Business

Loss Leader strategy- businesses thought to use in increasing numbers

Published

6 years ago

September 30, 2020

When people talk about pricing strategies, one of the most mentioned is the ‘loss leader strategy.’ This involves pricing a product low enough to get customers through the door. Once there, the customers will likely spend more on higher ticket items. Essentially, the business sacrifices the loss leader to encourage customers to shop with them. But how effective is the strategy?

Loss Leader to Develop Loyal Customers

The loss leader strategy can be used to develop loyal customers to incentivize them to use a certain brand. Nightclubs and bars that offer happy hours do so as a loss leader strategy, with very little profit being made on each item. Instead, the customer becomes a loyal patron and may visit at other times.

They may also stay beyond the happy hour or spend enough due to the cheap prices to make up for the loss leader of the original happy hour offering. The goodwill gesture that can be seen in the reduced prices will be more likely to foster positive attitudes towards a brand or business, which will then cultivate a stronger relationship.

Loss Leader to Incentivize Against Competitors

Moreover, the online entertainment industry utilizes the strategy to get customers to try the product or service instead of those of a competitor. Customers can then indulge in more of what the entertainment site has to offer. As we can see, some new casinos in the USA offer no deposit bonuses as a loss leader to attract new customers. These range from no deposits to free spins and can be tailored to specific games. This means that they offer an incentive for customers to use them, and once on the site, the customer can engage with the online casino games they have on offer. The welcome bonus gives them a foot in the door to then try out the other aspects the site has to offer.

Loss Leader to Sell Higher Ticket Items

One of the main reasons for using the strategy in retail is to get customers through the door so they then purchase other higher priced items. Milk is a common loss leader product as most retailers make little on the milk – but without it, many customers wouldn’t step foot in the store and would go elsewhere.

Losing money on these items is necessary for a business who might be charging more for other higher priced items. By giving away something like milk for a low price the retailer can focus on upselling other products. If someone is coming to a store for one item, they are likely to go somewhere it is cheapest. As most people attest to, one item rarely means one time.

The loss leader strategy can be useful for a business. As part of a wider strategy, it can help incentivize customers to use the brand or business, can help foster stronger relationships with customers, or could be used as a ploy to sell more expensive items. Ultimately businesses who use this strategy understand that by sacrificing something to get the customer’s attention, they could end up with far more profit than if they had relied on the customer arriving without any incentive.

Business

Click for Counsel: YesLawyer Wants to Make Lawyers as Accessible as Wi-Fi

Published

5 days ago

April 1, 2026

Matthew Wiles

Photo Courtesy of: YesLawyer

Byline: Andi Stark

For many people facing a legal problem, the most difficult part is not understanding their rights but finding a lawyer willing to speak with them in the first place. Long wait times, unclear pricing, and administrative hurdles often delay even the most basic consultations. YesLawyer, an AI-enabled plaintiff firm operating across all 50 states, is testing whether technology can shorten that gap.

Founded in 2024 by 25-year-old entrepreneur Rob Epstein, the platform offers free intake, automated screening, and, in many cases, same-day conversations with licensed attorneys. The idea is simple: reduce the friction between a client’s first request for help and an actual legal discussion. In this interview, Epstein explains how the system works, where artificial intelligence fits into the process, and what problems the company is trying to address in the broader legal system

Q: When you say you want lawyers to be “as accessible as Wi-Fi,” what does that mean in practical terms?

A: It’s a way of describing speed and availability. Someone dealing with a workplace dispute, a serious injury, or an immigration issue should be able to move from an online form or phone call to a real conversation with counsel in hours, not weeks. YesLawyer is structured so that a client begins with a free case evaluation, goes through automated conflict checks and basic screening, and, in many instances, speaks with a lawyer the same day.

Q: How does the process work once someone contacts the platform?

A: We use a structured workflow. It starts with a short questionnaire and an initial conversation to capture basic facts. That information feeds into conflict checks and internal review. The system then proposes a match with a licensed attorney and provides a calendar link for a virtual consultation, often within 24 hours. After the meeting, the client receives a written legal plan outlining next steps, deadlines, and estimated fees.

Q: Where does artificial intelligence fit into that process, and where does it stop?

A: AI is used for organizing and routing information, not for giving legal advice. It helps with conflict checks at scale, case categorization, and structured summaries so attorneys can focus on the substance of the matter. Every consultation is conducted by a licensed lawyer, and all decisions about strategy or next steps are made by humans.

Q: What problem is this model trying to solve in the current legal system?

A: Delay and cost are still major barriers. Many civil plaintiffs face long waits just to get a first appointment, along with high retainers and hourly billing that make early legal advice risky. We try to respond with faster consultations, flat-fee options, and financing. The idea is to remove administrative friction so lawyers spend less time on logistics and more time speaking with clients.

Q: Some critics say platforms like this blur the line between a technology company and a law firm. How do you describe YesLawyer?

A: We describe ourselves as a national, AI-enabled plaintiff firm that connects clients with independent attorneys. That structure does raise regulatory questions, especially around responsibility and oversight. We focus on licensing verification, attorney-written case plans, and clear communication about fees and services.

Q: You’ve said the main bottleneck is “systems” rather than people. What do you mean by that?

A: The issue isn’t that lawyers don’t want to help more people. It’s that the systems around them make it hard to scale their time. Intake, scheduling, and document handling take hours. Automating those parts means attorneys can handle more matters without being overwhelmed by repetitive tasks.

Q: Does this model risk favoring only the most profitable cases?

A: That’s a real concern in legal technology. Automation often works best for repeatable, high-volume disputes. Our view is that lowering administrative cost can actually make it easier to take on smaller or more complex cases that might otherwise be turned away. Whether that holds over time depends on the data.

Measuring Impact Over Time

YesLawyer’s attempt to compress the timeline between inquiry and consultation reflects broader changes in how legal services are being delivered. As artificial intelligence becomes more common in administrative work, firms are experimenting with new ways to reduce wait times and clarify costs.

The company’s early growth suggests that many clients value faster access to an initial conversation, even before considering long-term representation. Whether this platform-based model becomes widely adopted or remains one of several emerging approaches will depend on regulatory developments, lawyer participation, and measurable outcomes for clients. For now, YesLawyer’s experiment highlights a central question in modern legal practice: how quickly can help realistically be made available to the people who need it.