how volume discounts work
the discounts can take on a variety of structures volume discounts are often tiered that is a specific discount is applied to x number of units within that tier the discount increases as for tiers that include larger and larger numbers of units for instance a discount could be applied to 50 to 100 units sold with a greater discount for 101 to 200 units sold and an even larger discount could apply to 201 to 300 units sold and so on another method of offering volume discounts is to apply a lower rate only when a certain threshold is reached for example the discount might go into effect after 100 units are purchased and only apply to the units beyond that threshold the buyer would still pay full price for the first 100 units they procured yet another discount structure is to offer reduced prices on packages of units a discount price could be offered for every 10 units sold with the same rate applied equally another deeper discount rate might then be applied for every 25 units sold in order to reap the benefits of the lower prices the buyer must purchase units in the stated increments in the previous example if the buyer purchased 15 units they would pay the lower rate only for 10 units and full price for the remaining five units the same would be true if 27 units were purchased two units would cost full price while 25 units get the lower rate the volume discount would not apply to the entire order 