loss leaders
Profitable unprofitable merchandise
Loss leaders are products sold below cost to attract customers who will then buy other, profitable items.
Grocery stores might sell milk at a loss, betting you'll fill your cart with full-price goods.
The strategy treats certain sales as advertising expenses rather than revenue sources: Electronics retailers use game consoles as loss leaders during the holidays.
Deeply discounted promotional item
- foot trafficPedestrian movement volume
- merchandisingPromoting and selling goods
- shelf spaceRoom for merchandise display
- supermarketSelf-service food retailer
impulse buy · checkout aisle · big-box store · Black Friday · shopping cart · store brand · retail strategy · drawcard
Reduction in retail price
- cut-rateOffered below usual price
- undercutSell cheaper than rivals
- discountReduced price offered
- subsidizeProvide financial assistance
competitive pricing · dumping · price war · introductory offer · lowball · predatory pricing · wholesale · half-price
Method for determining costs
- market penetrationSales presence in sector
- competitive edgeAdvantage over rivals
- brand awarenessPublic familiarity with company
- customer acquisitionWinning new paying clients
cross-selling · upselling · value proposition · profit margin · break-even · price point · economies of scale · market share
Mammalian nursing fluid
- breadLeavened flour product
- eggsReproductive cells in shells
- diapersInfant waste garments
- razorsTools for removing stubble
printer ink · turkeys · rotisserie chicken · bananas · toilet paper · video game consoles · cellphones · appliances
doorbuster
Deeply discounted promotional item
- foot trafficPedestrian movement volume
- merchandisingPromoting and selling goods
- shelf spaceRoom for merchandise display
supermarket · impulse buy · checkout aisle · big-box store · Black Friday · shopping cart · store brand · retail strategy · drawcard · featured item
markdown
Reduction in retail price
subsidize · competitive pricing · dumping · price war · introductory offer · lowball · predatory pricing · wholesale · half-price · clearance
pricing strategy
Method for determining costs
- market penetrationSales presence in sector
- competitive edgeAdvantage over rivals
- brand awarenessPublic familiarity with company
customer acquisition · cross-selling · upselling · value proposition · profit margin · break-even · price point · economies of scale · market share · sales funnel
milk
Mammalian nursing fluid
razors · printer ink · turkeys · rotisserie chicken · bananas · toilet paper · video game consoles · cellphones · appliances · electronics
- commercetrade, banking, merchant, imports, sales
- retailretail sales, Amazon, marketplace, clearance, sale
- pricingpricing, discount price, overpricing, discounts, overcharge
- bargain shoppingdiscount stores, clearance items, warehouse clubs, markdowns, outlet malls
- grocery budgetingcoupons, couponing, bulk buying, meal planning, store brands
- marketing scamsfalse ads, fake reviews, fake testimonials, fake endorsements, false promises