CHAPTER 7 Pareto's Principle
“Eighty percent of results will come from just twenty percent of the action.” This is the Pareto Principle, attributed to Italian economist and philosopher Vilfredo Pareto, who, in 1906, observed an intriguing correlation: 20% of the pea plants in his garden generated 80% of the healthy pea pods. This observation motivated him to explore more examples of this uneven 80/20 distribution. He discovered that 80% of the land in Italy was owned by just 20% of the population. He investigated different industries and
found that 80% of production typically came from just 20% of the companies. His findings led to the concept now known as the “80/20 Rule” (i.e. 80% of results will come from 20% of the action).
RELATING THE 80/20 R G THE 80/20 RULE TO HOME SELLING
Understanding how the 80/20 Rule relates to real estate can help you sell your home faster and for top dollar. Applying the 80/20 Rule to the sale of your home means you should stop trying to sell people on the entire home. Instead, you should highlight the 20% of your home’s 33
Powered by FlippingBook