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 ?
EXCLUSIONARY EFFECTS: QUANTITY DISCOUNTS AS A BARRIER TO ENTRY
What about the argument that quantity discounts will enable Borders and Barnes & Noble to become monopolists, who can then increase prices, harming consumers?
Suppliers throughout the state are well advised to carefully qualify their retail chain accounts to make sure that exact common legal ownership exists whenever group quantity discounts to all outlets in a group are given.
Each module costs $69, and quantity discounts are available.
Most companies offer quantity discounts to customers.
We also repair fetal monitoring cables, ECG recording and monitoring cables, Holter monitors, and Respirometers and offer quantity discounts.
Charismac offers quantity discounts as well as competitive upgrades from other SAN software packages.
50 per DVD with quantity discounts available for each.
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.