Talk:Loss leader/Archives/2016

Freebe is not same as Loss leader

Freebe is part one of the product, which is sold at loss to attract customer & keep the competition at bay, where one exercises consumer choice, but for the part two the customer is locked in to buy to keep the part one in service. Loss leader is a product sold at loss to attract the customer into the store hoping that he or she will buy other products which will contribute to the profit. It is akin to when one wants to trap a bird he puts an inverted basket elevated on a stick with a along thread & a row of seeds (the loss leader) put in to attract the bird under the basket when one can pull the string to move the stick so the falling basket can entrap the bird (ie. impulsive buying).

I totally agree that we should not mix loss leaders and freebe. As mentioned above, they are different things and deserve therefore different articles. I propose that we delete the link to this discussion. --Patrick Stähler (talk) 10:19, 24 September 2014 (UTC)

Although there is another approach which is oft called freebie marketing and most definitely falls under the loss leader banner. A gift is given for free to get a new lead or new prospect. Often the gift will be of low cost to the business but perceived as high value to the prospect. The gift is a stand alone product given without obligation. The earliest version I have read about was in Claude Hopkins book "Scientific Advertising". He spoke about door to door hair brush salesmen giving away a decent, though not the best, hair brush. This had a psychological effect of endearing the prospect to the salesman and they in turn bought multiple brushes. Today the technique is used quite profusely in information marketing, where information is both the freebie and the core product. The freebie of course written in such a way as to sell the next product. You'll also see freebies given away at major city train stations. The company giving away a sample of their product in the hopes the prospect enjoys it enough to seek it out in stores elsewhere. These are all clearly loss leaders. Though often referred to as Freebie Marketing. How to resolve the terminology? Livepsycle (talk) 07:29, 19 August 2015 (UTC)

I believe we cover that under Promotional merchandise - or, if we don't, we should cover it there. --Rob Kelk 00:28, 21 April 2016 (UTC)

I agree that Freebie marketing and Loss leader should be kept separate. In freebie marketing, the introductory item is given away as an incentive for the customer to come back and buy related items; in loss leader, the "draw" item is sold at less than cost in order to get the customer in the door in the first place. --Rob Kelk 00:28, 21 April 2016 (UTC)

I agree, I believe that they are two different things. Yonikasz (talk) 18:18, 11 May 2016 (UTC)