Argea — Internal Brief v2.1

TL;DR — Updated post-Steve response (Jun 12 eve)

Three-phase structure now locked: V1 (Italy SAP) → V2 (Italy enhancements: paper / Promo Canvas / Chinese) → V3 (Bottar/Jgalileo — separate future engagement). Build cost €20.5K (unchanged). Pricing milestoned: M1 €1.5K + M2 €3.5K + M3 €2K + €2K/mo (1,200 orders quota). Annual prepay -20%. Walk-away floor €22K/yr.

Steve's email reply changed two things: (1) No middleware in Argea — pushed M2 from €2.5K → €3.5K to cover the extra dev hours. (2) Bottar runs on Jgalileo, not SAP — moved Bottar to its own V3 future engagement.

For Tuesday Jun 16:

Raffaello decision call: 2 items remain (capacity, CTO brief recipient)
Present proposal with locked numbers — most SAP risk is now de-risked (Steve confirmed no middleware)
Lead with annual prepay framing
Frame Bottar/Jgalileo as a future engagement (V3) — separate quote post-V1 success

Build approach (3 phases)

V1 → V2 → V3

V1 Italy SAP digital (~3 month build · Autumn 2026 live)
V2 Italy enhancements: paper + Promo Canvas + Chinese (Q1 2027)
V3 Bottar/Jgalileo — separate future engagement (scoped after V1)

Client Contact

Steve Andrean

CTO · Venice

ICP Score

92% (5.5/6)

Cluster C beachhead

V1 Volume (Italy)

~10,000/yr

~833 orders/mo · under 1,200 quota

Build Cost (revised)

€20,500

Was €27.5K · 1 NEW surface (SAP ECC)

Lead Pricing

€7K impl + €2K/mo

Milestoned · 1,200 orders quota · €1/over

Y1 / Y2 / 5-yr LTV

€13K / €26K / €111K

Y1 loss strategic · Y2+ margin 43-55%

Walk-away Floor

€22K/yr

Below: decline

Next Meeting

Tue Jun 16 · 17:00

Proposal + adapted prototype demo

1 Materials intake — what we received and what we learned

Steve sent 6 materials Jun 12. Filed in b2b/pipeline/argea/materials/. Full inventory in materials/INDEX.md.

Marelli = Macelleria Marelli di Marzia Villani — a butcher shop in Cernobbio (Como), Argea customer (B2B, HoReCa segment). Their per-customer authorized SKU list (16 SKUs with validity dates) lives in SAP under customer ID 1001025839. They send paper orders on pre-printed Botter forms.

Zaccagnini = Cantina Zaccagnini, one of Argea's wine brands (Abruzzo region — Tralcetto line). The xlsx is Argea's INTERNAL multi-channel price list for this brand across 4-5 channels (TRADIZIONALE / MODERNO / GABRIELLI / GDA / VAL D'AOSTA) and 4 years (2023-2026).

Type	Files	Key insight
Order examples	3 (Devofast/CN, Don Bibbo/SE, Marelli/IT paper)	3 channels confirmed
Catalogs	2 (Zaccagnini brand multi-channel, Marelli per-customer)	Per-customer pricing exists in SAP already
Screenshot	1 (Catch.jpg — Chinese client thread)	Operational instructions mixed in body

6 cross-material findings (detail in INDEX.md):

Three order channels, not one (digital structured + digital unstructured/multilingual + handwritten paper)
Argea already has per-customer pricing infrastructure in SAP — Marelli xlsx proves it
Channel × market × year pricing matrix is real — Zaccagnini shows 4-5 channels × 4 years
Substitution logic is first-class workflow — Don Bibbo reply shows 3 patterns (delisted, renamed, relabeled)
Promo Canvas instance captured in Marelli paper order (se 12+8) — but exact rule semantics still unconfirmed
Marelli paper-vs-listino match analysis: 4 of 5 SKUs match directly, 1 (Pinot Grigio Venezie) needs substitution — real-data example for mockup

Gaps Steve still owes: Promo Canvas docs · SAP ECC version + middleware + IT contact · 7+ more order email samples · WhatsApp number · zero-data-retention clause status

2 Confirmed pains and order volumes (unchanged from v1)

Two clusters confirmed:

Cluster	Orders/Year	FTE Total	FTE Order Entry	50% Saving
Italy (SAP) — V1	~10,000	5 FTE	3.15 FTE	~1.6 FTE
Bottar (mainly foreign) — V2	~6,500	10 FTE	1.83 FTE	~0.9 FTE
Total	~16,500		~5 FTE	~2.5 FTE

Baseline cost: 5 FTE × €32,500 = €162,500/yr (full scope). Italy-only V1: ~€130K/yr including overlap with Bottar staff.

Promo Canvas

Every 5 cases = 1 free style rules. Manual outside SAP today. se 12+8 notation visible on Marelli paper order. V2 commitment: deterministic rule engine. V1: flag promo references but CC team applies manually.

Vintage edge case

Clients don't specify vintage. Steve verbatim: "Prosecco è nata venticinque, non è stato specifico." System suggests closest, human confirms. IN V1 scope.

Private label vs brand pricing

Two listini structures (private label + brand), further segmented by channel/market. Marelli xlsx proves per-customer override exists. IN V1 scope — REUSE from Aronlight catalog matcher + EXTEND for per-customer filter.

V2 candidates

Bottar foreign markets · paper-channel · Chinese-language parsing · Promo Canvas full rule engine · B2B portal with AI product recommendations · Forecast orders + B2B e-commerce orders.

3 Engineering surfaces — REUSE / EXTEND / NEW

From buildability.md Phase 2: 12 surfaces decomposed · 3 REUSE (25%) · 6 EXTEND (50%) · 3 NEW (25%).

#	Surface	Class	Source
1	Email intake	REUSE	Aronlight email handler + Sophie WAHA
2	Paper scan OCR	NEW (V2)	No precedent
3	Multilingual parsing	EXTEND	Aronlight email-classifier (PT+EN; add IT V1, defer ZH to V2)
4	Domain extraction (wine)	EXTEND	Aronlight product-matcher (lighting → wine)
5	Catalog matching (per-customer)	REUSE+EXTEND	Aronlight A2/A3 + per-customer filter
6	Pricing engine (channel+customer)	EXTEND	Aronlight quote pricing + channel resolution
7	Promo Canvas rule engine	NEW (V2)	No precedent
8	Substitution engine	EXTEND	Aronlight alternatives logic
9	Human-in-loop UI	REUSE	Aronlight approval gate
10	SAP ECC integration	NEW (V1)	No SAP ECC in stack — highest risk
11	Multilingual handling	EXTEND	Aronlight (PT+EN) + IT V1
12	Monitoring + correction-rate metric	REUSE	Sophie daily report pattern

Highest-risk V1 surface: SAP ECC integration (#10). De-risk: mandatory 30-min scoping call with Argea SAP IT in week 1 of build. Establishes ECC version + EhP + middleware (PI/PO / Integration Suite). Single call narrows build estimate by 50% (±€1.5K M2 swing).

4 Build cost — €20.5K (revised down 25% from v1's €27.5K)

Surface-by-surface refit. From buildability.md Phase 4 and pricing-v1.md.

Phase	Partner hrs	Dev hrs	Cost
1a Email intake + parsing	8	20	€2,800
1b SKU + per-customer pricing	8	30	€3,400
1c Substitution engine	6	20	€2,400
1d Vintage edge case	3	10	€1,200
1e Human-in-loop UI	4	15	€1,700
1f SAP ECC integration (highest risk)	12	50	€5,400
1g Monitoring	3	10	€1,200
Claude Code tooling (3mo)	—	—	€2,400
Total	44	155	€20,500

Variance band: €19.5K - €22K depending on SAP middleware presence. Active build: 3 months (Jul-Sep 2026). M2 milestone (€2.5K) absorbs ±€1K of SAP variance; remainder surfaced to Steve.

5 Pricing v1.1 — milestoned structure (UPDATED)

Full pricing detail: pricing-v1.md · Assumptions: pricing-assumptions-log.md · 4-factor stress test: pricing-4factor-stress-test.md

Eurocomp v3 pattern adapted for Argea. Milestones tied to delivered value (M1 signing, M2 V1 live, M3 V2 live) + monthly subscription with order quota. CapEx-friendly. Annual prepay incentive preserved.

Component	Amount	When
M1 Signing	€1,500	Proposal acceptance
M2 V1 Production Live	€3,500	~Sep 2026 (Italy SAP digital working) — raised from €2.5K due to no-middleware confirmation
M3 V2 Production Live	€2,000	~Q1 2027 (Italy enhancements: paper + Promo Canvas + Chinese)
Impl total (across 3 milestones)	€7,000	34% of build cost (V1 only — V3 quoted separately)
Monthly (from V1 live)	€2,000/mo	1,200 orders/mo quota · €1/order overage
Annual prepay option (-20%)	€1,600/mo equiv	€19,200 lump sum at V1 live

Why milestoned wins:

CapEx-friendly: €1,500 signing → clears Argea internal approval
Risk-aligned: Steve pays for value as it lands, not upfront speculation
Operationalizes our "we take implementation risk" differentiator
Quota model = predictable cost for Argea, overage rewards expansion
Annual prepay 20% saving incentivizes long-term commitment

Revenue trajectory:

Period	Events	Revenue
Y1 (Jul-Dec 2026)	M1 + M2 + 4 mo monthly	~€13,000 (loss-making by design)
Y2 (2027)	M3 + full year monthly (no Bottar overage — V3 separate)	~€26,000 (+€13.5K margin)
Y3-Y5	Steady state monthly	~€24,000/yr each
5-year LTV (V1+V2 only)	5-yr revenue	~€111K
+ V3 (Bottar/Jgalileo) when scoped	Future engagement	Separate quote post-V1

6 4-factor stress test (REVISED with milestoned model)

From pricing-4factor-stress-test.md v1.1. Frame: their cost → ROI → our cost → our proposal.

Factor	Result	Status
1. Their cost	€130-162K/yr labor baseline	PASS
2. ROI (Conservative · monthly)	1.34× — fails 1.5× threshold	FAIL
2. ROI (Conservative · annual prepay)	1.67×	PASS
2. ROI (Expected V1 monthly)	1.74×	PASS
2. ROI (Expected V1 annual prepay)	2.18×	PASS
2. ROI (Full scope monthly + overage)	2.64×	PASS
2. ROI (Optimistic full)	4.05×	PASS
3. Our cost (€20.5K build + €12.5K/yr ongoing)	Y1 -€12.7K · Y2+ €11.5-15.5K/yr	PASS (strategic Y1)
4. Our proposal (milestoned, annual prepay lead)	€6K impl + €19.2K annual	PASS

Resolution: Lead with annual prepay (-20%) framing. Conservative monthly fails 1.5× threshold; annual prepay passes (1.67×). Steve sees both options; we recommend annual.

7 ICP fit + Strategic value

From buildability.md Phase 5. ICP score: 5.5/6 = 92%

Strategic value: HIGH. Cluster C (Agri-Food / Wine distribution) — Argea is the FIRST proof client. Beachhead value justifies Y1 loss. Sub-categories: vertical beachhead +1, network +0.5, decision-authority +1, geographic +0.5 → +2 weight.

8 Competitive context

From buildability.md Phase 3.

Vendor	Stage	Gap we exploit
Smartbase (smartbase.so)	YC, US metal finishing	EN-only, US-hosted, no Italian, no wine
365WineTrade	Production wine ERP on D365	Full ERP replacement — Argea wants AI on existing SAP
Virtual Workforce	Generic SAP order entry	No wine, no Promo Canvas, no per-customer depth
SAP itself (May 2026 ECC AI)	Gated on S/4HANA Cloud commitment	Argea S/4HANA postponed to 2027 → ~18mo window for us

Two flags: (1) SAP itself is the structural incumbent — bridge play, not disruptor. (2) Champion DIY: Steve piloted with Claude. Position as system-builder (SAP, rules, UI), NOT prompt layer.

9 Our differentiator

The narrative for Steve: "We bridge SAP's 18-month ECC AI gap, with Italian + EU residency + per-customer pricing depth that no horizontal AI tool can match. We take implementation risk — milestones tie to delivered value (V1 live, V2 live), and final pricing locks only after the SAP scoping call in week 1."

10 V1 scope vs V2 expansion

Steve verbatim: "volevamo partire semplici." V1 first, V2 expansion is our default — not a step-down.

IN V1 (Italy SAP digital, ~Sep 2026):

Email intake (digital, Italian + English)
Customer + channel resolution (using existing SAP per-customer listino infrastructure)
SKU matching against per-customer authorized list (Marelli xlsx pattern)
Substitution suggestion engine (3 patterns: delisted / renamed / relabeled)
Vintage edge case handler
Human-in-loop UI (agent draft → confirm)
SAP ECC BAPI integration (Italy mailbox → SAP SD order push)
Correction-rate monitoring metric
Promo Canvas references flagged (V1: CC team applies manually)

V2 — Italy enhancements (Q1 2027 — M3 €2,000 milestone):

Handwritten paper scan + OCR (Marelli paper orders pattern)
Promo Canvas deterministic rule engine (deterministic rules from quarterly list)
Chinese-language multilingual parsing (Devofast-style threads)

V3 — Bottar / Jgalileo (future engagement, separate quote):

Bottar foreign markets (~6,500 orders/yr) — runs on Jgalileo ERP, NOT SAP (confirmed by Steve Jun 12 eve)
New ERP integration: Jgalileo (unknown to us, requires fresh scoping)
Quoted + scoped after V1 ships and proves Italy automation value

Out of all scope (Phase 4+): B2B portal with AI product recommendations · Forecast orders · B2B e-commerce orders

11 Tuesday Jun 16 presentation approach (NEW DECISION)

Locked numbers — caveat is now mostly de-risked.

Present concrete milestones (€1,500 + €3,500 + €2,000) + monthly options (€2,000/mo or €1,600/mo annual prepay) — the SAP scoping risk that the original caveat covered is now LARGELY KNOWN since Steve confirmed no middleware.

Reduced caveat for proposal: "Final pricing confirms after week-1 SAP IT scoping call. We've sized M2 (€3,500) assuming custom BAPI integration without middleware — if anything is materially worse during scoping, we'll surface before V1 build starts."

Lead with annual prepay framing (better ROI for Steve, conservative scenario passes only with annual).

Proposal expiry: Jun 30, 2026.

12 V2 expansion sketch + revenue uplift

V2 ships ~Q1 2027 with €2,000 M3 milestone (Italy enhancements only). Bottar split to V3 future engagement.

V2 — Italy enhancements (M3 €2K milestone):

V2 component	Build estimate	Revenue uplift
Paper scan + OCR (Claude Vision + handwriting)	~€8-10K	+€1-2K/yr (paper volume small)
Promo Canvas rule engine	~€6-8K	+€2-3K/yr (better automation %, justifies monthly fee)
Chinese-language parsing	~€4-6K	+€1K/yr

V2 total: ~€18-24K build · ~€4-6K/yr added monthly revenue. Compounds on same SAP connector + Italian infrastructure.

V3 — Bottar / Jgalileo (future engagement, separate quote):

V3 component	Build estimate	Revenue uplift
Bottar cluster on Jgalileo ERP (+6,500 orders/yr)	Unknown — Jgalileo not in our stack. Likely €15-25K range based on ERP complexity priors.	+€6-8K/yr (6,500 orders × €1/order over quota)
Future Phase 4: B2B portal	€20-30K	+€15-25K/yr

V3 framing for Steve: "Once V1 + V2 are running on Italy SAP and you've validated the model, we'll quote V3 separately. Bottar/Jgalileo is a different ERP integration, deserves its own scoping pass."

13 Walk-away floor — €22K/yr (UPDATED)

If Argea pushes below €22,000/yr annual revenue — we decline.

Math:

Build cost €20,500 + 1.5 years support €18,750 = €39,250 cumulative cost
At €22K/yr: ~Y2 break-even, Y3+ margin €9,500/yr (43%)
5-year profit ~€26K (still beachhead-justifiable)
Below €22K: build recovery 3+ years, 5-year profit near zero

Negotiation room: €22K-€26K/yr annual revenue. Above €26K = ceiling (Steve's net 50% target erodes). Below €22K = walk away (frame as V2 deferred or staged engagement).

M1 floor: €1,000 absolute minimum at signing. Can drop to €0 only with 36-month annual prepay commitment.

14 Asks for Steve + Materials tracker

Item	Priority	Status
SAP ECC version + EhP	P0	❌ Pending — blocks M2 lock
Middleware (PI/PO/Integration Suite)	P0	❌ Pending — ±€1.5K swing
SAP IT contact for 30-min scoping call	P0	❌ Pending — week-1 unblocker
Currently exposed BAPIs/RFCs	P0	❌ Pending
Confidence threshold for auto-submit	P1	Default 95% — confirm
Order entry SLA expectation	P1	Sync vs async architecture
NDA / data privacy approach	P1	Their enterprise contracts or ours
Sample order emails (≥10 total)	P1	✅ 3 received Jun 12 · 7+ owed
Promo Canvas docs	P2	❌ Pending (V2 scoping)
WhatsApp number	P2	❌ Pending

Sample data plan: 10+ emails → adapted prototype + 3-5 worst edge cases mapped → feasibility scripts validate parsing accuracy. Each new email reduces LOW-confidence assumptions in pricing-assumptions-log.md.

15 Decisions — 5 locked Jun 12 · 2 remaining for Raffaello

LOCKED with Giuseppe Jun 12:

1. Framing. Drop "PIVOT verdict" terminology.

→ V1 first, V2 expansion (our default mode)

2. Build cost. Revised €27.5K → €20.5K (surface-by-surface refit).

→ €20.5K locked · €19.5-22K variance band (SAP middleware)

3. Pricing structure. Milestoned (M1+M2+M3 + monthly w/ quota). M2 raised post-Steve response.

→ €1,500 + €3,500 + €2,000 + €2,000/mo (1,200 quota, €1/over) · Annual €1,600/mo (-20%)

3a. M2 milestone amount (Jun 12 eve). Raise to €3,500 given Steve confirmed no middleware.

→ Total impl €6K → €7K · justified by known extra dev hours for custom BAPI integration

3b. V2/V3 split (Jun 12 eve). Bottar/Jgalileo separated to V3 future engagement.

→ V2 = Italy enhancements only (paper, Promo Canvas, Chinese). V3 = Bottar/Jgalileo, scoped separately post-V1

4. Walk-away floor. €22K/yr annual revenue.

→ Below this: decline. Negotiation room €22-26K/yr.

5. Tuesday presentation. Locked numbers + "subject to SAP scoping" clause.

→ Concrete pricing in proposal · 7-day final lock window post SAP IT call · M1 €1,500 only at-risk amount

REMAINING for Raffaello call:

6. July build start capacity. Any conflict with Aronlight or Eurocomp?

Aronlight v1 lands September. Eurocomp pre-proposal still pending. Argea Phase 1 build Jul-Sep.

→ Raffaello: confirm yes/no

7. CTO brief recipient for Argea. Riccardo (Aronlight precedent), you, or future platform CTO?

Argea build is likely Raffaello + LatAm dev (no Riccardo on this engagement). Recipient shapes the deploy/cto-brief.html tone + Platform IQ doc updates.

→ Giuseppe recommends: You (Raffaello). You confirm or pick alternative.

16 Supporting documents

materials/INDEX.md — Materials inventory with 6 cross-material findings
buildability.md — 7-phase workflow assessment (V1/V2 plan)
pricing-v1.md — Pricing v1.1 with milestoned structure + monthly variable cost analysis
pricing-assumptions-log.md — 28+ tagged assumptions with validating research scripts
pricing-4factor-stress-test.md — v1.1 with conservative ROI resolution via annual prepay
2026-06-09_internal-brief.html — v1 brief (preserved for historical reference)
status.md — Pipeline status

· Adaptto.ai · Not for external distribution

Next call: Tue Jun 16 · 17:00 with Steve Andrean

Argea — Internal Brief v2.2