Wednesday, June 20, 2007

Mafia Offer Boot Camp Schedule

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 set the schedule for the rest of the 2007 GROUP boot camps:

  • August 29, 30, 31 - Denver, CO
  • September 26, 27, 28 - Denver, CO
  • October 24, 25, 26 - Denver, CO
  • TBD Nov/Dec - Sydney, Australia
  • TBD Nov/Dec - Auckland, New Zealand
We also did a private boot camp at the end of May and I received this quote:

"We participated in a Mafia Offer Boot Camp in May 2007. It was a great 3 days! There's a lot of passion that "hey we can do this" and the offer we developed is so much more powerful than where we started! We are looking forward to the follow up calls and to getting started!"
Bob M, General Manager of a small division of a fortune 100 company

Here's to Maximizing YOUR Profits!
"Dr Lisa" Lang

P.S. I'm on vacation next week on a week long bicycle ride through Colorado. I'll be back at the first of July.

Wednesday, June 6, 2007

Pricing Using Theory of Constraints Part 6 of 6

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 resulted in 10 to 20% increase in profits for our clients, so I would expect the same for you. So let's summarize what we covered about pricing.

  • Part 1: We discussed the importance of and how to calculate the Throughput per Constraint Unit (T/CU) for each of your current products or services.
  • Part 2: We discussed how to calculate a minimum T/CU which is like the minimum price you need to charge to cover your operating expenses and make a profit.
  • Part 3: We then compared the T/CU we get for each product/service to the minimum T/CU we calculated.
  • Part 4: Next we discussed how to handle products/services that are priced below the calculated minimum T/CU.
  • Part 5: And finally we discussed how to handle products/services that are priced above or well above the calculated minimum T/CU.

With this additional information, I hope you can determine a price that 1) will help you to achieve your financial goals; 2) meet or exceed the value perceived by the market place (will customers buy at that price?); and 3) establish the position, brand and image you desire in your supply chain.

Here's to maximizing YOUR profits and setting your prices!

"Dr Lisa" Lang

P.S. Check out our new Theory of Constraints Pricing Project!

(c)Copyright 2007, Dr Lisa, Inc. All rights reserved.