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Definition:
b) a product sold at no profit
German translation:
loss leader = das Lockangebot
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GOOGLE INDEX
loss leader: approximately 200,000 Google hits
Sample text:
iPhone is a LOSS LEADER, says report
(Guardian - News Headline)
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The supermarkets argue that they are not profiting, but are using it as a LOSS LEADER to attract customers.
(BBC News)
Did you know?
loss leader
noun phrase
- an article that is sold cheaply in order to attract the public and make them buy other, more expensive things
(Cambridge Advanced Learner's Dictionary)
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A loss leader is a product or service sold at a price that is not profitable in order to attract new customers to new lines. This is a common practice when a business first enters a market. A loss leader introduces new customers to a service or product in the hope of building a customer base to secure future revenue.
A classic example is that of razor blades. Some manufacturers essentially give their razor units away for free, knowing that customers will have to buy replacement blades, which is where the company makes its profit.
Inkjet printers are a similar example where the manufacturer sells the printer at a very low cost and makes a profit on the ink cartridges.
Loss leader strategies are also frequently employed by mobile phone providers who offer phones for free or at a very low cost in return for the customer signing a fixed-duration contract. The network provider profits by retaining customers for a longer period of time, thus offsetting the cost of the device.
(sources: Investopedia, Wikipedia)
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SMUGGLE OWAD INTO TODAY'S CONVERSATION:
"Loss leaders can be a successful business strategy if executed properly."
Thanks to Nicole for suggesting today's word!
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And now...
Today's Learning Tip (8):
MIRROR-WRITING
Leonardo wrote his notes in mirror-writing, from right to left. Be like Da Vinci and write your new word as it would appear in reflection. The extra effort may help you learn it (another variation is to write the text upside down).
more learning tips
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