Loss leader

A loss leader is a product deliberately sold below its cost to draw customers into the business. The aim is that customers also buy other products whose profits more than cover the loss.

A loss leader is sold at little or no profit, or even at a loss, to bring customers into a shop. Supermarkets may use it in the hope that shoppers also buy other, more profitable products. Its success depends on those additional purchases: customers who buy only the loss leader may leave the business worse off.

A loss leader is a product sold at a loss to attract customers into a store. The business deliberately accepts a loss on that item because it hopes customers will also buy other products that make a profit.