BROWSE

Quantity Discount

What is a 'Quantity Discount'

A quantity discount is 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.

Explaining 'Quantity Discount'

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.


Further Reading


Comment on: a generalized quantity discount pricing model to increase supplier's profits
search.proquest.com [PDF]
… MONAHAN, JP, “A Quantity Discount Pricing Model to Increase Vendor Profits,” Management Sal, 30, 6 … from University of Toronto and an AM and Ph.D. in Economics from Princeton … in numerous jour- nals such as Management Science, European Economic Review, Economic …

A quantity discount pricing model to increase vendor profitsA quantity discount pricing model to increase vendor profits
pubsonline.informs.org [PDF]
… MONAHAN, JP, “A Quantity Discount Pricing Model to Increase Vendor Profits,” Management Sal, 30, 6 … from University of Toronto and an AM and Ph.D. in Economics from Princeton … in numerous jour- nals such as Management Science, European Economic Review, Economic …

A quantity discount model for coordination of internet-based hybrid channels <span style=[J]' src='/thumbnails/?img=http%3A%2F%2Fen.cnki.com.cn%2FArticle_en%2FCJFDTotal-XTLL200708000.htm' />A quantity discount model for coordination of internet-based hybrid channels [J]
en.cnki.com.cn [[J]' href='https:/api.miniature.io/pdf?url=en.cnki.com.cn%2FArticle_en%2FCJFDTotal-XTLL200708000.htm'>PDF]
… MONAHAN, JP, “A Quantity Discount Pricing Model to Increase Vendor Profits,” Management Sal, 30, 6 … from University of Toronto and an AM and Ph.D. in Economics from Princeton … in numerous jour- nals such as Management Science, European Economic Review, Economic …

Vendor-Purchaser Coordination and Quantity Discount Pricing Model in Supply Chain <span style=[J]' src='/thumbnails/?img=http%3A%2F%2Fen.cnki.com.cn%2FArticle_en%2FCJFDTotal-XNJT200402012.htm' />Vendor-Purchaser Coordination and Quantity Discount Pricing Model in Supply Chain [J]
en.cnki.com.cn [[J]' href='https:/api.miniature.io/pdf?url=en.cnki.com.cn%2FArticle_en%2FCJFDTotal-XNJT200402012.htm'>PDF]
… MONAHAN, JP, “A Quantity Discount Pricing Model to Increase Vendor Profits,” Management Sal, 30, 6 … from University of Toronto and an AM and Ph.D. in Economics from Princeton … in numerous jour- nals such as Management Science, European Economic Review, Economic …

Note—Comments on “A quantity discount pricing model to increase vendor profits”Note—Comments on “A quantity discount pricing model to increase vendor profits”
pubsonline.informs.org [PDF]
… MONAHAN, JP, “A Quantity Discount Pricing Model to Increase Vendor Profits,” Management Sal, 30, 6 … from University of Toronto and an AM and Ph.D. in Economics from Princeton … in numerous jour- nals such as Management Science, European Economic Review, Economic …

Coordination contracts in the presence of positive inventory financing costsCoordination contracts in the presence of positive inventory financing costs
www.sciencedirect.com [PDF]
… MONAHAN, JP, “A Quantity Discount Pricing Model to Increase Vendor Profits,” Management Sal, 30, 6 … from University of Toronto and an AM and Ph.D. in Economics from Princeton … in numerous jour- nals such as Management Science, European Economic Review, Economic …

Supply chain coordination with trade credit and quantity discount incorporating default riskSupply chain coordination with trade credit and quantity discount incorporating default risk
www.sciencedirect.com [PDF]
… MONAHAN, JP, “A Quantity Discount Pricing Model to Increase Vendor Profits,” Management Sal, 30, 6 … from University of Toronto and an AM and Ph.D. in Economics from Princeton … in numerous jour- nals such as Management Science, European Economic Review, Economic …

Supply chain coordination with defective items and quantity discountSupply chain coordination with defective items and quantity discount
www.tandfonline.com [PDF]
… MONAHAN, JP, “A Quantity Discount Pricing Model to Increase Vendor Profits,” Management Sal, 30, 6 … from University of Toronto and an AM and Ph.D. in Economics from Princeton … in numerous jour- nals such as Management Science, European Economic Review, Economic …

Buyer–vendor coordination for fixed lifetime product with quantity discount under finite production rateBuyer–vendor coordination for fixed lifetime product with quantity discount under finite production rate
www.tandfonline.com [PDF]
… MONAHAN, JP, “A Quantity Discount Pricing Model to Increase Vendor Profits,” Management Sal, 30, 6 … from University of Toronto and an AM and Ph.D. in Economics from Princeton … in numerous jour- nals such as Management Science, European Economic Review, Economic …

Quantity discount versus lead time-dependent discount in an inter-organizational supply chainQuantity discount versus lead time-dependent discount in an inter-organizational supply chain
www.tandfonline.com [PDF]
… MONAHAN, JP, “A Quantity Discount Pricing Model to Increase Vendor Profits,” Management Sal, 30, 6 … from University of Toronto and an AM and Ph.D. in Economics from Princeton … in numerous jour- nals such as Management Science, European Economic Review, Economic …



Q&A About Quantity Discount


What does a discount yield represent?

A discount yield represents the proportional share of the initial amount owed that must be paid to delay payment for one year.

When might you receive BOGO (buy one, get one) as part of your purchase?

You may receive BOGO if you buy two items at full price and get another item free.

Why would someone want to use a quantity discount?

Someone may want to use a quantity discount because they are impatient and prefer current interest over delayed interest, or they may need money now rather than later, or they may not have enough money available at present but will have more money in future.

What is a quantity discount?

A quantity discount is an incentive offered to a buyer that results in a decreased cost per unit of goods or materials when purchased in greater numbers.

What is the main topic of this article?

The main topic of this article is quantity discount.

What are some other ways you can receive a quantity discount?

Other ways include buy two, get one free; or buy three, get two free.

Who benefits from receiving a quantity discount?

The buyer receives the most favorable price for the goods.

How do you calculate a discount yield?

You can calculate a discount yield by dividing the annual interest rate by the number of years in which you wish to defer payments.

Leave a Reply

Your email address will not be published. Required fields are marked *