OnDemand WTP Pricing Research

Loss-leader Pricing | Changing Minds

Price some items so low that you are making a loss on them, but also so you will attract many customers who will spend on other products, more than making up for what you are losing on the loss-leader.

Use the loss-leader pricing for a limited period only to suggest limited availability and so enhance the attractiveness.

Another use of loss leaders is to allow sales people to discount the product heavily for specific situation, for example when the customer is spending more on other products.

Avoid using core products as loss leaders. The best loss-leaders are products where you are over-stocked and just need to shift them.

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Loss-leader Pricing.