Friday, April 15, 2011

What is a "Loss Leader?"

According to Wikipedia, a Loss Leader or Leader[1] is a product sold at a low price (at cost or below cost)[2] to stimulate other profitable sales. It is a kind of sales promotion, in other words marketing concentrating on a pricing strategy. A loss leader is often a popular article. Sometimes leader is now used as a related term and means any popular article, in other words one sold at a normal price.[3]

The extreme couponer is someone who purchases things only when they are on sale as a loss leader and then they bring the price of that item down with coupons. The extreme couponer rarely ever pays full price or falls victim to the bait and switch.

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