Loss leader

Loss Leader
In marketing, a loss leader is an item priced not for profit, but to attract customers. If effective, the loss leader stimulates sales of other goods.

loss leader - Related Articles
Contribution Margin
Calculations
margin analysis is only one tool to use. It will not show so-called loss leaders, for example.

LOSS LEADER
Any article that a store sells cheaply or below cost in order to attract customers.
SIGHT DRAFT ...

Loss leader strategy
Definition: The practice of selling a product or products at a low price in order to attract customers who will buy other products.
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Loss Leader
Definition: Merchandise sold at substantial discount in order to lure customers into the store and make additional purchases.

Loss Leader Strategy - A business strategy in which a business offers a product or service at a price that is not profitable for the sake of offering another product/service at a greater profit or to attract new customers.

Loss leaders - Products with prices set deliberately below average total cost to attract customers who will then buy other; more profitable, products.

6- Loss Leader Strategy
The strategy of offering a product or service at a considerable discount and loss of profit in order to attract future business.

Loss leader: the price of a popular product is temporarily reduced in order to stimulate other profitable sales
Free-standing insert (FSI): A coupon booklet is inserted into the local newspaper for delivery.

Some financial institutions offer very high allocation rates of up to 107% in the first few months as a loss leader.

The intent of the Miller-Tydings Act was to address concerns about big chains pushing out small retailers through loss leader pricing. The Miller-Tydings Act gave manufacturers control over the prices charged by retailers.

Loss leader In discount brokerage, a security sold at less than its real value in order to attract business. Low Bottom price at which a security was sold for the preceding 52-week period.

loss leader A good or service sold at a substantial discount in order to generate additional sales. lot Multiple shares held or traded together, usually in units of 100.

See also: Saving, Expense, Accounting period, Cash equivalent, Bargain