Comments on: The 80/20 Principle: It’s just a rule of thumb

By: Kenneth

Kenneth — Sat, 09 Feb 2008 18:04:59 +0000

I take your point, Ades. But I’ve known stores who only stock the most popular CDs etc. As a result, few people really bought their CDs there, except those less regular customers.

In the UK, Woolworths sells the top 20 or top 40 albums and little else in the music section.

Clearly their business model is to sell a range of products to a range of people, not just CD purchasers. But the model still holds: few real collectors will bother to shop at Woolies for CDs, except if they are picking up something else at the same time. This naturally makes it even more difficult to shift CDs because you’re not attracting a natural market.

Kenneth

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Sat, 09 Feb 2008 18:01:54 +0000

[...] The 80/20 Principle: It’s just a rule of thumb [...]

By: Ades

Ades — Sat, 09 Feb 2008 17:52:37 +0000

Kenneth, regarding the CDs the rule states that you should stock more of the Top20 cds and less of the other 80%. It does not say you should only stock 20% of the most selling CDs.

But I know what you mean. I agree that it should not be used very strictly.

Ades’s last blog post..80/20 Rule, and How it Applies to Blogging

By: Kenneth

Kenneth — Sat, 09 Feb 2008 02:47:08 +0000

Thanks Marcus for the comment. What example of this did you think of? Did you see this phenomenon in your sales division?

Kenneth

By: Marcus Hochstadt

Marcus Hochstadt — Fri, 08 Feb 2008 23:20:18 +0000

I like your controversy article. Especially the CD example makes sense. Used to be sales manager and know what you’re talking about.

~Marcus