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loss leader

a product sold cheaply to attract customers

In Business & Marketing

In more detail

1. (noun) a product sold at a very low price or at a loss to attract customers to a store, hoping they will buy other things at regular prices

Examples

• The supermarket uses milk as a loss leader to get people through the door.

How to use loss leader

Loss leader is a business and retail term used to describe a deliberate pricing strategy where a retailer accepts reduced profit or a loss on a specific product to drive store traffic and boost overall sales. It typically appears in discussions of retail marketing, pricing strategy, and consumer behavior. The term is more common in business contexts than everyday conversation.

Common phrases

• sell as a loss leader
• use something as a loss leader
• loss leader strategy
• loss leader pricing
• loss leader promotion

Synonyms

bait-and-switch product · loss-making product · promotional item · come-on

A common mistake

Learners sometimes confuse loss leader with a simply cheap or discounted product; however, a loss leader specifically involves selling below cost or at minimal profit as a deliberate strategy, not just offering a regular discount.

Nearby in Business & Marketing

greenwashing, headcount, liquidity event, opex, runway, stickiness

Keep going

How to remember the words you read · Spaced repetition, explained