Quantity Discount

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. The seller is able to move more goods or materials, and the buyer receives a more favorable price for the goods. At the consumer level, a quantity discount can appear as a BOGO (buy one, get one discount) or other incentives such as buy two, get one free.

Retailers often get better deals if they order more of the same item. For example, the cost per unit for t-shirts might be $7.50 per unit if less than 48 pieces are ordered; $7.25 per unit if 49-72 pieces are ordered; or $7.00 per unit if 73 or more pieces are ordered. Depending on the quantity discount, all pieces ordered must be delivered and paid for by a certain date, or the purchases and payments can be spread out over a specified period of time.


Investment dictionary. . 2012.

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Look at other dictionaries:

  • quantity discount — noun (commerce) A reduction in the unit price of goods when large quantities are purchased • • • Main Entry: ↑quantity …   Useful english dictionary

  • quantity discount — A discount on the regular price allowed for a purchase in large quantity …   Ballentine's law dictionary

  • quantity discount — See discount …   Big dictionary of business and management

  • quantity discount — /ˌkwɒntɪti dɪskaυnt/ noun a discount given to people who buy large quantities …   Marketing dictionary in english

  • quantity discount — /ˌkwɒntɪti dɪskaυnt/ noun a discount given to people who buy large quantities …   Dictionary of banking and finance

  • cumulative quantity discount — /ˌkju:mjυlətɪv ˌkwɒntəti dɪskaυnt/ noun a discount based on a quantity bought or the value of purchases over a period of time ● We have purchased only from these suppliers over the last few months in order to enjoy a cumulative quantity discount …   Marketing dictionary in english

  • non-cumulative quantity discount — A price discount determined by the size of an individual purchase order. The larger the order, the larger the discount …   Big dictionary of business and management

  • discount — In a general sense, an allowance or deduction made from a gross sum on any account whatever. In a more limited and technical sense, the taking of interest in advance. A deduction from an original price or debt, allowed for paying promptly or in… …   Black's law dictionary

  • discount — In a general sense, an allowance or deduction made from a gross sum on any account whatever. In a more limited and technical sense, the taking of interest in advance. A deduction from an original price or debt, allowed for paying promptly or in… …   Black's law dictionary

  • discount — 1) A deduction from a bill of exchange when it is purchased before its maturity date. The party that purchases (discounts) the bill pays less than its face value and therefore makes a profit when it matures. The amount of the discount consists of …   Accounting dictionary

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