Glossary/Strategy & Frameworks/Loss Leader
Strategy & Frameworks
Loss Leader
Pricing a product at or below cost to attract customers who then buy other, more profitable items.
By Brandon Mina·CEO, BrandPilot AI·Updated November 2026
Short answer
A loss leader is a product priced at or below cost to attract customers who then buy other, more profitable items. Retailers often use staple or high-visibility goods for this purpose. The strategy works only if enough customers make additional purchases, and in some jurisdictions below-cost pricing is legally restricted.