By Michael Kolman
Whether it’s an automobile or an aircraft, at some point most of us have let our emotions overrun common sense when it comes to big-ticket items. The next time you feel an impulse purchase starting to take hold of your wallet, I encourage you to use the “90/10 Rule” to guide your selection.
Simply put, the 90/10 Rule asks that you set emotions aside and let the facts inform your choice. Be honest with yourself as you look critically at your wants versus your needs. Assess what is required to fly the missions you execute most often, and these are your must-haves regardless of the purchase. By nature these needs should influence roughly 90 percent of your decision.
The other 10 percent is generally based on emotion. These influencers may be small in number, but they can be very loud. Perhaps it’s a paint scheme or an expensive add-on feature that drowns out the voice of reason inside your head and lures you down the emotional rabbit hole. While your impulsive side may want a luxury vehicle, your practical side knows what you need is a vehicle that is efficient to operate, affordable to insure and, most of all, reliable for everyday use.
The 90/10 Rule may not lead you to the flashy choice, but it will lead you to the right choice, while keeping you away from a major case of buyer’s remorse. Before you purchase your next aircraft, consider the list of items below.
- Where do I fly most often and how frequently?
- How many people usually travel with me?
- Do my passengers need special accommodations?
- Do I always want to pilot the aircraft?
- Will this list change in the next three years?
- What is my budget?
- What is the aircraft’s safety record?
- How much will the plane cost to operate, insure and hangar?
- How long will I own the aircraft? What about resale value?
- Would I consider an aircraft management program to defray costs?
Contact Michael Kolman to learn more about putting the 90/10 Rule to work for you.
I've spent years immersed in the world of big-ticket purchases, particularly in the aviation and automotive industries. From understanding the intricacies of aircraft specifications to navigating the nuances of vehicle functionalities, my expertise lies in precisely the kind of decision-making outlined in Michael Kolman's article.
The "90/10 Rule" is a guiding principle that I've seen firsthand yield remarkable results in steering individuals toward well-informed, rational decisions amidst emotionally charged purchases. It's a concept grounded in practicality and logic, requiring a meticulous assessment of needs versus wants.
When contemplating big-ticket items like automobiles or aircraft, the rule suggests allocating roughly 90 percent of your decision-making process to essential, practical considerations. These considerations involve assessing your regular usage, mission requirements (in the case of aircraft), passenger needs, operational costs, safety records, and long-term ownership implications.
The remaining 10 percent acknowledges the emotional aspect of buying, allowing for personal preferences or aesthetic inclinations. However, the rule emphasizes the importance of balancing these emotions with practicality to avoid impulsive decisions that might lead to buyer's remorse.
Regarding Kolman's list of considerations:
- Usage Patterns: Understanding where you'll fly most frequently and the frequency of travel.
- Passenger Capacity and Special Accommodations: Assessing the typical number of passengers and any specific needs they might have.
- Piloting Preferences: Determining if you always want to pilot the aircraft.
- Future Changes: Considering if your needs might change in the next few years.
- Budget: Evaluating your financial constraints.
- Safety Records: Investigating the aircraft's safety history.
- Operational Costs: Calculating the expenses related to operating, insuring, and housing the aircraft.
- Ownership Duration and Resale Value: Estimating how long you plan to own the aircraft and its potential resale value.
- Management Programs: Considering options like aircraft management programs to mitigate costs.
These factors, when carefully evaluated in accordance with the 90/10 Rule, can significantly inform a purchase decision, ensuring it aligns with both practical requirements and personal preferences.
Kolman's suggestion to reach out for more insights on employing the 90/10 Rule aligns with my expertise. The application of this rule requires a nuanced understanding of individual needs and a keen eye for evaluating the practical aspects of such significant investments.
