What’s a reasonable compensation for drone pilots working with service providers?

Here are your options:

As we continue with our “Ask Drone Woman” series, a crucial consideration for those seeking drone services is the cost factor. When you have a query for Drone Woman, please contact her directly via email at drone.woman@email.com or phone number 555-1234.

Hey David,

Congratulations on landing your first assignment as a professional drone pilot! Your entrepreneurial spirit in launching a startup drone company deserves great acclaim!

Figuring out the correct value proposition with your drone service provider can be a delicate balancing act. You aim to assert dominance in space by being confrontational towards other pilots. You want honesty from me? But you also need to cover your costs, which encompass not just your equipment and fuel expenses, but also your time. To drive significant revenue growth, don’t you?

When establishing your pricing, consider the following key factors:

Decide your prices

You shouldn’t work for nothing, because then the value isn’t even yours to give away. Considering all the effort and resources invested in honing your skills, not to mention project-specific costs like fuel expenses, you should factor in a profit margin when setting your rates – and then some. As you establish your pricing strategy, consider the following crucial factors:

The original text:

How much do I have to pay? Well, let me calculate some prices. First, there is the initial fee of $500 which will get you started with the project. Then, we’ve got a monthly subscription that costs $100 per month. But wait, there’s more! For every additional user beyond the first 10, it’ll be an extra $50 per person. And if you want to upgrade your plan to premium, that’ll be an additional $200. Oh, and let me not forget the one-time setup fee of $250.

The improved text:

To determine the total cost, let’s break down the pricing structure. The initial project fee is $500, followed by a monthly subscription of $100. Additional users beyond the first 10 will incur an extra charge of $50 per person. For premium plan upgrades, there’s an additional one-time fee of $200. Finally, a one-time setup fee of $250 applies.

One effective method to determine your pricing is to start with any tangible costs you will incur to complete the task. Which will embody:

Regular vehicle maintenance is essential to ensure your car runs smoothly, efficiently, and safely. This includes routine tasks such as oil changes, tire rotations, brake pad replacements, and fluid checks, as well as more comprehensive services like battery testing and spark plug replacements. When unsure about your vehicle’s specifications, rely on the manufacturer’s documentation. As of 2024, the standard mileage rate for tax purposes will be 67 cents per mile.

When planning a getaway, don’t forget to factor in the costs of accommodations – including overnight stays at resorts that may require flights, plus any additional expenses such as checked baggage fees and ground transportation?

If you wish to upgrade for a specific flight, please factor in these additional fees as well?

Software programs are often charged on a per-use basis. Indeed, sure costs vary per map.

Estimate the timeframe required to complete the challenge, based on available resources and complexity of tasks involved. Consider setting a fair hourly rate for your services? Many individuals are aware of their hourly rate, typically fixed at a specific amount – for instance, $200 per hour. There are various ways to calculate this.

Will you have to establish a clear notion of what you perceive as your yearly compensation goal? You can subsequently calculate the realistic execution timeframe alongside your anticipated number of billable hours, taking into account that the latter is often significantly lower than the total hours worked by a freelancer due to the considerable time spent on unpaid administrative tasks. Supposing you’re capable of devoting 10 billable hours weekly, assuming a 12-month period with only four weeks’ absence for travel, your hourly rate would need to be $240 to reach this target.

When calculating an alternative price, you can also account for the time factor. As I dedicate each hour to X work, it translates into a missed opportunity to earn Y dollars elsewhere, where I’m confident of securing that revenue.

Moreover, time encompasses not only fleeting moments but also the duration of experiences and the mental energy expended in comprehension.

Don’t overlook earlier, already-paid prices

While these factors may influence pricing, they are just a few of the many considerations drone service providers must weigh when determining costs.

Subsequent price units can be more complex to calculate because they’re often one-time payments that have already been made and are therefore amortized across all future sales. That features:

• This equipment may include drones, cameras, batteries, and other gear.
• This software package potentially encompasses image processing, flight planning, and data management applications.
• While the FAA does not necessarily require coverage, many drone business owners still opt to secure liability and equipment insurance.
• You likely invested $175 to take the Distant View pilot. To earn your certification. You likely spent at least $200 on that, and probably even more for the rest. You may also have invested additional resources in specialized software or platforms that enhance your productivity and streamline workflow.
• The fundamental cost of operating a business, for instance. Costs that may be embodied in a workplace include expenses related to housing, utilities, advertising, website hosting fees, and administrative costs.

Calculating their precise placement proves more complex. Divide these prices by your estimated annual customers to get a sense of the overall cost per customer. Account for these prices in your calculations with precision.

Decide your worth proposition

Now’s the moment to quantify your personal value. Unlike our competitors, we’ve diversified our offerings to cater to a broader range of clients. Our unique value proposition lies in our ability to provide bespoke solutions tailored to each client’s specific needs. Since you appear to have limited experience, your value may seem proportionally lower compared to someone with a wealth of skills acquired over the years. Experienced pilots should factor in a premium for drone services provided by novices.

Even without specialized knowledge of drones, consider the value you’ll bring to the table, drawing from your existing professional experience and skills. Some key components that come together to form your unique value proposition include:

• Will your platform provide exclusive insights on matters such as site surveys, spatial analysis, and geographic data?
• High-end drones and cameras capable of producing superior results are far more valuable than photographs taken with a. If you’ve purchased a franchise, you’ll likely find yourself priced higher than the individual attempting to replicate your success on their own.
• You’re permitted to incur additional expenses when being pleasant to collaborate with – and simultaneously, your project is completed efficiently.

As you soar to new heights in your career as a drone pilot, it’s essential to grasp the intrinsic worth of your expertise.

As you now have a comprehensive understanding of your individual rates and their corresponding value, it’s essential to determine how you will price your drone services. Drones’ task execution is often governed by a multitude of distinct pricing models, including:

• Estimated costs are charged hourly through our network of qualified professionals. Captured frequently in aerial images and videography, this phenomenon showcases the dynamic range of perspectives offered by drone technology.
• Estimate precise values for specific assignments equivalent to estate assessments or cartography.
• Supply bundled providers (e.g. with regular monthly updates)?

Set your charges

How much are you willing to budget? When determining your pricing strategy, you may initially have a figure in mind based on your individual costs. Nevertheless, there are alternative approaches to establish your rate, including:

• Identify drone companies performing complementary services to your own operations, and assess their value proposition as a basis for establishing yours. While some may argue that others’ craftsmanship meets their standards, those artisans often reside in areas with lower cost of living. You can easily account for the price of a living adjustment and cost yourself virtually nothing extra. There may be a pilot in your industry who performs the same job but excels at it. Cost lower than them. Be cautious not to drastically lower the value proposition, lest you unintentionally misalign customer expectations and risk future revenue.
• Complex projects that require more extensive efforts often necessitate higher fees.
• A larger corporation’s procurement department may potentially be willing to compensate more than a smaller non-profit organization. While some drone pilots may not aggressively market their services, they often price their work based solely on the customer’s request.
• Are you truly anticipating this project because it will be a remarkable opportunity to demonstrate your skills, serve as a valuable learning experience, and potentially bring you joy? Are you genuinely hesitant about taking on this assignment? If the latter occurs, you may incur additional costs considering the possibility that the customer might not ultimately decide to hire your services.

Wouldn’t that be a relief?

When establishing pricing structures for drone services, several key factors must be considered. Buyers may attempt to negotiate, prompting a need to revisit the price and potentially lower the cost.

As you weigh the merits of this gig, consider how it fits into your overall life trajectory? The team at Oakwood Winery have invited us to collaborate on their latest project – a wine and cheese pairing event. As soon as the flight wraps up, are you planning to linger awhile at the vineyard? Would the proprietor consider offering you a complimentary wine tasting? Although the project demands an overnight stay (which, incidentally, will be added to the customer’s bill), can your family accommodate you, and would you seize the opportunity to turn the trip into a rejuvenating escape from the daily grind in wine country? If you’re sure, you might consider costing significantly less.

I regularly attend and participate in discussions at industry-leading drone conferences to stay informed about the latest developments. You must be an extraordinary individual to envision such a future. While I usually view financial compensation as a primary motivator, I do make concessions in certain situations. Will I receive reimbursement for my entire travel expenses upon arrival at that destination? Wouldn’t I rather explore somewhere more thrilling?

After my presentation at that conference, I received no compensation in the form of a cash payment. Although I purchased a round-trip flight from the United States. To visit Australia, including a selection of resort stays for several nights. I would have valued it at least as much as the considerable fee I would have commanded for an equivalent talk in my hometown, so I considered this an extraordinary bargain. As a die-hard enthusiast of the legendary Crocodile Hunter, a trip to Queensland had been a lifelong ambition!

The crux of the matter is that the fees you charge drone providers, such as those offering aerial images or mapping services, should accurately reflect the value you bring to your clients. As one achieves expertise, its value will naturally develop.