Using Loss Leaders In Your Pricing Strategy

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Executive Summary

Common sense tells business owners that the way to make money is to sell products for more than it costs to make them. But like any rule, there are exceptions. Loss leader pricing is one of them. This strategy prices a specific product at an extremely attractive price, one that may not even cover the cost of goods sold for the seller. The expectation is that buyers of the loss leader product will also purchase additional goods and services where the business will make a healthy profit.

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