Why buy the Cadillac when the Chevy will do?

why buy the cadillac when the chevy will doTimes have changed since this saying came about, when the Cadillac was the gold standard. The point is still incredibly valid – why pay a lot of money when your needs are satisfied by less. I was reminded of this saying this weekend while looking for a barrier to keep my new dog from running up stairs. The pet stores had pet gates, and I was shocked by the sticker price. So, I looked at baby gates at Target. The price differential between a low end baby gate and a low end pet gate was 2-3 times, and nearly 15 times differential between a low end baby gate and a high end pet gate. I don’t need a bunch of bells and whistles, just a barrier to put on the stairs. So, the baby gate met my needs.

These types of situations arise all the time in business. Whether it is systems, equipment, design, space, or pick your project, too much money is spent regularly because the scope and outcomes are not clearly understood. Money is poured into bells and whistles that aren’t really needed. It is pretty amazing when you start focusing in on the actual scope – your time and money can be dramatically reduced. This is different from wanting a Cadillac, but only willing to pay for a Chevy. The difference is knowing your needs, the scope. How are you ensuring you are clear on your needs and not getting a bunch of bells and whistles that aren’t really needed?

Posted in Financial Management, Leadership, Strategy.

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