Cost Rationale

Your correspondent's comments on the catering operation (Salient 5, 'Non-Profit Money Making') [unclear: seems] to me not to state the situation accurately, he price of goods sold in the catering areas is [unclear: set] by the University Union Management Committee and not by Nationwide. In setting prices [unclear: the] main criteria is to provide cheap basic course [unclear: meals] for students. In order to maintain the [unclear: basic] main course price at 42c, prices of other items [unclear: such] as milkshakes, are set in order to ensure that [unclear: basic] main courses are at the lowest possible price [unclear: and] that overall the operation does not make a [unclear: loss]. In considering the price schedule, all costs [unclear: including] overheads, eg electricity, labour and the [unclear: cost] of materials used in producing the items, are [unclear: taken] into account in setting prices so that [unclear: overall] the operation does not run at a loss.

The cost of cheese segments is 6c, not 7c (6 segments costs 36 cents). As this is the case a segment of cheese is cheaper in this operation than buying a packet of six from your local grocer (38c).

Your correspondent is right to query the meal [unclear: content] of large rolls at 15c. The specification [unclear: given] by the caterer to his staff is for ham to be [unclear: the] filling. Due to a mistake by the staff, lunchon sausage has been the filling in some rolls, There will be ham in all rolls in future.

As to the cost of small items (coffee, tea, milk), [unclear: we] are once again faced with a question of setting [unclear: prices] so that overall the operation does not run [unclear: at] a loss - that is some individual items being [unclear: priced] higher and others being held low in order [unclear: to] provide the poorer student with a nutritious [unclear: meal] at the lowest possible price. I have no idea [unclear: whether] the Post Office Cafeteria prices some [unclear: of] its other lines at a higher price than those sold [unclear: in] the Union catering areas. If it does, then this [unclear: is] answer enough for your correspondent. There [unclear: has] always been an extra 2c payable for gravy on [unclear: a] pie. The size of a slice of bread is larger than [unclear: he] size under the previous contractor and it is [unclear: not] possible to sell this item at a loss. The [unclear: division] in price is such that 3c is the nearest [unclear: rounded] price. It is the requirement of the operation to [unclear: break] even. As the finance for the catering [unclear: operation] is provided by the University it is essential [unclear: that] the operation does not run at a loss. Such a [unclear: loss] would affect the available resources for use [unclear: on] other areas of the University.

As regards roll-your-own tobacco, the original stock was Rothman's and was withdrawn at the request of the Students' Association, subsequently Management Committee agreed to this line of [unclear: action]. Non South African rool-your-own tobacco is now available in the shop. Matches ran out because the delivery firm failed to send them.

I would be happy to discuss any matters in your correspondent's article with him. If your correspondent has any further complaints he should check his facts first. There are a wide range of people he could see from the Caterer to the Managing Secretary to the President of the Students' Association if he has any complaints. It is no use crying in print without also making direct approached to the people involved.