Bulk Purchase – When Does Quantity Discount Make Sense?

Suppliers often offer better rates on larger orders. When is bulk worth it?

Trade-Off

Bulk = lower per-unit cost but more cash tied up, more storage, more risk of expiry or dead stock. Small orders = higher per-unit cost but flexible, less capital.

Break-Even

Compare: (Bulk price × bulk qty) + carrying cost vs (Retail price × small qty) × number of orders. Carrying cost = capital cost + storage + shrinkage risk.

Rule of Thumb

For fast movers with stable demand – bulk often wins. For slow movers or uncertain demand – smaller batches.

Use EOQ Calculator for optimal order size. Stockkeeper tracks demand. Join the waitlist.