Loss leader
This is an old revision of this page, as edited by Markr (talk | contribs) at 21:00, October 16, 2008. It may differ significantly from current revision.
a loss leader is an item sold near or below cost as an inducement to buyers. An example would be a supermarket who has bread at 10 cents a loaf. Customers come in to buy bread and may then purchase other items from which the store makes a profit.
There are often conditions placed on loss leader items, such as "limit 2" or "20 cents with $20 purchase". The item offered is often placed at the back of the store so customers must pass other items or are located near common impulse purchase items, such as candy.
This practise is banned in some states in the United States.