Volume discount

A volume discount reduces the price when a buyer purchases a specified quantity or spends above a threshold. The discount may apply to the whole order or only additional units, so buyers should check how the price tiers are calculated.

Volume discounts can be based on units per order, order value or cumulative purchases over an agreed period. Some are deducted immediately; others are paid later as rebates once the buyer reaches a target. The buyer needs to know which products count toward the threshold and whether returns reduce the qualifying volume.

For example, a supplier may offer £5 per unit below 500 units and £4.60 when an order reaches 500. Buying more can lower the unit cost, but also increases the cash and storage required. Quantity breaks describe the thresholds in that pricing structure; the discount is the resulting reduction.