Margin isn’t markup.
Gross profit = selling price − direct unit cost.
Gross margin = gross profit ÷ selling price × 100.
Purified refill example: R1 − R0.22 = R0.78 gross profit per litre. R0.78 ÷ R1 = 78.0% gross margin.
The numbers.
Clearly explained.
A unit-economics calculator for the proposed shop. These are illustrative planning assumptions, not actual profits or an approved price list.
Know what is confirmed — and what is assumed.
Only R1/litre purified refill, 50c/litre normal tap water and R27/ice bag are owner-specified prices. All unit costs, other selling prices, pack sizes and the ice-bag weight below are illustrative. Actual unspecified products, laundry and delivery are quoted on WhatsApp.
| Product / service | Unit | Selling price (R) | Direct unit cost (R) | Gross profit (R) | Gross margin |
|---|---|---|---|---|---|
| Purified water refillOwner-specified price · assumed cost/size | litre | R0.78 | 78.0% | ||
| Normal tap waterOwner-specified price · assumed cost/size | litre | R0.40 | 80.0% | ||
| Reusable container (20L example)Suggested price, size & cost only | container | R25.00 | 29.4% | ||
| PET bottled water (500ml example)Suggested price, size & cost only | bottle | R2.20 | 44.0% | ||
| PET bottled water (1.5L example)Suggested price, size & cost only | bottle | R4.50 | 45.0% | ||
| PET bottled water (5L example)Suggested price, size & cost only | bottle | R7.50 | 41.7% | ||
| Bottled multipack (6 × 500ml example)Suggested price, size & cost only | pack | R11.00 | 39.3% | ||
| Sealed water pouch (500ml example)Suggested price, size & cost only | pouch | R1.00 | 50.0% | ||
| Bagged ice (2kg planning example)Owner-specified price · assumed cost/size | bag | R15.00 | 55.6% | ||
| Laundry: wash, dry & foldSuggested price, size & cost only | kg | R16.00 | 57.1% | ||
| Laundry: wash, dry & ironSuggested price, size & cost only | kg | R19.00 | 50.0% | ||
| Laundry: ironing onlySuggested price, size & cost only | kg | R9.00 | 50.0% | ||
| Laundry: duvet / bulky itemSuggested price, size & cost only | item | R55.00 | 55.0% | ||
| Delivery / finished laundry: 0–5kmSuggested price, size & cost only | trip | R8.00 | 26.7% | ||
| Delivery / finished laundry: >5–10kmSuggested price, size & cost only | trip | R10.00 | 22.2% | ||
| Delivery / finished laundry: >10–15kmSuggested price, size & cost only | trip | R15.00 | 23.1% |
Gross profit isn’t take-home profit.
Rent, fixed staff, owner remuneration, testing, repairs, marketing, insurance, depreciation, interest and tax still need to be paid. Direct laundry labour belongs in unit costs and must not be counted twice in payroll.
What the model assumes
Cash-cost basis for a non-VAT-registered business, with unrecoverable input VAT included where applicable; no income-tax or financing assumptions in these unit margins. VAT registration requires a separate review. Packaging prices, source-water supply, RO recovery, rejected water, power and delivery load limits can materially change costs.
Water-tariff caution: the refill estimates above use an illustrative R50/kL source-water assumption and 66.7% RO recovery. The official eThekwini 2026/27 non-domestic reference is R83.70/kL including VAT plus a R1.70/kL water surcharge, with a R669 monthly fixed charge for a normal connection up to 20mm. Verify your account classification. That variable reference produces a purified bulk-refill cost of R0.273/L and tap cost of R0.135/L before fixed and sewer charges. The Excel model includes a linked sensitivity; these are not confirmed bills for the shop.
Delivery fees here are examples only, shared by product and finished-laundry trips. Do not double-charge or double-count a combined trip. Marketplace commissions are not included above; obtain a Mr D contract before using a fee assumption. Bolt Food is not a live South African sales channel.
The separate editable Excel model contains direct-cost components, monthly volumes and overheads, break-even, scenarios, startup budget and commission sensitivity. It is supplied to the business owner separately, rather than exposing owner financial documents through the shop.
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