- 80% of your profits come from 20% of your clients
- 80% of your profits come from 20% of your staff
- 20% of your retail products are good sellers
- 20% of your efforts produce 80% of your outcomes
- 20% of your day is productive, while 80% is waiting for 5pm to roll around
- 20% of your marketing efforts produce 80% of your marketing ROI
- 20% effort gets your a pass at University, 80% effort gets you a high distinction but still end up with the same bit of paper (that's another story)
You get the drift?
Pareto Principle = Freedom
A big problem we have in our salons is inventory control and trying to reduce our inventory days. We know that of our 300 Redken products, 240 are tying up valuable cash. We have identified the problem 240. Next step is to eliminate them from our shelves. If we did this, our inventory days will go from several months to several weeks, eventually less than 1month.
"Negative Cash Days = Happy Days!
Show your staff this and I am sure they will come up with dozens of ways to improve your business with the freed up cash.
Look at all the other things you do in your life, work, etc and get rid of 80% of what you do. You'll be amazed at what a great impact this will have. Give it a go.
Pareto Principle = Freedom.
Side note: To any of our awesome staff reading this, we've already dealt with the bottom 80% of staff. You are our 20% and where our joy comes from. :)