Pricing Strategies: The Loss Leader (#04)
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- Опубликовано: 25 авг 2024
- This is the fourth in my multi-part series on pricing strategies. The loss leader is an effective way to get your foot in the door with new clients while establishing your value from the outset.
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Love this one, Mike!
Thanks, Maureen! Our convo a few weeks ago was the inspiration.
I thought that might be the case! :)
Insightful
🙏🏼
What are any specific examples of products that use the Loss Leader Strategy?
Razors. You can get the razor handle very cheap, or often free. The idea being you then buy the disposable heads at a premium. You will often see this model when the real product is a consumable. A similar example would be an inexpensive printer that requires expensive toner/ink cartridges. You can buy the printer close to cost, but may God help you when it's time to replace the toner.
@@MikeGastin Awesome, Thank you so much I needed this for a school project and it helped a lot, keep up the great work!
Haha! Glad I could help. Good luck! 😉
Amazon's "Rings Of Power"?? It cost a shit ton of money to produce and its sole objective is simply to preach woke ideology. Even if it is ultimately deemed a commercial failure, there are some who think that the "awareness" dividend will make it all worth it. Tolkien's name is the "bait"....but that's just been purchased to try and attract a HUGE amount of viewing attention from both the faithful and the curious. Amazon's production crew ALWAYS knew what they were going to put in front of people the moment they harvested their attention.
Not going too well at the moment though is it?
I mean....it's definitely repelling more people than its attracting...(to the Amazon platform)
The thing with any successful Loss Leader is that....something the vendor deliberately undervalues or underprices at least....is meant to provide enhanced footfall and traction towards something that WILL give the vendor a profit.
In this instance however, people are just "inspecting" the offered Loss Leader and then walking straight out of the store in disgust.
It's not working.
Amazon are just damaging their brand and shedding consumer confidence.
It's very difficult to see anywhere they can be claiming a "win" from the current state of affairs.
Which suggests that they were never really looking for one in the first place.
Which in turn suggests that they were really just seeking to hurt the original "Tolkien" brand and all those in thrall to
it. Or at least "somebody" in the Amazon circle of trust had this motive at least, and Amazon were just too ignorant to spot it until the money was spent and the production was already in the can.
Would you kindly elucidate whether these instances rather exemplify the practice of captive pricing?
Pretty much a Loss Leader is a bait ...
You could say that. It's ethical as long as you're not doing a "bait and switch". But, offering a popular item at a discount is a good way to get customers to buy from you. Supermarkets do it all the time.
@@MikeGastin Ah I see, depends on how it's used.
Thanks for the insight, never really understood the term til I came across your video
No no no
No to what?