Take a look at these numbers. They may look like just another bunch of ordinary numbers, but for most businesses these are the numbers we all live and die by.
80-20 as a rule, is where most businesses focus their attention, as 80% of all sales generally come from 20% of customers.
97 is the percentage of all products that almost make it to market, but never do, and
1 is the most dangerous number for any business
In many respects we rely on these numbers as justification for why we operate or act in a certain manner, however is this always right?
What would happen if we explored our opportunities beyond our current channels or core customer base of 20%, and focused some of our efforts on the next 20%.
Would this change the dynamics of this rule in a positive way, and would we become less reliant on the 20%. Would this grow the pie and create a more resilient business that is not so pervious to sudden or unforeseen market conditions?
What would happen if we focused more of our attention on new product entrants, and became less reliant on the 3% of products that make up 100% of our profit margins?
Most importantly what would happen if business became totally reliant on just 1% of their client base?
We hear about the need for innovation, however this is always tempered with the fact that for most businesses, every decision must be right and produce a measurable result.
For real innovation this is not a realistic expectation and the pressure to perform for most businesses becomes so great that they ultimately play it safe, resorting to the above numbers as justification to NOT do something.
Safe is comfortable, but comfortable will not create change, and without change you cannot have innovation. The reality is that as a business if you are not prepared to take risk, you will never really be innovative.
I had the pleasure of listen to a great motivational speaker Peter Thurin from Blackbelt in Excellence yesterday who said that the decision to do something is either "Easy to do OR Easy not to do" the choice is yours.
Stock Box is the first B2B program of its kind, working with the greater independent convenience and newsagent channels, putting your products in the hands of real decision makers, and we do it all for a fraction of the cost and time involved using traditional methods.
To find out more about us go to our web site or contact me below.
Thanks for reading
Craig Matthews is the MD of Stock Box, with over 30 years industry experience in retail development, specialising in independent retail programs.