Loss-leading

Hey there! Today, we are going to talk about something called "loss-leading" which is a fancy way of saying that sometimes stores sell things at a lower price than they paid for it, just to get people to come into their store and buy more things.

Have you ever seen a store advertise a really good deal, like a big bag of candy for only $1? Well, that's an example of a loss-leading strategy. The store might be selling the candy for less than they bought it for, but they hope that by getting you to come into the store, you'll see all the other things they have for sale and decide to buy some of those things too.

In other words, they're willing to "lose" a little bit of money on that bag of candy if they can make up for it by selling more things to you. It's kind of like giving you a little taste of something delicious for free, in the hopes that you'll want to come back and buy more.

So, basically, loss-leading is when a store offers something for sale at a lower price than they paid for it, with the aim of luring customers into their store to buy more things. Pretty cool, huh?