Why Small Businesses Need To Beware of Loss Leader Pricing Tactics (& How To Do It The Right Way)


The loss leader market technique is ubiquitous and time-honored, and when you understand what it looks like, you will see proof of loss leaders all over. If your loss leader technique includes bringing customers back for various and subsequent items (believe games with gaming devices or more books in a series), this is a terrific chance to construct brand commitment. It’s true: if you have the resources to take a loss on an item that your competitor might not be able to cost at a loss, you have an advantage over the competitors. The guidelines were made to safeguard little services from larger companies and box shops that benefit from loss leading and can afford to take a loss. A loss leader that works without a connection to your other products might result in a loss in revenue.

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