One Acceptable Instance of Selling at a Loss

by Tom Murcko
In business it often pays to sell to early adopters at a loss. The most obvious example is in technology products and services, where they are typically very expensive when they're first developed but then become less expensive as volume grows. But there are more subtle instances as well. For example, the early adopter discount happens every night at bars offering happy hour. By offering discounts on drinks, they build a crowd, which makes their venue more valuable that evening to subsequent patrons.
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