Learning about the marketing strategy used by many retailers can help you save money, instead of spending money. Learn how to use loss leaders to your advantage.
What Are Loss Leaders And How Can They Save You Money
It is no secret that when it comes to grocery store shopping we all want to be smart shoppers in order to have big savings.
You are not alone according to the Federal Reserve, the average American thinks about putting money away. In fact, according to a survey that looked at Americans’ savings from 2016 to 2019, there was a 5% growth in households who save.
This means that most of us are keeping up with ways to save, whether it is keeping up with our busgets, spending less or shopping smarter, we are doing it.
Oftentimes, when we thinking of grocery shopping we think the only way to save is by using coupons. But truth be told, others of us, understand sale cycles, which help us to reduce our spending costs as well. But more than not most of us don’t understand the concept of loss leaders.
Being a Smart Shopper
Supermarkets have made a big science out of getting you to spend more than you intended to when you first walked in the door. We are going to prepare you to understand many of those tactics (Like loss leaders).
We know that smart shopping is a combination of several factors. First, you have to be educated. Knowing the ins and outs of the grocery store. This will help you to save time and money. The longer you are caught inside the more you will spend. Go in with a plan, and follow your list.
Second, you have got to know why you are buying that item. We don’t just spend money on items that are on sale because they are on sale. Your family must normally eat this item. Don’t just spend a $1 on something because it is just a $1.
Keep in mind that meal planning is a great way to set up a plan of action and to simply your spending, and eating habits.
Thirdly, you have got to make intelligent decisions without outside influences taking hold of your thoughts. Marketing tactics are set up to get you to spend more time and money in any store.
Have you purchased something because you were hungry or found a new to you item that you wanted to try to cheer you up? of course, we all have fallen into that trap, but no more.
By learning how to focus in on marketing tactics (those loss leaders), you will spending less time shopping, have less buyers remorse and more time being happy that you just saved a bunch of money.
What are loss leaders
A loss leader is a pricing strategy. It is a term commonly used in marketing. It refers to an aggressive pricing strategy in which store prices select goods below the cost of purchasing wholesale. These low-cost savings stimulate sales of other, profitable goods.
Loss leaders entice us to shop more frequently in any store that offers this marketing tactic. By using this tactic, their hope is that you stay and look around for other deals.
In fact, these attention-grabbing strategies will lead you to spend more money in the store. So how can you use these marketing tactics to your advantage?
The video below covers one of the most popular marketing strategies that occur at your local supermarket.
How Loss Leaders Work To Your Advantage
Please note that the ad mentioned is just an example – and prices are not valid anymore.
I hope that this video (older that it is, but relative) helped examples in real terms how loss leaders work.
Offering loss leaders is a great way for businesses to attract new customers, compete with larger companies and increase their online visibility. If consumers understand to use them to their beneifits, we can save greatly at the grocery store.
By being a smart shopper we can save more money and bank that money away for emergencies, a nest egg, or a vacation.
Let’s use those loss leaders to our advantage and not allow them to take advantage of us.