Management question
Locked evidence · 2026-09-16Our package costs have increased. Does the selling price still protect the margin we approved?
Refreshed delivery cost reduces contribution by R2 539 and margin from 56.23% to 54.91%.
What PP sees
The approved selling price has not changed, but refreshed delivery cost has crossed the target margin.
What is driving it
- 1. Refreshed delivery cost+R2 539
Consequence
Expected contribution falls from R108 357 to R105 817.
Reference point
New ex-VAT price required to restore approved target
R198 496
Approved margin
56.2%
Cost R 84 342
Refreshed margin
54.9%
Cost R 86 882
Target line: 56.2%
Management options
1. Restore target for new quotes
Increase ex-VAT price by R5 797 (R94 per guest)
Ex-VAT price R198 496 · 56.23% margin
Gross customer increase R6 667
Applies to future quotes only.
2. Restore cost
Reduce delivery cost by R2 537
Cost R84 344 · 56.23% margin
Recover R2 537 contribution
Requires an evidenced supplier, menu or staffing intervention.
3. Recover only the cost increase
Increase customer price by R2 920 including VAT
Restores the original Rand contribution; approximately R47 per guest
Recovers R2 539 ex-VAT contribution
This restores Rand contribution, not the original percentage margin.
4. Absorb deliberately
Keep the current selling price
Contribution R105 817 · 54.91% margin
R2 539 less contribution per booking
Requires an authorised exception.
Confidence & evidence
Confidence: high
Source: PincushionDemoEstateScenario · vinteractive-1
Calculation: pp-decision-analysis-1.0.0
Policy: fixture-1
Never silently reprice an accepted customer contract.