Why Do Prices Change When You Buy More?

Imagine you're buying candy. If you buy just one piece, it costs $1. But if you buy a whole bag of 20 pieces, it only costs $3. That's called quantity discounting, when you pay less per item the more you buy. It works like this: stores know that people might not want to spend too much at first, but if they get a better deal on bigger purchases, they’re more likely to buy more.

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Examples

  1. Buying a bag of 10 apples for $2 instead of paying $0.30 each
  2. Getting a discount on a family ticket at the zoo if you buy more than two tickets
  3. Paying less per bottle of soda when you buy six bottles instead of one

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