Volume discount pricing is a practical economic strategy where the price per unit decreases as the quantity ordered increases. This model leverages economies of scale, making it possible to reduce the overall cost per item by spreading fixed costs over a larger quantity of products.

For example, a pricing structure might look like this: purchasing 1-99 units incurs a standard cost per unit, while ordering 100 or more unlocks a lower rate per item. This encourages bulk purchases by demonstrating the long term cost savings.

The concept is particularly advantageous for organizations aiming to stretch their budgets. By consolidating orders, they can save on repeated administrative and logistical expenses while securing better pricing for future needs. Over time, this approach not only reduces costs but also supports better inventory management and strategic planning.