How to handle volume discounted orders B2B predicated on an assumed volume entrepreneur how earn by blogging blog

Hi,

I am working on a deal where a company will resell my product to their customers. They think they can sell to X customers per year. At X level I want to provide Y discount. How do should I handle the pricing before we get to X?

Should I tier the discounts, so X/4 units sold gets Y/4 discount? If I do that, and they reach X, the average cost per unit to them is a lot higher now.

Or, should I charge more upfront, hold the funds and release them back once X level is reached?

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