Myth of the “good, fast, cheap” triangle and how it relates to the insurance industry

For decades, the “good, fast, cheap” triangle has been a key concept in the business and project management world. The concept applies to just about every business industry and states that you cannot provide a “good, fast, and cheap” service all at once. Instead, you’ll need to pick two.

Many in the insurance industry cling to this adage, believing that any deviation from the old, established way of doing business will somehow result in a lower quality, higher cost, or just a worse product or experience. 

But the “good, fast, cheap” triangle is a dated concept and doesn’t reflect our current reality, especially when it comes to modern tech products or services. 

In this post, we will break down what the “good, fast, cheap” triangle is, explain the reality behind the concept, and discuss how this all relates to the insurance sector.

What is the “good, fast, cheap” triangle?

The “good, fast, cheap” triangle is also commonly referred to as the project management triangle and has been around for at least 70 years. This is essentially an expansion on the simple phrase, “You get what you pay for.” It reflects the idea that in any project or service, there are trade-offs between these three key factors: quality, speed, and cost.

The “good, fast, cheap” triangle is often taught in business schools and has been a concrete “truth” for years.

The concept is simple. You cannot have a product or service that is efficient (fast), affordable (cheap), and of high quality (good) all at the same time. According to the triangle, when a product or service is fast and cheap, the quality is compromised. And when a product or service is fast and high-quality, it’ll cost more. This model is often seen as a basic framework for setting realistic expectations in project management and business operations. 

This all makes sense, right? Well, there is just one problem: The “good, fast, cheap” triangle is a myth.

Myth of the “good, fast, cheap” triangle

In reality, this “triangle” doesn’t really apply. There are many more factors that affect the quality, efficiency, and affordability of a service. Below we’ll debunk the three most common myths, and show how companies can indeed achieve good, fast, and cheap services without sacrificing one factor over another.

Myth 1: Fast + good = expensive

The triangle claims that if a service is high-quality and fast, it cannot be affordable. While this does hold true in some cases, it’s not valid across the board. With the rise of SaaS (software as a service) and subscription model payment methods, you can now access premium products and services at a fair price. Companies like IKEA, Netflix, and Southwest Airlines provide generally favorable services that are efficient and come at a low cost.

Of course, a company’s ability to provide top-tier services at a low price is heavily dependent on the industry. For example, healthcare and specialized manufacturing cannot generally provide affordable services due to the high cost of equipment and materials. 

Myth 2: Fast + cheap = poor quality

While more expensive items and services tend to be associated with better quality, this is not always the case. Modern innovation and technology have allowed companies to lower costs without compromising quality or slowing down processes.

For example, in the last decade, Domino’s Pizza has made major improvements to its pizza recipe and invested in high-quality ingredients. The company also invested heavily in improving its online order and delivery systems, making deliveries much quicker and more efficient than those of its competitors. That said, despite improving their quality and speeding up their service, they have managed to keep their prices low. In 2018, Domino’s surpassed Pizza Hut as the largest pizza company in the USA and continues to retain the biggest market share in 2024. 

Myth 3: Good + cheap = slow

The final false claim of the “good, fast, cheap” triangle is that a high-quality and affordable service must be slow or inefficient. This is because the company must sacrifice its workforce or efficient processes in order to keep prices low, right? Wrong again. 

Here is another real-world example that debunks this claim:

Amazon Prime’s business model demonstrates how a company can deliver all three aspects — good quality, fast service, and affordability. The company provides consumers with a high-quality product that includes a video and music streaming service and faster delivery on products ordered through the platform. Additionally, the membership is pretty affordable, costing less than $140 for the entire year. Despite Amazon providing a good service at a low cost, it is anything but slow. The website is efficient, and it offers some of the fastest delivery times on the planet.

What’s the reality?

So, now that we have established that the “good, fast, cheap” triangle is false, what is the reality? And how can companies achieve all three factors?

A bad-quality product is not an option

The modern business landscape is highly competitive. There is no longer room for low-quality products or services to thrive. Consumers are more informed and discerning than ever, with easy access to reviews, comparisons, and alternative options. A poor-quality product can quickly tarnish your brand’s reputation and lead to negative reviews and a loss of customer trust. This is especially true in industries like professional services such as legal, accounting, and insurance, where consumers cannot afford to sacrifice quality. Even if you offer your “bad” product at a lower price, most consumers won’t choose it because they know it won’t deliver value.

Technology allows us to speed things up without compromising quality or raising prices

Any given product can serve as an example for this point. Think about how long it took to create it and whether its current version is superior to one that existed fifty years ago. It’s hard to think of any industry in the world that hasn’t improved tremendously in both speed and quality because of advances in technology. From transportation and manufacturing to finance and construction, all industries have been forced by competitive pressures to embrace technology and improve both the quality of the product and the speed of production.

Technology allows companies to create new and improved products and services at a larger scale without having to raise costs tremendously.  

Increased efficiency generally improves products and lowers costs

Addressing kinks in the supply chain and streamlining processes within a business can improve all three factors of the project management triangle. When you increase productivity, you’ll reduce “waste.” A company can use automated systems, better resource management, and optimized workflows to produce higher-quality products faster and more consistently. 

Efficiency minimizes the time, workforce, and materials required to produce a product or supply a service, leading to cost savings. Companies can then pass these savings on to consumers while maintaining or even improving product quality, creating a win-win situation for both the business and its customers.

Improving a product that is sold at the same price improves its value

In today’s day and age, companies are constantly updating and improving their services to try and cut through the competition. While these improvements occasionally resolve with a price hike, many businesses raise them minimally, if at all.

If a company rolls out a new version of a product or service with more features and improved useability but charges the same price for the newly updated product, they have drastically improved its value.

For a real world example, let’s look at the iPhone:

The original iPhone, released in 2007, cost nearly $500. When adjusted for inflation, this is equal to around $760 in 2024. For reference, the iPhone 15, released in 2023, costs $799. The iPhone 15 is obviously a much more advanced product than the original iPhone, but it comes at around the same cost as its predecessor. This proves that improving quality doesn’t necessarily mean a company must raise prices.

The adage doesn’t apply to software and online services

What about industries that don’t produce physical products? As mentioned, the project management triangle was originally created more than 70 years ago, long before SaaS existed. Thanks to major technological leaps such as artificial intelligence, the tech industry is able to provide solid and efficient services at an affordable price. A tech company with a relatively small team can develop and launch a new product without having to hold stock, hire a massive team, or manufacture products. 

How does this fit into the insurance industry?

The “good, fast, cheap” triangle does not apply to the insurance brokerage industry, as policies with all three sides of the concept definitely exist. Let’s take a look at these three key factors and how they relate to insurance.

Good coverage

The most important factor that any policyholder will look for in an insurance policy is solid and comprehensive coverage. The last thing anyone wants is an insurance policy that lacks important features, has low limits, or leaves them vulnerable when they need it most. 

A policy that doesn’t offer sufficient coverage can lead to significant financial hardship in the event of a claim, leaving the policyholder exposed to risks they thought were covered. This is why good coverage is non-negotiable in the insurance sector — it can mean the difference between recovery and ruin after a major event. 

Quick and easy processes

While solid coverage is the foundation of any insurance policy, it is also extremely important to create streamlined and efficient systems that make claims and sign-up processes easy. New customers should not have to jump through countless hoops to make claims. Additionally, the underwriting system should be fast and efficient. If an insurance broker has overly complicated sign-up procedures or long waiting periods, customers are likely going to choose a more efficient competitor.

Fair prices

Obviously, no one wants to overpay for insurance (or any product), and insurance brokers are generally committed to helping customers find the best policies at the best price possible. A good broker works to understand the client’s specific needs and tailors coverage accordingly, avoiding unnecessary fees or unwanted added coverage that can inflate the cost. They compare multiple carriers and policies to ensure the best value, balancing both coverage and affordability. By leveraging their expertise and industry connections, brokers can often secure competitive rates that individual customers might not have access to on their own, making it easier to get high-quality coverage without breaking the bank.

How does Embroker provide all three?

The idea that you can’t have a product or service that is good, fast, and affordable is outdated — especially in industries like insurance. As we’ve explored, modern businesses can leverage technology, efficiency, and innovation to provide high-quality, efficient services without inflating costs. Embroker is a leader in business insurance brokerage and embodies this by offering comprehensive coverage, quick and easy processes, and fair pricing.

With Embroker, your business won’t have to choose between good, fast, and cheap. We streamline policy selection and claims processes while ensuring you get top-tier coverage at the best price possible. This allows you to leave the insurance to us while you focus on what you do best — running your business confidently. 

For high-quality, affordable, and efficient business insurance, get a free quote from Embroker today and see for yourself how we defy the outdated “good, fast, cheap” triangle.

Previous insurance myths covered:

• Technology and existential dread
• The relationship business
• Redemption in data