pizazz opened this issue on Jul 09, 2003 ยท 99 posts
bijouchat posted Fri, 18 July 2003 at 8:21 AM
Loss leaders make their money in offering a popular product that will sell in high volume to recoup their cost, and in drawing people into the store to make additional purchases... hence the name. They only make money to recoup their production and advertising costs if the products are popular and sell in volume. They do make a certain amount of profit per unit sale, they are never priced under what they cost to produce. Not if you really want to make money with them, anyway. Platinum is not a loss leader, its a subscription service.