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PRICING $PROFIT


FOR


Metalcasters can only hope to break through to new levels of profi tability by producing parts that are compatible with their operations and ditching the rest.


Daniel Marcus, TDC Consulting Inc., Amherst, Wisconsin


the ultimate goal of profi t maximization over time. Metalcasters should consis- tently earn double digit pre-tax profi ts over time, but they should not expect


P MODERN CASTING / January 2011


roducing castings is not an end in itself. Produc- tion is a means to the de- sired end—profi t—and one step along the path to


to produce their way there or follow old management thinking to earn new results. Instead, CEOs must embrace an interconnected set of advanced strategies and tactics, one of which is profi t-oriented pricing.


Strategic and Management Prerequisites A business strategy rooted in compat-


ibility and the relentless pursuit of an increasingly compatible part population is the central strategic prerequisite for profi t maximization. Compatible castings are the parts which fi t the plant best; they create focus and enable the company to achieve the best quality, lowest costs and highest levels of customer satisfac- tion. When marketing efforts successfully


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