Loss leaders are aimed at dumb customers
2 min readMay 8, 2024
Many stores offer special deals on “loss leaders” — products that are sold very cheap, often at a loss, in order to entice customers into the store to buy other things that are substantially marked up in price.
One store that doesn’t do this is Costco. Generally speaking, they try to simply keep low margins on everything that they sell; nothing at a loss, but nothing with a huge margin either.