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“Loss Leader Pricing: Winning Customers by Losing Money (Strategically)” “Loss Leader Pricing.” This strategy involves selling a product or service at a price that is intentionally below cost to attract customers. The goal isn’t to profit from the initial sale, but to entice buyers into the store or ecosystem, where they are likely to purchase other, more profitable items. For example, a supermarket may sell milk or eggs at a very low price to draw in shoppers, who then end up buying additional groceries with higher margins. Tech companies use this too—game consoles are often sold at a loss, but profits come from games, accessories, or subscriptions. It’s a powerful way to increase customer traffic, build loyalty, and boost overall profitability through complementary sales.
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