quantity discount


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Related to quantity discount: cash discount, trade discount

Quantity Discount

A lower price per unit a company charges in exchange for the purchase of a large number of units. For example, if the usual price for a product is $5 per unit and a buyer asks to purchase 10,000 units, the company may offer a quantity discount and only charge $3 per unit. Quantity discounts exist to encourage large orders, which, while they may reduce profit margin, increase revenue and therefore raw profit.

quantity discount

a price reduction from a supplier's LIST PRICE given to buyers of products according to the quantities that they purchase. Such BULK-BUYING discounts are often termed ‘trade discounts’, and they could be based on the size of a single order or could take the form of an AGGREGATED REBATE on the volume of cumulative purchases over a period of time. Quantity discounts are used both to secure orders against competitors and by encouraging larger, less frequent orders, to reduce the supplier's order and delivery cost.
References in periodicals archive ?
Just imagine the price of DVDFab products with Single Product Quantity Discount and coupon working together.
Taking away the quantity discounts, the results of which consumers have clearly shown they prefer, can hardly be proconsumer.
Single unit pricing for the IP-09026 evaluation carrier board is $130 with quantity discounts available.
Evaluation unit price for the hardware platform only is $ 1,995 with quantity discounts available.
The total package including software and carrying case is priced at $199 with quantity discounts available.