Gain Leader, the opposite of Loss Leader

Language is required for humans to communicate, learn and grow but what are the origins of a particular language? In reality there is a linear progression in language whereby as a society new words are created out of necessity and they either thrive or die.

One interesting thing about learning foreign languages is that you occasionally learn a new word in which there is no exact equivalent in your native tongue. These terms can range from tastes, circumstances and even emotions. What does it mean if your society doesn't have a word for a thing, does it mean it does not exist or are we just lost for words and move on in the conversation stumbling around with our limited vocabularies speaking to others who are not even understanding the majority of what we say?

As a student of marketing occasionally I run across situations in which there is no word to describe the subject so I create a marketing term and speak about it at a conference or write about it in a blog. Occasionally I've been emailed or called about marketing terms or concepts I've created to site for a paper or even from professors utilizing the term. One of the most popular marketing concepts I've created is called the Antithesis Theory and can be read about in my post "the Marketing of Color".

The second most common marketing term I've created is called "the Gain Leader". We've all heard of the term "Loss Leader" as its a very common marketing determine that describes when a product is sold at a loss in order to attract customers. If you imagine a gas station selling either gas at a lower price to attract people to shop in their store before credit cards were as prevalent or a convenience store selling milk at a lower price to bring people in to buy the other products then you are familiar with the term.  But what is a Gain Leader?

If a consumer is attracted to a product or service which stands out in some manner from the rest then that product or service becomes a magnet for either purchase or from investigation. Consumers may purchase at a place ongoing out of convenience or because their needs are being met or exceeded at their particular level of expectation. But consumers also look for anomalies for a bargain OR as a novelty. So if a Loss Leader attracts consumers to your standard offering whilst they seek out a bargain what is the marketing term for attracting consumers to your standard offering when they are seeking novelty? It doesn't exit.... Years ago I had created the marketing term Gain Leader so let me break down the definition.

Loss Leader: Loss means lower profit, Leader means it is put front and center to garner attention from consumers with the intent of them also buying the standard or slightly above standard priced products

Gain Leader: Gain means lower profit, Leader means it is put front and center to garner attention from consumers with the intent of them also buying the standard or slightly above standard priced products

But why offer Gain Leaders? Isn't that greedy?
With Loss Leaders there is additional value being given to the consumer that is greater than the market price for that product. By its very nature of selling more volume it also enables the company to buy more volume and drive down costs. In a Gain Leader its a novel product which may actually not sell as well because of its novelty. By definition a Gain Leader would be sold at a higher cost due to its lower production efficiency of smaller volume or buy the unique attributes that make that product cost more. 

What is the goal of a Gain Leader?
​The goal of a Gain Leader is to attract customers to your standard offering while selling a product at a higher margin. 

I hope that as you've read this article that you think of ways to offer new and exciting products which are beyond the norm and that you assign internal value to how those exciting products create attention for your standard offerings. Its my goal to someday publish a book that collaborates my various marketing terms, anecdotes and observations. Although I do not consider myself a writer per se, I do feel that my observations can be useful to others in helping them grow their businesses. I hope you have enjoyed this article and be sure to send me a message.