Order Wholesale Adjustments Documentation¶
Menu Location: Reports > Orders > Order Wholesale +/-
Access Level: Manager and above
Last Updated: 2026-03-01
Overview¶
The Order Wholesale Adjustments page (also called "Order Wholesale +/-") shows the difference between what you paid for products (wholesale cost) versus what customers paid (retail price). This report is critical for understanding profitability, identifying cost overruns from substitutions, and managing product margins.
Primary Functions:
- Calculate wholesale vs. retail differences per order
- Track substitution cost impact
- Identify loss-leading orders
- Monitor product margin performance
- Optimize substitution strategies
- Analyze route profitability
- Export data for financial reporting
Page Layout¶
Header Section¶
- Week Selector - Choose week to analyze
- Route Filter - Filter by delivery route
- Status Filter - Open, Closed, Complete orders
- Export Button - Download CSV report
Order List Table¶
- Order ID - Link to order details
- Customer Name - Customer account
- Route - Delivery route
- Box Total - What customer paid
- Wholesale Cost - Your cost for items
- Difference - Profit or loss amount
- Margin % - Profit margin percentage
- Substitutions - Number of subs made
- Status - Order status
Summary Panel¶
- Total Revenue - Sum of all box totals
- Total Wholesale Cost - Sum of your costs
- Total Difference - Overall profit/loss
- Average Margin - Average profit margin %
- Orders Over Cost - Count of unprofitable orders
- Orders Under Cost - Count of profitable orders
Understanding the Report¶
Key Metrics¶
Box Total (Revenue):
- What customer pays for the order
- Includes box price + add-ons
- Includes delivery fees
- Customer's perspective
Wholesale Cost:
- Your cost for all items in order
- Sum of wholesale prices
- Actual product costs
- Your expense perspective
Difference:
- Box Total - Wholesale Cost = Difference
- Positive (green): Profitable order
- Negative (red): Loss on this order
- Near zero (yellow): Break-even
Margin %:
- (Difference / Box Total) × 100
- Shows profitability percentage
- Higher = better
- Industry standard: 30-50%
Margin Interpretation¶
Healthy Margins (40-60%):
- Good pricing strategy
- Efficient product selection
- Minimal costly substitutions
- Sustainable business model
Low Margins (20-30%):
- Pricing may be too low
- High wholesale costs
- Frequent premium substitutions
- Review product mix
Negative Margins (Below 0%):
- Losing money on order
- Investigate immediately
- Usually substitution issues
- May need customer communication
Common Use Cases¶
Use Case 1: Weekly Profitability Review¶
Goal: Understand overall week performance
Steps:
- Select current week
- Review Summary Panel totals
- Check average margin percentage
- Identify orders with negative margins
- Investigate problem orders
- Document findings
- Adjust strategy as needed
Red Flags:
- Average margin below 30%
- Many negative-margin orders
- Decreasing trend over weeks
- High substitution correlation
Use Case 2: Investigate Loss-Making Orders¶
Goal: Find and fix orders losing money
Steps:
- Sort by Difference (lowest first)
- Open negative-margin orders
- Review substitutions made
- Check if premium subs given at regular price
- Verify wholesale costs correct
- Determine if customer communication needed
- Prevent future occurrences
Common Causes:
- Expensive substitutions at same price
- Wholesale costs increased unexpectedly
- Pricing errors
- Over-generosity with premium items
- Customer has old grandfathered pricing
Use Case 3: Optimize Substitution Strategy¶
Goal: Make substitutions profitable
Steps:
- Filter to orders with substitutions
- Sort by margin (lowest first)
- Review what subs hurt margin most
- Check substitution rules
- Update guidelines for team
- Consider pricing adjustments
- Train staff on margin impact
Example: Substituting organic premium steak for regular beef costs you $8 more but customer pays same price. Result: negative margin. Solution: Either charge for upgrade or choose closer-cost substitute.
Use Case 4: Route Profitability Analysis¶
Goal: Identify which routes are most/least profitable
Steps:
- Select week to analyze
- Filter by each route
- Calculate average margin per route
- Compare routes
- Investigate low-margin routes
- Identify patterns (geography, customers, products)
- Adjust route strategies
Insights:
- Urban routes may have higher margins (less driving cost)
- Rural routes may need higher prices
- Some routes have more substitutions
- Customer mix affects profitability
Use Case 5: Product Mix Optimization¶
Goal: Identify which products hurt margins
Steps:
- Export data to spreadsheet
- Analyze by product
- Find products with negative margin impact
- Check if wholesale cost too high
- Consider retail price increase
- Or discontinue problem products
- Communicate changes to customers
Substitution Impact Analysis¶
Why Substitutions Affect Margin¶
Scenario 1: Cost-Neutral Substitution
- Customer ordered: Chicken breast ($4 wholesale)
- Substituted with: Chicken thighs ($4 wholesale)
- Margin impact: Zero ✓
Scenario 2: Upward Substitution
- Customer ordered: Regular ground beef ($5 wholesale)
- Substituted with: Grass-fed ground beef ($9 wholesale)
- Customer charged same price
- Margin impact: -$4 loss ✗
Scenario 3: Downward Substitution
- Customer ordered: Organic apples ($6 wholesale)
- Substituted with: Regular apples ($3 wholesale)
- Customer charged same price
- Margin impact: +$3 gain ✓
Best Practices for Margin-Conscious Substitutions¶
- Substitute within cost range
- Choose items with similar wholesale cost
- Use substitution cost guides
-
Train team on product costs
-
Charge for upgrades
- If giving premium substitute, adjust price
- Customer appreciates honesty
-
Maintains margin
-
Communicate limitations
- Tell customer why premium sub costs more
- Offer choice: upgrade or different substitute
-
Most customers understand
-
Set substitution rules
- Document acceptable substitutes per product
- Include cost constraints
- Make it easy for team to choose
Troubleshooting¶
Negative Margins on Many Orders¶
Symptoms:
- Lots of red (loss-making) orders
- Average margin below 20%
- Trend worsening
Investigate:
- Recent wholesale cost increases?
- Retail prices outdated?
- Over-generous substitutions?
- Pricing errors in system?
- Customer discounts too aggressive?
Solutions:
- Update retail pricing
- Tighten substitution rules
- Review discount policy
- Verify wholesale costs in system
- Train team on cost awareness
Report Shows Unexpected Numbers¶
Symptoms:
- Numbers don't match expectations
- Wholesale costs seem wrong
- Margins look too good/bad
Check:
- Wholesale costs updated in products?
- Correct week selected?
- All orders included?
- Filters applied correctly?
- Export and verify in spreadsheet
Cannot Identify Problem Products¶
Symptoms:
- Margin issues but can't find cause
- No obvious patterns
Deep Dive:
- Export full data
- Create pivot table by product
- Calculate margin per product
- Sort by margin impact
- Review top losers
- Check wholesale vs. retail prices
- Adjust problem products
Related Pages¶
- Orders - Main order management page
- Products - Product pricing and cost management
- Order Contents Dump - Detailed order data export
- Weekly Report - Overall weekly performance
- Billing Reports - Financial reporting
Permissions & Access¶
Required Access Level: Manager or higher
Why Restricted:
- Contains sensitive cost data
- Shows business profitability
- Strategic information
- Financial analysis
Best Practices¶
Regular Monitoring¶
- Review weekly after orders close
- Track margin trends over time
- Document unusual occurrences
- Share findings with management
- Adjust strategies based on data
Margin Protection¶
- Know your product costs
- Train team on cost implications
- Set clear substitution guidelines
- Price for profitability
- Monitor competitor pricing
Communication¶
- Explain cost realities to team
- Help team understand margin impact
- Celebrate good margin weeks
- Problem-solve low margin weeks
- Make it a team effort
Quick Reference Card¶
| Task | Action/Location |
|---|---|
| View report | Navigate to Reports > Orders > Order Wholesale +/- |
| Select week | Use week selector dropdown |
| Find losses | Sort by Difference (ascending) |
| Check margins | Review Margin % column |
| Filter route | Select route from filter |
| Export data | Click Export button |
| View order detail | Click Order ID |
| Check summary | Review Summary Panel |
| Find problem orders | Look for red (negative) entries |
| Calculate average margin | Check Average Margin in summary |
FAQs¶
What's a good margin percentage to target?¶
40-50% is ideal for food delivery services. 30-40% is acceptable. Below 30% means you need to review pricing or costs. Above 50% is excellent but ensure you're competitive.
Why would an order have negative margin?¶
Usually due to expensive substitutions given at no charge, outdated retail pricing, incorrectly entered wholesale costs, or aggressive customer discounts eating into margin.
Should I always choose cheapest substitution?¶
No - choose appropriate substitutions balancing quality, customer preference, and cost. But be aware of cost differences and charge for significant upgrades.
How often should wholesale costs be updated?¶
Review monthly minimum. Update immediately when suppliers notify of price changes. Outdated wholesale costs make this report inaccurate.
Can I set system to prevent negative-margin substitutions?¶
Technical capability varies. Best practice: train team and provide substitution guides. Some businesses require manager approval for upgrades exceeding $X.
What if customer complains about charging for upgrade?¶
Explain: "Your original item wasn't available. We can substitute with [similar item] at same price, or upgrade to [premium item] for $X more. Which do you prefer?" Most appreciate the choice.
Should I tell customers about margin challenges?¶
Generally no - it's internal business metric. But you can explain: "Premium items cost us more, so we need to charge a bit extra for them" - customers understand fairness.
How do I improve margins without losing customers?¶
Gradual approach: Update pricing strategically, tighten substitution rules, educate customers on upgrade costs, optimize product mix, negotiate better wholesale deals, reduce operational waste.
End of Documentation
For additional help, contact your system administrator or Kiva Logic support.