Can someone explain loss leaders?

**Kellili** · 07-28-2010, 09:21 PM

I understand that they are something a store sells at a loss in order to drive traffic into the store, but I don't know specifically what they are. Can someone give me examples? I'd like to buy those products at the place I can get them for the best price. Take Target or CVS or something...what items are their loss leaders? How do you know?

**Momto5RN** · 07-28-2010, 09:25 PM

they are usually the ones they advertise on the front page.
you kind of need to know your local normal prices to know what the loss leaders are .

**Momto5RN** · 07-28-2010, 09:27 PM

IE my shoprite may have kelloggs cereals for 1.88 a box and london broil for 1.49 lb in a family pack and a 20 pack of scott toilet paper for 9.99 as loss leaders .

because this is a very low price for those items as compared to their normal price its a loss leader - they take a loss on these items to lead you to do all your shopping at their stores-

**Greebo** · 07-28-2010, 10:17 PM

They change from week to week to draw in new customers.

**frugalfranny** · 07-29-2010, 01:48 AM

Originally Posted by Momto5RN

they are usually the ones they advertise on the front page.
you kind of need to know your local normal prices to know what the loss leaders are .

And our stores seem to be moving to 'limits' on many things......or they will have a coupon........really good one......that not only limits the number you can buy but is only good for certain days.

IE: I just bought corn last week for 22 cents an ear.......BUT...you had to have the coupon, (or you paid 43 cents)..........AND........you could only buy 8 at that price!! This sale was good all week long.

Our sales are getting really tough!!

**Libby** · 07-29-2010, 02:10 AM

I find the loss leaders to be grouped together in our discount grocery store so there's less searching for them. Once they're gone, they're gone and its very visible.

The loss leaders are usually on end caps as well.

**Paws** · 07-29-2010, 09:57 PM

Loss leaders are how I grocery shop...but you really have to watch out for the things that should accompany those loss leaders...ie Hamburger meat on a super sale, but the buns have been marked up...same with hot dogs...during those type sales, baked beans are usually higher than normal, along with onions, pickles, and tomatoes...
Another example, one of our local grocery stores has flour on sale for $1.00, which is a great price around here...BUT, Buttermilk has gone up and so has baking powder and sugar...

They may take a loss on certain items that they've gotten a good deal on from that particular company, but they more than make up for it by raising the prices on other items...

**monkeywrangler71** · 07-29-2010, 10:30 PM

Originally Posted by frugalfranny

And our stores seem to be moving to 'limits' on many things......or they will have a coupon........really good one......that not only limits the number you can buy but is only good for certain days.

IE: I just bought corn last week for 22 cents an ear.......BUT...you had to have the coupon, (or you paid 43 cents)..........AND........you could only buy 8 at that price!! This sale was good all week long.

Our sales are getting really tough!!

Be careful with limits - they are often meant to entice you into buying more of a product, not less. Some are legitimate, like a really good sale on a normally high priced item - but a lot of the time they will slap up the 'limit of 6' sign above a product that is on for a routine sale price. It's a marketing ploy which results in people usually buying the maximum 'allowed', even if they went in intending to only buy one.

**Saule** · 07-29-2010, 10:50 PM

Last loss leader I saw was eggs at .48 dozen, limit 2, any additional were $1.09 . Often sale price is for only two or three days, sometimes just one day. I agree you have to watch other things carefully, as well.

**Nana2two** · 07-30-2010, 03:10 PM

Loss leaders are kept on the front end caps of a Isle.The key is to make sure when you go to get the loss leaders. ONLY BUY JUST THAT. Not going to do good if your picking up other items.Like everyone else said its a a good tool to get new customers and bring you in.