Authorify Seller Sample Book

even pay full asking price, even though this house is more expensive than the others. Here’s where something called the “80/20 rule” comes into play. The 80/20 rule, also known as the Pareto principle (suggested by Joseph M. Juran and named after Italian economist Vilfredo Pareto), states that for many situations, approximately 80 percent of results, or effects, will come from roughly 20 percent of efforts, or causes. While it does not always come out to be an exact 80/20 ratio, this imbalance is often seen in various business cases: • 20% of sales reps generate 80% of total sales. • 20% of customers account for 80% of total profits. • 20% of the most reported software bugs cause 80% of software crashes. • 20% of patients account for 80% of healthcare spending. In the above example, the buyer’s offer wasn’t based on the 80 percent of features this house shared with the rest. Instead, his bid was based on one unique attribute: the pool. The 80/20 rule predicted the sale of this house. Unfortunately, a lot of time was wasted in finding the perfect house. Had the agent known to look for the 20 percent difference, this might have been their first stop. BUYERS FOCUS ON UNIQUE FEATURES

As a seller, you can leverage the 80/20 rule to work in your

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