Volume pricing applies one price to the full order after the buyer reaches a quantity threshold. This differs from tiered pricing, where each rate applies only to units within its own range. The distinction can materially change the total price at a threshold.
Quick reference for Volume pricing
| 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. |
Volume pricing and nearby terms
- Quantity discount: A quantity discount reduces the price when a buyer purchases a defined volume.
