Quantity discount

Quantity Discount
Financial & Investment Dictionary:
Volume Discount
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quantity discount
discount in dollars or percent, allowed on the basis that the buyer will purchase a given quantity of merchandise; also called volume discount. For example, the unit price of an item may be $10.00.

Quantity Discount
A proportional reduction of a rate based on quantity (air cargo).
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[edit] Quantity discount
Main article: Discounts and allowances
This resembles to the sales rebate contract, but there is no threshold defined, but the customer pays a wholesale price inversely proportional to the order quantity.

Quantity Discount
An incentive offered to a buyer that results in a decreased cost per unit of goods or materials when purchased in greater numbers. A quantity discount is often offered by sellers to entice buyers to purchase in larger quantities.

For mobile home parks, apartments, condos and submetering, large inventory, quantity discounts, free shipping on most items, order online, Visa, MasterCard, AmEx.
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quantity discounts) as volume goes up, and this can reduce the per unit variable cost. These are valid considerations and must be taken into consideration in any business evaluation.

Conversely, an input may become cheaper as the quantities purchased rise (e.g. quantity discounts), so marginal costs may fall as production increases.

The cost of not carrying enough inventory involves those costs that result from not having enough inventory in stock to meet customers’ needs. Such costs include customer ill will, quantity discounts foregone, erratic production, ...

See also: Acquisitions, Franchising, Business plan, Career, Franchise