Wednesday 4 November, Money & Work

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✓ SmartcompanyMoney & Work1 min read

Australian small shops ditch Black Friday discounts for charity

Some small businesses skip Black Friday discounts. Margins are tight and customers are tired. They donate to charities instead.

Australian footwear brand Slappas Thongs and Sydney pest control company Pest2Kill are skipping Black Friday discounts this year. Both are giving to charity instead.

Slappas pledges five dollars from each participating pair sold to the National Breast Cancer Foundation. Pest2Kill pledges fifty dollars per booking to Women's Community Shelters.

They aim to raise at least five thousand dollars. Rising advertising costs and competition from overseas retailers like Temu and Shein have squeezed margins.

Slappas founder Denise Dunn said discounts reduce profits on low-margin products. Many small businesses feel pressured to offer discounts of at least twenty percent.

Customers are also tired of endless promotional messages. Pest2Kill's approach costs the business the same as a standard discount.

But it works better with customers.

At least $5,000
Pest2Kill fundraising target
At least 20 percent
Expected discount depth

Why it mattersSmall business owners are finding that values-based marketing keeps margins healthy while building customer loyalty.

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