It is a type of discounting in which discount is offered by entrepreneur or seller on bulk sales. It can be referred as a reduction in price of the product or service that a seller offers to anyone who purchases more than a minimum quantity e.g. a company offers 1.0% discount on purchase of 50,000, 15% on purchase upto 1 Lakh and 20% discount for the purchase of goods worth above ₹ 1,50,000.