I have a favorite client who always eggs me on to tell the “7-Eleven Big Gulp story” in meetings. “C’mon, tell it,” he nudges. Often, I do.
What B2B Companies Get Wrong About Volume Discounts
They’re not only for customers who buy more.
October 08, 2020
Summary.
The convenience store 7-11 increased profits on beverages by 100% when it introduced its Big Gulp soft drinks. But many companies that subscribe to the idea that customers who buy more deserve a discount are doing a disservice to their bottom lines. Instead, managers should remember that volume discounts should only be used to encourage incremental purchases, and that for large customers, volume discounts should be negotiated, instead of hewing to a standard formula of volume discounts.