Multiple unit pricing, also known as quantity-based pricing or volume pricing, refers to a pricing strategy where the cost of a product or service is determined based on the quantity or number of units purchased. In this approach, the price per unit decreases as the quantity purchased increases. This strategy is commonly used to incentivize customers to buy larger quantities, promoting bulk purchases and potentially increasing overall sales volume.
For example, a product might be priced at $5 per unit for a single item but offered at a discounted rate of $4 per unit if a customer buys 10 or more units. Multiple unit pricing aims to attract customers by offering cost savings for larger purchases, encouraging them to buy in larger quantities to take advantage of the reduced per-unit cost.