• A quantity discount is an incentive offered to customers that results in a lower unit cost of goods or materials when buying more.

  • Enticing buyers to buy in bulk allows sellers to increase the number of units per transaction (UPT), reduce their inventory, and possibly reduce unit costs.
  • Discounts can have a negative impact on unit profit, also known as marginal profit.
  • An alternative to a quantity discount is linear pricing: charging the same price no matter how many items a customer buys.