Loss Leader – A good or service sold at below cost price to bring customers into the shop with the intention that, once there, they may purchase full-priced items too
(Pronounced loss lee-duh)
To remember what loss leader means use the following mnemonic:
Although it's making a loss, it leads a (loss leader) lot of people to come into the store and buy other products.
Shops sell everyday products as loss leaders to entice customers to come in. This includes:
Supermarkets – milk and eggs
Builders merchants: cement and sand
Electronics shops: Ink printers (made up for by selling highly-priced ink cartridges)