Q2. Can you elaborate on what you mean by a "Mafia Offer"? A lot of the people who've read this may not be familiar with Goldratt's approach to Marketing and Sales, even though I think it is the most fascinating and useful part of the TOCBOK.
A2: Initially Dr Goldratt defined a Mafia Offer as “an offer so good that your customers can’t refuse it”. I extended the definition as follows: “An offer so good that your customers can’t refuse it and your competition can’t or won’t offer the same.”
It has also been referred to as an “un-refusable” offer (URO) or a market offer.
At first blush, it would seem that a Mafia Offer is similar to other terms you may have heard of like an irresistible offer, a touchstone, brand positioning, a competitive advantage, a value proposition, or a unique selling proposition. However, when most people are talking about these alternatives they are actually quite different from what I mean by a Mafia Offer. They 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 many times they are not. And even so, they are still better than nothing which is where most businesses start.
A Mafia Offer typically requires that you do something different (make operational improvements) 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.
Most companies offer solutions that solve their customers various problems or symptoms. With a Mafia Offer we are addressing our customer’s core problem.
In this way, a Mafia Offer is a longer lasting competitive advantage instead of just a positioning.
When you have a good Mafia Offer and you deliver it correctly, your close rate increases to above 80%. If you close 80% or more of your prospects -- you have control over your sales. This control makes it easier grow and invest in your business while maintaining the ability to deliver the offer.
