What is the reduction in the bill or invoice due to a minimum number of merchandise orders called?

The term that describes a reduction in the bill or invoice due to a minimum number of merchandise orders is known as a quantity discount. This type of discount is commonly offered by suppliers or manufacturers to encourage customers to purchase larger quantities of a product, thereby enhancing sales volume and fostering customer loyalty.

Quantity discounts can take various forms, such as a percentage off the total order or a fixed dollar amount reduced from the invoice total. This practice benefits both the seller, by increasing sales, and the buyer, who saves money by purchasing more items at a lower unit cost. The idea is to incentivize bulk purchasing, which is attractive to businesses that need to manage inventory efficiently and reduce costs.

In contrast, markup refers to the increase added to the cost price of goods to determine the selling price. A rebate is a return of part of the purchase price, usually given after the sale is completed, rather than at the point of sale. Sales frequency isn't related to discounts but rather refers to how often transactions occur. Each of these alternatives serves a different purpose in the context of sales and pricing strategies.