How to Use a Loss Leader for Jewelry Sales?

by Stormy.

How to Use a Loss Leader for Jewelry Sales?  - Discussion on Jewelry Making Journal

I keep hearing the words, “Loss Leader”. Can anyone elaborate?

Is it where you have lower priced pieces of jewelry that you don’t have much money invested in for materials on display to get others to walk into your booth and then they can see the higher priced, more heavily invested materials pieces?

I’m also wondering what types of pieces would these be? I am currently designing and making Native American Jewelry. So maybe Seed Bead Rings? Or lapel pins perhaps? Bracelets? etc….

Then they would be drawn in to see the necklaces and such I have also designed?

How about giving out a free pair of earrings with each purchase? Is that a good idea or would be too much loss in money spent on materials??

Thanx for any input~!


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  • Hi Stormy, you’re right that a loss leader is a product or service that’s sold at a price that’s not profitable for the seller, but it attracts customers who may purchase additional products or services.

    If you want to have a loss leader to attract customers, I would recommend jewelry that’s quick and inexpensive to make – especially while you’re experimenting with this strategy.

  • Loss leaders work — most times I’ll make a necklace and then two or three pairs of coordinating earrings in different lengths, and offer the earrings of their choice with the necklace. People love that, especially when they’re buying a gift. And, even better, I’ve noticed when people get one thing for “free”, they feel they can splurge a little on something for themselves at the same time.


  • Linda Finnie says:

    I also use this strategy. At annual celebrations like Easter for instance. I make up small eggs with an item inside that I sell for a small amount. These items may be a small bracelet. earrings, ring or a voucher for a discount, or a larger item such as a necklace I have been having difficulty selling. It is sometimes useful to put the items that you cannot fit inside the eggs on display stating ‘find out if this item is inside your egg’ to entice people to buy the eggs. I do not use the terms ‘win’ or ‘prize’ as this would mean that the people were gambling to win and this requires a license.
    You could also do this at Christmas inside a bauble or gift box.

  • Linda, what a neat idea – it sounds like a lot of fun for customers!

  • Claireta says:

    My take on loss leaders is a little different. I put my most beautiful and expensive pieces up front where they are visible to everyone They attract people to the booth and even if the price of what drew them to my booth is beyond their budget they look at less expensive items and usually make a purchase of one of those items. So they may not purchase the $100.00 item but if it attracts people to the booth and say 10 people make purchases of 15-45.00 the expensive item they didn’t buy stilll helped me make sales.

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