Quantity discount is a type of incentive offered to shoppers when they purchase in large amounts. The cost per unit is lower when customers buy a specific number of units. For example, purchasing 1 bag of flour at $1 and buying 10 bags of flour for $8 instead of $10.
By using a quantity discount retailers are able to sell more products and reduce the risk of deadstock. Shoppers like this type of discount because they get more than what they pay for. A quantity discount can also be implemented as a BOGO or 50% of the second product.
Pros and cons of offering quantity discounts
Like any other incentive, using quantity discounts comes with ups and downs. One of the biggest advantages is selling bigger quantities and getting rid of old inventory. On the downside, using quantity discounts might affect your brand image. If you are not a retailer that sells on prices (discounts, sales, offers) you might want to consider a different incentive.
