Ep 30 - What Are Loss Leaders and Why Your Small Business Needs Them

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!   Shownotes: 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: Drive traffic to your business since you will be the best price the best in town Be a Project Starter that you can pile on top of Increase frequency of use 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!   HELPFUL LINKS Podcast Website: LocalSmallBusinessCoach.com Leave your Message on the website with the Speak Pipe Button or just email me at [email protected] 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