loss leader

loss leader definition - business

loss leader

An advertised product sold at below cost in an attempt to attract customers who will buy other, more profitable items. The hope is that losses from the loss leader will be more than offset by profits earned on sales of other items. Milk, sugar, and bread are often used as loss leaders by supermarkets.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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