Want to Try a Loss Leader?

If you decide you want to attempt a loss leader strategy (selling at or below your cost), contact your big suppliers to negotiate a deal for lower cost on a bigger order. Explain your plan to them and they should be able to help you with some lower cost. You may be able to get them to deliver some items on consignment, just for this promotion. Don't hesitate to also ask for some of their attractive displays to use for this sale.

You probably won't be able to use items that will spoil or have expiration dates, in case you don't sell them all quickly. Also, you shouldn't use the same product or service as a loss-leader too often or your regular price will mean nothing. We have a large furniture store chain in Colorado that always has some sale going on that reduces most prices; who would ever buy at the regular price tag? Test and offer different items (but not all) to see which ones draw the largest shopping crowd and then use those only twice a year.