Ingredient pricing.

With the Volume pricing model, you pay the same price per unit for the entire purchase. If you require 20 units. This is within the 11-20 unit range. All jars within this range will be charged at this rate.

Tiered pricing is a price per unit within a range. It works so that the price per unit decreases once a certain quantity within a “tier” has been sold.

When calculating tiered pricing you only move to the next tier once one tier is completely filled. With volume calculations it is simply the price of all the units within that set price range.

If you require 20 units. The first 20 are priced at $20, the second 10 units are priced at $15.

Another term that you will see come up frequently is Minimum Order Quantity (MOQ).

Minimum Order Quantity means the lowest quantity of products you have to order from a supplier. This quantity differs from supplier to supplier, product to product. A supplier can set this as 100 units/pieces or $100 per order. You can also always negotiate with the supplier to meet their MOQ or bargain for a more reasonable MOQ.

If a suppliers MOQ is too high you can ask them for a favor to combine your order with other customers orders. This is only in reference if you are private labeling (where the manufacturer owns the formula, and you apply your label/branding to the product and resell it) or individual ingredients/materials.