The Cheaper the Better
Sam Walton say concerning running the business: "When it comes to Wal-Mart (WMT), there's no two ways about it: I'm cheap."
There are still a lot of managers that read that statement and will cringe because in their estimation it's an extremely negative comment. And they are wrong.
Experientially I've watched great businesses that sell great products and high profit margins go under because the leadership had no concept of being frugal with 
their cash flow.
Now before anybody starts commenting, I want to say that Walton understood where the money must be invested and where it didn't.
For example, he didn't hold anything back in creating the distribution system they use to process the seemingly endless amount of products they receive hourly; and get them sent to the right store locations.
What is needed to be understood is that we live in a world of scarcity and decisions need to be made that make the best use of the scarce commodity of profits. Well-meaning managers that get the best of everything won't make it long in this business. It's a nice thought but unrealistic. It can take the focus off of what is really important and puts it on things.
If success in management and business were that easy, we could simply buy our way to the top.
Walton and other great managers understood where that needed to be cheap and where they needed to commit dollars that would provide the greatest benefit. This is as important today as ever.
Other Walton Sources:
The Most Underrated CEO Ever The legendary Sam Walton
Sam Walton: The Power of Persistence
Sam Walton Business Quotes for Ya
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