You negotiated the price. They negotiated the quantity.

A volume discount is the easiest concession a supplier can make, because most of what it costs lands on your balance sheet rather than theirs.

By Steve 5 min read
Abstract bridge artwork for You negotiated the price. They negotiated the quantity.

Ask a supplier for a better price and you will very often get one: attached to a bigger order. The tier sheet appears, the unit cost drops two or three per cent, and the saving is easy to annualise and put in a report. What is harder to see is that the concession has been financed. Not by the supplier’s margin, but by your cash, your space, and your willingness to hold stock that has stopped moving. This is not an argument against buying in volume. On the right lines…

Keep reading for free

Create an account to read the rest.

The whole library is free. No card, no subscription, no trial that quietly ends. An account simply lets us know who we are writing for, and opens every article from here on.

  • Every article, in full, at no cost
  • New articles published every weekday
  • Takes about twenty seconds
Create a free account I already have one

Free means free. We will not charge you for the library, and you can read as much of it as you like.

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.

More on Operations

Scroll to Top