Pricing Errors from Inaccurate Catch Weight Billing
Definition
Wholesalers sell catch weight products by case but price by actual weight (e.g., pounds), leading to discrepancies if one case weighs less than expected. Without proper tracking, they bill fixed prices per case instead of adjusting for actual weight, resulting in underbilling and lost revenue. This affects cost-of-goods-sold calculations and erodes margins across variable-weight items like meat, seafood, and produce.
Key Findings
- Financial Impact: $ per case based on weight variance (e.g., 5lbs short per case)
- Frequency: Per transaction - recurring with every variable-weight order
- Root Cause: Mismatch between inventory unit (cases) and pricing unit (weight) without automated catch weight management systems
Why This Matters
This pain point represents a significant opportunity for B2B solutions targeting Wholesale Food and Beverage.
Affected Stakeholders
wholesale managers, inventory controllers, pricing specialists, accounts receivable
Deep Analysis (Premium)
Financial Impact
$ per case based on weight variance (e.g., 5lbs short per case x price/lb) • $1,000–$4,000/month (restaurant: 100–300 covers/day, 20–30% of menu items catch weight). 5% underbilling = 0.5–1% food cost inflation; at 30% food cost, = 1.5–3% of revenue impact. • $1,500–$5,000/month per institution (schools: 200–500 students × daily catch weight items; hospitals: 100–300 beds × 3 meals/day). Over budget variance compounds quarterly.
Current Workarounds
Acceptance of supplier invoice at face value; occasional weight complaints logged but not reconciled; manual cost-per-pound calculation in spreadsheets after the fact • Catering manager manually weighs deliveries; creates handwritten log; calculates cost-per-pound retroactively; adjusts future bids based on historical variance; supplier disputes handled ad-hoc • Chef or sous-chef performs spot-check weighing; discrepancies noted verbally; invoices paid without reconciliation; margin variance absorbed as 'supplier variability'
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Related Business Risks
Margin Erosion from Average Weight Pricing Assumptions
Inventory Shrinkage from Untracked Weight Discrepancies
Churn from Perceived Over/Undercharging on Variable Weights
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