The Truth About Loss Leaders: Why Small Farms Can’t Play the Grocery Store Game

You’ve probably heard about Costco’s famous $4.99 rotisserie chicken. It’s an absolute steal, and they know it. In fact, Costco’s CEO has openly admitted they lose $30-40 million a year on those chickens. But they don’t care—because that cheap chicken gets you in the door, where you’ll fill your cart with everything else.

This strategy, known as a loss leader, is a classic grocery store move. They price a staple item—milk, eggs, butter, or meat—at or below cost to lure shoppers in. Once inside, you’re more likely to buy higher-margin items (hello, impulse purchases!) that make up for that loss.

One of the biggest loss leaders of the year? Frozen turkeys.

Every November, grocery stores practically give away frozen turkeys at 99 cents a pound or less, knowing full well they’re taking a loss. But they count on you buying stuffing, cranberries, pies, drinks, and all the holiday fixings—where the real profit lies. That $0.99 turkey? It’s bait. The grocery store markups on everything else are often 30-50%, and for some packaged goods, it’s even higher.

The most common Loss Leaders:

  • Holiday Turkeys
  • Soda (specifically 12 packs and sale items)
  • Costco Hot Dogs
  • Costco Rotisserie Chicken
  • Bananas (Think about it. These go bad quick so you come right back!)
  • Generic Brand Milk & Bread
  • Bakery Items
  • Eggs
  • Paper Goods (because who leaves the store with just toilet paper?)
  • House Brand Items
  • Seafood
  • Diapers
  • Low Grade Ground Beef

Why Small Farms Can’t Play This Game

For small farms like ours, there’s no safety net of high-margin junk food or household goods to make up for selling meat at a loss. Every cut we sell is priced to reflect what it actually costs to raise our animals the right way—on pasture, with quality feed, and without cutting corners.

If we tried to use a loss leader strategy, we’d have to jack up the prices on everything else just to stay in business. And let’s be real—that’s not what you want either.

The Value of Transparency

When you buy from a small farm, you’re not just getting a product; you’re supporting an entire ethical, sustainable food system. You’re paying for:
✅ Animals raised with transparency & no click bait claims
✅ Farmers who actually know and care for their livestock
✅ Meat that’s free from antibiotics, synthetic hormones, and corporate shortcuts

Unlike the grocery stores, we’re not in the business of tricking you with pricing games. We charge what it actually costs to produce high-quality, real food—no gimmicks, just transparency.

So next time you see a suspiciously cheap rotisserie chicken or frozen turkey, just remember: somebody else is paying for that loss. At big-box stores, it’s made up in other product markups. At a small farm? It would mean cutting corners on quality or sustainability—something we refuse to do.

Thanks for supporting honest pricing, real food, and small farms that actually care. 💛

  1. cassandra rommel says:

    Brianna, thank you for your dedication and passion to this ever-important topic. I, for one, was surprised at the cost of my turkey this year. BUT I have NEVER had such delicious turkey, EVER! (And I’m 46, so that’s saying something:)

    Not only did we enjoy one of your spectacularly delish farm-raised turkeys, but we had two this holiday season. One at Thanksgiving and one at Christmas.

    Thank you for all you do.

  2. Linda Standish says:

    Thank you for taking the time to explain. I appreciate your products because raise your animals and produce products with health in mind. I find that when I buy from you that I everything is eaten, no waste. When buying cheapI get what I am paying for which is full of preservatives and false advertisements. I appreciate all the time and energy you take to keep my family healthy. And it tastes great.

  3. Lola F Vankirk says:

    This is why I buy from you and other farms. Sustainability, quality products, and enjoy supporting you all.

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