A quantity discount is a sales tactic in which a business offers a buyer a reduced per-product price when the buyer purchases a greater number of that product.
A quantity discount — in which consumers get a reduced overall price when they buy products in bulk — benefits both the buyer and the seller. Consumers get a better deal, and sellers are able to sell more products at once.
The quantity discount encourages repeat purchases from consumers who receive a great deal for their money. Everyone wins.
Quantity discounts can take many forms, such as a buy one, get one free offer, a bulk quantity discount, or an incremental discount for each product purchased in a bundle. When buying products from brands or manufacturers, retailers often save money with discounts for bulk purchases.
Consumers will likely purchase more products in single transactions, which increases the retailer’s revenue per transaction. The main disadvantage of a quantity discount is that it decreases the per-product profit.