Obviously 80/20 are not hard fast numbers, but I have been involved with enough different industries and business situations to tell you that the rule really does work. In your business, approximately 80% of your revenue comes from approximately 20% of your customers. Approximately 20% of your products make up about 80% of the profit in your company. If you are a non-profit organization 80% of your financial support comes from 20% of your donors. If you like to cook, 80% of your food preparation is done using only 20% of the pots, pans and utensils in the kitchen. Go into your closet and you wear 20% of your clothes 80% of the time.
Read more about the history of 80/20 economics and then contact me if you are interested in learning how to grow your sales and reduce your cost by using the Pareto Principle.