loss leader
Deliberate retail sacrifice
A loss leader is a product sold below cost to attract customers who will then buy other, profitable items.
Supermarkets use milk or eggs as loss leaders; electronics stores discount popular gadgets.
The strategy sacrifices margin on one item to generate overall profit: They're selling the printer as a loss leader, knowing you'll buy their expensive ink cartridges.
Charging below true value
- markdownReduction in retail price
- doorbusterDeeply discounted promotional item
- deep discountLarge price reduction
- cut-rateOffered below usual price
price cut · rock-bottom · bargain-basement · rollback · introductory offer · promotional pricing · break-even · subsidized
Lure for prey
- lureThing that tempts
- hookCurved catching device
- drawCreate with pencil
- customer acquisitionWinning new paying clients
foot traffic · market penetration · brand awareness · cross-selling · upselling · impulse buys · conversion · halo effect
Deeply discounted promotional item
- clearancePermitted passage or approval
- inventoryCatalog of held assets
- overstockSurplus goods beyond demand
- shelf spaceRoom for merchandise display
endcap · checkout aisle · store brand · supermarket · hypermarket · big-box store · warehouse club · merchandising
Lure for prey
- lureThing that tempts
- magnetObject producing attractive field
- drawCreate with pencil
- hookCurved catching device
carrot · come-on · teaser · incentive · inducement · temptation · attraction · sweetener
underpricing
Charging below true value
- markdownReduction in retail price
- doorbusterDeeply discounted promotional item
- deep discountLarge price reduction
cut-rate · price cut · rock-bottom · bargain-basement · rollback · introductory offer · promotional pricing · break-even · subsidized · predatory pricing
bait
Lure for prey
customer acquisition · foot traffic · market penetration · brand awareness · cross-selling · upselling · impulse buys · conversion · halo effect · market share
doorbuster
Deeply discounted promotional item
- clearancePermitted passage or approval
- inventoryCatalog of held assets
- overstockSurplus goods beyond demand
shelf space · endcap · checkout aisle · store brand · supermarket · hypermarket · big-box store · warehouse club · merchandising · Black Friday
bait
Lure for prey
hook · carrot · come-on · teaser · incentive · inducement · temptation · attraction · sweetener · allurement
- retailretail sales, Amazon, marketplace, clearance, sale
- business termsfranchising, revenue stream, board meeting, gross margin, markdown
- pricingpricing, discount price, overpricing, discounts, overcharge
- bargainsbargain, bargain hunting, discount store, coupon, rebate
- gimmicksgimmick, trick, ploy, stunt, gag
- marketing strategyproduct, price, place, promotion, positioning
loss leadercash cow
Dependable income source
profit center · bread and butter · luxury good · flagship product · price gouging
lost, loss, lead, leader, loser, leading, led, leadership, loses