CHAPTER 2 The 80/20 Rule
Maximizing Your Homes Appeal
"The 80/20 Rule," also known as the Pareto Principle, is a concept credited to Vilfredo Pareto, an Italian economist and philosopher who, in 1906, noticed that 20% of the pea plants in his garden were yielding 80% of the healthy pea pods. This sparked an exploration into other areas of uneven distribution, leading to the discovery that a minority of causes often lead to a majority of the results. Pareto found that 80% of
Italy's land was owned by 20% of the population and that in various industries, a small percentage of companies accounted for the majority of production. This principle has been observed in numerous business contexts, suggesting that a significant portion of outcomes is typically driven by a relatively small number of factors: • 20% of sales reps generate 80% of total sales • 20% of customers account for 80% of total profits • 20% of reported software bugs cause 80% of software crashes • 20% of patients account for 80% of healthcare spending Applying the 80/20 Rule to Home Selling
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