Units of sale are the predetermined quantities in which products are packaged and sold. These units serve as a guide for both inventory management and consumer purchase decisions. Products like motor oil may come in quarts or liters, establishing a clear expectation for the consumer. In a similar vein, tires are sold individually, and this creates a quantized sale decision, where consumers usually know they need to purchase tires in multiples of two or four.
- Quantized Units: Items sold in specific, often fixed amounts, such as a gallon of antifreeze or a set of tires.
- Non-Quantized Units: Services or products that can be purchased in any amount or measure, not common for the items discussed in the example provided.
Understanding the units of sale is critical for consumers as it affects the purchase quantity decisions and for businesses as it influences pricing strategies.