12 Discount Pricing Strategies to Boost Holiday Sales 2025

Key highlights 

• Discover 12 discount pricing strategies proven to boost your holiday sales. 

• Calculate profitable discounts that protect your margins effectively. 

• Implement specific tactics for Black Friday, Cyber Monday and Small Business Saturday. 

• Schedule each discount type for maximum impact during seasonal sales. 

• Analyze real examples of successful seasonal discount campaigns to inspire your strategy. 

The holiday season is your biggest sales opportunity of the year. Shoppers are ready to spend from Black Friday through the New Year.  

The challenge? Creating discount pricing strategies that drive sales without destroying your profit margins. 

You’re competing with thousands of other stores that offer discounts. Shoppers expect significant discounts during the holiday season. Without a clear strategy, you risk either losing sales or giving away too much profit. 

This guide covers 12 proven discount pricing strategies that maximize revenue during peak shopping days. You’ll learn how to set profitable rates, when to launch each discount type and how to implement them effectively in your store.  

The right approach attracts customers, increases order values and builds brand loyalty that extends beyond the holidays. 

Why you need a discount pricing strategy for the holidays? 

Planning your seasonal discounts strategically separates successful stores from those that struggle during November. Random price cuts might increase sales volume but often hurt profitability. Holiday shoppers actively search for deals and compare prices across stores.   

A strategic discount approach helps you: 

• Create sense of urgency that converts browsers into buyers immediately 

• Clear excess inventory before the new year arrives 

• Compete effectively against larger retailers during peak shopping days 

• Acquire new customers who become repeat buyers year-round 

• Build brand awareness through promotional discounts 

• Maintain healthy profit margins while offering compelling deals 

Discounting without strategy trains price sensitive customers to only buy on sale and damages your brand perception. You need to plan which products to discount, by how much and when to launch each promotion for maximum impact. 

Now that you understand the importance of strategic discounting, let’s explore the specific discount types you can implement. 

12 types of discount pricing strategies that work 

The right discount type determines your holiday season success. Each strategy below serves different goals, from clearing inventory to increasing average order values. Combining multiple approaches throughout November to early January keeps customers engaged and maximizes your revenue potential. 

The table below summarizes all 12 discount strategies at a glance. Use this reference to quickly identify which approach fits your specific goals and product types. Each strategy includes the ideal use case, typical discount range and primary objective. 

Strategy	Best for	Typical discount range	Primary goal
Percentage-based discounts	High-priced items ($50+)	20-50% off	Drive volume on expensive products
Dollar amount discounts	Lower-priced items, order minimums	$10-$50 off	Increase average order value
BOGO offers	Gift items, inventory clearance	50% off second item to free	Move inventory quickly
Tiered pricing	Encouraging larger purchases	15-35% off by spend level	Boost cart values
Volume discounts	Bulk purchases, consumables	20-40% off multiple units	Increase units per transaction
Bundle pricing	Complementary products	25-40% off packages	Cross-sell multiple items
Flash sales	Creating urgency	40-60% off for 2-12 hours	Drive immediate action
Free shipping thresholds	Online orders	Free delivery over $50-$100	Remove purchase barriers
Early bird discounts	Pre-Black Friday sales	15-25% off	Spread demand, secure early revenue
VIP exclusive discounts	Loyalty program members	25-40% off + early access	Reward repeat customers
Gift card bonuses	Last-minute shoppers	$10-$25 bonus per $50-$100	Generate immediate revenue
Countdown timer discounts	Time-sensitive promotions	Varies with urgency level	Create FOMO and urgency

This overview gives you a starting point for planning your holiday promotions. The sections below dive deeper into each strategy with implementation details and best practices. 

1. Percentage-based discounts 

Percentage discounts reduce prices by a specific amount like 20% off or 50% off. Shoppers easily understand the value they’re getting, which removes a significant decision-making barrier. This strategy works particularly well for higher-priced items where the dollar savings appear substantial. 

You can apply percentage discounts across entire categories for simplicity. For example, you could run a 25% discount on all winter clothing for Black Friday shoppers. This simplifies your promotional pricing messaging and creates excitement across multiple products while helping you attract new customers. 

Best for: Products over $50, category-wide sales, Black Friday doorbuster deals 

Also read: How to Increase eCommerce Sales: 9 Strategies for 2025 

2. Dollar amount discounts 

Dollar amount discounts take a fixed amount off the purchase price like $10 off or $25 off your order. This strategy works better for lower-priced items because the savings appear more concrete. Shoppers see immediate savings without calculating math. 

You typically tie dollar discounts to minimum purchase thresholds. For instance, get $20 off orders over $100. This approach increases average order values while offering attractive savings. Customers often add extra items to qualify for the discount, making these customers discounts highly effective for boosting cart values. 

Best for: Orders under $100, encouraging higher cart values, email subscriber exclusives 

Example: “Save $30 on orders over $150 during Cyber Monday” 

3. Buy one get one (BOGO) offers 

BOGO deals let customers buy one item and get another free or discounted. Common variations include buy one get one free or buy one get one 50% off. These offers create exceptional perceived value that drives quick purchasing decisions from potential customers. 

This discount pricing strategy moves inventory quickly during the holiday season. BOGO promotions work particularly well for gift-giving occasions. Shoppers appreciate getting multiple items they can give as separate gifts, especially first-time buyers looking for value. 

Best for: Gift items, inventory clearance, products with high profit margins 

Tip: Use “buy one get one 50% off” instead of “free” to protect margins while still offering strong value. 

4. Tiered discount pricing 

Tiered discounts increase savings as customers spend more. You create multiple discount levels based on order totals. For example, spend $50 get 10% off, spend $100 get 20% off, spend $150 get 30% off. 

This strategy motivates customers to add more items to their carts. Shoppers often add extra products to reach the next discount tier. Your average order value increase significantly because customers want to maximize their savings and avoid paying full price. 

Best for: Increasing average order value, rewarding larger purchases, holiday gift shopping 

Structure example: 

• Spend $75: Get 15% off 

• Spend $125: Get 25% off 

• Spend $200: Get 35% off 

Managing promotional campaigns across multiple products and categories can become complex during peak shopping periods. Many store owners use specialized eCommerce hosting plans that include built-in promotional tools designed specifically for WooCommerce stores.  

Bluehost’s eCommerce Premium is one such solution – a comprehensive hosting plan that includes WonderCart, a discount management tool. WonderCart helps you create and manage various promotional campaigns including quantity discounts, category discounts and time-limited offers from a single dashboard. This automation saves hours of manual work and reduces pricing errors during your busiest sales periods. 

5. Volume discount pricing 

Volume discounts reward customers for buying multiple quantities of the same item. The more units purchased, the lower the per-unit price becomes. This approach works exceptionally well for consumable products like gift wrap, holiday cards or ornaments. 

You can structure quantity discounts as “buy 3 get 20% off” or “buy 5 get 30% off.” The discount applies to all items once the quantity threshold is met. This encourages customers to think about their total needs rather than making multiple small purchases. 

Best for: Consumables, gift items, products frequently bought in bulk 

Example: Holiday cards – Buy 2 packs get 10% off, buy 4 packs get 25% off 

6. Bundle pricing and package deals 

Bundle pricing groups complementary products together at a discounted package price. You sell multiple items as one unit for less than buying separately. This simplification appeals to busy holiday shoppers who want convenient gifting solutions. 

Holiday bundles work perfectly for gift sets. Create curated packages for different recipient types like “Coffee Lover’s Bundle” or “Home Office Starter Pack.” The convenience appeals to busy shoppers who can purchase a complete gift without selecting individual items, improving customer retention. 

Best for: Gift sets, complementary products, introducing new items 

Example: Skincare bundle (cleanser + moisturizer + serum) normally $85, bundle price $65 

7. Flash sales and limited-time discounts 

Flash sales offer steep discounts for very short periods. You might run a 6-hour sale or a 24-hour deal on specific products. The extreme time limitation creates a sense of powerful urgency that converts browsers into buyers during competitive shopping days. 

You can run multiple flash sales throughout Black Friday weekend. Change featured products every few hours to keep customers checking back. Doing this drives repeat traffic to your store and creates multiple conversion opportunities with unique discount codes. 

Best for: High-demand items, creating urgency, driving traffic during specific hours 

Timing strategy: Launch flash sales at 6am, 12pm, 6pm and 9pm to catch different shopping patterns. 

8. Free shipping thresholds 

Free shipping becomes a powerful discount during the holidays. You offer free delivery when orders reach a minimum amount. This removes a major purchase barrier that causes many abandoned carts during checkout. 

Also read: WooCommerce Checkout Page: Everything You Need To Know 

The shipping threshold should sit slightly above your average order value. If customers typically spend $60, set free shipping at $75. Shoppers add extra items to qualify, which increases your average order value and customer lifetime value. 

Best for: Online stores, increasing order values, Cyber Monday promotions 

Optimal threshold: Set it 20-30% above your current average order value 

Example: “Free shipping on all orders over $50 this Black Friday weekend” 

9. Early bird discounts 

Early bird discounts reward customers who shop before peak sale days. You offer exclusive deals to people who buy in early November. This spreads out demand and secures revenue early, which helps with cash flow and inventory management planning. 

These seasonal discounts work well for email subscribers and loyal customers. Send early access codes one week before public sales launch. This rewards your most engaged audience and makes them feel valued while encouraging repeat purchases. 

Best for: Email subscribers, VIP customers, spreading out holiday demand 

Timeline: Launch early bird deals November 1-15, before Black Friday week 

Discount range: 10-20% off to incentivize early shopping without cannibalizing main sales 

10. Loyalty and VIP exclusive discounts 

Loyalty discounts thank your repeat customers during the holidays. You offer special pricing to members of your rewards program or past customers based on purchase history. VIP customers receive higher discount percentages than general shoppers. 

For example, the public gets 20% off during Black Friday while your loyalty members get 30% off plus early access. This tier structure makes your best customers feel valued and encourages others to join your loyalty program, effectively rewarding loyal customers. 

Best for: Building customer loyalty, rewarding repeat buyers, increasing lifetime value 

Structure: Offer VIP customers 5-10% higher discounts than public promotions 

Access: Give VIP customers 24-48 hours early access to all holiday sales 

11. Gift card bonus promotions 

Gift card bonuses incentivize customers to buy gift cards during November. You offer extra value like “buy a $100 gift card and get a $20 bonus card free.” This structure generates immediate revenue while creating future purchase opportunities. 

The approach particularly appeals to last-minute shoppers and gift givers. Gift cards solve the “what to buy” problem. The bonus sweetens the deal significantly while bringing customers back in January when business typically slows, offering cash discounts that drive first purchase conversions. 

Best for: Last-minute shoppers, generating revenue, driving post-holiday sales 

Typical structure: Buy $50 get $10 bonus, buy $100 get $25 bonus 

Timing: Promote heavily December 15-24 for last-minute holiday shoppers 

Our eCommerce Premium includes WooCommerce Gift Cards functionality, allowing customers to purchase and redeem gift cards directly on your store. This makes implementing holiday gift card promotions seamless.  

12. Countdown timer discounts 

Countdown timer discounts use visual urgency to drive immediate action. You display a ticking clock showing when the deal expires. This creates psychological pressure to buy now rather than waiting or browsing elsewhere. 

You can use countdown timers for flash sales, daily deals or hourly specials. The strategy keeps customers engaged throughout Black Friday weekend. They check back regularly to catch new deals, especially when you offer huge discounts with personalized discounts for different customer segments. 

Best for: Flash sales, creating urgency, increasing conversion rates 

Proven impact: Countdown timers can increase conversion rates by up to 30% during promotional pricing periods. 

While these 12 strategies work throughout the holiday season, Black Friday and Cyber Monday require specialized approaches due to intense competition and high shopper expectations. 

Best discount pricing strategies for Black Friday and Cyber Monday 

Black Friday and Cyber Monday generate more revenue than any other shopping period. These two days demand specialized discount approaches that balance aggressive pricing with profitability. The strategies below show you exactly how to structure discounts for each major shopping day. 

Black Friday discount pricing strategy 

Black Friday requires your most aggressive discounting approach. Shoppers expect deep discounts on this day above all others. Start with doorbusters offering 50-60% off on 3-5 high-demand products from 6am-9am. These loss leaders bring customers to your store who then buy other items at regular or moderate discounts. 

Run tiered discounts throughout the day to maintain momentum. Offering different discount levels every 3-4 hours keeps shoppers engaged. Bundle deals work exceptionally well for gift shopping convenience. Pricing bundles at 30-40% off individual item prices provides strong value while maintaining better margins and offering a new customer discount to first-time shoppers. 

All that activity can drive a surge of traffic unlike any other time of year. Flash sales, rotating discounts and bundle offers mean hundreds (or thousands) of shoppers could be hitting your store simultaneously. If your site slows down or crashes during these critical hours, you’re not just losing sales – you’re losing trust. 

That’s where Bluehost WooCommerce hosting comes in. With NVMe storage and 99.9 % uptime guarantees, Bluehost keeps your store fast and stable throughout peak shopping spikes, so your discounts deliver results instead of downtime. 

Black Friday discount structure: 

• Doorbusters (6am-9am): 50-60% off select items 

• Morning deals (9am-12pm): 30-40% off categories 

• Afternoon flash sales (12pm-6pm): Rotating hourly deals 

• Evening finale (6pm-midnight): 35-45% off site-wide 

Cyber Monday pricing approach 

Cyber Monday focuses exclusively on online shoppers. Your discounts should emphasize the convenience of shopping from home rather than fighting crowds. Online-exclusive deals that aren’t available in physical stores create urgency. Typical discounts range from 25-40% off. 

Free shipping across all orders regardless of amount removes friction. Shipping costs become a major barrier when customers compare total costs across stores. Flash sales every 2-3 hours maintain excitement throughout the day. Promoting these on social media drives repeat visits. 

Cyber Monday strategy: 

• Free shipping on all orders 

• 30-40% off online-exclusive items 

• Hourly flash sales from 8am-10pm 

• Mobile-specific discount codes for app purchases 

Small Business Saturday discounts 

Small Business Saturday emphasizes community and local shopping. Your discount strategy should reflect these values while remaining profitable. Offering 15-25% off store-wide attracts local shoppers without destroying margins. Customers understand that small businesses operate on tighter margins. 

Small Business Saturday approach: 

• 20% off store-wide for local customers 

• Special bundles at 25-30% off 

• Loyalty program signup bonus (extra 10% off) 

• Free gift wrapping or small gift with purchase 

Also read: Amp Up Your Small Business Video Marketing Strategy 

Understanding these strategies conceptually is helpful, but seeing them in action makes implementation much easier. Let’s look at real-world examples with specific numbers. 

Discount pricing examples that drive sales 

Seeing how discount strategies work in practice helps you implement them effectively. Real-world examples show you the math behind profitable discounting and how to structure offers that convert.  

The discount pricing examples below demonstrate how each strategy works in real-world scenarios. 

Example 1: Tiered percentage discount 

• Original price: $150 

• Spend $100: Save 20% (Pay $120) 

• Spend $200: Save 30% (Pay $105) 

• Spend $300: Save 40% (Pay $90) 

This structure encourages customers to increase cart values significantly. The savings become more attractive at higher spending levels, creating a strong incentive to add more items. A customer originally planning to spend $100 might add $50 more in products to save an additional $15, giving you more revenue per transaction. 

Also read: Boost sales and retention with customer loyalty programs 

Example 2: Bundle deal savings 

• Individual prices: Candle ($25) + Diffuser ($35) + Room spray ($20) = $80 

• Bundle price: $59 

• Total savings: $21 (26% off) 

The bundle offers strong savings while maintaining healthy profit margins. Customers see the value immediately without needing to calculate individual prices. This home fragrance bundle creates a complete gift set that solves the shopper’s gift-giving problem in one purchase. 

Example 3: BOGO with variation 

• Buy any sweater at regular price ($80) 

• Get a second sweater at 60% off 

• Customer pays: $80 + $32 = $112 (instead of $160) 

• Total savings: $48 

This BOGO variation protects margins better than “free” offers. Customers still perceive exceptional value with nearly 30% savings on the total purchase. The structure works particularly well for gift shopping since many people buy for multiple recipients during the holidays. 

Example 4: Flash sale progression 

• 10am-12pm: Electronics at 35% off 

• 12pm-2pm: Home goods at 40% off 

• 2pm-4pm: Clothing at 45% off 

• 4pm-6pm: Accessories at 50% off 

Changing categories every two hours keeps customers checking back throughout the day. The increasing discount percentages build anticipation and create multiple purchase opportunities. Customers who miss an earlier sale return to catch the next one, driving repeat traffic to your store. 

Example 5: Volume discount structure 

• Buy 1: Regular price $30 

• Buy 2: Save 15% ($25.50 each = $51 total) 

• Buy 3+: Save 25% ($22.50 each = $67.50 for three) 

This encourages bulk purchases for gift-giving. The savings scale makes buying more units attractive without requiring steep per-unit discounts. A customer buying three items saves $22.50 total while you move three times the inventory in a single transaction. 

Final thoughts 

The right discount pricing strategy transforms your holiday season performance. Start planning in early fall and map out your promotional calendar through the New Year. Then, choose 3-4 strategies from this list that fit your products best and schedule them strategically across November, December and early January. This approach maintains momentum throughout the entire shopping season. 

The stores that succeed during the holidays start early and plan strategically. Ready to implement your holiday discount pricing strategy? Get started with Bluehost WooCommerce Hosting and launch your best holiday season yet. 

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