| The 'loss leader' effect in marketing and advertising is | | | | seed planted, customers flock to the stores to get in |
| one that many people are unaware of. I recently was | | | | on the great deal, usually with a limit of 1-2 per |
| asked by a potential customer why my quote on a | | | | customer. The big chains are hoping that while they |
| 2gig usb was more than a similar one they found at | | | | are in the store, carefully placed plasmas and other |
| one of the big box stores. After a detailed explanation | | | | electronics will speak to them and their wallets. This is |
| about the 'loss leader' effect, I did get the order. But I | | | | a very inexpensive form of advertising for the |
| feel that a further explanation is needed. | | | | company and in the end, they really don't 'take a loss' |
| Flash drives (usb drives) are perfect items for big | | | | on their bottom line. And oh yeah, those deals on flash |
| chains to draw people into their stores. They use | | | | drives? No custom colours, no logos, no returns or no |
| these items as 'loss leaders'. Simply put, a 'loss leader' | | | | refunds. |
| is any item that a company will sell at or below cost to | | | | So there really is no comparison to the flash drives |
| entice customers into their stores to gaze upon the | | | | you order from a promotional items distributor if you |
| real money makers, the big ticket items like LCD tvs or | | | | are a company looking to brand your name for |
| computers. It's the cost of getting you into the store. | | | | promotional purposes. Putting your logo on an item |
| The store will take out huge ads, in print or on tv, that | | | | entails more than just the value of the item, it's the |
| advertises flash drives at unbelievable prices. With the | | | | value of you. |