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This isn't really what a loss leader is. That's the Razor/Blades thing. Sell an xbox at a slight or moderate loss, so that you can make up margin on pricy games
by ehutch79 4y ago
This isn't really what a loss leader is. That's the Razor/Blades thing. Sell an xbox at a slight or moderate loss, so that you can make up margin on pricy games.
Free basic services arn't a loss leader, they're paid for by the enterprise contracts.
- toast0 4y agoLoss leader gets you in the door, so you can sell the stuff with margin. For microsoft sure, that's the system/games model. For a grocery store, it's specials vs everything else. For cloudflare, it's free tier vs enterprise. The loss leaders are always paid for elsewhere, or at least that's the plan.