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Simple English definitions for legal terms
volume discount
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A quick definition of volume discount:
A volume discount is when you get a lower price for buying a lot of something. For example, if you buy 10 shirts instead of just one, you might get a discount on the total price. This is a way for sellers to encourage people to buy more of their products at once.
A more thorough explanation:
A volume discount is a price reduction offered to customers who purchase a large quantity of a product or service. It is a type of discount that encourages customers to buy more and can help businesses increase their sales.
- A clothing manufacturer offers a 10% discount to retailers who order more than 100 units of a particular style.
- A software company offers a 20% discount to businesses that purchase 50 or more licenses of their product.
These examples illustrate how businesses use volume discounts to incentivize customers to buy more. By offering a lower price for larger orders, businesses can increase their revenue and improve their profit margins.