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.

retail

doorbuster

Deeply discounted promotional item

supermarket · impulse buy · checkout aisle · big-box store · Black Friday · shopping cart · store brand · retail strategy · drawcard · featured item

pricing

markdown

Reduction in retail price

subsidize · competitive pricing · dumping · price war · introductory offer · lowball · predatory pricing · wholesale · half-price · clearance

strategy

pricing strategy

Method for determining costs

customer acquisition · cross-selling · upselling · value proposition · profit margin · break-even · price point · economies of scale · market share · sales funnel

products

milk

Mammalian nursing fluid

  • breadLeavened flour product
  • eggsReproductive cells in shells
  • diapersInfant waste garments

razors · printer ink · turkeys · rotisserie chicken · bananas · toilet paper · video game consoles · cellphones · appliances · electronics

Categories
Opposites
profit margin strategy

loss leaderscash cows

Reliable revenue generators

profit centers · money makers · luxury goods · moneymakers

pricing authenticity

loss leaderseveryday low prices

transparent pricing

product role in retail mix

loss leadersbig-ticket items

Expensive goods requiring consideration

impulse buys · upsells

Family

loss, losses, lost, lose, loser, losers, losing, leader, leaders

Familiarity
Top 500,000
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