eli5 bulk orders

Question

How does buying in bulk often cheapen the final price?

In: 3

Answer 1

I’m willing to buy 10 widgets. Will you give me a discount?

“Haha, no, buy them or don’t.”

I’m willing to buy 100 widgets. Will you give me a discount?

“Well…maybe I can work out 10% off.”

I’m willing to buy 100,000,000 widgets. Will you give me a discount?

“Holy fuck yes, I’ll give you 80% off, let’s do this so I can go buy a vacation house!”