What is a quantitative discount?
The amount of discount, also referred to as a volume discount, is a reduction in the price of a given entity that purchases a large number of items and goods. Most often they are distributors who buy a large number of items from the manufacturer, most often distributors, and then turn this item and sell to end users. Individuals can also get a discount on quantity in certain situations. An individual who visits a large store of warehouses can get a lower price for toilet paper, such as a person who buys one role in a grocery store. Likewise, a person who accumulates is buying a large amount of any other product, whether from warehouse stores or from special mass sections in grocery stores, can also get a discount on purchases in large quantities. These discounts are also issued to businesses. For example, Wal-Mart is able to offer low partly because it buys such large volumes of goods from suppliers. May require low prices from suppliers who are dependent on businessWal-Mart, and get these discounts from suppliers who offer low prices to get a large amount of business that Wal-Mart promises.
The company has many advantages of issuing quantity discounts. First, it may have lower marketing, wrapping and transport costs. When the company delivers 100 products per 100 different individuals, each product must be wrapped separately and sent separately. It is much less expensive to send the same 100 products per individual.
Likewise, the marketing costs of the company with a large volume buyer are much lower. For example, if a company needs to sell 100 products to 100 different people, the company must place a product on the market to persuade 100 people to buy it. On the other hand, if the compane is aware that the entity buys a full 100 products that produces a large number of guaranteed businesses and does not have to get involved inthe marketing of your product.
When a company receives a quantity of quantitative discounts, it also benefits because it can pass on savings to the consumer, thereby attracting more buyers. Alternatively, it can maintain savings and increase the bottom line or profits it achieves. It is therefore advantageous for the buyer and the seller to take advantage of the amount of discount on the quantity.