Dictionary of Procurement Terms

Welcome to the NIGP Online Dictionary of Procurement Terms, the comprehensive reference for public purchasing terms and concepts.

Search the Dictionary of Terms

Search Results: 1-1 of 1 result for “Volume Discounts”

  • Volume Discounts

    Discounts offered to a buyer from a supplier based on the quantity purchased, the size of the order, or total annual volume. It is based on the economic theory of economies of scale – the larger the quantity purchased, the lower the unit price.

    See Also: Quantity Discount, Volume Leveraging, Economies of Scale