For most small business owners, the end of the financial year spells reviewing the year’s finances and preparing for tax time. Given it’s a busy period for many, is EOFY the right time to run a sale?
The short answer is it depends. Some businesses see big benefits from end of financial year sales, while for others, EOFY is no different to any other time of year.
In our recent poll, the split was almost straight down the middle: 43% of respondents said an EOFY sale would work for their business, while the other 57% said no.
Is an EOFY sale right for your business?
Not sure whether an end of financial year sale would be beneficial for your business? Here are some questions to consider:
Do you need to get rid of excess stock?
If you want to reduce the burden of an upcoming stocktake or you’re bringing in new stock for the new financial year, an EOFY sale can help sell off end-of-season or last season’s stock.
Do you sell products or services that are tax-deductible?
Towards the end of the financial year many people are thinking about last-minute tax deductions and ways to reduce their taxable income. Running an EOFY sale could be a smart move if you sell tax-deductible products or services.
What upcoming marketing activities do you have planned?
Depending on your planned marketing activities, running an EOFY sale could complement (or clash with) your strategy.
Do you need to boost sales quickly?
If you want to bump up your annual revenue to invest back in the business or for any other reason, an EOFY sale can be an easy way to make more sales quickly.
Is EOFY usually a busy time of year for your business?
If the end of the financial year is a busy period for your business (accountants and tax professionals, we’re looking at you!) it may not make sense to run a sale when demand is already high.
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