Sunday, April 24, 2011

Loss Leader

The term "loss leader" is used widely in the world of retail. It's a major marketing tool used to get people into the store. A "loss leader" is an item that is put on sale at an enourmously reduced price below retail typically at a loss to the retailer. This is what you see when you see buy one get one free or an item being sold for pennies on the dollar.

The retailer is willing to accept the loss of the item in exchange for getting you into the store to purchase other more profitable items. This is a bad move if all you buy is the "loss leader" item. In such cases, the company takes an "L" and makes no profit. Of course, that's the short term view. Maybe the retailer takes a loss for the moment but gains a repeat customer with their excellent service or the hope of another great deal. The loss is worth the gain.

I relate a "loss leader" to life and relationships. In life, you have to be willing to take a loss on time, effort, or pay for a greater gain later. This was a lesson I learned the hard way. While working in management I was stiffed on an earned and owed raise. The difference in back pay was about $300. I fought the very man responsible for promoting me. Big mistake. As years went on I couldn't get a promotion for the life of me. I lost tens of thousands of dollars if not $100K because of that short sighted move. My numbers are not exagerated when you take into acount base pay and bonuses.

The same may be true in relationships. People should examine what they are willing to trade for the bigger picture of love and companionship. Are you willing to tone down your take no mess attitude as a woman? Are you willing to lower those Victoria Secret model expectations as a man? Are you willing to love the man or woman in front of you instead of looking for perfection (something you'll never find)? Are you willing to put yourself aside for the person you claim to love?

I'm not saying that you become a door mat and let people use you. I am saying that there has to be some give in relationships. People want it all. That's not reality. The basic principle of economics dictate that resources comitted to one place can not be comitted to another. If I spend money on shoes, I can't spend that same money on food. It's gone. We are not God. We have limitations. Choices must be made. I'm making a choice to give up what I have so I can gain what I don't....love.

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