What is Loss Leader?

A definition of Loss Leader

“A loss leader is a product sold at a low price to attract customers into a store, with the hope they purchase other items at regular prices.”

Loss Leader in Business Glossary - What is a Loss Leader?

Business Glossary > What is Loss Leader?


Examples of Loss Leader in a Sentence:

The grocery store uses milk as a loss leader to draw in more shoppers.

Holiday sales often feature a loss leader to entice holiday shoppers.

Offering a loss leader can increase foot traffic in retail stores.

Why is Loss Leader Important in Business?

Understanding loss leaders can help businesses attract and retain customers by strategically pricing certain items low to boost overall sales revenue. This strategy can increase brand exposure and store visits.

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Associated Terms

Here are some associated business terms and synonyms for “Loss Leader”:

  • Promotional Pricing
  • Below-Cost Pricing
  • Marketing Pricing Strategy

Walmart’s Loss Leader Strategy

Walmart frequently uses loss leaders, like heavily discounted electronics, to draw customers into its stores. This strategy encourages customers to buy other, more profitable products during their visit.

Final Notes on Loss Leader

When using a loss leader strategy, businesses should consider:

  • The potential impact on profit margins
  • The ability to upsell or cross-sell additional products
  • The potential to increase customer loyalty

These considerations help ensure that the strategy effectively boosts overall sales and customer engagement.


This has been a definition of Loss Leader meaning.

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