In previous articles about Pareto’s great principle I said that it can be applied to the three balls you need to juggle in your business. We have covered ball number 1 which relates to your customers.
The second ball is the products and services you sell. Guess what? Amazingly again, 80 percent of your profits come from around 20 percent of the products and services you sell.
Now you know the drill!
List out your sales by product or service in descending order of the revenue generated. Then add down from the top and when you get to 80 percent of the revenue, there’s that magic 20 percent of your products or services that is so important. Now ask yourself the critical question. How do we sell more of these top revenue generators? See the results improve!
We’ll look at the third and final ball in our next article.
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