Why do things cost less when bought in bulk?

Question

My school recently bought all students chromebooks and it got me thinking. If they can buy 5000 chromebooks for 20$ a pop, why does it cost me 80 to buy one individually? what am i missing?

In: 1

Answer 1

Logistics.

Paying someone to move 100 items once a day costs more than paying them to move 5,000 items once a week. Buying in bulk allows for bigger shipments, less often, which allows for cheaper logistics.