The goal of every exhibitor is to initiate contact with potential clients and continue to build relationships with existing clients. Offering a few of your non-core products at or below cost will attract the interest of potential clients who may not have otherwise been interested in your company. The concept of selling a product at or below cost to attract more new customers is foreign to many business-owners, and it certainly won’t work for everyone, but using a loss leader can be a great trade show marketing strategy.
When you sell a non-core product at cost, you leave your client with the impression that your company is price competitive in every area of business. When they suddenly find themselves in need of your core products, they will assume that you are the cheapest because your loss leader was so cheap. This perception needs to be reinforced in reality (i.e. you need to actually sell your core products at competitive prices) in order to keep the client happy with your company.
Here are some things to consider when selling products as a loss leader:
- Your products should be related to what your business actually does. If you primarily sell office furniture, you could offer a few office accessories at or below cost. You want to avoid selling your core products at or below cost so that you do not confuse your customers and devalue your brand.
- Your loss leader product should require little or no customer support after the sale. If you’re already selling a product below cost, the last thing you want is a customer service nightmare when the products break or become damaged weeks after the sale.
- If your company does not keep detailed financial records, you will never be able to make an educated decision about when and if you can use a loss leader in your trade show marketing program.
If you choose to integrate a loss leader into your program, make sure it is well advertised at your event both on your trade show display and in your exhibit literature. If you forget to let people know about your special, you cannot properly evaluate its effectiveness on your target market.










