Why do things cost less when bought in bulk?

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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?

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Anonymous 0 Comments

The price you pay is the price for the item, plus the price to sell you the item, plus the price to package the item, plus the price to transport the item to you, plus … .

All these costs are bundled together into one number to make it easy for you. But, if you can impact some of these other costs, you can get a lower price. The price to sell the item is likely a factor in the chromebook example. The packaging and transport costs are likely more of a factor in the Costco situation.

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