Volume Discount

Volume Discount
A financial incentive for individuals or businesses that purchase goods in multiple units or in large quantities. The seller or manufacturer rewards those buying in bulk by providing a reduced price for each good or group of goods. Volume discounts allow businesses to purchase additional inventory at reduced cost, and allow sellers or manufacturers to reduce inventory by selling more units to incentivized buyers.

Volume discounts allow buyers to purchase goods at a discounted rate. These savings are often passed on to consumers. For example, Wal-Mart is able to purchase such large quantities of each particular good that it routinely receives volume discounts from its vendors. Wal-Mart’s customers, in turn, are able to purchase these goods for less money than if they went to a store that did not buy in such great volume. Volume discounts are often tiered; that is, a specific discount is applied to X number of units. The discount increases as the number of units is increased.

Some brokerage firms offer volume discounts on commissions charged depending on the level of investment or trading activity.


Investment dictionary. . 2012.

Игры ⚽ Поможем решить контрольную работу

Look at other dictionaries:

  • volume discount — A reduction in price based on the purchase of a large quantity. Bloomberg Financial Dictionary * * * volume discount volume discount ➔ discount1 * * * volume discount UK US noun [C] COMMERCE ► a cheaper price than usual for customers who buy a… …   Financial and business terms

  • volume discount — / vɒlju:m ˌdɪskaυnt/ noun the discount given to a customer who buys a large quantity of goods …   Marketing dictionary in english

  • volume discount — / vɒlju:m ˌdɪskaυnt/ noun the discount given to a customer who buys a large quantity of goods …   Dictionary of banking and finance

  • discount — a deduction made from the normal cost or purchase price. Glossary of Business Terms 1) Quality differences between those standards set for some futures contracts and the quality of the delivered goods. If inferior goods are tendered for delivery …   Financial and business terms

  • Discount — Referring to the selling price of a bond, a price below its par value. Related: premium. The New York Times Financial Glossary * * * ▪ I. discount dis‧count 1 [ˈdɪskaʊnt] noun [countable] 1. COMMERCE a reduction in the cost of goods or services… …   Financial and business terms

  • volume — an amount or quantity of business activity. Glossary of Business Terms The number of purchases or sales of a commodity futures contract made during a specific period of time, often the total transactions for one trading day. Chicago Board of… …   Financial and business terms

  • Volume — This is the daily number of shares of a security that change hands between a buyer and a seller. The New York Times Financial Glossary * * * volume vol‧ume [ˈvɒljuːm ǁ ˈvɑːljəm] noun [countable, uncountable] 1. the amount of space that a… …   Financial and business terms

  • Discount-licensing.com — (formerly known as Disclic) is a Burton upon Trent, UK based vendor or broker of second hand Microsoft software licences. It is notable for being the first company to establish a secondary market in such licences which is accepted by Microsoft as …   Wikipedia

  • discount pricing — ➔ pricing * * * discount pricing UK US noun [U] COMMERCE ► the sale of products and services at lower than usual prices: »They want the retailer to shift more to discount pricing in a move aimed to boost volume …   Financial and business terms

  • Volume license key — (VLK) is a term used by many computer software companies to denote the product key used when installing software licensed under volume licensing, which allows a single product key to be used for multiple installations.[citation needed] This form… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”