Think back to every 4th of July fireworks display you’ve ever seen. What do you remember, the beginning, the middle or the grand finale? The first 80% if the show might be entertaining, but it’s that final 20% that leaves a lasting impression that sticks in our memories for years.
According to the Pareto principle, 20% of the causes often equate to 80% of the effects. Conversely, 80% of the causes often equate to just 20% of the effect. When it comes to profitability, we’ve found this 80/20 principle holds true quite often. 20% of the SKUs often drive 80% of the profits, while the rest are just along for the ride.Read More