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

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The loss leader market technique is time-honored and ubiquitous, and once you understand what it looks like, you will see evidence of loss leaders everywhere. If your loss leader method involves bringing clients back for subsequent and various products (believe games with video gaming devices or more books in a series), this is a fantastic opportunity to build brand loyalty. It’s real: if you have the resources to take a loss on a product that your rival may not be able to price at a loss, you have an advantage over the competition. The guidelines were made to protect little organisations from larger companies and box stores that benefit from loss leading and can pay for to take a loss. A loss leader that works without a connection to your other products could result in a loss in revenue.

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