As I said before, in most service examples, when you offer quantity or frequency volume incentives, your incremental or per-service real cost drops dramatically. That‘s why the add-on typically can double or triple your ultimate profit per sale or per client—even though your gross margins might be reduced.
When you increase the size or frequency of the purchase, you rarely lose future sales. Interestingly and quite ironically, quite the opposite effect normally occurs. People start utilizing more of your product or service than they did in the past. Actually, they are usually benefited at a much higher level when they utilize more-so they end up winning on the transaction even more than you do.