The 80%-20% Rule

By Charles Vander Kooi

80% of the goods and services are produced and sold by the top or (or best) 20% of the providers

The 80%-20% rule states that 80% of the goods and services are produced and sold by the top or (or best) 20% of the providers and that the other 20% of the business activity is produced and moved by the remaining 80%

If you analyze your competitors in the yellow pages, the 80%-20% rule starts to assume validity. While quantities may have differed, it is fair to say that everyone started out with equipment, knowledge and people. Then why do some succeed, some drift and some fold?

The top twenty percent have one common denominator: an excellent reputation in the market place.

An excellent reputation in the market place is not achieved by having the resources to afford a quarter to half page advertisement in the Yellow Pages. It is not quite that simple, yet it is not difficult or complicated. It certainly should not be a function of time, money, or equipment. Reputation is the result of satisfied customers.

Everyone can purchase the same lumber, bricks, concrete, wiring, or tree for resale, the same truck to deliver it to the job site, people to build it, and charge about the same for the work, perhaps more, perhaps less.

So how do the twenty percent to it? By developing a reputation. They determine what they do best and the market wants their services. Then they serve this market and serve it well! They end up being able to make more sales with fewer salespeople, and produce more with fewer people and less equipment. They have less office staff and paperwork. They seem to have more cash to work with, more time to think ahead, to plan. They are always out in front.

Seminars offered by Charles Vander Kooi
Estimating & Bidding Balancing Estimating, Job Costing, and Accounting People Management

Charles Vander Kooi Biography:

Charles Vander Kooi has been involved in the construction industry for over 30 years, thirteen as an upper-management employee of companies and seventeen as a consultant. He has bed over a billion dollars in work over his career. As a private consultant, he has helped over 1,200 companies in their estimating/bidding systems and has lectured to over 70,000 contracting people nationally and internationally.

Constantly in demand, Mr. Vander Kooi speaks at an average of 100 Trade Shows and Conventions annually, teaching his philosophy across the U.S., Canada and Australia. His company consults with an average of 100 clients annually to assist in improving their performance.

He has authored eight books to the industry and his seminars are available on audiocassettes as well as videos.

Vander Kooi and Associates, Inc.
Phone: 303.697.6467, Fax: 303.697.6815

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