Loss Leader

Any title that has the word “loss” in it might resonate as negative.  “Loss leader”, however, is an intentional decision to do something at a cost with the long-term perspective of reaping a gain.  Some companies sell a specific product at a deficit to get people through their doors, whereby hopefully increasing other sales.  Other organizations give away products to create marketing connections.  Where I am employed, we have chip clips, lip balm, stress balls, pens, and notepads with the logo affixed on each item.  There is never the assumption the recipient would pay a dime for these products.  We shoulder the cost with the aim of increasing brand recognition.  Therefore, these pieces of swag serve as a loss leader because we use the upfront sacrifice to create paths for greater things in the future.

Look around and you will see this approach is taken a lot using reduced-price products, coupons or discounts, and free items.  The idea of these things being loss leaders doesn’t drum up a negative connotation to those deciding to supply them.  The managers and sales staff do it willingly because their perspective is shaped toward long-term relationships and business cultivation through an upfront decision to sacrifice for enduring connections.

Wouldn’t it be a major shift in our personal lives if we decided to intentionally make initial sacrifices for the sake of longer goals?  Perhaps not eating that extra piece of birthday cake because bathing suit season is approaching in several months.  Or paying the important bills before dipping into the checkbook to go on a shopping spree so there isn’t stress at the end of the month.  Or turning off the television before the show ends for the sake of grabbing a few more minutes of needed shut eye due to an important morning meeting. 

Let’s take it a bit deeper.  Like deciding to offer an apology even if we feel our accountability to the situation is less than the other person so that an enduring relationship can be maintained.  Or offering to work longer hours when we’d rather be doing something else to help an overwhelmed coworker so that the working environment remains relaxed.  Maybe lending a neighbor a tool they need even though you aren’t sure it will be returned in pristine condition because the collective upkeep of the community matters.

Keeping tallies is a recipe for feeling disadvantaged because the scope is fixed on the immediate.  Instead, remember that a temporary or short loss can be eternally impactful.  By deciding where to focus our energy - in long-term dividends – we enhance the quality of living not only of those around us.  We, ourselves, benefit from all that flows as well.  The loss leader becomes a living model for others to see.  It helps in goal achievement, buoying relationships, and value enhancement.  Whether it is to meet a weight-loss objective, save for a vacation, or enrich the lives we are surrounded by, demonstrating a loss leader approach serves to make the world a more meaningful, productive, and wonderful place.

Changepoints:

Consider a time where you made a choice to intentionally set short-term gains aside to reach a long-term plan:

·      How did the process of deciding to sacrifice feel initially and then how did it evolve down the line?

·      Who were the people in your life who knew about your plan to make a deliberate sacrifice for the greater good?

·      If there was push-back in creating this boundary, how did you address or remedy it?

·      What are specific areas where the loss leader perspective could now be applied to your life?

o   What changes in behaviors are required to plan for success?

o   How will you and others benefit from decisions that might initially appear unfun or sacrificing?

 

Each one of us has the capacity to become a leader in our respective worlds by choosing things that might appear to have an outside cost.  Instead of feeling diminished, think like a person who generously gives out swag into the universe for the sake of infusing good energy.  Your logo, or legacy, will be branded every time you do so.

outSIGHTin, LLC: Creating awareness as a changepoint for improved organizational results.