Pricing & monetization · strategy atlas
Loss leader pricing
what it means
Pricing one well-known, frequently compared item near or below cost to pull customers through the door, trusting that the rest of their basket or visit makes the trip profitable overall.
a real example
Supermarkets are famous for pricing a handful of high-visibility staples aggressively, knowing shoppers rarely leave having bought only the discounted item.
when to use it
Retail or bundled businesses where the loss-leading item reliably brings customers who then buy other, healthier-margin items in the same visit.
when it backfires
Customers who cherry-pick only the discounted item and leave (common online, where there's no physical basket) turn the 'loss leader' into just a loss.
put it into practice