Loss leaders

Updated: Aug 20, 2021

Goods deliberately offered at prices well below normal and usually at a loss to the vendor, to attract customers into the premises in the belief that they will more than make up the initial loss by boosting the sales of other lines. The offer of very lowprice butter in a supermarket may, for instance, attract the eye of the average housewife, who, once inside, may then complete the rest of her food purchases for the week. Certain curbs were put on the use of loss leaders by the Resale Prices Act 1964

Reference: The Penguin Business Dictionary , 3rd edt.

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James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.