Bulk purchasing enables businesses to negotiate better deals with suppliers and take advantage of discounts offered for larger quantities. Lower costs per unit directly contribute to overall cost savings. Businesses can then choose to pass on these savings to customers, making their products more competitive in the market, or they can improve profit margins. Lower costs can provide a competitive edge in the marketplace. If a business can offer its products or services at a lower price without compromising quality, it is more likely to attract customers and gain market share.