Quote:
Originally Posted by notorious
Basically Black Friday all of the time. They advertise $.79/ft reject laminate, or $.99/ft utility oak (with all kinds of milling problems.) to get your attention. Then you end up buying a decent product for much more than their loss leaders.
Loss leader=loss in profit/or an actual loss of money just to get a product moved or to get customer attention
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That's more like bait and switch, equally effective, though.
A loss leader is something the company decides to go ahead and sell for such a low price that they're actually losing money. That's the "Loss" part.
Their hope is that you'll storm in to buy that product, and while you're there, you'll either buy other unrelated products, or related products that they will then make their profit on.
Selling a cheap laminate, for instance, in hopes that you buy underlayment or trim or whatnot.