What Are Promotions and How Do They Work?

Updated

A promotion is a temporary offer a retailer uses to encourage a specific purchase, visit, or behavior. It is broader than a sale or a coupon: a sale lowers the shelf price, a coupon gives a discount at checkout, and a promotion is the umbrella offer that can include either — or neither. On RedFlagDeals.com, promotions sit alongside sales, coupons, and freebies from hundreds of Canadian stores in one place, which is useful because the same store may run all four at once and they don't always combine.

Promotion vs. sale vs. coupon vs. flyer

These terms overlap in everyday use, but they behave differently at checkout:

Term What it is Where the value appears Typical trigger
Sale A temporary price reduction on an item or category On the price tag or listing Automatic — no code needed
Coupon A discount applied at checkout On the order total Code, barcode, or loyalty account
Flyer A scheduled circular of that week's prices In the flyer listing Automatic if the price is live
Promotion A broader offer with conditions Varies — discount, gift, points, rebate Often requires a condition (spend threshold, membership, quantity)

The practical difference: a sale changes what the item costs, while a promotion changes what you get. A "spend $100, get a $25 gift card" offer is a promotion, not a sale — the item price is unchanged, and the value only materializes if you use the gift card later.

Common promotion types

  • BOGO (buy one, get one) — usually "get one free" or "get one 50% off." Check whether the discount applies to the cheaper or more expensive item.
  • Rebates — you pay full price, then submit a receipt or form to get money back. The value depends on you completing the claim.
  • Gift with purchase (GWP) — a free item bundled above a spend threshold. The gift's real value is what it would cost you to buy separately, not its listed price.
  • Points multipliers — loyalty programs award extra points on certain items or days. Worth it only if you actually redeem points at a reasonable rate.
  • Limited-time offers — a discount or bonus that expires on a stated date, often tied to a holiday or launch.
  • Spend-and-get — "spend $75, get $15 off" style offers that reward reaching a threshold.

How promotions are triggered and redeemed

Most promotions follow the same three-step pattern:

  1. Meet the condition. This might be a minimum spend, a specific item, a quantity (buy 2), a membership tier, or a date window. If the condition isn't met, the promotion doesn't apply.
  2. Apply it. Some promotions are automatic at checkout; others need a code, a loyalty card scan, or a mail-in/online rebate submission. Read the offer's terms to know which.
  3. Confirm the result. Check the order summary or receipt. For rebates, keep the receipt and submission confirmation until the money arrives.

Stacking is the biggest variable. Some retailers allow a coupon on top of a sale price; many don't. Some allow a points multiplier and a coupon together; others exclude promotional items from further discounts. There is no universal rule — the terms of each offer decide. A safe habit is to assume promotions do not stack unless the offer explicitly says they do.

Where to find current Canadian promotions

  • RedFlagDeals.com aggregates sales, coupons, promotions, and freebies from hundreds of Canadian stores in one place, which makes it a reasonable starting point when you want to compare offers across retailers rather than check each store's site.
  • Store flyers and loyalty apps — the source of truth for that week's scheduled prices and member-only offers.
  • Retailer email and app notifications — often where limited-time and personalized promotions appear first.
  • Loyalty program portals — where points multipliers and member-exclusive spend-and-get offers are listed.

Checklist: is this promotion actually worth it?

Run through these before you commit:

  • What's the real value? Convert gifts, points, and rebates into dollars, not "up to" figures.
  • Would you buy it anyway? A promotion on something you don't need is a discount on a cost you wouldn't have had.
  • What's the condition? Minimum spend, quantity, membership, or date — can you meet it without buying extra?
  • Does it stack? Check whether a coupon or sale can be combined, or whether the promotion replaces them.
  • What's the expiry and redemption path? Rebates and gift cards require follow-through; a forgotten rebate is worth zero.
  • Compare the net price. Subtract the promotion's value from the total, then compare against the same item at another store.

If the net price is still the best available and you'd have bought the item regardless, the promotion is doing its job. If it only works because you're adding items you didn't plan to buy, it's a cost, not a saving.