Definition of “Volume Incentive”
Volume incentive refers to a type of monetary incentive offered to a specific group of customers or partners for reaching a specified level of sales or purchasing within a certain time frame. This type of incentive is typically used by manufacturers, suppliers, and distributors in an effort to motivate their customers to purchase more products or meet specific sales goals. The goal of a volume incentive is to create a sense of urgency and encourage increased sales volume by offering customers or partners a financial reward for reaching a certain level of purchases or sales. Companies may offer volume incentives in the form of cash bonuses, discounts, or other rewards, which can provide a significant financial benefit for these customers. Overall, volume incentives help companies to establish positive relationships with their most important customers and partners while increasing sales opportunities and revenue.
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