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El Presidente

80: 20 Pareto Rule: How does it apply to the world of cigars?

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For those not familiar with the Pareto Principle. 

"The Pareto Principle, or the 80/20 rule, states that for many phenomena 80% of the result comes from 20% of the effort. The principle has been named after Vilfredo Pareto—an Italian economist—who, back in 1895, noticed that about 80% of Italy’s land belonged to 20% of the country’s population.

Other examples:

  • 20% of criminals commit 80% of crimes.
  • 20% of drivers cause 80% of all traffic accidents.
  • 80% of pollution originates from 20% of all factories.
  • 20% of a companies products represent 80% of sales.
  • 20% of employees are responsible for 80% of the result
  • 80% of complaints come from 20% of customers.
  • 80% of sales are made by 20% of sellers.
  • 80% of clients come from 20% of marketing activities.

I find it useful to use the rule in our businesses as a forced focus measure. 

But how would it apply to the world of Cigars?

Give it some thought and Put up your own 80/20 rule for Cigars :cigar:

One 80/20 rule per post. 

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80% of the total number of handmade cigars exported from Cuba is equal to 20% of the total number of cigars imported into the USA.

(Actually true according to Google and my maths skillz, maybe.)

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17 minutes ago, NSXCIGAR said:

Not sure about that. US imports about 330 million premiums and Cuba exports about 94 million premiums. 

His example was not a Pareto example it was just one figure with 80% and another with 20%.

80% of 94 million = 75.2 million

20% of 330 million = 66 million

Close enough...

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A related issue: the most expensive 20% of your sticks comprise X% of your cigar expenditures. 

Guessing that for most of us, X < 80 but X > 20. So, not an 80/20 scenario, but still some other distribution in the pareto family. Could use sales data to estimate the parameter. 

Why yes I did write a statistics textbook, why do you ask? 

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22 minutes ago, Bijan said:

80% of 94 million = 75.2 million

75 million CCs aren't getting to the US. And the rest of the world isn't getting only 20 million.

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1 hour ago, Notsocleaver said:

This could be an unpopular one, but 20% of my cigar smoking experiences make up 80% of my enjoyment. 1 out of 5 cigars I smoke are remarkable, the other 4 or so are just pleasant company.

I can relate. Most nights I just pick one out to accompany me in front of the TV. I admittedly don't always focus on the cigar or the nuances of the tastes. 20% of the time (or maybe less), I will have a cigar with mates or at a bar and pay much more attention to the cigar. That is mostly the occasions where I properly appreciate what I'm smoking. 

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4 hours ago, Notsocleaver said:

This could be an unpopular one, but 20% of my cigar smoking experiences make up 80% of my enjoyment. 1 out of 5 cigars I smoke are remarkable, the other 4 or so are just pleasant company.

To take that a different way, 80% of an individual stick’s enjoyment comes from 20% of the experience. Whether wonderful rare bursts of flavor, a void you encounter that causes it to go out, canoe, unraveling, or a really great third (which takes us closer to 33% if it’s the entire third) - a short portion of our experience may inform how we feel about that session. 

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10 hours ago, NSXCIGAR said:

75 million CCs aren't getting to the US. And the rest of the world isn't getting only 20 million.

Oh maybe I understood it wrong. I read it as 20% of one number is equal to 80% of another number. Nothing to do with how many CCs actually end up where. As in if US did buy 80% of CCs that would be 20% of US cigar consumption.

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20% of the marcas represent the sum knowledge/experience of 80% of the people who’ve ever smoked CCs. 

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8 hours ago, Notsocleaver said:

This could be an unpopular one, but 20% of my cigar smoking experiences make up 80% of my enjoyment. 1 out of 5 cigars I smoke are remarkable, the other 4 or so are just pleasant company.

I agree with you on this. In fact I would probably go further.. pleasant company is possibly too generous. 1 in 5 is a remarkable experience, many of the rest is going through the motions. Having said that, much of the enjoyment is in the whole ritual. The whole ritual is pleasant but the smoke itself truly unremarkable.

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3 hours ago, Bijan said:

Oh maybe I understood it wrong. I read it as 20% of one number is equal to 80% of another number. Nothing to do with how many CCs actually end up where. As in if US did buy 80% of CCs that would be 20% of US cigar consumption.

You read and understood it correctly. I wasn’t implying 80% of CCs end up in the US. The numbers happened to work to denote the consumption of cigars in the US is significantly more than Cuba produces.

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Hmmmm.  80% of a dress box of cigars smoke perfect.  The other 20% have a defect. 

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80% too tight or too loose. 20% perfect

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20% of Cuban cigars sold account for 80% of profits for Habanos SA

 

 

 

 

 

 

 

 

 

 

 

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2 minutes ago, JoeyBones777 said:

20% of the rollers produce 80% of the perfectly constructed cigars.

very good :D

 

or .....20% of the rollers are 80% of the problem 

  • Haha 1

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