What is Pareto’s Principle?
Pareto’s Principle (sometimes referred to as Pareto’s Law) is commonly known as the 80/20 rule. Vilfredo Pareto was an Italian economist who created a mathematical formula to describe the unequal distribution of wealth in Italy in 1902. Pareto noticed that 20% of the people owned 80% of the wealth.
Pardon me for the history lesson, but stick with me here for a minute because this is powerful stuff…
Later in the US between the 1930s and 40s Dr. Joseph Juran, a pioneer in Quality Managament recognized a universal principle he coined “the vital few and trivial many.” This means that 20% of something is always (keyword being ALWAYS) responsible for 80% of the results.
This is the 80/20 rule as we know it.
This is not theory… this is a universal principle or law.
Theory’s can change and do, but principles or universal laws never change. For example, the law of gravity will never change. Even if you don’t believe in it, the law of gravity will still apply. Just trying walking off the roof of a 20 story building… I guarantee you it will make a believer out of you for about 4 seconds.
- 20% of the acupuncturists in your town are getting 80% of the business.
- 20% of your patients are responsible for 80% of your revenue.
- 80% of your supplies come from 20% of your vendors.
- You spend 80% of your time at home in 20% of the house.
- You wear 20% of the clothes in your closet 80% of the time.
- You spend 80% of your social time with 20% of your friends.
I could go on and on but I think you get the point (principle.)
If you’re not applying the 80/20 rule to your acupuncture marketing, it will take you two or three times as long to get to were you want to go.