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
There’s a lesson to learn here
Yes, yes they do. But resources labour and packaging are not the whole picture. You have the logistics of delivery and storage
That turns out to be such a big slice of the overhead that bulk suddenly becomes reasonable. Why deliver you 100 bottles ten times? Take a thousand. Take ten thousand, how fast does it sell? How big is your warehouse?
The majority of the cost of your water bottle is neither water nor bottle, but it being on the shelf you got it from, bulk buy lowers the cost for all parties by reducing their travel
It also helps to think of 24 for 8 being closer to actual break even, and the single bottle for 2 being daylight robbery. Nobody regularly turns losses, they’ll be up on that bulk deal for sure
Edit:. Another answer points out multiple actors which I missed. Manufacturer and retailer own different segments of that cost and the profits
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