The Aggregation Of Marginal Gains – what a world beating cycling coach can teach home-sellers.
I came across an interesting article about Tour de France cyclist coach, Dave Brailsford.
From the article:
“In 2010, Brailsford faced a tough job. No British cyclist had ever won the Tour de France, but as the new General Manager and Performance Director for Team Sky (Great Britain’s professional cycling team), Brailsford was asked to change that.
His approach was simple. Brailsford believed in a concept that he referred to as the “aggregation of marginal gains.” He explained it as “the one percent margin for improvement in everything you do.”
His belief was that if you improved every area related to cycling by just one percent, then those small gains would add up to remarkable improvement.
They started by optimising the things you might expect: the nutrition of riders, their weekly training program, the ergonomics of the bike seat, and the weight of the tires.
But Brailsford and his team didn’t stop there. They searched for 1 percent improvements in tiny areas that were overlooked by almost everyone else: discovering the pillow that offered the best sleep and taking it with them to hotels, testing for the most effective type of massage gel, and teaching riders the best way to wash their hands to avoid infection. They searched for one percent improvements everywhere.
Brailsford believed that if they could successfully execute this strategy, then Team Sky would be in a position to win the Tour de France in five years’ time.
He was wrong. They won it in three years.
In 2012, Team Sky rider Sir Bradley Wiggins became the first British cyclist to win the Tour de France. That same year, Brailsford coached the British cycling team at the 2012 Olympic Games and dominated the competition by winning 70 percent of the gold medals available.
In 2013, Team Sky repeated their feat by winning the Tour de France again, this time with rider Chris Froome. Many have referred to the British cycling feats in the Olympics and the Tour de France over the past 10 years as the most successful run in modern cycling history.”
The article then asks, “What can we learn from Brailsford’s approach?”
The answer is obvious, isn’t it?
The coach’s concept: “The aggregation of marginal gains.”
As the author points out, “It’s easy to overestimate the importance of one defining moment and underestimate the value of making better decisions on a daily basis.”
“Almost every habit that you have—good or bad—is the result of many small decisions over time. And yet, how easily we forget this when we want to make a change. So often we convince ourselves that change is only meaningful if there is some large, visible outcome associated with it. Whether it is losing weight, building a business, travelling the world or any other goal, we often put pressure on ourselves to make some earth-shattering improvement that everyone will talk about.
Meanwhile, improving by just 1% isn’t notable (and sometimes it isn’t even noticeable). But it can be just as meaningful, especially in the long run.”
After all, isn’t that how Warren Buffett became one of the world’s richest people? Not overnight. But through the power of consistently good decisions and compound interest. Small regular improvements. Aggregated together. Compounded over time.
Again, it didn’t happen overnight, but his well-documented approach to investing – rooted in common sense – is what turned Buffett’s portfolio from 3 shares of Cities Service, an oil service company, at the ripe age of 11—into, 75 years later, a personal fortune of $72.5 billion.
Or, to truly grasp the size of that number. . . stated more profoundly — 72,500 million dollars.
When selling your home, the path to maximum profit – no different than winning the Tour de France or engineering a massive portfolio – isn’t done with one epic, noticeable decision.
It is, instead, the aggregation of many small decisions that serve to do three things:
1. Eliminate costly mistakes.
2. Maximise your sale price.
3. Minimise your selling expenses.
Take a look at the chart below:
Now imagine the negative impact of just a 5% decline in decision-making effectiveness over the course of 100 decisions.
At first, it’s not noticeable. But quickly, those inferior decisions begin to compound, derailing the entire train. The opposite is true for highly-effective decisions. They too, over the course of 100 decisions, quickly compound to lead to a result that maximises profits.
This is why, when it comes to our approach to selling your property, we’ve documented it, to help you consistently make more effective decisions throughout the selling process.
Higher net sale proceeds. And not just for the occasional client, but consistently higher profits for every client who follows the approach.
In fact, 300+ clients have banked, on average, close to $5,000 extra profit. And that’s only what can be definitively measured – their fee savings compared to traditional percentage based commissions. If we could also measure their increased sale prices – that figure would be into the tens of thousands.
If you would also like to end up with the most possible in your hand – contact us to arrange an initial home-selling consultation. There is no cost involved and no obligation on (either of us) for you to become a client. It’s simply an opportunity for us to meet, discover you needs and figure out if we are the best fit to help you.