A pricing agreement between buyer and seller that defines different prices based on the actual volume purchased by the buyer over a given period. The technique allows buyers to leverage their aggregate spend even if they cannot accurately forecast precise volumes. From a sales point of view, a volume price agreement can pre-empt negotiations, as the seller can demonstrate that discounts are available to the buyer, but only if linked directly to increases in volume. The setting of the thresholds to trigger a discount and the scale of the discount are usually determined by the seller. See also Logic.