Loss Leader (Noun)
Meaning
A featured article of merchandise sold at a loss in order to draw customers.
Classification
Nouns denoting man-made objects.
Examples
- The company used the new smartphone as a loss leader to attract customers to their store and increase sales of other products.
- By selling the popular video game at a loss, the retailer hoped to make up for the loss leader with increased sales of gaming consoles and accessories.
- The big-box store used a loss leader strategy to sell 4K TVs at a significant discount, knowing that customers would also purchase other electronics and accessories.
- The online retailer offered a loss leader deal on a best-selling book, hoping to attract new customers who would then purchase other books and products from their website.
- The electronics store used a loss leader approach to sell laptops at a discounted price, making up for the loss with increased sales of laptop accessories and warranties.