When you buy in bulk, the price per individual item
1: Decreases
2: Increases
3: Stays the same
Answer: 1: Decreases
At the time, if you purchase things in bulk, the total price is normally divided by each single item which makes each item less expensive. It is because mass quantities people usually have a chance to buy them at a discounted price or with low unit costs as compared to individuals purchasing goods separately or in lesser quantities. Bulk packing deal is the marketing strategy of manufacturers or retailers for attracting customers to buy more of the products they sell. The reasoning behind the pricing plan would be that the companies, which purchase volumes, considerably cut the costs for assortment, transport and handling per item and can lower the prices of the units due to economies of scale. Furthermore, the wholesale market drives up the total number of sales which is beneficial to both the sellers and the wholesalers alike. Nevertheless, it is vital to say that although per-unit cost is going down, eventually cumulative costs can be higher compared to paying a large amount of money for a smaller quantity.
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