Loss Leader

Definitions

1. A product or offer priced at little or no profit, or even at a loss, to attract customers who will later buy more profitable offerings. The tactic works only if the downstream economics are real.

   In plain English: A low-profit or loss-making offer used to attract customers to more profitable things later.

   Example: "The free device acted as a loss leader for the higher-margin subscription."

Related Terms

• Freemium
• Acqui-hire
• Competitive Analysis
• Competitive Landscape
• Core Competency
• Organic Growth
• Pay-As-You-Go
• Penetration Pricing
• Pricing Strategy
• Revenue Model
• Subscription Fatigue
• Surge Pricing