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