Loss leader definition

Loss leader means any article or product sold at less than cost:

Loss leader. If this contract involves the furnishing of equipment, materials, or supplies then the following statement is incorporated: It is unlawful for any person engaged in business within this state to sell or use any article or product as a “loss leader” as defined in Section 17030 of the Business and Professions Code. (PCC 10344(e).)

Loss leader means a product or services sold at market at lower-than-normal margins (i.e., probably at a loss) in order to attract customers who might then buy other items of the same company at normal prices.

Examples of Loss leader in a sentence

• Loss leader pricing (as measured by the extent of within-firm variation in the loss ratio over policies) is associated with lower demand.

• Loss leader is a strategy in which a business offers a product or service at a price that is not profitable.

• Loss leader pricing is a short-term incentive for luring buyers to the shop, thus it should be chosen depending on promotional objectives.

• Revenue generation Absolute paints limited makes use of the Loss leader revenue stream, this means that the business collects revenue streams from sales of its different products but not every revenue stream is independently profitable (Robert, 2009).Cost structure In the computations of unit cost of products, the Company applies marginal costing technique and therefore takes into consideration only the variable costs of producing paints.

• However, this strategy may not work for some products where increased price is attributed to greater prestige and products with numerous substitutes in the market.• Loss leader pricing: Where a product is sold at a lower price probably at a loss in order to attract customers who might then buy other items at normal price.

• Final results from semester 1 and semester 2 will be available on-line from late June/early July each year.

• Anyone who buys or uses goods or services for his/her own use.~ Biased: Having an unfair preference or dislike for something.~ Retail: The sale of goods to the public in relatively small quantities for use or consumption rather than for resale.~ Loss leader: A product sold at a loss to encourage people into a shop each week to buy other products.~ Loyalty scheme: A scheme offered by many shops to encourage consumers to remain loyal to the shop.

• The Turn-Around Maintenance (TAM) was another conduit in the perfection of corruption in NNPC in the Fourth Republic.

More Definitions of Loss leader

Loss leader means discounting the Product to a customer as an inducement to purchase additional or other products or services from Purchaser or its Affiliates or increase the level of business such customer would have conducted with the Purchaser or its Affiliates.

Loss leader means a product or service offered at a low price (at cost or below cost) in order to generate additional sales or underbid the competition in a bidding process.

Loss leader means any article or product sold at less than cost and meets the following: (BPC § 17030)

Loss leader means any article or product sold at less than cost: a) where the purpose is to induce, promote or encourage the purchase of other merchandise; or b) where the effect is a tendency or capacity to mislead or deceive purchasers of prospective purchasers; or c) where the effect is to divert trade from or otherwise injure competitors.