Definition of Multiple-unit Pricing
This pricing strategy incorporates setting a smaller price per entity when you buy a couple or several more items similar to it on the contrary to just buying one at a time.
Description of Multiple-unit Pricing
This is the most influential in areas where demand is constantly increasing or decreasing like when it depends on the season of the part in a day, for instance. You look into the production cost instead of wages, etc.
Advantages of Multiple-unit Pricing
It’ll help you become more profitable since growth typically leads to more profit. It’s also on the easier side with it comes to calculating it. It’s useful when you have some extras and it’s also a great way to bring on those outside of your target audience. You can also take advantage of this method to stay within the competition.
Disadvantages of Multiple-unit Pricing
It’s risky taking on more items because you’ll be taking care of more than you’re used to. The initiation will cost more than for one so you need to make sure that you have the funds for it, too. You’ll even have to work out the logistics of how you’ll be producing more. It may work out in the long run, but it initially requires sacrifices to be made. You also can’t use this method forever if you want to make back the production expenses.