loss leader

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  • noun

Synonyms for loss leader

a featured article of merchandise sold at a loss in order to draw customers

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References in periodicals archive ?
Lloyds Banking Group, which is selling off part of TSB will price the challenger bank at a discount to its book value in an effort to ensure a smooth flotation process and so it acts as a loss-leader for future share sales.
Regarding Mr Taylor's observation that all high street betting offices were offering one-quarter odds a place on all races, I can only assume this offer was a loss-leader, designed to attract punters into their shops to play on all the virtual racing games, roulette machines and lucky 49's, etc.
Retailers are coming under increasing pressure not to discount alcohol amid fears of binge-drinking and an early day motion was signed last week calling for supermarkets not to run alcohol as a loss-leader.
It's a loss-leader type program that is solely aimed at getting people in the door at Wal-Mart.
And he acknowledges that a customer who only purchases loss-leader titles might not be as valuable as one who also buys library titles and adult videos, which have better profit margins.
The solution lies in marketing and merchandising processes that don't have to appeal to loss-leader enticements.
For some companies, the business is slowly changing into one where the newsletters are the breakeven or even loss-leader business that makes profits possible in activities like audio-conferences and one-shots.
Bread is used by supermarket chains as a loss-leader - prices are kept lower than the cost of production to entice customers into the store.
Big retailers have long used milk as a loss-leader, pushing down the price paid to farmers for their produce.
The company expects to have revenue of $500,000 this year and now only will sell to out-of-town resellers in an effort to expand market recognition, since wholesaling is a loss-leader.
And besides, they already have a price image because of their loss-leader advertising.
He said audits should remain the "soul" of the public accounting profession, "not a loss-leader retained as a foot in the door for higher fee consulting services.
It is our view that no one is served by a loss-leader type of approach.
Retailers in Fort Frances have been advised to cut their costs by finding new suppliers and loss-leader gas stations have also been recommended to keep shoppers on this side of the border.
Neil Mawston, Director at Strategy Analytics, said, "We expect Nokia to use royalty-free Symbian software as a loss-leader to drive profitable growth in handsets and services in 2009.