TOC3 Australia

What to do to maximise profits when the Market is your constraint?

When production goes faster than sales orders and you are left with idle/underutilised capacity it means that you are not maximising the profit potential of your business. Seems obvious!

But it is not simply a matter of going out and getting more sales thinking the problem is solved. Traditional methods of increasing sales is either a fight to the death with your competitors and/or a promise your resources struggle to deliver.

Dropping prices to attract sales (away from your competition) damages profitability as margins suffer. Offering bulk purchase discounts or other sweeteners like a "free" product (that cost you) is another traditional method to lift sales but the long term effect can be damaging as you put production under pressure to meet bulk orders in shorter and shorter lead times with unceasing demands for quality and service. Your competitors are doing the same so you feel compelled to match them.

Well, there is another way to increase profitability without having to reduce margins. We call this approach a "Mafia Offer" or "Implementable Un-refusable offer" one in which your customer cannot refuse and your competitors can't or won't dare to match you. 

If low sales is your issue we would be delighted to discuss how Dr Eli Goldratt's Theory of Constraints (TOC) can help you.

We highly recommend reading Dr Goldratt's second business novel "It's Not Luck" to discover some of the secrets to creating a Mafia Offer. Developed by Dr Lisa Lang former Goldratt International Marketing Director and President of Science of Business USA, we are licenced deliverers of her highly successful 3 day Mafia Boot Camp workshop. In 3 days you will get to build an implementable unrefusable offer that will begin to increase profitablility the moment you take it to market.


"We are doing well, in fact very well. Survived the global financial crisis where others in our industry are now out of business. The Mafia Offer is working very nicely for us and our customers using the service keep coming back."
David Leach, Owner, Look Print, Sydney.

"We are making more money by delivering extra-ordinary value to our customers using our Mafia Offer. They are happy to pay a bit extra to get guaranteed delivery of steel and components same day."
Grant Johnston, CEO, Best Bar Reinforcements, Melbourne/Perth

Call us on 0418 207 362 or email This email address is being protected from spambots. You need JavaScript enabled to view it. for a FREE Mafia Offer information pack.

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NEWS

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In a nutshell

A key component of our mission is to make lives better for everyone.We refuse to work with companies that use the solutions to cut costs by reducing the workforce. It\'s a bad sign, creating ...
We have had some dramatic changes to the business in recent years including new ownership. However, we are still running the same system you helped install - it just works!\" Paul Winterflo...
“We have to wait a while before we can say we are making more throughput but I can say we are making the same as before but so much more easily”. Terry, Finance Director, Best Bar Rein...
When you work with us at TOC3 we help you rapidly transform your systems from CHAOS to CALM. Our clients regularly experience the following effects:-Speed - Results are S...
Below is a small selection of results TOC3 practitioners have helped achieve for companies in Australia and New Zealand. In the following results note the scale of performance tran...
Integrity: Our word is our bond We do as we say We don\'t promise what we can\'t deliver and if for some reason we fail we apologise without delay and make goodOpenness We tell it...
The Theory of Constraints provides deep insights into why it is difficult to manage production and what to do to get rapid and lasting breakthroughs in performance.Does it bother you that pr...
 Our goal is to rapidly transform businesses into serious cash and profit engines increasing value and market position and making lives better for everyone.We do this by implementing th...
\"Our plant at Orange NSW has met or surpased every global Electrolux benchmark for success. January 2010, Hans Strauberg Global CEO Electrolux...
 Grant Johnston: Managing Director “That’s ******* amazing” Commenting on 75% reduction of WIP in under 3 weeks.Brad Johnston: Operations Director “I’m very pleased with that” (...

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