When to Use Loss Leaders

I've been watching a few eBay auction listings by retailers selling the exact same merchandise our store sells. In some cases, these items are being sold at less-than-wholesale prices. Have you seen any of your competitors online selling items below cost?

As frustrating as it is, I can't fault these retailers for implementing a loss leader pricing strategy. Done correctly, it can be quite profitable. Learn how to keep more of your profit by understanding when to use loss leaders and how to avoid this pricing strategy's pitfalls.

Related: Retail Pricing Strategies