timmy67

getting into agricultur

9 posts in this topic

Hello everyone! I am just about to take my f107 airman test. Also I am just getting into the first steps of starting an ag business. I have bought 2 drones so far, one of them with a farming package.

My biggest question here is how can I price per acre? I do understand crop prices differ per lot size, and location. but I cannot figure out a way I can price this out. Its been a real headache for me.

 

P.S.-All and any input to help me out is greatly appreciated.

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I should also mention if you would rather pm information that is totally fine feel free! if you are wondering about my pakage, or drones I have chosen feel free to pm also.

Edited by timmy67

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Alan thankyou for the response I will take a look at this tomorrow!

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Alan thankyou for the reply! I just had a look. tho not seeing much about prices for an operation per hour, did I miss something there? also there was a lot of helpful information

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Hi @timmy67, I think pricing by the hour is a poor strategy and prefer more of a value-based pricing model. You can look into half-day and day rates, but at the end of the day, specifically when it comes to agriculture, there are no standard rates. The industry is too young and the use cases and technology and level of pilot expertise is all too fragmented. You're going to need to talk to the client to best understand what they need, what kind of ROI they'll ultimately get from working with you, and what makes sense re: payment. Part of being a good sales person when running a service business is learning to have a quality pricing discussion with the client.

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On ‎1‎/‎26‎/‎2017 at 11:27 AM, timmy67 said:

I ment per acre not hour

 I am/have struggled with this as well.  Right now in my area it was a bad season so farmers are penny pinching.  I have spoken to others throughout our state and they use a price/acre scale.  If its a "small" area anything below 500 acres they charge a rate then 500-1000 acres they give a break then above 1000 a larger break. 

Satellite imagery is quite cheap, but not great quality and sometimes clouds cover up everything so it's useless.  You have to explain to a farmer why a drone will be better for them not in saving them money, but in producing a better yield and letting them understand that we can provide the imagery and detail so they know where the problems are.  If you can, hitch a ride with an agronomist for a week during the spring/summer and provide your services to them for free in repayment and soak up as much knowledge as possible so you can actually give an intelligent report and analysis based upon the imagery. 

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Jumping into this thread a little late but this is one area I am looking at also for a drone business.  I do have the luxury of being married to an agronomy supplies salesman so have a little insight.  Like Juggernaught said, farmers are pinching pennies and it's hard to get them to see value in something that is "just another expense".  Also like Alan said, there are not alot of use cases that you can point to right now to justify the extra cost.  I asked my husband why he thought drones weren't really taking off B| in farming (at least in our area) and he said they mostly all rely on satellite images.  Some farmers have bought drones but I think they thought of them more as a toy (even if they write them off on their taxes).  My brother installs GPS units in farm machinery and he hits the nail on the head also, telling me that farmers like tech but they want someone else to run it, analyze the data and keep it working.  They also want it cheap.

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