[eBook] Mafia Offers: Dealing with a Market Constraint
Chapter 22 of the Theory of Constraints Handbook in PDF format.
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About Chapter 22 - Mafia Offers: Dealing with a Market Constraint
A. Introduction: What is a Mafia Offer?
A “Mafia Offer” sounds like something out of a movie, not something that could seriously help you make more money in your business by increasing and controlling your sales.
Dr Goldratt first introduced the concept of a Mafia Offer in his book It’s Not Luck (Goldratt 2002, 133) . Later he defined a Mafia Offer as “an offer they can’t refuse” (Goldratt 2008, 67) . But in writing, he more frequently refers to it as an Un-Refusable Offer (URO) (Goldratt 1999, 120) and more recently he (and Goldratt Consulting) emphasizes the need to establish, capitalize and sustain a Decisive Competitive Edge (Herman & Goldratt) .
For this chapter, I will use the term Mafia Offer and have defined it as follows: “An offer so good that your customers can’t refuse it and your competition can’t or won’t offer the same.” In addition, I will refer to the operational improvements required for a Mafia Offer as the decisive competitive edge, operational advantage, or a competitive advantage.
A Mafia Offer is simply the offer you make to your market – your prospects and customers – to make them desire your products and/or services AND something that your competition can not quickly match. And, of course, the offer you make is a combination of your products, services, and how you deliver them. And for your offer — the solution you’re selling — to be un-refusable you are most likely offering something of equal or greater value than the price you are charging.
Many people confuse a Mafia Offer with a Unique Selling Proposition (USP), Customer Value Proposition (CVP), or a Sustainable Competitive Advantage (SCA).
At first blush, it would seem that a Mafia Offer is similar to these other terms you may have heard of; however, when most people are talking about these alternatives they are actually quite different from what we, Theory of Constraints experts, mean by a Mafia Offer.
USPs, CVPs, and SCAs basically take what you already do and state it succinctly and with more specificity aimed at one or a few of their customers’ problems or gaps in current market offerings. These alternatives can be Mafia Offers, but most of the time they are not. Furthermore, a SCA is, in my view, an operational or technological (although these are NOT typically sustainable) advantage and not an offer per se.
Most companies offer solutions that solve their customers various problems or symptoms. With a Mafia Offer we are addressing our customer’s core problem as it relates to doing business with our industry.
A Mafia Offer typically requires that you do something different (make operational improvements to establish a decisive competitive edge) to address your prospect’s core problem. These operational improvements allow you to actually deliver something un-refusable to your customers and something that your competition can’t or won’t do because they are not willing to or don’t know how to make the same improvements. In other words, you have to establish an operational advantage.
In this way, a Mafia Offer is a sustainable market offer built on this advantage. Mafia Offers are not a positioning or a tag line and “can only be created by satisfying a significant need of the market to the extent that no other significant competitor can.” (Herman & Goldratt) A Mafia Offer is where we start if you have a market constraint.
· Publisher: McGraw Hill, Inc.
· Language: English
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Dr Lisa Lang
“Dr. Lisa” Lang is a renown Theory of
Constraints expert and is the foremost expert in the world for applying TOC to marketing. Dr. Lisa is regularly sought out for her
expertise on developing market offers that increase sales. She has been named a 2012 Trendsetter in the
USA Today for her work helping highly custom job shops and machine shops to
become more productive, more competitive and to bring manufacturing back to the
U.S. She has appeared in CNBC, CBS, The
Wall Street Journal, and Yahoo Finance to name a few.
As the President of Science of Business, she
invented the Mafia Offer Boot Camp developing over 100 Mafia Offers for fortune
100 companies, as well as, for small job shops.
Dr. Lisa's Mafia Offers: Dealing with a Market Constraint
book reached the #1 spot on the Amazon best seller list. Dr. Lisa worked
with Dr Goldratt, father of the Theory of Constraints, serving as the Global
Marketing Director for Goldratt Consulting. During her tenure Goldratt
Consulting was the fastest growing consulting company in the world. She has a PhD in Engineering and is a TOCICO
certified expert. She is currently an officer on the TOCICO Board of
Directors. Before becoming a consultant,
Dr. Lisa worked for Clorox, Anheuser-Busch, and Coors Brewing.
learn more about Mafia Offers and how you can create your offer in a 2.5 day
Mafia Offer Boot Camp visit www.MafiaOffers.com and check out Dr
Lisa’s bestselling book Mafia
Offers: Dealing with a Market