loss leader

Popular Terms
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.
19 people found this helpful
The loss leader was able to take advantage of the economy of scale that existed in the market because demand was so high.
17 people found this helpful
To attract customers, we decided to try out a loss leader technique, so people would come in and want the cheaper thing.
14 people found this helpful




Email Print Embed

Mentioned in These Terms