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)