A loss leader, or simply a leader, is a product sold at a low price (at cost or below cost) to stimulate other profitable sales. It is a kind of sales promotion, in other words marketing concentrating on a pricing strategy. A loss leader is often a popular article. Sometimes leader is now used as a related term and means any popular article, in other words one sold at a normal price.
One use of a loss leader is to draw customers into a store where they are likely to buy other goods. The vendor expects that the typical customer will purchase other items at the same time as the loss leader and that the profit made on these items will be such that an overall profit is generated for the vendor.
Loss Lead describes the concept that an item is offered for sale at a reduced price and is intended to lead to the subsequent sale of other items, the sales of which will be made in greater numbers, or greater profits, or both. It is offered at a price below its minimum profit margin—not necessarily below cost. The firm tries to maintain a current analysis of its accounts for both the loss lead and the associated items, so it can monitor how well the scheme is doing, as quickly as possible, thereby never suffering an overall net loss.
Loss leader, losing sight of the shore
Can't take this loss loop anymore, anymore
Water - running down
Water - running down
Now things taste kind of bitter
Two muddy shoes, far from home, far from home
Water - running down
Water - running down - RUNNING DOWN
And as I walk back
I feel the moon against my neck
Loss leader, losing sight of the shore