Pareto Principle. Applied on my Jewelry Store
Pareto Analysis is a statistical technique in decision-making used for the selection of a limited number of tasks that produce significant overall effects. Pareto Analysis is supported by Pareto Principle which states that, for many events, roughly 80% of the effects come from 20% of the causes.
We can apply this rule to almost anything, in economics, in computing, in sports, engineering, etc.
But how it affects our jewelry store?
We must take into account that we can improve the rentability of our jewelry store if we discover that 20%
where we are achieving 80% of the results.
You must review your jewelry annual turnover information and identify that 20% that gives you 80% of your income. And that is what you must highlight and work on.
Can’t you find your 20%? We are living times of global change, maybe that 20% to invest, is not a jewel but is a service. Here you have some points that have been raised by notorious people on the jewelry or sales sector, that might help you.
‘’The company started to recognize the need for custom-made pieces in the market about a decade ago’’. - Jeff Adwar, president of Overnight Mountings and son of the late company founder, Morris Adwar
‘’One in three consumers wants personalized products’’-Deloitte 2015
‘’Making Your Luxury Watch Perfect For You’’- Cartier
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