BUSINESS ECONOMICS
Annual Contract
$10K
/
county
Contribution Margin
19%
margin
Break-Even
35
counties
Cost Structure
STARTUP COSTS (ONE-TIME)
Demo launch
$2,500
Prototype drone dev & testing
$1,000
Software/dashboard build
deferred
$20,000
Test data pipeline
$500
Insurance / compliance / admin
$5,000
Total startup
$29,000
COGS PER COUNTY (ANNUAL)
Drone hardware allocation
$500
Launch consumables + hardware
$2,500
Operators
$5,000
Data processing & reporting
$100
Total COGS / county
$8,100
ANNUAL FIXED OPS
(cloud $5k + software $10k + R&D $10k + admin $5k + insurance $5k)
Total annual operating
$35,000
Unit Economics & Break-Even
PER COUNTY
•
ANNUAL
Annual county contract
$10,000
COGS per county
($8,100)
Operating profit per county
$1,900
(19% margin)
BREAK-EVEN MODEL
(Year 1 includes $25k startup + $30k ops)
COUNTIES
REVENUE
COGS
OPERATING PROFIT
NET (YR 1)
10
$200K
$162K
$38K
($26K)
35
▸
$350K
$283.5K
$66.5K
$2.5K
50
$500K
$405K
$95K
+$31K
77
$770K
$623.7K
$146.3K
+$82.3K
10
$100K
$81K
$19K
($45K)