This mechanism differs from simple quantity discounts: if the buyer falls short of the agreed minimum quantity, a higher unit price or surcharge applies; if the minimum is met or exceeded, a discount or more favorable base price applies.
Source: https://www.investopedia.com/terms/m/minimum-order-quantity.asp
Tools that match this term
You might also be interested in these terms
Weekly: Top news, industry facts and insights from the world of logistics – free.
Content reviewed and editorially cleared.
Share your knowledge, ask follow-up questions, or add practical insights to this page. Every contribution is moderated before publication.