Opportunity Cost and the Winter Jacket Dilemma: Lessons in Service Design and Decision-Making

This winter has been brutally cold—and it’s only early January. Last year wasn’t this bad, so I figured my trusty Jack & Jones winter jacket, which worked perfectly in Amsterdam, would hold up just fine in Toronto. Spoiler alert: it didn’t.

Last winter, I felt pretty smug about dodging the bullet of buying a “real” Canadian winter jacket. My friends warned me, but I brushed it off. Why? Because the good ones, like Canada Goose, cost over $1,000 CAD. For context, my Nigerian origins rebelled against the idea of wearing what could amount to someone’s yearly house rent back home—on my back.

So, I resisted. I held on to my Amsterdam-approved Jack & Jones jacket and thought I’d gamed the system. Until now.

Fast forward to this year. Each morning and evening as I commute to work, I’m freezing. Truly, utterly freezing. And with each frosty step, my mind churns through a mix of emotions:

• Anger: “Why didn’t I just buy the damn jacket?”
• Rationalization: “It’s probably only going to be this cold for one more day.” (Spoiler: It’s not.)
• Creative budgeting: “I could just buy three great sweaters and layer them with my Jack & Jones—new clothes and warmth for the price of one Canada Goose.”

And yet, here I am, shivering.

The Opportunity Cost of Staying Cold

This daily ordeal got me thinking: this isn’t just about jackets. It’s about opportunity cost and decision-making. We face these dilemmas all the time, whether it’s in life, business, or even in service design. Every choice we make has a trade-off, and the cost of not investing in the right solution often becomes painfully clear only when it’s too late.

Take business decisions, for example. A company might resist upgrading outdated technology because of the upfront expense. But the hidden costs—inefficiencies, frustrated employees, lost customers—can far exceed the investment. It’s like my jacket: not spending the money up front seemed smart, but the daily cost of discomfort (or worse, getting sick) is proving far more expensive.

Lessons in Service Design

In service design, we aim to understand the user’s needs and create solutions tailored to their environment. My Amsterdam jacket was great—for Amsterdam. Toronto? Not so much. Similarly, solutions that work in one context won’t necessarily succeed in another. A one-size-fits-all approach can leave users (or commuters) out in the cold.

Here’s what I’ve learned:

1. Understand the Environment: Context is everything. What worked before may not work now.
2. Invest for the Long-Term: Sometimes, the high upfront cost of a quality solution saves you pain and frustration in the long run.
3. Don’t Ignore Feedback: My friends warned me. My inner voice warned me. Ignoring valuable input often leads to poor outcomes.
4. Measure the True Cost: Opportunity cost isn’t just theoretical. The “savings” from avoiding a better solution often translate into hidden expenses elsewhere.

Wrapping Up (Literally)

As I weigh the decision to buy a Canada Goose jacket, I’m reminded of what service design is all about: making choices that prioritize long-term value and user needs. Whether it’s a jacket or a business strategy, investing in the right solution—tailored to the right environment—is almost always worth it.

So, what’s your version of the winter jacket dilemma? Are there areas where short-term savings are costing you in the long run? Let’s share and learn from each other’s experiences in the comments below.