Example: one bottle of water is like $2 but a whole pack of 24 is like $8. Isn’t the company losing money by charging less for more resources/labor & packaging?
In: 8
At a consumer point bulk increases use. Likely if you are paying $2 for a bottle of water then you probably are only buying 1 bottle of water per month. If you buy 24 bottles of water for $8 you’re likely to drink more than 1 a month. Overall the company makes more money even though the profit margins might be smaller.
Let’s say the bottles cost 5 cents each. For $2 you make $1.95 in profit but the profit on 24 bottles in bulk is $6.80.
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