Loss Leader Strategy

Categories: Marketing

See: Predatory Pricing. See: Dumping.

Loss leader strategy is a pricing strategy where a product is sold for cost, or for a loss.

That sounds wrong (who volunteers to lose money?), but it's a way to coax people into the store or onto the website, etc.

Consider that too-good-to-be-true Black Friday deal. It gets you in the store, and once you're in there, you might buy other items, right? The store bets on you buying that item that they will lose money on...along with the items from which they'll make fat profit.

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