The discount assumed twelve orders a year. They placed five.

Volume discounts are almost always granted in advance and reconciled never: which means the customer's forecast becomes your margin risk.

By Steve 5 min read
Abstract bridge artwork for The discount assumed twelve orders a year. They placed five.

A buyer asks for better pricing and offers a reason: they intend to consolidate spend, place bigger orders, come to you monthly instead of quarterly. The discount is agreed on that basis. Twelve months later the volume arrived at half strength, the price is still where it was set, and nobody in the business has connected the two facts. This is a different failure from ordinary discounting. Ordinary discounting is a concession made to win a deal that exists. A volume discount is a concession made against a deal that…

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Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.

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