The Espresso Machine principle from 80/20 Sales & Marketing says for every 1000 people who buy a $5 latte, one will spend $2700 on a gleaming stainless steel espresso machine.
This isn’t just a nifty theory, it’s a law of economics. It’s also fractal – a pattern within a pattern within a pattern! This creates the magical compound interest of 80/20 wealth creation.
Perry Marshall’s AI Espresso Machine GPT shows you exactly how much money you’re leaving on the table, and how much more you can make by making a high performance high-end product… without having to find any more new customers.
(Trouble accessing the link above, or don’t have a ChatGPT Plus subscription? No problem! Access my old-school Espresso Machine Calculator here!)
80/20 says 20% of your clients want to give you 80% of your revenue.
80/20 Squared says 20% of 20% of your clients want to give you 80% of 80% of your revenue. That means 4% of clients generate 64% of your sales.
80/203 “cubed” says 20% of 20% of 20% of your clients want to give you 80% of 80% of 80% of your revenue. That means 1% of clients contribute 50% of your sales.
It keeps climbing – 80/204, 80/205 and so on… until there’s only one client left. (That client might be Jeff Bezos.)
Click here to use the AI Espresso Machine GPT Calculator.
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One Comment on “80/20 Espresso Machine Calculator”
Excellent little tool, thanks for sharing it!
I first read Perry’s 80/20 book back in 2014! We implemented several strategies and I followed up with his excellent Adwords book, which was as he promised “the best €15 I ever spent”.
A little over a decade on, I feel we can redeploy more 80/20 strategies to grow our guided and self guided bike tour business and it’s interesting to see what the AI prompted by the Marshall plan can do.
Very interested to see what Perry and his team can do with AI, let’s keep in touch!