Is it worth accepting a price reduction?
Should we accept the price reduction? – our customer asked.
The supplier is offering a discount on the unit price if we buy a larger quantity at once! Should we agree to it?
The discount received must cover the additional transportation, storage, capital, and handling costs. In practice, the company’s process costs must be known to answer the question with certainty. After that, it’s just a matter of simulating the scenario.
But a good question – you should ask it too!