by Dr Lisa | Theory of Constraints Finance, Accounting, and Cash Flow
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...
by Dr Lisa | Theory of Constraints Finance, Accounting, and Cash Flow
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...
by Dr Lisa | Theory of Constraints Finance, Accounting, and Cash Flow
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...
by Dr Lisa | Theory of Constraints Finance, Accounting, and Cash Flow
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...
