Glossary

Volume Discount Strategy

Definition

A volume discount strategy offers customers a lower price per unit when they buy in larger quantities. It’s designed to incentivize bigger purchases and reward customer commitment, often used in B2B sales, wholesale, or SaaS with tiered pricing.

Why it matters for startups
Volume discounts can help you increase order size, boost customer loyalty, and accelerate revenue—especially if your startup operates in a high-competition market. It’s also a strategic way to lock in long-term users or clear inventory.

When to use it

  • You're selling to other businesses or large accounts
  • You want to encourage larger orders or longer-term contracts
  • You have low marginal costs and can afford to scale pricing

What’s a common way to structure volume discounts?

Read more

Tiered pricing. For example: 1–10 units = €100/unit, 11–50 = €90/unit, 51+ = €80/unit.

Is this strategy only for physical products?

Read more

No. SaaS startups often use volume discounts for users, seats, or usage-based metrics.

How do I avoid giving too much away with volume discounts?

Read more

Set clear thresholds that align with your margins. Offer added value (support, features) instead of just deeper discounts.

Ready to kick-start your own fundraising journey?

Or want to know more about pre-seed funding?