There was a advanced book shop aloof opened in the city, one of those massive places with a Starbucks and a café on the upper floors. Since I had not peruse a book for some age, I could annihilate two birds with one stone ( I abhorrence that saying) and action there to eat and peruse.
I hit the bag section. After getting former the pile of Trump books, I activate what I was looking for:
The 80-20 Principle, by Richard Koch.
Reading the back cover, it says that… 80 per cent of the output of an action comes from 20 per cent of the inputs.
So how can this advice you accomplish added almighty dollar on eBay?
Able-bodied, the applications of the 80-20 principle will depend on the access towards eBay that you’re using. Let’s add that you are dealing in a ‘alcove’ marketplace, trading in antiques of a certain affectionate. I don’t apperceive much about antiques, but let’s add you are buying and selling ancient Chinese antiques. Any more, what you might acquisition here is that you’ll accept the selfsame bodies buying these antiques repeatedly. In other words…
80 per cent of your bag comes from 20 per cent of your customers.
The implications of this? Firstly, suiting your products to these 20 per cent. If they’re buying X, accord them added of X.
Plus, accomplish sure you accumulate these customers actual blessed indeed, as thats one road to accomplish added almighty dollar on eBay and where the biggest profits aspersion. So anticipate added of what they appetite, added freebies aloof for them, constant communication aloof for them and so on.
Again, you might again acquisition that 80 per cent of your abundant products come from 20 per cent of your supplier base.
Furthermore, you might acquisition that 80 per cent of your annoy comes from 20 per cent of your products, and within that figure, 80 per cent of the annoy comes from 20 per cent of the hasslers! Or, generally, 80 per cent of hassles come from 20 per cent of your customers. Again, you might acquisition that 80 per cent of your profit in a accustomed year comes from a selection of items – maybe 20 per cent of your items produce the profits, the rest alone mediocre.
But here’s the absorbing affair.
You beam, the intuitive affair to accomplish – if you accept products that are losing, and some that are winning – is to ace shot and ‘assignment’ the losers so they come up to speed. Not so, according to the 80-20 principle. As rather than bothering with these losers, we’d appetite to accomplish added with those few that are winning.
Sounds strange, huh?
As most bodies would ace shot and assignment with the losers…they’d ace shot to bring them up to speed. Able-bodied, the author of this book says that, instead, you should concentrate your efforts on what’s working ace:
The 20 per cent that’s producing 80 per cent of the results.
That’s adapted. You DON’T concentrate on improving the 20 per cent… you simply assignment harder with the 20 per cent that is producing 80 per cent of the results!
That may sound a bit able-bodied, silly – and counter-intuitive. You’d anticipate that if you had ten products, and eight were performing badly… able-bodied, most bodies’s accustomed reaction is to ace shot and boost the results of the bottom eight. Uh-uh. Action the other road. Ace shot and boost the results of your ace two.
Or, in the position of suppliers, concentrate added on the ace two. Or, if you’ve got a mailing list of buyers, concentrate on the top 20 per cent. How? As I’ve said, by treating them adapted… maybe rewarding them with chargeless gifts and so on.
And what if you’re selling products wholesale? And what if you’re selling the selfsame product over and over?
Then what? Accomplish you concentrate on the losers and ace shot and advance them? Uh-uh. Probably amiss. Ace shot the winners… and ace shot to boost the results of what’s already working.
I’ll accord you a practical, absolute-apple current archetype. I tried a listing for a product. It went appealing able-bodied. In actuality, it went really able-bodied, bigger than I expected. Any more, it aloof so happens that I was selling the selfsame product over and over again – the wholesale access. But what could I accomplish to expand? The logical affair would be to amuse added products.
But no. Instead of doing that, I listed the selfsame product AGAIN – adapted alongside the selfsame product!
That’s adapted. I simply listed the selfsame product again, at virtually the selfsame age (i.e. running them simultaneously) but with a altered picture. And it sold nearly as able-bodied. It’s all about getting added out of the winning 80 per cent.
Beam, instead of diversifying, the implication of the 80/20 principle is actually one of anti-diversification. As instead of going into advanced markets and the according to, maybe I should concentrate added on the current alcove that’s working actual able-bodied for me, and affirmative – working with the current one product that’s working so able-bodied. So after the current product is ‘hammered’, and I’ve listed it as abounding ways as I can (concentrating on what’s working), then I can ace shot other products in that SAME marketplace that’s already producing abundant results for me.
What we’re doing here is the adverse of diversifying our eBay bag. It’s concentrating purely on what’s most able at the current age, and working out ways to boost the current acceptable results.
What’s your ace performing listing adapted any more? Ace shot listing added of it. Ace shot advanced categories, advanced approaches, altered descriptions and pictures.
Who are your ace customers any more? Sell them added, and accomplish sure they’re able-bodied looked after.
Where are your profits the biggest adapted any more? Instead of trying to expand out in the logical road, ace shot a altered access and concentrate on what’s currently most able.
Most eBayers don’t anticipate about these things! Actual few accomplish! If you bar to anticipate about it for a moment, you might be surprised. If you analyse it, you’ll probably be even added surprised. You might acquisition aloof ONE product is carrying your bag, and it’s that product that deserves a abundant deal added attention.
So I’d appetite you to anticipate about the areas of your eBay bag where the 80-20 principle might apply – and how to harness it so you accomplish added almighty dollar on eBay.
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Originall posted February 23, 2012