The 80/20 Rule!

Contractors and suppliers can use this rule but most do not even think about it. Why not? Hold on Glen and stop and explain it for us first. Sorry about that, sometimes I assume everybody would know this. The 80/20 rule means that 20% of your clients produce you 80% of your income or sales.

Now believe me this is almost always true if you track your sales and where they come from. I remember talking with my supplier one day and explaining this to him. Now this supplier has 100’s of clients and a very large company and they never used the 80/20 rule.

About 2 weeks later I was asked to speak in front of there branch sales department and explain this to them. They had 9 sales staff on the road and 6 in-house sales staff. Now Dan did his home work before I got there and had his totals for each sales staff and how many clients each had.

So I did my dog and pony show and explained the rule and how they should use it to increase their sales and save them time on the road. When I went around the room and questioned all of them on their sales they were floored to find out how much time they were killing for little return.

It was like the bells went off and they got it. Now I was never told in $$$ but they went from number 3 branch to number 1 branch within 60 days. So I was happy to hear this and like Dan said, it changed everyone in their branch because they all were working smarter and making more money.

Now think about this: here is a multimillion dollar company and not using the 80/20 rule everyday. Yes they heard of it but never broke it down and applied it to their business.

This will work for every contractor or supplier out there. So all I ask is to do your homework and look at your company and see how you can apply it to your company.

The new member-only contractorblab.com will have a video explaining the 80/20 rule in detail and how to apply it to your business. Make sure you stay in touch and continue to read our blog and feel free to leave us your comments.

Happy Selling

Glen