What Are Loss Leaders And How Can They Save You Money

_{Learning about the marketing strategy used by many retailers can help you save money on your grocery budget, instead of spending money. Learn how to use loss leaders to your advantage.}

Produce section of grocery store - loss leaders

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 and get the best deals. You are not alone. According to the Federal Reserve, the average United States 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, using money-saving coupons, searching out the best prices to spend less.

Oftentimes, when we think 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. They are easy ways to reduce your grocery bill. Let’s cover some great tips.

grocery shopping saving money not couponing - woman shopping in freezer section of grocery store

Being a Smart Shopper in Practical Ways

It’s no big secret. 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 the best ways to shop include a combination of several factors. First, you have to be educated. Knowing the ins and outs of the grocery store is a good way to keep you on track. The longer you stay in your local grocery store, the more money you’ll end up spending.

Go in with a plan and follow your grocery list. Second, you have 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. It must be about your family’s needs. A successful budget equals having a successful shopping trip.

Don’t just spend a $1 on something because it is just a $1.

Keep in mind that meal planning and using freezer meals is a great way to set up a plan of action. They can easily simplify your spending and eating habits. Thirdly, you have 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 on marketing tactics (those loss leaders), you will spend less time shopping, keep you from having buyer’s remorse, and more time being happy that you just saved a bunch of money.

What are Grocery Store 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, they hope 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. I like to shop at different stores each week to grab their sale items. I don’t just stick to one store.

So how can you use these marketing tactics to your advantage? The video below covers one of the most popular marketing strategies that occurs at your local supermarket.

How Loss Leaders Work To Your Advantage – Loss Leader Pricing

Please note that the ad mentioned is just an example – and prices are not valid anymore.

I hope that this video (older than it is, but relative) helped examples in real terms of how loss leaders work.

Bottom Line

Offering loss leaders is a great idea for businesses to attract new customers, compete with larger companies, and increase their online visibility. If consumers understand how to use them to their benefit, 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. Staying far away from those sneaky supermarket traps.