loss leader

noun

: something (such as merchandise) sold at a loss in order to draw customers
loss-leader adjective

Examples of loss leader in a Sentence

Recent Examples on the Web Seven-ish years ago, both products were created when voice assistants were the hot new thing, and now that AI language models are the hot new thing, pivoting buys them more time as loss leaders to hope to someday find a revenue stream. Ron Amadeo, Ars Technica, 1 Aug. 2023 Google and Amazon's Alexa started this voice assistant war and are now in the same boat: products that were loss leaders years ago never discovered a revenue path and have run out of runway. Ron Amadeo, Ars Technica, 1 Aug. 2023 But the site itself is something of a loss leader for Stake, the online casino backed by the same ownership and frequently promoted on Kick. Kellen Browning, New York Times, 2 Dec. 2023 While doing so might not be profitable for existing banks and financial-services companies, a company like Amazon could easily absorb the cost as a kind of loss leader. IEEE Spectrum, 1 Dec. 2023 The thought of standing shoulder-to-shoulder with people, taking food from a communal trough, quickly became terrifying, resulting in chains going bankrupt and casinos jettisoning the loss leader. Chris Morris, Fortune, 16 Aug. 2023 For YouTube, experts expect the Sunday Ticket will act as a loss leader. Rachyl Jones, Fortune, 31 Aug. 2023 The cost of doing so, however, is steep: Operating the app as a loss leader alongside the company’s other social media brands including Facebook and Instagram. Paolo Confino, Fortune, 27 July 2023 Amazon and Apple, which currently have valuations of $1.74 trillion and $2.4 trillion, respectively, often operate their music services as a loss leader – discounting them or giving them away for free as a way to entice new customers to purchase new devices or sign up for other services. David Israelite and Bart Herbison, Billboard, 25 Oct. 2021

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'loss leader.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

Word History

First Known Use

1917, in the meaning defined above

Time Traveler
The first known use of loss leader was in 1917

Dictionary Entries Near loss leader

Cite this Entry

“Loss leader.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/loss%20leader. Accessed 28 Mar. 2024.

Legal Definition

loss leader

noun
loss lead·​er
: something (as merchandise) sold at a loss in order to draw customers
loss-leader adjective
Last Updated: - Updated example sentences
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