Loss Leader

In marketing terms a 'loss leader' is an item or service that is competitively priced to draw in customers. Sometimes this means it is priced at a level that means the you are making a 'loss' on the cost of buying in that item (or providing that service). However the item or service will have been chosen because it is the one that people will definitely come to you for, it will be your 'leading' item. Once your customers are with you to see this competitively priced item you can sell on other items or services which will be normally priced.

To summarise - you are selling your 'leading' item or service at a 'loss' to gain competitive advantage - a loss leader.

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