what is loss leaders?

[FrugalMomof3]

I have seen this term used over and over again on FV but confused on what it is exactly?

Thanks in advance ladies!

[dndylfe]

Loss leaders are the products (cans of mushrooms, tomatoes, etc) that a grocery store marks WAY down to get you to come in the store. They're usually the ones advertised on flyers, but not always.

The point is to only buy THEM when you go to a store so that you can save money. Grocery stores use them to pull in consumers, who will then theoretically spend more money in the rest of the store. So they take a loss on the item hoping that you will buy other overpriced goods to make up for their loss.

The best way to keep track of whether or not the item is truly a loss leader (and this can be tricky) is to keep a price book that marks when something goes on sale and for how much so you can really tell.

[Tango]

Thanks for asking and answering this question I was never clear on what a loss leader was either.