Pareto analysis is a statistical technique in decision-making used to select a limited number of tasks that produce significant overall effects. Pareto analysis is supported by the Pareto principle, which states that, for many events, approximately 80% of the effects come from 20% of the causes.
We can apply this rule to almost anything in economics, computing, sports, in engineering, etc.
But how does it affect our jewelry?
- 20% of the jewelry in your store is responsible for 80% of the sales.
- 20% of your customers make 80% of your purchases
- 20% of your salespeople make 80% of your sales.
The company began recognizing the need for custom-made parts in the marketplace about a decade ago
Jeff Adwar, president of Overnight Mountings and son of the company’s late founder, Morris Adwar
We must keep in mind that we can improve the profitability of our jewelry if we discover that 20% where we are achieving 80% of the results.
One in three consumers wants customized products
Deloitte 2015
You should review your jewelry store’s annual turnover information and identify that 20% that gives you 80% of your revenue. And that is what you should highlight and work on.
Making your luxury watch perfect for you
Cartier
Can’t find your 20%? We live in times of global change, and maybe that 20% to invest is not a jewel but a service. Here are some points raised by well-known people in the jewelry or sales industry that might help you.
