TOC3 Australia

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

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.