loss leader

  

Definition

Good or service advertised and sold at below cost price. Its purpose is to bring in (lead) customers in the retail store (usually a supermarket) on the assumption that, once inside the store, the customers will be stimulated to buy full priced items as well. See also price leader.

Use loss leader in a sentence

  • You may want to get rid of any loss leader you have before it may contaminate other aspects of your company.

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  • The loss leader was able to take advantage of the economy of scale that existed in the market because demand was so high.

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  • To attract customers, we decided to try out a loss leader technique, so people would come in and want the cheaper thing.

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