What is loss leader?

  • (noun): A featured article of merchandise sold at a loss in order to draw customers.
    Synonyms: drawing card, leader

Loss Leader

A loss leader, or simply a leader, is a product sold at a low price, at or below its market cost to stimulate other sales of more profitable goods or services. Using a loss leader, often a very popular good or service, is a type of sales promotion—a marketing strategy that focuses on pricing strategy. Sometimes "leader" is used as a related term and can mean any popular article, i.e., one sold at a normal price.

Read more about Loss Leader.

Some articles on loss leader:

Loss Leader - Controversy
... In recent years, loss-leader pricing has been practiced with considerable success, especially by large national-discount retailers ... Lawsuits alleging that some loss-leader pricing strategies amount to illegal business practices have increased in recent years, though the plaintiffs ... Opponents of loss leading pricing practices argue that the strategy is basically predatory in nature, designed to ultimately force competitors out of business ...
Pricing Strategies - Models of Pricing - Loss Leader
... A loss leader or leader is a product sold at a low price (i.e ... at cost or below cost) to stimulate other profitable sales ...

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