When it comes to goods sold not primarily to make a profit but to attract customers so that they might buy other goods, they are often referred to as "loss leaders." This marketing strategy involves offering a product at a discounted price or even below cost to entice customers into a store or onto a website, with the hope that they will also purchase other items at full price.

Loss leaders are commonly used by retailers to drive foot traffic and increase sales volume. By offering a popular product at a steep discount, businesses can capture the attention of consumers and encourage them to make additional purchases while they are already in the store or browsing online. This tactic is particularly effective in competitive markets where businesses are vying for customers' attention and loyalty.

One example of a loss leader is a grocery store selling milk at a discounted price. While the store may not make a profit on the milk itself, they are able to attract customers who will likely purchase other items such as bread, eggs, and produce at regular prices. By strategically pricing certain items as loss leaders, businesses can drive overall sales and increase their customer base.

Overall, the use of loss leaders can be a beneficial strategy for businesses looking to increase their market share and attract new customers. By offering enticing deals on select products, companies can create a sense of urgency and encourage consumers to make purchases they may not have otherwise considered. This can lead to higher overall sales and a stronger brand presence in the marketplace.

For more information on loss leaders and other marketing strategies, you can visit MarketingProfs or Forbes.

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