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Some companies advertise: "We deal in high volume and pass our savings on to you in...

Some companies advertise: "We deal in high volume and pass our savings on to you in the form of lower prices." How could this be?

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When companies deal in high volumes, it implies that they are purchasing the item in large quantities and therefore the supplier of the item is giving the company quantity discounts for making large volume purchases. The price offered to the company will be substantially low compared to other companies who do not purchase in large volumes. The savings experienced by the company due to reduced cost of purchasing  can be passed on to customers by charging low prices to the items sold by the company. In this way, companies dealing in high volumes can pass on the savings to customers.

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