Loss leader

Loss leader,

Definition of Loss leader:

  1. 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.

  2. A product sold at a loss to attract customers.

Synonyms of Loss leader

Publicity device, Stunt, Contrivance, Eye-catching novelty, Scheme, Trick, Dodge, Ploy, Stratagem

How to use Loss leader in a sentence?

  1. The loss leader was able to take advantage of the economy of scale that existed in the market because demand was so high.
  2. To attract customers, we decided to try out a loss leader technique, so people would come in and want the cheaper thing.
  3. You may want to get rid of any loss leader you have before it may contaminate other aspects of your company.
  4. Many of the compact discs sold by the store are sold as loss-leaders to attract consumers to buy other products.

Meaning of Loss leader & Loss leader Definition