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.