Posts Tagged "Loss Leader Marketing"

Loss Leader Marketing – How to Use this Retail Marketing Strategy in Your Internet Business

Posted by Arwen Taylor on Sep 20, 2011 in Marketing Strategies | Comments Off

What is a Loss Leader?

A loss leader is a marketing strategy where a product is sold to the buying market at a price point equal to or below cost. This tactic is used to draw customers into the store in the hopes that they will purchase other items with higher profit margins.

You see this most often in grocery stores where the food store will sell staples such as milk or eggs below cost hoping you’ll buy other, more profitable, food stuffs.

How can using a loss leader help your internet business?

A loss leader isn’t just for retail stores. Even businesses such as consulting firms and web designers can effectively use loss leaders in their businesses.

Using a loss leader can help attract customers to your online store and put them in a buying mood. You see this all the time within the free market. Websites will offer something for free in exchange for traffic to the site or to build their email lists.