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Can a Loss Leader pricing method increase overall sales?

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Do you think a loss leader pricing method can actually increase your overall sales? Why or why not? What effect can this pricing method have on food cost?

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The expert determines if a loss leader pricing method can increase overall sales.

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Loss leader pricing can actually increase sales or grocery stores and drug stores and discount retail stores would not practice it. The idea behind loss leader pricing is to price items at or below costs to bring in customers who will then buy other items at the normal prices and that is the increase in sales. Drawing in more customers usually means drawing in more money. A few people will only come in for the specific items, but most will go ahead and pick up something else they need or do an impulse buy, especially of any attractively displayed items.

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