For small businesses in Australia, the end of the financial year isn’t just about balancing the books—it’s also one of the biggest opportunities to drive revenue, clear out old inventory, and engage customers with enticing offers. EOFY sales can give SMEs a much-needed boost before June 30, whether by improving cash flow, tidying up stock levels, or capitalising on increased consumer spending.
However, not all EOFY sales are created equal. Without a well-thought-out strategy, businesses may end up slashing prices without improving their bottom line.
In this article, we’ll explain why EOFY sales are essential, how to time them for maximum impact, and proven tactics SMEs can use to potentially build momentum in the final weeks of the financial year.
Why Do SMEs Hold EOFY Sales?
EOFY sales are more than a retail tradition—they’re a strategic tool for businesses to manage finances and customer engagement at a critical time of year.
Here’s why so many small businesses hold EOFY sales:
- Clear out excess inventory: Unsold stock ties up capital and storage space. Sales help convert that stock into cash, especially for seasonal or perishable goods.
- Boost business performance: A well-executed sale can push final-quarter sales figures over the target and help meet annual goals.
- Improve cash flow before tax time: Businesses usually face large expenses or reporting requirements at the end of June. A successful EOFY sale can provide the cash needed to meet these obligations.
- Encourage pre-July purchasing: Customers, especially those in business, may seek deductions before the new financial year begins.
Many businesses typically also use EOFY sales to reset their pricing strategies, generate discussion around their products, and test new promotional channels.
When Is The Ideal Time To Hold EOFY Sales?
EOFY sales don’t just happen on June 30. In fact, most of the action starts in early June, with many retailers ramping up promotions by mid-month.
The lead-up is beneficial for building awareness and anticipation, while the final days before June 30 can create urgency.
Timing your EOFY sale properly allows you to catch two types of customers:
- Early-bird shoppers looking to make calculated purchasing decisions
- Last-minute buyers who want a deal before the financial year ends
Retail forecasts also support the importance of getting involved. The Australian Retailers Association projects that EOFY 2025 sales will hit $10.5 billion, proof that consumers are ready to spend during this period.
How SMEs Can Structure Their EOFY Sales For Greater Revenue
A good EOFY sale isn’t just about cutting prices.
It’s about offering real value, clearing out old stock, and driving repeat business.
Here are the tactics SMEs can consider using.
Combine Related Products For Bundle Deals
Bundling is one of the easiest ways to increase average order value without cutting margins too thin.
Instead of selling products individually, consider grouping related items together—like “starter kits,” “work-from-home essentials,” or “EOFY tech combos.”
Retailers often use bundle deals to sell less popular products, such as accessories and slower-moving stock by packaging them with more desirable items.
SMEs can take the same approach, pairing high-demand products with add-ons to increase the value of every sale.
Aside from bundling two different items, consider buy-one-take-one sales if you really need to move one particular product quickly.
Offer Tiered Discounts To Entice Customers
A flat discount across your range is simple but not always effective.
Tiered discounts based on order value can encourage customers to spend more.
Here’s a quick example of tiered discounts:
- Spend $100, get 10% off
- Spend $250, get 15% off
- Spend $500, get 20% off
This gives shoppers a clear incentive to purchase more, and it’s typically easy to track performance using e-commerce platforms.
You can also introduce early-bird discounts or flash sales during the final week of June to build urgency and keep engagement high throughout the campaign.
Use The Sale To Clear Out Inventory
EOFY sales are an ideal opportunity to move slow-selling stock.
Whether it’s out-of-season clothes, tech accessories for discontinued models, or excess units from over-ordering, SMEs can take this time to put them on sale.
Inventory clearance not only frees up valuable storage space but also improves your inventory turnover ratio. Having more cash on hand is always better than keeping surplus inventory.
Plus, unsold or obsolete stock may be considered tax-deductible as part of your annual write-off strategy.
Settle On Clear Promotional Tactics
Proper advertising is essential for a successful sale.
SMEs may benefit more from consistent and planned promotions across channels.
Promotions can be spread through the following methods:
- Email campaigns: Send multiple emails throughout the campaign: one to announce the sale, one to highlight popular deals, and one to signal the final days.
- Social media: Use countdown timers, product teasers, and video demos to drive engagement.
- In-store signage and banners: If you have a physical location, place posters with EOFY deals front and centre.
- Online ads: Paid search and retargeting ads can help recapture interest from past customers or website visitors.
Make the sale deadline loud and clear. Language like “Ends June 30” or “Limited Sale Supply” can create urgency and encourage sales from a customer who comes across it.
Implement A Loyalty Program For Consistent Customers
EOFY is a great time to reward your most loyal shoppers. Business owners may consider launching a points program, early access privileges, or member-only flash sales during this period.
For example, Myer One members often receive exclusive perks during EOFY. Your SME can replicate this by offering double points during June or giving VIPs exclusive access to your best discounts.
Many e-commerce platforms or tools with built-in rewards options can help manage this easily, especially if you sell items online.
Calculate Break-Even Points Before Applying Discounts
Before you start slashing prices, make sure you’re not accidentally cutting into your profit margins.
Every business should calculate its break-even point—how many units it needs to sell at a discounted price to cover costs.
Business owners can factor in:
- Product costs
- Shipping and handling
- Staff time (especially for order fulfilment)
- GST
- Marketing spend (especially if you’re running ads)
Train Staff on the Sales Pitch
Your EOFY sales strategy is only as strong as the people executing it.
Ensure all staff—whether on the shop floor or in customer service—understand the sale structure, top promotions, and how to cross-sell.
You can even offer small internal rewards, like gift cards or early clocking out, for staff who exceed targets or upsell bundles effectively.
Conclusion
EOFY sales are a golden opportunity for SMEs to refresh stock, attract new buyers, and finish the financial year on a high. However, going in without a plan can potentially lead to burning through inventory and profit loss.
Instead, consider structuring your EOFY campaign with intention—use bundles, reward loyal shoppers, and promote with urgency. Always know your break-even point, and lean on staff training to maximise conversions.
Whether you’re a retailer clearing shelves or a service provider offering limited-time packages, EOFY sales can set you up for a stronger new financial year.
Consider starting your plans now to take advantage of the coming EOFY sales season.