quantity discount

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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 ?
Existing research has neither examined the incidence of quantity surcharges, nor has it studied factors that affect quantity surcharges and quantity discounts in online shopping environments.
The quantity discount problem has been analyzed from a buyers perspective.
First, talk with your vendor and be very clear on what point quantity discounts kick in.
Thus, producer will preferentially take liner quantity discount contract into consideration when demand experiences a big change and production cost is quite low [10, 11].
Previous inventory models with quantity discounts address both all-units and incremental (marginal) quantity discounts.
Such quantity discounts alter the linear budget constraint, and result in a nonlinear (convex type) budget constraint.
But some MSPs have warned that retailers are also looking at removing quantity discounts but then marking down single bottles to whatever the price would have been as part of a bulk-buy deal.
The new measure would permit quantity discounts and central warehousing.
Kantar Media's list of the 20 biggest advertisers in the Czech Republic is based on advertising price lists; it does not take into account quantity discounts and barter contracts, according to the report.
Available in two different sizes and in a choice of standard colours - green, yellow, red and blue with the message 'KEEP YOUR WORKPLACE TIDY', RASAX can be purchased from only [pounds sterling]16.00 each, with quantity discounts on request.
Quantity discounts are available via the Sustainable World Coalition: 415-785-1888 and www.swcoalition.org.
To gain further control over product availability and obtain quantity discounts, it can make sense to pre-purchase mass-produced or volume custom products.