"If you give volume discounts, the losing competitor can sue you for anticompetitive behavior, " Frank said.
Early in the sales cycle when price came up I would quote rate card prices including standard volume discounts.
When a client's business dropped off, she says, employees were told to "warm-call" them offering free software upgrades and volume discounts.
Consumer-facing firms have developed a wide variety of price discrimination schemes involving coupons, volume discounts, memberships, reward cards, happy hour specials, and so forth.
The financial motivation to produce generic low cost injectable drugs is minimal, as large pharmacy benefit houses such as Medco contract for large volume discounts to lower the selling prices.
The Aberdeen Group argues that telecommunications costs, in particular, can expand with BYOD because companies lose the traditional volume discounts they got when they purchased both devices and service from a single provider.
For Cloud Files, volume discounts range from 10 cents per GB per month for the first 1TB, decreasing to 7.5 cents per GB per month and even lower for storage amounts over 1024 TB.
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However, RW Baird analyst Christopher Raymond notes that Lucentis may already cost less, in some cases, than the stated pricing due to volume discounts and forthcoming study results may diminish the advantage Regeneron will enjoy by being able to promote more convenient dosing.
Access to price information shifts the balance of power to the buyers: they can buy as little or as much as they need, treating the order form as if it were a spreadsheet, to see the effect of volume discounts or of adding or removing features.
And although most consumers won't likely jump at the chance to watch a movie on Facebook, they will certainly be willing to buy other goods and services there, just because it will be easier and possibly even cheaper (through volume discounts such as you find on Groupon or Living Social) than elsewhere.
He adds that checks also indicate that Cree has started a new sales promotion for distributors and is offering volume related price discounts between 5-20%.
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In the physical world, megastores such as Wal-Mart thrive on high volume, deep discounts and speedy, flexible supply chains that allow them to change prices and product mix on a daily basis.
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Discounts may boost volume, but at a high cost to profit margins.
The bet that these hospitals are making is that they can offset the discounts by getting more volume.
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TPG's network and also allows, but does not mandate, discounts for large-volume customers.
Our Zogby Interactive holiday shopping survey raises some doubts and would seem to reinforce the need for retailers to keep pushing deep discounts to keep up volume.
During the recession many consumers were flocking to large grocery store chains that could offer more substantial discounts thanks to their purchase volume.
This suggests that the revenue lost from the discounts is made up in additional volume and advertising done by UniEats.
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Since then, she's cut multiple vendors, from limo services to law firms, and instructed staff to ask for discounts based on RBS's business volume.
Others have cut prices as an opportunity for running promotions or special sales, recognizing that with their customers facing an inflationary crunch, "it might be an opportune time to run some deep discounts as a way to try to capture some volume, " says Reibstein.
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