Monthly Archives: January 2016

16. New Customer-Profitability Power Laws

“The 20/80 principle” roughly applies to most distributors’ largest customers and their respective sales.

It’s called the Pareto Principle, and it’s a “power law” generalization from Pareto’s 1896 discovery that 20% of the Italian population owned 80% of the land.

Customers and their respective profits are far more skewed than 20/80, actually. Instead, distributor / customer-profit analytics reveals these power-laws:

Continue reading 16. New Customer-Profitability Power Laws

15. SKU-Profit Winners, Losers and Amazon Tactics

Amazon Tactics for Distributors

200 of your SKUs are hugely, net-profitable, but, another 200 are hugely unprofitable. Amazon knows SKU profitability and exploits traditional competitors’ informational blindness. Want to get smarter, too?  Here’s how:

Get Profit-Equation Data

Amazon knows the following “profit equation” for every SKU (customer, etc.):

Continue reading 15. SKU-Profit Winners, Losers and Amazon Tactics