How to Use the 80/20 Rule to Generate Massive Profits in your Business
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It's called the 80/20 Rule. Otherwise known as the Parato Principle, after the inventor.
This man found that in finances, 80% of the wealth was owned by 20% of the people. This ratio of 80/20 has since been expanded to include almost any subject.
80% of the races are won by 20% of the runners, Etc.
Whatever products you sell at retail...... 80% of the profit comes from 20% of the product selection.
Here is the single biggest thing I got from this principle:
80% of the retailers are sharing the lowest 20% of the profits. (I mean from a single product category)
Let's take vacuum cleaners as an example.. Let's say 80% of them sell the cheapest and lowest quality machines. K-Mart, Wal-Mart, Lowes, Builders Square, Target, etc. mostly sell the lowest priced machines. They also advertise the lowest priced machines.
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