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


The loss leader market strategy is time-honored and common, and when you know what it looks like, you will see proof of loss leaders everywhere. If your loss leader technique includes bringing consumers back for different and subsequent products (think video games with gaming gadgets or more books in a series), this is a great chance to construct brand name loyalty. It’s real: if you have the resources to take a loss on an item that your rival might not be able to price at a loss, you have an advantage over the competitors. The rules were made to secure little services from larger businesses and box shops that benefit from loss leading and can manage to take a loss. A loss leader that operates without a connection to your other products might result in a loss in profit.

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