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Concentration15-minute lessonNo sign-in needed

The hidden 80/20 of your products

The 80/20 idea encourages you to measure whether a small share of products delivers most sales. It is a pattern to test, not a rule every business must follow.

Imagine this business

Imagine a catalogue of 100 products where 20 account for 76% of positive revenue. That is meaningful concentration even though it is not exactly 80%.

Measure, do not assume

Rank products on the same positive-revenue basis and check the actual contribution of the leading 20%.

Keep the other questions open

Product revenue alone does not establish margin, customer importance or the difficulty of replacement.

Two situations. Different implications.

Illustrative comparison — not actual customer data or a platform-calculated result.

MeasureRange ARange B
Basis100 products100 products
What's different?Top 20 products generate 80% of revenueTop 20 products generate 45% of revenue

Range A is far more concentrated, although both have the same number of products. Neither pattern alone proves superior profitability or strategic quality.

Team discussion: Product and Sales teams can assess availability, coverage and customer importance before changing assortment.

Compare before you conclude

Compare the leading 20% of products' revenue share with the remaining 80%; compare rankings with recorded margin and category/customer relationships when available.

Who could act on this?

Teams: Product Management and Sales.

Product teams prioritise range review; Sales identifies products essential to customer relationships.

Ideas worth testing

Investigate availability, selective promotion, bundles and the long tail before any simplification.

Watch the trade-offs

Sales concentration is not a mandate to remove low-volume products.

Now ask a better question

Try this in your own words

Does the product ranking change with recorded margin or customer context?

What should I consider?

Identify what the numbers establish, what they do not establish, and which additional evidence you need before acting. Make a note of one question to investigate.

Try this with your own data

Where to look in your diagnostic

Concentration and Context

Data needed: Product ID + Revenue; Product Category for category context.

What to investigate: Start with product revenue concentration; examine category context before deciding on range changes.

Open the sample or run the free diagnostic, then find the named dashboard section. Sections appear only when your data supports them; some deeper investigation and exports require Professional access. Check Evidence & Coverage before drawing conclusions.

Explore the sampleUse my own data
Key principle

Numbers provide evidence. Good decisions require context and judgement. Treat this lesson as a starting point for investigation, not an instruction to change your business.

Keep exploring

Next lesson: When best sellers dominate →

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