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Pricing & Salesbeginner

Volume Discount

Definition

A price reduction offered to buyers who purchase larger quantities, incentivising bigger orders in exchange for a lower per-unit price.

Why it matters

Volume discounts increase average order value and reward loyal, high-value buyers. For product businesses, larger orders also reduce fulfilment cost per unit.

Example

A stationery brand: 1-10 notebooks at £12 each; 11-25 at £10 each; 26+ at £8 each. A boutique orders 30 notebooks and saves £4 per unit, placing a bigger order than planned.

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