Retailers use the term loss leader to describe an item that is sold at or below cost. The idea, of course, is to attract bargain hunters with the lowered price who will then make other purchases while they're at the store.

Some years back, I became friends with the co-owner of a sports clothing manufacturer and distributor. He was responsible for the company's sales and marketing. We occasionally had lunch together. Even though these were not business lunches, our conversations would often turn to marketing.

Each year, the company had a parking lot sale to liquidate excess inventory. A wide array of sports apparel was offered at bargain prices. The parking lot sales, held on weekends, were not nearly as well attended as my buddy would like. Despite a decent ad budget, he wasn't generating the turnout he needed. Part of his problem was that his facility was located off the main road in an industrial park, and he couldn't rely on drive-by traffic.

One day at lunch he asked me, "How can I get more people out to these sales?"

I couldn't think of anything he hadn't already tried, but I promised to give it some thought.

That weekend, I drove past a volunteer fire department's pancake breakfast. The parking lot was jammed, and there were cars waiting to get in.

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The following week I lunched with my pal again. "Why don't you have a pancake breakfast at your parking lot sale?" I asked. He laughed at the idea, but I could see that the wheels were turning.

He asked if I really thought that would generate a crowd. I said, "It might if the price of the pancakes is one dollar."

He smiled and said, "Oh, a loss leader. I guess I'll have to give this some thought."

A couple of days later he called to tell me it was a go. The annual sale was about six weeks away, which gave him enough time to make the arrangements for the event. He did his usual advertising. The first day of the event, he posted directional signs with arrows emblazoned with "Pancake Breakfast $1."

On Saturday the event drew a much bigger crowd than usual. But on Sunday he got an incredible response. The place was a mob scene. Crowds of people showed up. Some had learned of the bargain prices from people who had shopped there on Saturday. Others came for the one dollar pancakes and stayed to shop. The cash register kept ringing.

While the company lost money on the one dollar pancakes, it more than quadrupled the previous year's sales.

Excerpted from Rules of the Hunt: Real-World Advice for Entrepreneurial and Business Success, McGraw Hill. Get your copy at Amazon.