Businesses employ loss leaders for several reasons:
Increase Foot Traffic: By offering an attractive deal, businesses can draw more customers into their stores or websites. Boost Sales of Other Products: Once customers are in the store, they are likely to purchase other items with higher profit margins. Build Customer Loyalty: Regularly offering loss leaders can build a loyal customer base who frequently visit the store for deals. Clear Inventory: Loss leaders can help businesses move outdated or excess inventory quickly.