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Do Major Holiday Discounts Help or Hurt Your Business? Discounting can be a great way to drive revenues, but it can also kill your profits. Here's how to determine whether discounting will help or hurt your business.

By George Deeb Edited by Micah Zimmerman

Key Takeaways

  • Discounting is a powerful tool but must align with long-term profitability and brand strategy. Here's some guidance.

Opinions expressed by Entrepreneur contributors are their own.

What is it about Memorial Day, July 4th, Labor Day and the Christmas season? They bring out all the big discounts, which get shoppers flooding the malls to save money, especially on big-ticket items like cars and mattresses, for example.

The sellers of those products offer their best prices during these holiday seasons, trying to capture as much market share as possible from their competitors. But the question I ask is: why?

Yes, you are driving more revenues, with the holidays often representing 30% of their total annual volume. But if you are sacrificing material bottom-line profits by slashing prices in the process, why play that game?

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