But see, if I order 10,000 I get the bulk price of $5 each. If I only order 500 then they will cost the seller $40 each.
Of course this effect can be minimized with annual volume commitments where a miss means that you simply pay your supplier the difference.
The reality is that the normal situation will not be a difference as stark as this example, but some form of it exists.
But see, if I order 10,000 I get the bulk price of $5 each. If I only order 500 then they will cost the seller $40 each. Of course this effect can be minimized with annual volume commitments where a miss means that you simply pay your supplier the difference.
The reality is that the normal situation will not be a difference as stark as this example, but some form of it exists.
And the decision is always guided by greed and complete disregard for sustainability.