by Dr Lisa | competitive pricing, determining prices, Dr Lisa, Dr Lisa Lang, eliyahu m goldratt, goldratt, pricing, selling prices, strategic pricing, T/CU, throughput accounting, throughput per constraint unit
Let’s look at the products that are currently priced below the mininum 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...
by Dr Lisa | competitive pricing, determining prices, Dr Lisa Lang, eliyahu m goldratt, goldratt, pricing, selling prices, strategic pricing, T/CU, throughput accounting, throughput per constraint unit
Compare the minimum T/CU to the T/CU for each product. You will find current prices that are too low and too high relative to the min T/CU. Now look at your quotes and calculate the T/CU for all your quotes. What is the T/CU for the ones your winning versus the ones...
by Dr Lisa | competitive pricing, determining prices, Dr Lisa Lang, goldratt, pricing, selling prices, strategic pricing, T/CU, theory of constraints, throughput accounting, throughput per constraint unit
Now that we have our current T/CU for each product/service we calculate the minimum T/CU we need to cover all of our Operating Expenses plus make the profit we want. Here’s how we do that: Min T/CU = (annual OE + annual profit) divided by annual available...
by Dr Lisa | competitive pricing, determining prices, Dr Lisa Lang, goldratt, strategic pricing, theory of constraints, throughput per constraint unit
Deciding on pricing for your products or services tends to consume a lot of time and can even be stressful. Typically we are looking for a price that 1) will help us to achieve our financial goals; 2) meet or exceed the value perceived by the market place (will...
