Management question
Locked evidence · 2026-09-16The customer wants a concession. How far can we negotiate without giving away the return we need?
The booking is healthy. Management can concede up to R27 500 before the 22.0% target margin is crossed.
What PP sees
Current pricing already clears the approved return; this is negotiation headroom, not a corrective alert.
What is driving it
- 1. Current booking profitR62 150
- 2. Target margin22.0%
Consequence
A proposed R20 000 concession leaves R42 150 profit and 25.5% margin.
Reference point
Maximum target-preserving concession
R27 500 / 14.9%
Negotiation headroom
Management options
1. Keep current price
No concession
R62 150 profit · 33.6% margin
No change
2. Test the requested concession
Concede R20 000
Revenue R165 000 · profit R42 150 · 25.5% margin
Profit lower by R20 000
Delivery cost remains unchanged.
3. Use the target-preserving boundary
Concede R27 500
Revenue R157 500 · profit R34 650 · 22.0% margin
Profit lower by R27 500
Delivery cost remains unchanged.
Confidence & evidence
Confidence: high
Source: PincushionDemoEstateScenario · vinteractive-1
Calculation: pp-decision-analysis-1.0.0
Policy: fixture-1