The Risks, Benefits, and Point of a Loss Leader Pricing Strategy

The Risks, Benefits, and Point of a Loss Leader Pricing Strategy

Ever wonder why milk is so inexpensive? It’s a staple in most American homes, so why isn’t it conveniently up front?

Without even knowing it, you’ve encountered a loss leader pricing tactic.

Loss leader pricing is a practice businesses use to price certain items — like bread or milk — below the cost it takes to produce them in order to bring buyers into the store and entice them to purchase other items — like, say, cereal, a candy bar, and some laundry detergent.

It’s a smart strategy, especially since recent surveys have found the average consumer spent $182.98 on impulse buys

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Sales Route

This post was originally published on this site

By: Sales Roadmap
Title: The Risks, Benefits, and Point of a Loss Leader Pricing Strategy
Sourced From: salesroadmaps.com/the-risks-benefits-and-point-of-a-loss-leader-pricing-strategy/
Published Date: Tue, 02 Mar 2021 19:00:00 +0000

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source https://salesroadmaps.com/the-risks-benefits-and-point-of-a-loss-leader-pricing-strategy/