The 80-20 ‘Pareto Principle’ This principle can and should be used by every intelligent person in their daily life. It can multiply the profitability of corporations and the effectiveness of any organization or individual. Here are few examples of this principle at work: Have a product range? Have a look at how much of your profit comes from each item. Put your effort into the 20% that give you 80% of your sales - your winners. Selling Products / Services? Our observation also reveals that the top 20% of products give 80% of the profit. Identify top the 20% products or services which gives more profit and improve their quality, expand their market, focus campaigns on these products. That means you are shifting your focus to top 20 products. Complaints? Also, our observation also reveals that majority complaints are related to few problems. Identify the problems which generate 80% of your complaints. Focus finding solutions to such problems that improve sales. BUT MOST IMPORTANTLY, and the KEY to changing your business culture is to determine WHO you SHOULD be catering to specifically, which customers should demand your attention and your every effort to please?
