Five Minute Friday: Retail Tips - The REAL Difference Between a Sale and a Promotion

Boutique Chat

In this episode of Five Minute Friday, we're answering another frequently asked question from retailers and small business owners: What's the difference between a sale and a promotion?

It's one of the most common points of confusion in retail—and getting it wrong could be costing your business profit. In this episode, Sarah from The Boutique Hub explains how to tell the difference, when to use each strategy, and how to protect your margins while driving customer engagement.

🔑 Key Takeaways:

What Is a Sale?

• A permanent price drop designed to clear inventory quickly.

• The faster an item sells, the more profitable it is.

• Avoid blanket discounts; instead, target products, vendors, or seasons.

What Is a Promotion?

• A temporary price reduction meant to create urgency.

• Customers respond to short-term excitement without long-term devaluation.

• Items can return to full price once the promotion ends.

Why the Difference Matters

• Misusing promotions as sales can erode margins.

• Sales should move old product out; promotions should drive traffic in.

• Using the right strategy helps protect profit, save employee time, and improve customer loyalty.

Not a member yet? These are the kinds of retail strategies waiting for you inside The Hub to help you grow smarter.

Want more? Join the Boutique Hub: https://tbhub.co/podcastjoin