117 - Good Deal or Bad Strategy? The Right Way to Use Loss Leaders
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Jun 4, 2025
Join a deep dive into the complex world of loss leaders in sports marketing. Discover how promotions like $1 hot dogs can fill stands but might harm your brand if mismanaged. Learn the significance of perceived value and why a free ticket often feels less appealing than a discounted snack. The discussion emphasizes clever bundling of offers to boost attendance and drive incremental revenue, all while protecting your full-price strategy. Tune in for insights on tracking success metrics that elevate fan engagement!
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Loss Leaders Defined
A loss leader is a product sold at a loss to drive additional purchases.
This tactic is common in retail and can work for sports with food or ticket discounts that boost overall spend.
question_answer ANECDOTE
Quarter Hot Dog Success Story
The Vermont Lake Monsters sell quarter hot dogs twice a year and sell out games that usually draw small crowds.
Fans pay full price for tickets and other items but rave about the hot dog deal, creating buzz.
question_answer ANECDOTE
Kids Eat Free Drives Sales
Teams offer kids eat free nights with a paid adult ticket to boost family attendance.
Parents buying food and drinks increase concession revenue while protecting ticket value.
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In this episode of The Sports Marketing Machine Podcast, host Jeremy Neisser breaks down one of the most misunderstood tactics in sports marketing: the loss leader. While promotions like $1 hot dogs or “Kids Eat Free” nights can pack the stands and drive in-game revenue, not every deal is a good deal.
Jeremy explains how smart promotions protect perceived value, generate buzz, and increase total spend — while bad ones can erode your brand and season ticket strategy.
Learn which deals drive revenue, which ones backfire, and how to craft promotions that make fans feel like they scored — without your team taking a loss.
✅ Top Takeaways
Not Every Deal Is a Good Deal: Free or steeply discounted offers can do more harm than good.
Loss Leaders Should Drive Spend: The goal isn’t cheap tickets — it’s getting fans in the door to spend more.
Perception Is Everything: A $1 hot dog feels like a steal; a free ticket feels like a handout.
Avoid Undermining Value: Don’t train fans to wait for discounts — protect your full-price strategy.
Use Promotions to Increase Per Cap: Target food, drink, and merchandise add-ons that drive incremental revenue.
Track the Right Metrics: Redemption rates and per-cap spending are your best indicators of success.
Smart Bundles Win: Pair tickets with value-added incentives (not price cuts) to boost attendance and loyalty.
🧠 Sound Bites
“Not every deal is a good deal.”
“Loss leaders can work — if they lead somewhere valuable.”
“The moment you give tickets away, you start losing perceived value.”
“Watch your data and bundle smartly.”
🕒 Episode Chapters
00:00 – Welcome & The Real Role of Promotions
01:13 – What Is a Loss Leader? (And Why It’s Misunderstood)
Sports Marketing Machine Podcast