Why “Volume Discounts” in the Events Industry Rarely Make Financial Sense

Are your clients—or more likely, their Procurement teams—asking for tiered discounts that start from the very first dollar of spend?

Before you agree, take a step back. While volume discounts are common in manufacturing and retail, applying the same logic to the events industry can erode your margins and strain your team—without delivering the efficiencies clients might expect.

Here’s why a closer look matters.

How Volume Discounts Work in Goods-Based Industries

Volume discounts originated in industries where tangible goods are produced at scale. When a manufacturer receives a large order, they can:

• Buy raw materials in bulk
• Plan labor shifts more efficiently
• Reduce per-unit costs across production

These efficiencies lower the supplier’s cost to deliver—making it possible to offer a discount without impacting profit margins.

That model assumes:

• Supply is elastic (i.e., scalable)
• Labor and equipment costs stay flat
• The buyer makes an advance commitment

In this context, volume-based pricing can be mutually beneficial.

Events Are a Service Business—And That Changes Everything

Events are not mass-produced. They’re bespoke experiences, shaped by timelines, creative scope, and human delivery. Even when hard goods are involved—like AV or exhibit builds—people are behind every element.

That means:

• Labor is the primary cost driver, not materials
• More volume often requires more staff—not less
• Costs don’t decline with frequency; they may go up

There’s no “production line” that makes additional work cheaper to deliver. Each project adds complexity, not just volume.

When “Volume” Doesn’t Always Add Up to Savings

Some clients are exploring volume-based pricing models to create long-term value with trusted partners—which makes sense in many industries. But in the events space, it’s important to look closely at what “volume” actually means.

In some cases, clients may ask for discounts to apply from the first dollar of spend, without a clear increase in overall volume or a commitment to consolidated work. While well-intentioned, this doesn’t typically result in the kinds of efficiencies that make discounts feasible.

Unlike product-based businesses, event services don’t benefit from bulk production or standardized outputs. More frequent projects don’t necessarily lower the cost to deliver—especially when each scope is unique, timelines are tight, and delivery still relies on human effort.

That’s why it’s so important to have transparent conversations about how volume-based pricing works, and when it makes sense—for both sides.

The Hidden Costs of Volume

It’s tempting to assume that more work from a single client means less business development time or more predictable income. But that only holds true if:

• Projects are repeatable and streamlined
• Margins remain intact
• Client expectations stay within scope

In reality, high-volume clients often require more attention, faster turnarounds, and additional project management effort. These indirect costs don’t always get factored into pricing—and they can chip away at profit over time.

Alternatives to Volume-Based Discounts

If your client is seeking long-term value, consider these options instead:

• Value-add packages: Offer early planning access, executive oversight, or post-event debriefs
• Preferred partner programs: Provide benefits based on annual spend, not per-project discounts
• Rebate models: Offer end-of-year rebates based on actual volume met—not projected
• Minimum commitment pricing: Lock in better rates only with a written annual volume agreement

These structures reward loyalty without compromising margins or overextending your team.

Before You Say Yes—Model It

If a client requests volume discounts, especially without clear volume increases, take time to model different scenarios. Estimate how each pricing tier affects your margins, capacity, and workload.

Often, what looks like an opportunity for efficiency may result in more work for less return.

Need Help Building a Smarter Pricing Strategy?

At Strategic Event Procurement, we help event agencies protect their margins while building strong, Procurement-friendly pricing models that stand up to scrutiny—and support growth.

Let’s talk. Book a free consultation to explore your options.