How does buying in bulk often cheapen the final price?
In: 3
A couple reasons why it’s advantageous… it creates revenue/sales certainty (I’d rather sell 10 of an item at a slightly lower rate than sell 1-2 of them and still have 8 I need to sell); the cost to acquire a customer (paying for ads and such) is about the same whether they buy 1 or 10, so I can basically comp them the cost for me to sell items 2-9 since I no longer have to find 9 additional customers to buy those. There are more efficiencies in packing, shipping, etc. a single larger order vs. many smaller orders and in packing/transporting larger volume packages (eg. a 100-pill bottle at a drug store vs. a 500-pill jug of pills at Costco).
Latest Answers