What is a discounted item commonly referred to as?

A discounted item is commonly referred to as a loss leader. This term is used to describe a product that is sold at or below its cost in order to attract customers to a store or website, with the hope that they will purchase additional items that are more profitable. Retailers often use loss leaders as a strategic pricing tool to increase traffic and overall sales, ultimately boosting their profit margins through follow-up purchases.

In contrast, bulk discounts involve price reductions based on purchasing larger quantities, while trade discounts are price reductions given to specific groups of buyers, often wholesalers or retailers, to encourage them to buy in larger volumes. Promotional items are typically used for marketing purposes to create interest or awareness rather than being focused specifically on driving sales through discounted pricing.