Volume discounts are price reductions offered to customers who purchase large quantities of a product or service. This pricing strategy encourages bulk buying, allowing businesses to increase sales while providing savings to customers. The more items a customer buys, the lower the price per unit, making it an attractive option for both parties. These discounts are commonly used in various industries, including retail, wholesale, and manufacturing. For example, a grocery store might offer a discount on a case of soda, while a software company may provide lower rates for annual subscriptions purchased in bulk.