Define volume pricing.

Define volume pricing.

• A. All units are repriced once hitting a volume tier. For example, if a customer needs 20 units, the price will be $9 per unit for a total of $180.
• B. Pricing per unit decreases with time.
• C. Pricing is the same for all units.
• D. Pricing changes with region.

Answer: (A)

Volume pricing is a tiered approach where the price per unit depends on how many units you buy; when you reach a volume tier, the discount applies to all units in that order. In the example, hitting the 20-unit tier sets the price at $9 per unit for the entire order, so 20 units cost 20 × 9 = 180. This differs from pricing that changes over time, flat pricing where the unit price stays the same no matter how many you buy, or regional pricing where prices vary by location. Volume pricing incentivizes larger purchases by offering a lower unit price once you reach a certain quantity.

Volume pricing is a tiered approach where the price per unit depends on how many units you buy; when you reach a volume tier, the discount applies to all units in that order. In the example, hitting the 20-unit tier sets the price at $9 per unit for the entire order, so 20 units cost 20 × 9 = 180. This differs from pricing that changes over time, flat pricing where the unit price stays the same no matter how many you buy, or regional pricing where prices vary by location. Volume pricing incentivizes larger purchases by offering a lower unit price once you reach a certain quantity.