Loss Leader

What is Loss Leader?

1.

An item that a retail stores sells at a loss in order to get people in the doors to buy other normally priced items.

If Wal-Mart were to sell a television for $20, they would probably lose money on that item (this is the loss leader); however, they are hoping that they can make it up by the other normally priced items you buy.

See sale, profit, markup, money, retail
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