How to Use a Loss Leader for Jewelry Sales?

by Stormy.

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~!

Stormy.