What is a common consequence of a primary wholesaler contract related to purchasing volume?

• A. The contract often provides a discount if most products are purchased from that wholesaler
• B. The contract guarantees free replacements for all damaged items
• C. The contract requires exclusive use of the wholesaler's own brand products
• D. The contract sets a limit on total annual purchases

Answer: (A)

A common consequence is volume-based pricing: when a buyer commits to purchasing most of their products from a single wholesaler, the contract typically offers a discount or better pricing tied to that volume. This incentive rewards concentration with cost savings per unit as purchasing volume increases, which is a standard feature of primary wholesaler agreements.

Other terms—like free replacements for all damaged items, mandatory use of the wholesaler’s own brands, or a hard limit on annual purchases—are not as universally included in these contracts. While some agreements may touch on these areas, the most consistently offered and impactful benefit tied to purchasing volume is the discount driven by buying from that supplier.