loss leader


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loss leader

A business term for an item sold to the public at or below the original cost, to entice a customer to purchase other, more expensive items.

In healthcare, a loss leader is a service provided below cost in order to attract well-insured patients in the hopes of their referring other patients in need of services, thereby generating income above the cost of the loss leader.
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Many times, loss leaders are sold for less than the wholesale price.
Stewart isn't the first CPA to put interactive features on a Web site, but he's unusual for two reasons: This site is an end in itself, not a loss leader to market more traditional services, and he's using state-of-the-art technologies not for technology consulting but, rather, for some very basic accounting services.
We do sell a lot, but it is a loss leader," said Juanita Leon, software buyer for Elek-Tek.
What that means for floral and produce managers of supermarkets is they need not treat flower bulbs as a loss leader.
The loss leader strategy employed by the Conway Wal-Mart is readily justifiable as a tool to foster competition and to gain a competitive edge as opposed to being viewed simply as a strategem to eliminate rivals altogether," Associate Justice Robert Brown wrote in the court's majority opinion.
This has rendered carbonates a loss leader in the supermarket channel, and it looks like bottled water is heading in that direction as well.
In addition, supermarkets will be prevented by law from selling alcohol as a loss leader to encourage people into their stores.
This is manifested in wanting to ban happy hours in pubs and stopping supermarkets selling loss leader cases of beer and half price bottles of wine or discounted spirits.
The other issue is the continual supermarket selling of alcohol as a loss leader.
Mr Mills said: "Chicken is used as a loss leader in supermarkets, and when they run promotions they dictate the price to us and we cannot object because they enjoy a monopoly.
However, to make such arrangements work, the carrier and the TPA must view each other as a real partner--not as the loss leader of the relationship.
If the present trend of shops using milk as a loss leader continues, many farmers will find it hard to invest in their future - because of the lack of income - and will doubt whether there is a future for them in milk production.