A lossleader is any product or service that is sold at a loss in order to attract customers.  This means the Retailer actually sells you the product or service for less than he paid for it. You just can’t get a better deal than that!

Why would someone sell a product and lose money?

Lossleaders have been used for decades by retailers who wanted to increase their customer base or market share. Traditionally, retailers advertise a product below their cost (which is well below their competitors price) to get customers in their store. Once the customer is in the store, he/she would be likely to purchase additional products. The retailer knows that once the customer had purchased a product from their store it is much more likely the customer will return to their store the next time he/she wishes to buy something. The Internet has magnified this process exponentially.  Internet retailers (Etailers) will do just about anything to get you to their site. If you have been on the Net long, you have seen a barrage of advertisements to entice you to go to a particular site. Guess what?  Many of these are Lossleaders.

It’s the same with services.

Everybody knows that once you are with a company that provides a service, you are more likely to stick with that company in the long run.  For example, once a customer has established a relationship with a long distance carrier, the vast majority continue with that carrier rather than go through the process of switching to a new one.  To entice you to switch, companies will pay you up to $100.00 to become your long distance carrier. This is a lossleader as well. The long distance company actually loses money up front in exchange for the added revenue in the future from keeping you as a customer.  With the Internet explosion, ISP’s, on-line stockbrokers and a host of other services are willing to lose money up front to earn their customers trust as well.

Why is Lossleader.com the best deal on the Net?

Lossleader.com is a comprehensive listing of all product and service lossleaders on the Internet. In addition, Lossleader.com offers the Lossleader Super Special. This is where Lossleader.com actually purchases large quantities of Hot Items (an item that is currently very popular) and sells them at a loss.

Win Win