You may have heard of the 80-20 rule, formally referred to as The Pareto Principle. This rule, or principle, states that approximately 80% of results come from 20% of the causes. Hence, the 80-20 Rule.
The credit for the 80-20 rule goes to the economist Vilfredo Pareto who concluded that 80% of the property in Italy was owned by 20% of the population in 1906 when studying the distribution of income and wealth.
Today you may commonly hear:
80% of your sales come from 20% of your SKUs
What are your top performing SKUs? What are your top performing Categories? What are your top performing Brands?