Why: the goal or problem

A quantity agreement discounts the whole purchase once a threshold is reached. Pricing only the additional units would calculate a different deal.

How: work toward a solution

A fictional workspace has three seats and 120 monthly exports. The rate is 0.20 through 100 exports, then 0.10 for all exports. Thus 120 costs 12. Change usage: 100 costs 20, but 101 costs 10.10; zero costs zero. Taxes, fees, refunds and tier flat fees are omitted.

The final quantity selects one rate for all units.

Illustrative example

Volume pricing

Initial workspace · 3 seats · 120 exports/month

Shared tier table
ExportsUnit price
0–1000.20
101+0.10

Final tier → one rate for ALL exports

Total12.00

120 × 0.10 = 12.00

Same usage with the other tier method: 22.00

No tier flat fees. Zero usage costs zero.

Fictional amounts. Taxes, fees and refunds omitted.

A fictional demo within this article. Reset or reload restores its initial state.

What: the concept

Volume pricing uses the final quantity tier to price every unit. Crossing a threshold can reduce the total, unlike graduated pricing.

Show threshold effects; compare graduated pricing with the identical tier table.

Source