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Independent booksellers complained that publishers gave them a lesser discount than the volume discount they gave big chains.
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Some countries (particularly Germany) appear to receive a pretty steep volume discount while others (such as Poland) get none at all.
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But because the whole lot is being taken by what appears to be a single buyer, there was probably a volume discount involved.
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It became much more difficult to cover fixed costs or acquire inventory using a volume discount, so the result was a decrease in profitability.
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American Express earns revenues from card licensing fees, royalties on billings, charge volume, net spread revenue and cards in force, foreign exchange conversion revenue and also a share of the discount revenue earned by the operator.
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Discount promotions like "buy one, get one free" on giant boxes of Raisin Bran boosted cereal volume, but killed Kellogg's gross margins and did little to stimulate brand loyalty.
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