Glossary
Loss leader
A loss leader is an item sold at or below cost to draw customers in, in the hope they also buy other profitable items.
What it means for a shop owner
Pick an item whose price people know well, like sugar or milk. Watch the basket to see whether he really buys other things. If customers buy only this item, you are losing money.
A worked example
You sell sugar at cost, earning nothing on it, and the customer adds 12 of items at a 25 percent margin, which earns you 3.
Related
Try it in your shop, free, no card.
The free plan: the whole shop for one branch, an offline cashier with stock, debts and accounting, with a daily limit on invoices, expenses and purchase orders. What it includes