when companies price their goods and services they generally have two options quantity discounting or linear pricing a linear pricing strategy is simpler to manage for business owners than quantity discount pricing and makes it easier for them to maintain the marginal profit on each item 
for instance a t shirt company that employs linear pricing would sell a single shirt for 20 five shirts for 100 and 10 for 200 if each shirt costs 10 to make each shirt will bring in 10 in marginal profit regardless of how many are sold in an order the primary drawback of linear pricing is that it does not provide an incentive to buy in larger quantities when customers order only single items the price per transaction stays the same linear pricing also denies the business owner the opportunity to take advantage of economies of scale 