In Part 1 we discussed some background on "framing" and the importance of how you present an offer. So now we are going to apply that to presenting a Theory of Constraints (TOC) Mafia Offer. During a Mafia Offer Boot Camp we create either a PowerPoint presentation...
Part 1: Some background Do people respond better to positive outcomes or getting rid of a negative? Which magazine do you think men are more likely to buy: a men’s health magazine with the cover, “Lose Your Gut Fast” or a similar magazine with the cover, “Get Six...
"Create a market offer so good, that your customers can’t refuse it and your competition can't or won't offer the same – that’s a “mafia offer”!” "A Mafia Offer is saying what you are going to do and doing what you said, when you said you would do it and backing it up...
Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant by W. Chan Kim and Renee Mauborgne This review will focus on pointing out those things that are consistent with Theory of Constraints (TOC) and my opinions from those...
I have received a pricing question about market constraints and s-DBR (Simplified Drum Buffer Rope). I have written a detailed answer. Here it is ... Q: What about companies that have a market constraint and use S-DBR? A: For companies that have a market constraint,...
We just completed another successful Mafia Offer Boot Camp. This was a group boot camp with 4 companies in attendance. We developed 4 very nice mafia offers. The group dynamic is always very interesting because other companies provide feedback on your offer. We just...
This is the final installment on Theory of Constraints pricing. At least for now. Goldratt's Theory of Constraints, The Goal, and Throughput Accounting don't address pricing specifially. So, I tried to summarize what we do with our clients. This pricing exercise has...
I did not write last week. We were doing a boot camp in Kansas City plus a speech for a TEC/Vistage retreat in Michigan. It's Mafia Offer Boot Camp Season. This is a good time of year to do a Mafia Offer Boot Camp because budgeting and preparation for next year are...
For the products that are well above the T/CU you need to look into the following things: - what is your close rate on these items, is it low? - have your customers/prospects told you that you were over priced? - do you want more of this type of business? The products...
Let's look at the products that are currently priced below the minimum T/CU that you calculated. You can have some products priced below your min T/CU because the weighted average just needs to be at the minimum. To determine if this is one that should be below the...
