loss leader pricing

Popular Terms
An aggressive cost setting strategy whereby a retail outlet deliberately sells particular desirable products below their cost to attract customers. The idea behind loss leader pricing is that the profits from additional purchases that customers will make while in the store will more than cover the store's loss on the heavily discounted product.

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Always the experts at loss leader pricing, Walmart put the discounted blu-ray discs at the very back of the store, down a maze of stocked aisles and past dozens of tempting product displays.
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Our loss leader pricing strategy was working really great and I was really happy with the new customers we were attracting.
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The grocery store hoped that selling cans of beans at a half price discount would bring in many new shoppers to take advantage of loss leader pricing, and that the shoppers would spend more money on other groceries.
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