Dictionary Home »
Webster's New World Finance and Investment Dictionary » loss-leader
loss-leader
loss-leader definition - finance
A
product that is priced and advertised at very low levels to attract customers
into a retail store. The price may be so low that the store loses money on the
sale of the item. The hope is that customers will be enticed into the store by
the loss leader, and while they are there will purchase other regularly priced
items. The business recoups any money lost on the loss leader and marketing
costs by selling more goods than otherwise would have been sold.
Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.
Comments
Improve this definition.
Share on Facebook