Money & WorkFact
Why the supermarket sells butter at almost no profit.
A loss leader is a product the retailer deliberately sells at almost no margin. Butter, cola or nappies at rock-bottom prices get you into the store. There you buy the rest at normal margins, so the retailer still profits. In Germany, big chains may not sell food below cost; the margin sits just above zero, usually at the back of the store.
Useful: A deal only pays off if you'd have shopped there anyway.
Source: en.wikipedia.org