Loss leader

In marketing, a loss leader is a good that is sold below cost to draw customers into a store where they are likely to buy other goods. For typical customers, the profit on these other goods make up the loss from the loss leader.

An example would be a supermarket selling sugar or milk at less than cost to draw customers to that particular supermarket chain.

A loss leader is typically placed at the back of a supermarket or store, so that purchasers must walk past ranks of other displayed goods.

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