What is a more effective discounting strategy: 15% off or two for $15? If you picked the later you are correct.
Quantity discount is an incentive offered to a buyer that results in a decreased cost per unit of goods when purchased in greater numbers. Research shows that when pricing is presented in quantity terms (buy two or more) sales rose by 165%. Simple discounts, like a percentage off, only increased sales by $125%.
The primary advantage of a quantity discount is that the reduced per-unit price encourages customers to order in larger quantities and when they do so, the seller makes higher revenues per transaction. This strategy is perfect for decorated goods considering how quantity affects costing and pricing.
