Price you're charging clients

I’m planning on using Drone Deploy for some of the services I will offer clients. I was wondering what people are charging for agriculture, 3D modeling, and so forth. I don’t want to overcharge, but I don’t want to sell myself short either.

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I know it’s a bit of an open-ended answer, but for the sake of the UAV industry, charge as much as you can. Price yourself not on what it costs you to perform the service, but what it is worth to your clients. Price yourself high enough that they complain about the price, then lower it a bit. I doubt you’ll find anyone willing to divulge exactly what they charge for a given service; and unless they are in your exact geographic market, prices can vary greatly.

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@PabloT
No experience with the Ag industry; however different types of work and deliverables will dictate different pricing models.

Broken down very basically, this is what I do:

  1. Determine YOUR price to perform the work. Make sure to include all costs, like travel expenses, insurance, hour rate (include a cost to pay yourself even if you don’t), equipment, programs (like DD), material costs (like USB’s or SD Cards), depreciation, light bill, etc.

  2. I determined a service tier. Higher tiers result in higher margins for me. Higher tiers usually leverage more of my personal expertise, experience and unique programs. The deliverables are also usually more involved at higher tiers. I charge higher margins on the higher tiers because they typically tie up my time and resources longer, which in turn prevents me from pursuing/performing other paid jobs.

  3. Remember, that if you want repeat business, you need to establish a relationship with your clients, or potential clients. Be fair and honest with them and they will usually stick with you longer then if you “milk” them because of lack of competition. If you give a price and then immediately reduce it due to competition or from them asking you to, you could be planting the the seed in their head that you are trying to take advantage of them. On the flip side do not undersell yourself. Go through the first two steps and stay firm. As you scale operations, you may not be able hold razor thin margins because your fixed costs will increase.Sometimes the best outcome is that you lose a bid because you stuck to your pricing. An example of this is I put in a bid for $5,000 vs another guy who bid $500. My costs were close to $500 and the work was more complex then $500 worth of effort. Turned out I was right, the other company failed and the client came back to me to redo the job (I did give him a $500 discount to offset what he had to pay the other company).

  4. Determine your type of work and products. As I said, I do not do Ag projects because that is not my expertise area right now and I am not as confident in a deliverable product. I do not do real estate, because I want/need to make more then $50 for a project. I have tried to peg myself into a premium service level that pays $100’s of dollars an hour (however, I try to lump sum bid projects as much as possible).

  5. So to answer your question I have charge as little as $350 (about an hour of field work) for a project to a bid I have in for $25,000 which entails much more time, equipment, people and expertise.

I am not trying to tell you how to run your business, just how I approach mine. Hope some of that helps.

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Thanks for the feedback. Quite a few principles that I can apply as I get everything structured. Thanks for the help!

Makes sense. Thank you for the feedback.