Discount tiered pricing may seem a lot like volume pricing, but there is a subtle difference. With volume-based pricing, the discount is applied to the total order. Tiered discounts work more like tax brackets do. For example, the tiers may say that the first 100 items cost $1, and item counts between 101 and 200 cost $0.80. In this example, the total cost for 200 items would be $180: $100 for the first 100 and $80 for the next hundred. Volume pricing would apply the discount across the board, for a total of $160.