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Loss Leader


Loss leaders are products which shops sell for less than the amount of money the bought them for. It is a pricing strategy employed to bring customers into the store in the hope that they buy other (more profitable) products while they are there.

The most common example of a loss leader is milk in supermarkets. Supermarkets often sell milk for less than what it costs them, knowing that people who visit to buy milk will often end up buying other things.