Lo Barato Sale Caro is a Spanish saying which translates as “That Which is Cheap Comes Out Expensive.” Now I’m a thrifty guy, raised to believe “Waste Not, Want Not” BUT I also believe in Quality and Durability and I’ve been around long enough to see how expensive poor quality can be. I’ve also learned that paying lots doesn’t guarantee quality and there are often economical solutions to many problems, some of them relatively simple. And quality for a Chevy is different than for a Cadillac. It can get complex; imparting the wisdom gained over the years while still remaining open to learning myself is an ongoing challenge.
Thrift means finding that sweet spot where desired quality meets a good price. Thrift does NOT mean cheap; thrift means getting value for your time and money.
Recently The Collier Companies removed “expense control” from all bonuses including NOI (Net Operating Income: Income minus Expenses); instead we will bonus on Customer Service, Occupancy etc. Why? Because we were seeing too much short term thinking, too much delaying of needed expenditures at the end of the quarter in order to make NOI bonus. (That’s the thing about bonuses: the sooner they are paid, the more impact they tend to have yet the best business planning should extend over a minimum of several years).
We are NOT doing away with our annual Financial Plans and monthly reviews of financial results will remain; they will just not be subject to bonuses: “If you talk about change but don’t change the reward and recognition system, nothing changes.” – Unknown
“Cannot people realize how large an income is thrift?” – Marcus Tullius Cicero, 106 – 43 BC
“The bitterness of poor quality remains long after the sweetness of low price is forgotten!” – Proverb
“Quality is never an accident; it is always the result of high intention, sincere effort, intelligent direction and skillful execution; it represents the wise choice of many alternatives.” – Unknown
As always, I share what I most want/need to learn. – Nathan S. Collier