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Many retail stores price certain items at a loss, called loss-leaders.
by cyberbanjo 5y ago
Many retail stores price certain items at a loss, called loss-leaders.
- slim 5y agoLoss leaders does not mean you are selling at loss. Small businesses do use loss leaders to generate leads. It costs less than marketing. It just means you price a product under the price of the market (you don't even need to lose money on it) to attract customers who will hopefully buy other products.
- sushid 5y agoLoss leader literally definitionally means that you're selling that good or service at a loss. Yes, you hope you recoup the losses by selling more goods and services but you do lose money on that good/service.