économie d'échelle

mademoiselle

Member
french
How translate the specific business word "économie d'échelle". It is the system which with more you buy on big quantity, less you pay per unit.
 
  • Kelly B

    Senior Member
    USA English
    Economies of scale is the literal translation; the singular economy... is correct as well, but it seems to me that it is used more often in the plural. Bulk pricing might be suitable as well, depending on the context.
     

    edwingill

    Senior Member
    England English
    no i meant economy of scale (in the singular)you used économie d'échelle not économies d'échelle
     

    Old Novice

    Senior Member
    USA, English
    How translate the specific business word "économie d'échelle". It is the system which with more you buy on big quantity, less you pay per unit.

    I think we'd say "volume discount", i.e, a discount from the regular price because of a large-volume purchase.

    BTW, "economies of scale" have to do with production, not purchases. A production process has economies of scale if it is always cheaper to produce with a larger plant. Pipelines are an example. To get a given volume of material from point A to point B, one pipeline is cheaper than two because the cost of the steel in the pipe depends on its circumference and amount it can carry depends on its cross-sectional area.
     

    nipals

    New Member
    France French
    Hi,
    Actually I think that plural only should be used in french too.
    We say "économies" = savings is always plural.
    The use of this word in english might come directly from the french ??
     

    nipals

    New Member
    France French
    in addition I agree with the correction given by Old Novice, we never use "économies d'échelle" for sales/purchase, only for production...
     

    dratuor

    Senior Member
    french - france
    I think we'd say "volume discount", i.e, a discount from the regular price because of a large-volume purchase.

    I do not agree it's not necessarilly about production and can indeed be used for purchases.
    "economy of scale" describe the case where cost can be split into a fixed part and an proportional one, so increasing the number reduce the fixed part per unit:

    placing an order: $10
    price per unit: 1$

    an order of 10 units cost $20 ($10 for the order and then $10 for the 10 units) therefore the cost of of one unit is $2 (20/10)

    an order of 100 units cost $110 ($10 for the order and then $100 for the 100 units) therefore the cost of of one unit is $1.1 (110/100)

    economy of scale allows you to save $0.9 per unit

    Is this anyhow clear?
     

    Old Novice

    Senior Member
    USA, English
    I do not agree it's not necessarilly about production and can indeed be used for purchases.
    "economy of scale" describe the case where cost can be split into a fixed part and an proportional one, so increasing the number reduce the fixed part per unit:

    placing an order: $10
    price per unit: 1$

    an order of 10 units cost $20 ($10 for the order and then $10 for the 10 units) therefore the cost of of one unit is $2 (20/10)

    an order of 100 units cost $110 ($10 for the order and then $100 for the 100 units) therefore the cost of of one unit is $1.1 (110/100)

    economy of scale allows you to save $0.9 per unit

    Is this anyhow clear?

    The process you describe has the effect of reducing the unit purchase price as volume increases, but "economies of scale" is a term of art in economics, and it refers to a situation in which the average cost of production declines as you increase output (i.e., marginal cost is less than average cost). It is not used to describe volume discounts in purchasing, even though the underlying idea is similar.

    Of course, if you want to use the term as an ordinary English phrase, it need not have the same meaning as the economic term of art, which is what I had in mind.
     

    texas512

    New Member
    English - American
    mademoiselle - The term "wholesale" might be like something you are looking for too. If you buy wholesale, you are buying straight from the supplier and large quantities, and get each individual unit at a discount (at which point you would mark it up when you sell it to the public). I hope that helps at all!
     
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