Марин Гълъбов

Abstract: The paper discusses a rule that may be applied by the management bodies of real estate companies, i. e. the 80/20 Rule. It is also known as the Pareto Principle, Pareto's Law or the Law of the Vital Few. Generally, the rule asserts that 80% of outcomes (or outputs) result from 20% of all causes (or inputs). It is named after Vilfredo Pareto, an Italian economist who noted the connection at the end of the 19th century. Many companies report different connection ratios such as 70/30, 90/15. etc. It is about producing most outcomes through relatively few causes or inputs. The paper presents particular examples illustrating the 80/20 Principle. Knowledge of the rule gives the management bodies of real estate companies the opportunity to apply measures that finally result in a profit level that is satisfactory to owners. Such profit level may also be in favor of the personnel and real estate companies.

Key words: Vilfredo Pareto, the 80/20 principle, real estate companies, resources, outcomes

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