Marketing academics have shown that retailers should think of both the direct and indirect effect of substantial price promotions when evaluating their impact on profit.
Some examples of typical loss leaders include milk, eggs, rice, and other inexpensive items that grocers would not want to sell without the customer making other purchases.
The first Loss Leaders compilation was The 1969 Warner/Reprise Songbook, featuring a wide range of artists from Miriam Makeba to The Mothers of Invention; the last of the original series was the punk and new wave-themed Troublemakers in 1980.
[8] Chevrolet's Corvette was originally intended in the 1950s to be an "image builder" and loss leader for General Motors, the idea being that men would go to showrooms to look at this "automotive Playboy Bunny"—which they knew they could not afford—and end up purchasing a lower-cost model.
The ploy did not work entirely as BMC intended—even in its most basic form, the Mini was far superior in many areas to its rivals while also being lower in price.
Supermarkets sell food staples such as bananas or milk at less than the cost at which they were purchased in order to draw customers to their business.
In the case of milk, supermarket chains often refuse to pay market rates to avoid making a loss.
[citation needed] Costco sells its very popular quarter-pound hotdog and soda combo for $1.50 USD, a price point that has not changed since 1985 and is believed to be well below cost,[11] to bring customers into the store.
These manufacturers know the overwhelming majority of consumers will stick with genuine OEM ink cartridges rather than opting for less reliable remanufactured and compatible third-party products.