Definition Definition

Multiple-unit pricing

Definition (1):

Multiple-unit pricing is a practice where a company offers consumers a lower than unit price if a specified number of units are purchased.

Definition (2):

It means to offer a lesser price per unit for purchasing the same type’s two or more products when purchased together than when purchased singly.

 Definition (3):

“Selling a product at a price lower than that of other products of the same category is called Multiple Unit Pricing. This is true, especially in case of bulk orders.”

Generally, companies use a multiple-unit pricing strategy in the following cases:

  • For pushing the sales of a product.
  • For exhausting the existing stock of products lying for many days, especially, the expiry date of which is on the border.
  • For penetrating the market with a new product.
  • For customized deals and bulk orders.
  • For penetrating the market with an existing product.

Multiple-unit pricing is quite helpful in the above cases. But it decreases the products’ profit margin for a company. It also decreases the profit margins of marketing intermediaries such as distributors and retailers. This pricing is also troublesome for keeping records.


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