Rafael del Molino

Rafael del Molino

CEO and Founder at 2Shapes

Pareto Principle. Applied in 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 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, in computing, in 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 are living in times of global change, maybe that 20% to invest, is not a jewel but a service. Here are some points that have been raised by well-known people in the jewelry or sales industry that might help you.

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Do you know how much money you are losing from not having a verticalized application suite for your jewelry store?