Volume Discount

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Dictionary Says

Definition of 'Volume Discount'

A financial incentive for individuals or businesses that purchase goods in multiple units or in large quantities. The seller or manufacturer rewards those buying in bulk by providing a reduced price for each good or group of goods. Volume discounts allow businesses to purchase additional inventory at reduced cost, and allow sellers or manufacturers to reduce inventory by selling more units to incentivized buyers.
Investopedia Says

Investopedia explains 'Volume Discount'

Volume discounts allow buyers to purchase goods at a discounted rate.  These savings are often passed on to consumers. For example, Wal-Mart is able to purchase such large quantities of each particular good that it routinely receives volume discounts from its vendors. Wal-Mart’s customers, in turn, are able to purchase these goods for less money than if they went to a store that did not buy in such great volume. Volume discounts are often tiered; that is, a specific discount is applied to X number of units. The discount increases as the number of units is increased.

Some brokerage firms offer volume discounts on commissions charged depending on the level of investment or trading activity.

Search results for

'Volume Discount'

  • What Are Economies Of Scale?

    http://www.investopedia.com/articles/03/012703.asp
    ... the potatoes could also be achieving ES if the farm has lowered its average input
    costs through, for example, buying fertilizer in bulk at a volume discount.); ...
  • 3 Money-Saving Cruise Ship Tips

    http://www.investopedia.com/articles/pf/05/061405.asp
    ... They get a volume discount that generally rivals the last-minute discounts available
    on the internet, and the really good agents track the prices after you ...
  • Microeconomics: Making Economic Decisions - Starting A Business ...

    http://www.investopedia.com/university/microeconomics/microeconomics5.asp
    ... Large firms can buy from wholesalers at volume discount prices. They can
    negotiate with unions to reduce labor costs and benefits. ...
  • Profit From The Return Of The Day Traders

    http://stocks.investopedia.com/stock-analysis/2009/Profit-From-The-Return-Of-The-Day-Traders-ETFC-NITE-SCHW-TD-WFC0921.aspx
    ... Recent media reports show that trading volume at discount brokers such as Charles
    Schwab (Nasdaq:SCHW) and TD Ameritrade (Nasdaq:AMTD), a unit of Canada's ...
  • 5 Crazy Corporate Valuations That Proved Too Low - Investopedia. ...

    http://financialedge.investopedia.com/financial-edge/0511/5-Crazy-Corporate-Valuations-That-Proved-Too-Low.aspx
    ... large amounts of syrup from the Coca Cola Company to make beverages to sell in his
    stores and felt that his company wasn't getting enough of a volume discount. ...
  • Examining A Career As An Auditor

    http://www.investopedia.com/articles/financial-careers/08/career-auditor-auditing.asp
    ... large refund payments to customers on a recurring basis (for a variety of reasons,
    such as volume discount programs, claims of damaged shipments, goodwill ...
  • Do stocks that trade with a large daily volume generally have less ...

    http://www.investopedia.com/ask/answers/09/daily-volume-volatility.asp
    ... with higher average volumes, can have a higher volatility than their higher volume
    counterparts. ... Smarter; PriceRunner; CanDoFinance; SymptomFind; Discount.co.uk. ...
  • On-Balance Volume: The Way To Smart Money

    http://www.investopedia.com/articles/technical/100801.asp
    On-Balance Volume: The Way To Smart Money. ... Figure 1: On-Balance Volume. Chart
    Created with Tradestation. Conclusion It is very plain ...
  • DIY Investment Trend To Benefit Discount Brokers

    http://stocks.investopedia.com/stock-analysis/2009/DIY-Investment-Trend-To-Benefit-Discount-Brokers-SCHW-AMTD-ETFC-TRAD0729.aspx
    ... Discount Brokers Have Reaped a Windfall of New Money While some of this money ... Following
    strong trading volume growth in April and May, volumes in June dropped ...
  • Dow Theory: Volume Must Confirm The Trend | Investopedia

    http://www.investopedia.com/university/Dowtheory/Dowtheory5.asp
    ... Dow Theory: Volume Must Confirm The Trend; Dow Theory: Trend Remains In Effect Until
    Clear Reversal ... Smarter; PriceRunner; CanDoFinance; SymptomFind; Discount.co. ...

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