Pricing for Drone-Generated Local Commercials: A Comprehensive Guide

Creating a 30-second local commercial using your drone, scripting, editing, and even providing the voice-over all by yourself can be a significant undertaking. How much should you charge for such a project? When it comes to pricing, the effort you put into the project and the potential return on investment are crucial factors to consider.

Understanding the Value of Your Work

When you produce a commercial, especially one that can stand out with unique drone shots, you are tapping into a range of skills and resources. As Steve mentioned, a 30-second commercial can typically cost between 400 to 1000 dollars. However, this price can escalate significantly if you use a video studio and professional talent.

It is important to consider the market rate and what similar services are charging. For instance, TV stations may offer a much lower rate due to the volume of work they handle. Ad agencies, on the other hand, tend to have higher budgets and can provide more considerable payments. As a studio owner, Steve found that he could not compete with TV stations and shifted his focus to working with ad agencies, earning around $300 per hour.

Software Tools for Cost Analysis

To get a better sense of your costs, there are software tools available for calculating your budget. A search for “best-film-budgeting-software” on the internet can provide you with useful resources. However, keep in mind that these tools are merely a starting point and do not account for all the nuances involved in a project.

Finalizing the Price with the Client

Before commencing any work, it’s essential to discuss and agree upon the final price with the client. Your contract should clearly outline any additional services that will be billable. While some projects may be done “on spec” with the expectation of promotion, it’s vital to ensure a return for your efforts. Promotions through agreements, like social media mentions, can be a worthwhile strategy. However, it’s crucial to also have a minimum hourly rate to guide your pricing.

A reasonable hourly rate for your skill level, including all incidental costs, should be around $100 per hour. This rate should be applied to your time and resources, including equipment depreciation, third-party insurance, music licensing, graphical elements, transportation, and any other associated costs. Retro-calculated, your minimum bill for your time alone would amount to $600.

If the client could undertake the project themselves, they likely would have done so. If they hired skilled staff and equipment, the cost would be higher. Therefore, it’s essential not to sell yourself short and avoid accepting rock-bottom rates.

Building a Professional Reputation

The quality of your work and your professional reputation are key to attracting more clients and sustaining your business. It’s important to project confidence in your abilities and avoid taking on jobs that don’t justify your expertise.

Enter into negotiations knowing that if you are the go-to person for 100 commercial shots in 30 seconds, you are setting yourself up for financial strain and lack of respect in your industry. It’s crucial to stand your ground and walk away from any deals that don’t align with your business goals and values.

In conclusion, the price for a drone-generated 30-second local commercial can vary widely. It should reflect the time and effort you invest in the project, along with any additional services you provide. By setting a fair price and building a robust business model, you can ensure your success and professional growth in the market.