this post was submitted on 14 Oct 2023
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Piracy: ꜱᴀɪʟ ᴛʜᴇ ʜɪɢʜ ꜱᴇᴀꜱ
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Yes there is a reason to run a part of your business at a loss. It is well known market strategy and it is called a Loss Leader.
You offer a product or services at a loss because it helps you generate more revenue in another part of your business.
And plenty of companies keep products that don't make money, because they are Loss Leaders into products that do make money.
https://en.m.wikipedia.org/wiki/Loss_leader
Prominent example is printer hardware and the ink. Hardware is sold at little mark-up or at a loss and then they force you to use their iteration of liquid gold. Printer ink is dirt cheap to manufacture and costs more than human blood.