Loss Leader Strategy - Explained
What is a Loss Leader Strategy?
Written by J. Mance Gordon
Updated at April 21st, 2024
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What is a Loss Leader Strategy?
It is a pricing strategy used by the retail stores to bring in customers in their store. In this strategy, they offer products or services at below market price to attract the customers with an assumption that once the customers are inside the store, they will end up buying other normally priced products and services as well.
A typical customer often buys other items along with the loss leader, and the seller expects to make an overall profit from this purchase. The same strategy is also used by e-commerce sites to attract customers to their website.
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