Selling your product at a price so low as to be unprofitable, done to entice people to buy and thereby become your customer. The problem with buying the business is that it spoils the prospects into expecting these low prices to continue, making it difficult to make a decent profit selling more products to them. Also known as a loss leader.

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1. Selling your product at a price so low as to be unprofitable, done to entice people to buy and thereby become your customer. The problem with buying the business is that it spoils the prospects into expecting these low prices to continue, making it difficult to make a decent profit selling more products to them. Also known as a loss leader.