Drone Photo/Video Mission Fair Market Value

[WahooBadger]

I have accepted a request from the president of a nonprofit I volunteer for to do a drone video/photo shoot within a 100 mile radius of the organization for the high bidder in an auction that will take place at their big annual fiundraiser in October. I don't have a business, I just like flying the drone in places where folks want me to fly it, and this could be a great experience. I am 107 certified and recurrent. I have been asked to provide a fair market value for this mission, as such a value will be used to advise potential bidders of the opening minimum bid. At maximum, it would be two hours each way plus the time on site shooting whatever the winner would like, followed by editing and producing the finished product. I would appreciate any thoughts from the community on how to price this, and any other relevant thoughts as well. Thanks in advance.

 

[FLDave]

Fair market value would be based on perceived value to buyer not based on your costs. What you charge would be based on your costs such as time and and miles, but that's not fair market value. To really understand fair market value for your work you should compare it to what others are charging for similar work. You should do some research for similar situations.
On the other hand, just submit what you think your selling price should be and use that. It doesn't really matter if you call it fair market value or sales price; it's just a guess, unless you are really selling your work. What do you think someone would be willing to pay for a video from an unknow producer?
I think the quality and utility of the video is much more important than setting fair market price. After all you aren't receiving compensation but, if a great video you will get recognition so make it a stellar video which says "buy me".

 

[FLDave]

There is a lot to consider for value. Does the high bidder get the rights to use the video for commercial projects? How will the video file provided? Will you retain limited rights to use the video for your own gain? What are the details of the contract?

 

[MS Coast]

I'm guessing that the OP would like some input on a number. So, never having charged anyone for drone-based video services, I'll proceed.

The federal mileage deduction rate is $062/mile, so add $124 for 100 miles of travel each way.
The shooting and editing? For someone with limited professional video experience, like me, I'll toss out $300. So a total of $424.

For an absolute minimum figure, I'd estimate 30 minutes of prep, 4 hours of travel, four hours of shooting, and six hours of editing. 14.5 hours at $15.00/hr = $217. Add travel and the total is $341.

For an experienced videographer, $60/hr might be appropriate. $994 total.

For a charitable auction where you'd like to see generous bidding for a good cause, I'd probably set the value at $1000.

 

[Robert Prior]

Quick question: do you have insurance that will cover you for liability if anything goes wrong?

If not you might want to look at per-flight insurance. You should be able to get $2M for about $10. I've heard good things about Skywatch, but there are other providers.

Hourly Drone Insurance On-Demand

SkyWatch.AI's mobile app is an easy way to get hourly drone liability insurance for commercial pilots (FAA part 107 certified). It includes a smart system that helps cut down drone insurance costs as well as a flight planning and risk analysis features.

www.skywatch.ai

 

[Eagle Eye 62]

I would bid a flat. $500.00 this factors in travel cost but a fair value for an experienced pilot that also has photographic and video experience, i. e, not a rookie.

 

[MS Coast]

Quick question: do you have insurance that will cover you for liability if anything goes wrong?

If not you might want to look at per-flight insurance. You should be able to get $2M for about $10. I've heard good things about Skywatch, but there are other providers.

Hourly Drone Insurance On-Demand

SkyWatch.AI's mobile app is an easy way to get hourly drone liability insurance for commercial pilots (FAA part 107 certified). It includes a smart system that helps cut down drone insurance costs as well as a flight planning and risk analysis features.

www.skywatch.ai

I looked at their website and the only options I see are annual and monthly coverage, with monthly beginning at $42 for one million in coverage. Do you know how to access the hourly coverage? I've not installed their phone app. Do you know if the hourly coverage available only via the app? Thanks.

 

[WahooBadger]

Quick question: do you have insurance that will cover you for liability if anything goes wrong?

If not you might want to look at per-flight insurance. You should be able to get $2M for about $10. I've heard good things about Skywatch, but there are other providers.

Hourly Drone Insurance On-Demand

SkyWatch.AI's mobile app is an easy way to get hourly drone liability insurance for commercial pilots (FAA part 107 certified). It includes a smart system that helps cut down drone insurance costs as well as a flight planning and risk analysis features.

www.skywatch.ai

I am familiar with that, I shot some video of a fundraiser for a different animal rescue org and got the one day policy for 10 to 20 bucks.

 

[Robert Prior]

I am familiar with that, I shot some video of a fundraiser for a different animal rescue org and got the one day policy for 10 to 20 bucks.

Good. Just checking.

I've heard some horror stories from a friend who's a lawyer, of people volunteering to do something to help an organization and then being held personally liable for something going wrong.

 

[FLDave]

What I understand is that the OP would produce a video of his own, not producing for the organization. He would then donate the video to the organization and then suggest a fair market value, not a value based on cost to produce. Suggested selling priced based on cost to produce is not equivalent to fair market value.
Fair market value would be the perceived value to a prospective bidder, that's all. Or fair market value is the value accepted by buyer and seller. In this case the seller is the organization, not the video producer.

 

[WahooBadger]

Thanks to all for input to my original request. To clarify a bit, this item - I call it "An Eagle's Eye View ... of YOU" - will hopefully spark the interest of people who do not have drones and want to see what their property or some activity they engage in would look like to a Bald Eagle (the nonprofit is the Wildlife Center of Virginia) soaring overhead. The item will be in an online catalog of items donated for the auction - restaurant dinners, hotel stays, jewelry, art, bourbon tastings - all manner of items, and every dollar bid on all the items goes directly to the Wildlife Center. So if John Smith is the high bidder for the "Eagle's Eye View...of YOU" item, at an agreed time, I will go out and fly whatever mission he has in mind (subject of course to operational and safety considerations that will be spelled out in the catalog) and produce a video for him. In essence, I am a professional drone photographer/videographer doing a mission he would otherwise have to pay someone to do,, and his payment is his high bid going directly to the Wildlife Center of Virginia. And I get to go out and do something interesting and fun with the drone.
Again, thanks for all the input and suggestions, I have a lot to work with.

 

[MS Coast]

Thanks to all for input to my original request. To clarify a bit, this item - I call it "An Eagle's Eye View ... of YOU" - will hopefully spark the interest of people who do not have drones and want to see what their property or some activity they engage in would look like to a Bald Eagle (the nonprofit is the Wildlife Center of Virginia) soaring overhead. The item will be in an online catalog of items donated for the auction - restaurant dinners, hotel stays, jewelry, art, bourbon tastings - all manner of items, and every dollar bid on all the items goes directly to the Wildlife Center. So if John Smith is the high bidder for the "Eagle's Eye View...of YOU" item, at an agreed time, I will go out and fly whatever mission he has in mind (subject of course to operational and safety considerations that will be spelled out in the catalog) and produce a video for him. In essence, I am a professional drone photographer/videographer doing a mission he would otherwise have to pay someone to do,, and his payment is his high bid going directly to the Wildlife Center of Virginia. And I get to go out and do something interesting and fun with the drone.
Again, thanks for all the input and suggestions, I have a lot to work with.

Good on you for doing this.

For what it's worth, only about half the services auction items (web sites, boat trips, and photos) I've donated to good causes have been actually used by the buyer.

Like Virginia, we're fortunate here in Mississippi to have Bald Eagles returning and thriving. I see one almost every day. Stopping the improper use of DDT made it possible for Eagles, Pelicans, Ospreys and other birds to produce eggs with shells strong enough to survive and hatch. All those bird species had essentially disappeared on the Gulf Coast.

Let us know what your auction item brings in to the wildlife center.

 

[FLDave]

Totally different from donating a video work. You are donating a service and this changes the entire concept of donating a finished work. I think this will place a lot of liability on your business as now will be providing a direct service to the bidder client. It doesn't mean you shouldn't do it. As you are a professional drone/videographer you would have taxable expenses (different issue). You need to figure out contract details now with the bidder client.