plan for the January that follows
A discount day that pulls forward sales customers would have made anyway produces a busy week and a quiet month. That is worth doing only if the new customers stay. The measure that matters is how many first-time buyers return within ninety days, and a business that does not track that cannot tell whether the day worked.
Frequently asked questions
Should a small business discount on a national shopping day?
Usually not deeply. Competing on price against retailers who buy at volume is a losing position when your margins are thinner.
What works instead of discounting?
Redirecting the value to workers, running something specific to what you sell, or using the attention without cutting prices at all.
How much does a discount cost in profit?
Far more than the headline percentage. A modest discount off the selling price can remove most of the profit and, on thin margins, produce a loss per unit.
Are there rules about advertising discounts?
Yes. Advertised prices and any claimed saving must be accurate under consumer protection legislation.
How do you know whether the day was worth it?
By how many first-time buyers return within ninety days, not by the takings on the day itself.
Further reading
Originally published in November 2017. Updated September 2026 into guidance on how a small business should approach national discount days in any year.
