A quantity discount reduces the price when a buyer purchases a defined volume. It may use tiered pricing, volume pricing, or a negotiated amount. The quotation should state the threshold, applicable units, and whether quantities accumulate across orders or a contract period.
Quick reference for Quantity discount
| Check | What it means for the transaction |
|---|---|
| Category | Pricing and profitability |
| Record to keep | Record the cost basis, currency, quantity, customer scope, effective period and approval behind the amount when they apply. |
| Do not infer | A price label alone does not establish margin, landed cost or the final invoiced amount. |
Quantity discount and nearby terms
- Volume pricing: Volume pricing applies one price to the full order after the buyer reaches a quantity threshold.
