Why does the price of Multimedia Australia website software decrease if you buy more licenses?

Question

Here's the link so you can see what I'm talking about

https://www.regnow.com/softsell/nph-softsell.cgi?item=6681-1&linkid=purchaseproduct

Answer 1

Because like most things if you buy it in bulk you pay a higher total but each unit is cheaper.

One license would cost you $54.95 but 31 licenses would cost $1158.16

Since it doesn't cost them any more money to sell 31 licenses than it does 1 they can lower the price per license and still make a lot of money.

Answer 2

It's called volume pricing. The more you buy, the greater the savings are. The percentage discounts that Multimedia Australia gives are listed at: http://www.mmaus.com/buy/license_volume....

You'll find this applied everywhere: for example, it's cheaper to buy a whole packet of candy bars than buying the same number individually.

One of the reasons for bulk pricing discounts is that retailers have certain costs that need to be paid each time a sale is made. These include credit card processing fees, operating costs, and staff costs such as providing tech support in the case of software. Retailers assume that providing service to each customer will cost a certain amount of money, but the cost gradually reduces for each additional product sold.

It's not just Multimedia Australia that provides discounts on volume purchases. Most software companies including Microsoft do the same, but the discounts are usually aimed at corporate and business customers: see http://www.microsoft.com/smallbusiness/b...

Answer 3

As with absolutely anything, when you buy more, the price is cheaper to entice you to buy in bulk. It's an incentive the manufacturer puts out to sell more of their product. It also helps for companies that sell things to people who buy in bulk anyway. Say, for example, the manufacturer sells pens. If the consumer were another corporation, they will buy way more than just one pen, so the manufacturer lowers the individual price per pen in a dozen pens so that there's a clear advantage to buying in bulk. It's the trick of wholesale. They make more money selling more products, even if the total income on a large quantity of products sold is less than it would be if the price of an individual unit stayed the same.

may I ask why specifically you inquire about australian software