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Old 03-10-2018, 02:29 PM
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crwilli crwilli is online now
Racing Hoopties

 
Join Date: Feb 2013
Location: Bluffton SC
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There are many reasons a company may develop a so called ‘loss leader’ (although most will cover their cash cost + at a minimum).

Market share aka penetration and broadening a customer base that will hopefully jump to your more profitable products.

To cover costs of underutilized assets (people and machines/buildings)

As a predatory act against the competition who you believe may not have the same low cost position you have... (a potentially illegal action)
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