Guides ยท Business

Loss Leader Pricing Basics

Price below cost strategically

Loss leader pricing sets some items below cost to attract customers who also buy higher-margin goods; it needs clear goals, guardrails, and monitoring to avoid margin erosion or legal issues.

Set Goals

Define why (traffic, cross-sell) and target items.

Guardrails

Limit duration/quantity; ensure legal compliance.

Measure

Track basket mix, margins, and repeat behavior.

Keep Exploring

Related Terms

One useful idea at a time

Get new explainers in your inbox

Occasional clear explanations. No daily noise.