Just 20% of your items might be making 80% of your profits.
Welcome to ABC Analysis — the business tool that helps you focus on what matters most.
What is ABC Analysis?
ABC Analysis is a method to categorize inventory or customers based on their value:– A = High-value– B = Moderate-value– C = Low-value but high in quantity
Based on the Pareto Principle
ABC Analysis uses the 80/20 rule:– 20% of items = 80% of value– Helps in focusing on top-performing assets
Classification Breakdown
✅ A Items – 10-20% of items → 70-80% value⚖️ B Items – 20-30% of items → 15-25% value📦 C Items – 50-70% of items → 5-10% value
Example of ABC Analysis
In a store:– Laptops = A– Phone accessories = B– Charging cables = CSimple but effective!