A product sold at a loss to attract customers who hopefully buy other products with higher margins that result in a net profit for the retailer.
Comment on Valve's new hardware will NOT be loss leaders
SpicyTaint@lemmy.world 3 days ago
What the hell is a “loss leader”?
ryathal@sh.itjust.works 3 days ago
wirelesswire@lemmy.zip 3 days ago
An item that is sold to you at a loss in hopes that you buy more profitable stuff from them to make up for said loss. Game consoles are usually sold at a loss in order to get people into their ecosystems, so they can buy things like games and subscription services, which are more profitable.
captain_aggravated@sh.itjust.works 2 days ago
Gilette gives away razor handles to men to encourage them to buy their blades.
Inkjet printers are often cheaper than a change of ink cartridges.
I think it was Standard Oil, gave away hurricane lanterns in order to sell kerosene.
Most video game consoles are sold for less than they cost to make because the company expects to earn more in video game sales.
rafoix@lemmy.zip 3 days ago
When a business sells something at a lower price than it costs for the purpose of attracting more customers.
Another example is Costco rotisserie chicken.