A loss leader is priced very aggressively, potentially below the relevant cost, to attract customers who also buy other goods. The commercial rationale depends on the rest of the basket rather than profit on that item.[1] Not every discounted product is a loss leader.
Check whether customers actually purchase complementary items. If they order only the cheap product, the assumed compensation does not occur. Assess total order contribution and stock availability, and clearly state restrictions. A busier operation does not establish a profitable promotion.
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Compiled with AI assistance using public sources. General explanation, not individual legal or tax advice. Describing a concept does not mean Zoloo offers it as a feature.