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.
- Strategyzer — Business Model Canvas resourcesSupporting source family · practitioner · checked 2026-08-16
- Strategyzer — Value Proposition Canvas resourcesSupporting source family · practitioner · checked 2026-08-16
- LEANSTACK — Lean CanvasSupporting source family · practitioner · checked 2026-08-16
- U.S. Department of Justice Antitrust Division — Herfindahl-Hirschman IndexSupporting source family · primary · checked 2026-08-16
- U.S. Census Bureau — Business and economy dataSupporting source family · primary · checked 2026-08-16