APT Initiatives
APT Business & Economics Resources
Minimising Workloads, Maximising Performance
Established in 1999

Special Items

Loss leaders

Products with very low prices that are used to attract customers to buy other, more fully priced products. It essentially involves using price as a method of sales promotion, and is a tactic commonly used by supermarkets. Customers are encouraged through the doors by pricing product(s) at a very low level, sometimes at a level that does not cover the costs and fails to make a profit. The hope is that customers will spend money on other, more profitable items (while in the shop), and that this will more than offset any losses made on the loss leader product. The loss leader is carefully placed in the store so that customers have to pass many other products on sale before they reach the product. Such tactics rely on impulse buying.

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