This refers to a common pricing strategy that is used by businesses wherein certain products are sold at a minimal profit or even at a price that is well below their cost price in order to boost the sale of other products that are more profitable. A supermarket chain, for instance, might decide to sell certain common household goods at a low profit so that more customers feel attracted to its store. It may believe that customers coming to the store to buy these commonly used items may in turn decide to purchase other goods in the store which can add to profits. If a store chooses not to sell these loss leader items, customers may simply decide not to shop at the store.
