Business & revenue models · Working

Loss leader

Also called: traffic builder

ELI5

Sell one thing cheaply to encourage other purchases.

Used in conversation

“The loss leader needs a measured path to profitable baskets.”

Definition

A product priced at little or no profit to attract demand for other profitable purchases.

Here “Loss leader” means: A product priced at little or no profit to attract demand for other profitable purchases.

Pitch context

You will see “Loss leader” in strategy decks, market analyses, business plans and planning workshops when the discussion reaches business & revenue models.

Why it matters: It helps a reader interpret business & revenue models without confusing the measure, decision, role or evidence being discussed.

Sources & evidence · 5

Supporting source families. This entry is an editorial synthesis rather than a quotation from one canonical glossary.