Nov 30, 2016
Episode 30 – The Local Small Business Coach Podcast
Today’s Topic: What Are Loss Leaders and Why Your Small Business Needs Them
In today’s episode: We discuss what loss leaders are and how they can help you drive your sales and more importantly your profits!
Let’s dive into today’s topic. – Loss Leaders.
Now, unless you come from a big box retailer, you might be wondering what the heck a loss leader is. Basically, a lost leader is a product or service that you have that you know you will not make any money or at least a very little amount, but you know it is a gateway to additional products or service that will make great add on items or project completers.
For example, a home improvement store will sell drywall around cost but they are hoping you will get the drywall mud, tape and tools which typically has a much higher margin thus more profit.
You see this with the dollar menu at many fast food places. These items are not high margin but they are gateways to frequency and upgrades or add on items.
Each business needs to have a loss leader or two that they can use in a similar fashion.
Your loss leader can do one of the following:
Let’s take a look at each and what might work for you and your business.
** For the full show notes click the link below!
Podcast Website: LocalSmallBusinessCoach.com
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Episode Show Notes: Episode 30 - Local Small Business Coach Podcast
Our Training Materials for Local Small Business Owners: TrainingforLocalSmallBusinessOwners.com
Starting a Local Small Business Website: StartALocalSmallBusiness.com