According to data published by the magazine Distribución y Consumo (Distribution and Consumption), in 2024, 42% of Spaniards took advantage of purchase volume discounts. That same year, 25.4% of manufacturer brand sales were generated through this and other promotions, as indicated by the study El mercado de Gran Consumo en España (The Mass Consumption Market in Spain), prepared by NIQ.

This data suggests that discounts for volume benefit both customers and businesses, which is why more and more businesses are choosing to implement them in their B2C and B2B relationships. This guide tells you what you need to know to take advantage of the benefits of purchase volume discounts.

What’s in this article?

• What is a purchase volume discount?
  
• Types and examples of purchase volume discounts
  
• Advantages of purchase volume discounts
  
• Drawbacks of purchase volume discounts
  
• What regulations govern purchase volume discounts in Spain?
  
• How to apply purchase volume discounts in your business
  

What is a purchase volume discount?

Volume discounts are price reductions applied to purchases that exceed a minimum spending or unit threshold. In general, these discounts are progressive, so the savings increase as the number of units purchased or the total amount increases.

This sales strategy offers a double benefit: for businesses, it creates a sales incentive that leads to a direct increase in profits; for customers, it means savings on their purchases.

Types and examples of purchase volume discounts

Purchase volume discounts can be applied based on different formulas, which vary depending on factors such as the type of product and the company’s profit margin strategy. In the following list, we explain the differences between the types to help you choose the most suitable one for your business:

• Packages or batches
  The price decreases when buying several products together in a package or batch, rather than individually. Let's look at a clear example: a user, instead of subscribing to an online service with a monthly plan, signs up for an annual plan to get a two-month discount (i.e., the price of the annual plan is equivalent to 10 monthly payments).

• Unit threshold
  The business establishes a unit threshold that the customer must buy to enjoy the purchase volume discount. The reduced unit price applies to the whole order and not just the number of units that exceed the threshold. For example, a B2B marketplace in Spain could apply a 5% discount to companies that purchase at least 10 units of a product.

• Graduated discount
  This is a variation of the unit threshold in which the discount percentage increases in proportion to the number of units purchased by the customer, provided the threshold set by the business is exceeded. For example, an online printing company charges €0.08 per card for printing, but offers a reduced price of €0.06 when buying 500 units and €0.04 for orders of 2,500 or more units.

• Tiered
  This volume discount model works very similarly to the graduated discount model, but in this case each tier has its corresponding price, instead of applying the discounted price to all units. Returning to the example of the online printing company, if an order for 3,000 business cards is processed with a tiered discount, the per-unit prices could be as follows:

  • 1–500 units: €0.08
    
  • 501–2,500 units: €0.05
    
  • More than 2,500 units: €0.02
    

Using the tiered model, the total order amount would be:

€0.08 × 500 (for the first 500 units)
+
€0.05 × 2,000 (for units 501 to unit 2,500)
+
€0.02 × 500 (for every unit after 2,501)
=
Total amount for 3,000 units: €150

With the graduated discount model we explained above, the same order would have a price of:

€0.04 × 3,000= €120

• Combination of products
  This purchase volume discount allows you to combine different products. That is to say, savings are achieved by exceeding the spending or unit threshold set by the business to stimulate sales, regardless of the combination of items included in the promotion. For example, a supermarket offers a 10% discount to customers who purchase 4 cans of soda, regardless of the flavor. This promotion is also common at many fast food chains, where buying a meal that includes a sandwich, fries, and a drink is more affordable than purchasing each item separately.

• Variable discounts
  These purchase volume discounts vary depending on factors such as the amount of remaining stock and the customer’s negotiating power, a very important factor in B2B relationships. For example, a clothing store that buys large volumes of T-shirts from a supplier might get better terms if it pays the amount in cash rather than in installments.

• Cumulative discounts
  These apply from the moment the customer reaches a cumulative purchase volume over a period stipulated by the business. Companies often apply these types of purchase volume discounts to strengthen long-term business relationships. For example, an office supply store can offer a €50 discount coupon directly to businesses that spend a cumulative quarterly amount of €1,000. The store can also combine this type of discount with tiered offers and increase the discount coupon to €400 for those that spent €6,000 or more in the last quarter.

Advantages of purchase volume discounts

Applying purchase volume discounts provides strategic advantages to companies. Here are some of the key advantages:

• Increased revenue
  By incentivizing sales, the business achieves a direct increase in revenue. According to NIQ, €25.40 out of every €100 spent on manufacturer brands is spent on promotions, demonstrating the impact these offers have on increased revenue and resulting improvements in cash flow.

• Improved inventory management
  By selling a large volume of units, the company reduces the risk of accumulating excess inventory, a situation that is especially detrimental when dealing with perishable products. This advantage of purchase volume discounts particularly benefits supermarkets, since it helps them sell food items that are close to their expiration dates.

• Reduced operating costs
  Manufacturers and distributors especially benefit from these types of discounts. For manufacturers, a higher production volume usually lowers unit cost by more evenly distributing fixed costs, while distributors save on logistics by reducing management volume as it’s often easier to organize a few orders with many units than thousands of small shipments.

• Customer acquisition and loyalty
  Purchase volume discounts are an incentive for customers seeking to maximize savings on their purchases. This is especially relevant in a country like Spain, where 91% of people who shop in supermarkets prioritize price and promotions, according to a study by YouGov and ShopFully. Additionally, in some cases, purchase volume discounts are set to be a limited-time offer. In these cases, they’re automatically triggered once a designated threshold is reached, giving a discount on a frequently purchased item that can only be enjoyed if that item is purchased during a specific period of time. For example, a supermarket sees a customer has bought yoghurt 10 times over the past quarter. This triggers a purchase volume discount in its system. The supermarket grants the customer a coupon for 30% off on their next yoghurt purchase that's valid for 2 weeks. This helps retain these customers, who would lose their accumulated benefits if they made their purchases at a competing establishment during the coupon’s time period.

Drawbacks of purchase volume discounts

While the list of benefits is long, it’s necessary to consider the drawbacks of purchase volume discounts, among which the following stand out:

• Reduced profit margin
  While businesses increase their revenue when applying volume discounts, there’s also a slight decrease in the net profit margin.

• Excessive dependence on large customers
  This drawback arises primarily in B2B transactions. Having business customers that purchase large volumes of products can have pros and cons: it’s beneficial while the business relationship lasts, but if the professional customer decides not to make any further purchases, revenue might suffer, which can lead to long-term business difficulties.

• Possible deterioration of the brand image
  Overly aggressive discounts that significantly reduce market prices can convey the impression that the quality of products or services is inferior to that of the competition and, consequently, can affect brand perception among customers.

What regulations govern purchase volume discounts in Spain?

In Spain, there are several regulations that directly or indirectly govern purchase volume discounts. Let’s take a look at them:

• Law 37/1992
  Article 80 of Law 37/1992 allows supplier companies to reduce their tax base after a sale if the professional customer later reaches the threshold to enjoy a purchase volume discount. In that case, the final price decreases and, therefore, so does the corresponding value-added tax (VAT). The practical VAT manual of the Spanish Tax Agency (AEAT), in paragraph (c) of the section “Modification of the tax base,” states that the VAT charged can be adjusted by issuing a corrective invoice. Let’s analyze an example: in January 2025, a supplier sells 45 household appliances to a retailer for a price of €300 each. The invoice reflects a tax base of €13,500. In September of the same year, the retailer buys 5 more units, whose tax base is €1,500. The supplier offers a 5% discount upon reaching 50 units, reducing the total taxable amount from €15,000 to €14,250. This change is reflected in a corrective invoice, which must indicate the amount of difference in VAT:
  

€3,150.00 − €2,992.50  = €157.50

• Law 7/1996
  Article 9.2 of Law 7/1996 prohibits businesses from limiting the number of units just to reduce the benefit that a customer would obtain from a promotion. A business can only apply this kind of restriction if it could experience shortages due to an extraordinary situation or force majeure, such as increased demand on Black Friday or low stock levels.

• Law 15/2007
  Law 15/2007 prohibits some practices related to purchase volume discounts and other promotions. For example, Article 1 prohibits agreements between companies to apply purchase volume discounts if such agreements restrict or distort competition. Furthermore, Article 2 prohibits the abuse of a dominant position, such as applying a purchase volume discount where smaller companies cannot compete.

• Royal Decree 3423/2000
  Royal Decree 3423/2000 indirectly affects purchase volume discounts by requiring businesses to indicate two prices: the product price and the price per unit of measurement. If an item is sold in multiple formats and the unit price is lower when purchasing a larger package, the brand or business is applying a purchase volume discount that the customer should be able to easily verify.

Failure by companies to comply with current regulations might lead to sanctions. In fact, in 2019, noncompliance with Article 1 of Law 15/2007 led the competent authorities to bring proceedings against and sanction two large television groups for applying purchase volume discounts on advertising that limited competition.

How to apply purchase volume discounts in your business

If you want your business to benefit from the many advantages we’ve mentioned, try applying purchase volume discounts. Although it’s not an overly complex process, here are the steps to help you implement purchase volume discounts quickly and easily:

• Define the discounts transparently
  Choose the type of purchase volume discount best suited to your business. It’s important that you strike a balance between offering an attractive price and maintaining business profitability. In addition, you must inform the customer in a clear and transparent manner about the period of validity of the discount, the requirements, and the general terms and conditions.

• Apply the purchase volume discounts
  Once you have defined your discounts, apply them to your sales channels and make sure customers see them reflected at checkout. To avoid errors when calculating and applying discounts, it’s best to have a payment gateway that handles the process automatically. For example, Stripe Payments lets you apply promotions—such as coupons or discounts on specific products—and makes the purchasing process easier so your customers can pay with their preferred payment methods such as, Apple Pay, Google Pay, and even installment payment options.

• Include the discounts on your invoices
  The AEAT practical VAT manual states that the transaction description must include the unit price, excluding tax, for each item, as well as any discounts or reductions not included in that unit price. If purchase volume discounts are applied after the transaction, a corrective invoice must be issued, which is mandatory whenever the tax base is modified—, for example, when processing a purchase refund in Spain.