Living a Relaxing and Profitable Lifestyle with the 80/20 Rule

Written by Chris Brown

Copyright © Chris Brown

This article may be used freely as long asrepparttar author's resource box (atrepparttar 116931 bottom) is included;repparttar 116932 article and resource box must remain unedited.


In this article, you will learn some simple and effective ways to live a more relaxing and profitable home business lifestyle. Many of us started out with a picture of ourselves working less and ended up working just as much or even more than ever imagined we would. Managing your time can become a major headache. Are you ready to seerepparttar 116933 shuffle drift away?

Family, friends, errands and fun are a few ofrepparttar 116934 important factors in living a relaxing and profitable lifestyle – lets look at how you can delegate your time for a more easy going home work environment.

The 80/20 Rule – Pareto's Law

Vilfredo Pareto, an Italian economist, observed in 1906 that in his country, 80% ofrepparttar 116935 wealth was owned by 20% ofrepparttar 116936 population. After his observation, others took notice ofrepparttar 116937 80/20 idea in many other areas of life.

Inrepparttar 116938 1930s and 1940s, Dr. Joseph Juran observed what he calledrepparttar 116939 "vital few and trivial many". Dr. Juran's principal goes something like: 20% of something is responsible for 80% ofrepparttar 116940 results. This has long since been known as Pareto's Principle orrepparttar 116941 80/20 Rule.

Find Your ‘Vital Few'

The following metaphor has worked well for many people; if you have a hard time visualizing then this may throw you off; stick with us, this can be of great benefit to you.

The Metaphor

Zoom out and take a look at everything that comprises your home business. Imagine seeing all of your tasks sitting on a table – Watch as one side ofrepparttar 116942 table lifts upward and your tasks begin sliding towardsrepparttar 116943 edge. Pay close attention to seerepparttar 116944 tasks that sliderepparttar 116945 least – seerepparttar 116946 tasks that stay onrepparttar 116947 table – these are your ‘vital few'. Pick uprepparttar 116948 ‘trivial many' fromrepparttar 116949 floor and see yourself putting these in a very big box.

Now, picture your self putting your ‘vital few' tasks that were left on your mental table in a small box – imagine that you keep this box on your desk. Now, mentally takerepparttar 116950 big box and put it out of site…let it fade away for now.

The Wholesale Misconception

Written by Chris Malta

"The Wholesale Misconception" One thing that’s constantly misunderstood by people trying to run a home business onrepparttar Internet isrepparttar 116930 word “Wholesale”. Some people think that working with a real wholesale supplier means that they will magically be able to sell products for less than anybody else onrepparttar 116931 planet, for ever and ever. They’ll berepparttar 116932 only one who ever gets such good prices, and they’ll earn millions because no competition can touch them. They’re retire happily in a couple of months, and buy a big house in Beverly Hills, complete with a butler, a private chef, and a little satin doggie bed in every room forrepparttar 116933 casual use ofrepparttar 116934 family Basset Hound, Duke. Then they find that they may actually have to compete with companies who have more buying power and get better price breaks, and suddenlyrepparttar 116935 honeymoon is over. They run around screaming thatrepparttar 116936 supplier is not a real wholesaler, and is cheating them. The sky is falling, and it’s time to get Duke torepparttar 116937 storm cellar because all their dreams are being blown away by bad, BAD people who claimed to be wholesalers, and really are NOT! The truth is that they’ve simply been confronted with a perfectly normal aspect of retail sales that they had not anticipated, and need to be educated about. Even when using genuine wholesale distributors, you're going to find some stores selling products at a "retail" price that is lower than your distributors’ "wholesale" price. There are VERY good reasons why you'll see this happen, and it's extremely important to understand why it happens and what to do about it in order to sell successfully onrepparttar 116938 Internet or anywhere else. As I said, it happens for a variety of reasons;repparttar 116939 most common of which is thatrepparttar 116940 retailer withrepparttar 116941 "lower than wholesale" price is a large retail operation that bought THOUSANDS ofrepparttar 116942 product at a dirt-cheap quantity price break, and also qualified for huge manufacturer's wholesaler rebates. You can't compete against that with a home business; no one can. The term "wholesale" is relative, no matter who your distributor is or how you find them. What you're getting as a small business is a supplier's genuine "first level" wholesale price. For example, one factory-direct supplier we work with has an initial wholesale price for 1 to 36 dart boards. Thenrepparttar 116943 second price level is reached, and there's a lower price for 36 to 72 boards, for example, then a lower price forrepparttar 116944 next higher quantity level, etc. When dealing with single item orders in your home business, you are obviously going to be gettingrepparttar 116945 "first level" wholesale price.

Again, wholesale is a relative term. Yes, genuine wholesalers DO sell at significant discounts below Manufacturer's Suggested Retail Price. However, you have to watch what you sell. Electronics, for example, are a very tough market, because EVERYBODY is trying to sell electronics onrepparttar 116946 'Net right now. All these people are so busy trying to undercut each other that they have drivenrepparttar 116947 "market price" of these items down so low as to make it very difficult to make a profit, even at wholesale. For example, ifrepparttar 116948 Manufacturer's Suggested Retail Price (MSRP) for a VCR is $149, and it is available at "wholesale" for $69.00, that's a 54% discount off MSRP. That's a pretty good profit, right? However, with everybody getting roughlyrepparttar 116949 same price break, there are a lot of people out there who are ruiningrepparttar 116950 market for everyone else by selling that product for, say, $79, thinking they will undercut everyone else and make money by selling volume. Pretty soon, everyone else sees this, and triesrepparttar 116951 same thing. Eventually,repparttar 116952 Internet "market price" for this VCR BECOMES $79, and everyone is floodingrepparttar 116953 market with it at that price. That's only a 13% percent profit margin, and that product is no longer worthrepparttar 116954 effort for anybody. So, even thoughrepparttar 116955 product IS available initially at a great wholesale price, its market value is ruined by those who (wrongly) assume thatrepparttar 116956 only way to sell is to haverepparttar 116957 absolute lowest price anywhere. Sales is much more of an art than that. If selling something were simply a matter ofrepparttar 116958 absolute lowest prices, Wal-Mart would berepparttar 116959 only store onrepparttar 116960 face ofrepparttar 116961 Earth. Without going into too much detail, sales is a mixture of choosingrepparttar 116962 right product, or combination of products, for your web site. It's presenting a clean, attractive, focused site. It's givingrepparttar 116963 customer some little value-added bonus at your site. It's providingrepparttar 116964 absolute best customer service that you can. All these things help a customer to trust you, and when they trust you they are willing to spend a little more to buy from you. One of our retail sites is We sell Arachnid Electronic Dart Boards there. We sell ONLY those products on that site; just 14 of them. Our site is clean and attractive. We have a page listing allrepparttar 116965 rules for allrepparttar 116966 dart games that can be played on those boards. We pay very careful attention to customer service. And guess what? We are NOTrepparttar 116967 lowest priced store for those dart boards, by any means. Yet we are one ofrepparttar 116968 highest-volume Internet dealers ofrepparttar 116969 products around, according torepparttar 116970 factory. Why? Our customers trust us, and are willing to pay a little more because they feel they will get more value from us than they will from some guy who just throws up a cheap-looking site full of all kinds of unrelated products and only pays attention to price-cutting.

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