How DTC Operators Are Avoiding a Discount Hangover This BFCM

Black Friday and Cyber Monday used to be about one thing:

Who could yell “40% OFF!!!!!!!” the loudest.

Today, brands are done chasing empty top-line growth.

Instead, they’re protecting margins, optimizing cohorts, and turning BFCM from a weekend event into a profitability flywheel that sustains through Q1.

Here’s how brands like ILIA Beauty, Mugsy, Mugsy, HappyNuts, and others are thinking differently this year.

Marketers who act like CFOs are the ones keeping their profits intact.

Anthony Lazarus, Co-founder and COO of HappyNuts, summed it up:

“Top-line growth doesn’t mean much if you’re giving away all your margin.”

That means no more blanket sitewide discounts “just because it’s Black Friday.”

Segment your audience. Protect your best customers from unnecessary discounts. Push bundles and upsells to raise AOV. And, most importantly, think beyond the weekend.

As Anthony puts it: “If all you do is acquire a ton of new customers over BFCM but don’t have a plan to get them to come back, you’re leaving money on the table.”

“People are more receptive to deals over a longer period. They want to make their money go further—not just rush to buy on one weekend,” shared Mugsy’s CMO, Adam Lebowitz.

That’s why this year, Mugsy is spreading out the hype with…

It’s the perfect balance: bursts of urgency that protect margins, with downtime to keep customers engaged and wallets warm.

On other days, Mugsy isn’t offering blanket discounts, but they’ll share other incentives like gift-with-purchase offers to encourage shopping and increase average order value. 

As Adam put it, “Consumers are a bit desensitized to Black Friday/Cyber Monday messaging, and they prefer having more time to shop. We really don’t go on sale throughout the year. That’s why this window hits hard.”

This strategy helps their team protect margins on slower days while still giving them the ability to compete during big shopping peaks. 

By having these short bursts of deals, Mugsy keeps consumers excited and engaged, while on non-sale days, they can still serve customers who aren’t necessarily hunting for deals but are still in the shopping mood.

Discounting can work, but only if it feels intentional.

Cherene Aubert, SVP of eCommerce at ILIA Beauty, warned against the brand-diluting, month-long sitewide approach:

“Do not just do a sitewide sale for a month. It’s hard to comp year over year and can be very brand dilutive.”

Instead, she suggests staggering offers to serve different cohorts:

ILIA’s testing a tiered approach where repeat buyers unlock an even better deal: “If you purchased already, you get a deeper discount on your next order. That way we reward loyalty instead of punishing it.”

Anthony from HappyNuts agrees, adding that creativity still wins.

Their top campaign last year? A bundle called Jingle Bells Your Balls Smell, complete with a Santa-signed note and a ball-sack ornament called “Santa’s Gift Sack.” It was priced smartly, packaged hilariously, and sold out fast.

“People loved it because it wasn’t just products tossed in a box, but it was funny, giftable, and felt like something you’d want to share at a party,” shared Anthony.

Proof that humor and experience can drive conversion better than an extra 10% off ever could.

Another example? Why not! One of Mugsy’s biggest wins last year didn’t come from a discount at all—it came from a Gift With Purchase (GWP).

Why it works:

The GWP strategy replaces deep discounting with brand-building value.

Not every shopper behaves the same way, and in 2025, the gap is widening.

According to Sarah Levinger, Founder of Tether Insights, consumers are operating in two distinct modes this season: “loss-mode” buyers and “gain-mode” buyers.

“Because of the current economy, people are saving aggressively—but they’re doing it in two very different ways,” Sarah said. “Some are trying to regain what they’ve lost, and others are being highly selective about what they buy.”

Here’s how she breaks it down:

Loss-mode buyers are the ones who’ve been hit hardest by rising costs or financial uncertainty. They spend big when they do shop—doubling down on deals and buying more items to feel like they’re “winning” value back.

Speak to urgency, bundle value, and total savings. Position your deals as “too good to pass up.”

Gain-mode buyers have money to spend—but they’re cautious. They’re seeking safe bets, premium items, and long-lasting products that feel responsible and intentional.

Lead with quality, trust, and emotional reassurance. Make them feel confident they’re buying the right thing, not just the cheapest one.

These two buyer types behave differently—but both are highly active this holiday season. The key is matching your messaging to their mindset.

If you’re speaking to loss-mode shoppers, go bold with bundles, scarcity, and value stacking. If your audience skews gain-mode, focus on premium positioning, product transparency, and peace of mind.

Marketers love to talk about “acquisition spikes.” But BFCM profits live and die in retention.

As Adam from Mugsy put it:

“This season is a prime opportunity to maximize revenue from your existing customers. The customers acquired during these sales tend to have the lowest lifetime value.”

So fix your fundamentals:

Anthony from HappyNuts updates their welcome and abandoned cart flows with a gifting spin and even adds playful visuals like Santa hats on the logo. These subtle touches that make the brand feel alive in the holiday chaos.

Sarah from Tether Insights says this year’s biggest shift is psychological: consumers are tired of false urgency.

“They know when you say ‘last 48 hours,’ you’ll probably send another email Monday saying it’s extended. They don’t buy it anymore.”

Instead, she recommends showing proof of scarcity:

“Show inventory counts. Start with ‘We have 1,000 units,’ then show updates — 512 left, 118 left. That visual urgency hits harder than any countdown clock.”

Consumers have evolved, and the brands still shouting are losing credibility. Transparency, not pressure, drives conversion now.

Sarah’s advice:

This is the year authenticity outperforms scarcity.

Your Q4 list signups spike, but many never convert. Adding additional touchpoints to your existing flows helps you actually reach those customers who are marketing your emails as “read” without actually opening them.

Postcards are a great way to do this. You can trigger them to those email-only subscribers, timed to your welcome flow or BFCM offer.

HexClad used PostPilot’s MailMatch™ to turn dormant subscribers into $800K in new-customer sales with a postcard:

Red Land Cotton took a similar approach.

When every email says “BIGGEST SALE OF THE YEAR,” direct mail stands out.

Red Land Cotton sends BFCM postcards, too, to win back past buyers.

According to PostPilot, last BFCM, Red Land Cotton sent postcards targeting 10 RFM segments (e.g., "last ordered 180-365 days ago, purchased 2 times").

All the campaigns drove at least a 9.8x ROAS, but we wanted to call out one in particular that targeted customers who last purchased over 950 days ago, and the campaign drove an incredible 13.5x ROAS.

When BFCM rolls around, most marketers start from scratch…

New ads, new creative, new everything.

Mugsy doesn’t.

“Don’t reinvent the wheel,” said Adam.

Instead of burning weeks designing brand-new assets, Mugsy identifies its top-performing creative from the rest of the year and builds the seasonal offer on top of what’s already working.

Here’s how they do it:

The same ad that converted in September likely still resonates in November; the BFCM offer simply gives shoppers a new reason to act now. “Chances are, those winning ads will still perform the best,” Adam said. 

You don’t need to rebuild the house—just redecorate for the season.

“Yes, the official holiday is done, but people still need gifts for their loved ones,” Adam said. “You have to keep customers feeling valued and like they’re still getting a good deal—without killing your margin.”

To keep momentum alive, Mugsy runs a “deal-of-the-day” campaign immediately after Cyber Monday. 

Each day highlights a single product or category, usually items with excess inventory or limited sizes left, and applies a heavy discount to move them quickly.

Here’s how they structure it:

For customers, it’s a fresh reason to keep shopping. For the brand, it’s a way to turn leftover inventory into revenue without resorting to another storewide sale.

BFCM 2025 belongs to the brands that think long-term. 

Those who measure success not by how much they sell, but by how much they keep.

These operators are running BFCM like a financial model. 

And when the noise dies down, they’re still in motion: moving inventory, re-engaging customers, and playing the long game.

That’s how you scale profitably—without the discount hangover.