bulk buying

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Bulk Buying

The act or practice of buying a large quantity of a good at once. This may occur at either the retail or the wholesale level. For example, a coffee shop purchases coffee in bulk because it needs to sell to its customers. An individual may buy the same amount simply because he/she does not want to go shopping for it very often. Bulk buying is often less expensive per unit because marginal costs tend to decrease the more a company produces or sells.

bulk buying

the purchase of raw materials, components and finished products in large quantities, which enables a BUYER to take advantage of DISCOUNTS off suppliers' LIST PRICES. A supplier may offer a price discount to encourage the placement of large orders as a means of obtaining extra sales. In many cases, however, the initiative lies with buyers, with powerful retailing and wholesaling groups exacting favourable price concessions from suppliers by playing one supplier off against another. See RETAILER, WHOLESALER, CHAIN STORE.