I have been wondering about this. It doesn’t seem like it would be the battery or the electronics since those are relatively inexpensive. Could it be the motors?
I am assuming the FPV experts might know!
4 Likes
Actually, it’s the electronics that are the most expensive. It’s a close call between the flight controller and the motors. Motors for a 5” drone cost around $15 each, and since you need 4, that totals $60.
Flight controllers range from $60 to $100.
ESCs cost between $40 and $80.
However, you usually get the flight controller and ESC as a bundle for about $70 to $120, making it a better value.
A camera costs around $20, a good VTX is $40 to $60, and a receiver is $10 to $20.
2 Likes
That’s for analog setups. Digital is more expensive, and you also have the added cost of goggles, though that cost is spread across all your drones.
2 Likes
I wonder how much it actually costs to produce them. I believe the most expensive aspect is the drone’s development. Once that’s done, I would guess assembly is the next highest cost. It is incredible how many complex electronic boards are available for under a dollar, and they’re still making a profit somehow! The physical components of electronics are almost negligible in cost. The real expense comes from transporting them from the manufacturing site to the end user.
2 Likes
I know that at my employer’s factory, the average cost to produce a product is between 1/10 and 1/20 of the retail price. I would guess it’s similar for products made in the US and about double or triple that for those made in China.
Additionally, I’m aware that the 20 cents or so we receive as a production incentive bonus per item represents only 0.02% of their profit per item. They claim we are asking for too much in the upcoming contract negotiations, but that’s a separate issue.
2 Likes
What kind of products does your company manufacture? For most products, manufacturing costs typically range from 50% to 80% of the retail price, which is 1/2 to 4/5. From what I understand, such margins are usually seen in luxury goods and pharmaceuticals.
1 Like
Lead-acid batteries. Their latest annual meeting reported costs of around $12 for SLI batteries and about $13 for AGM batteries.
2 Likes
Something seems off. Lead-acid batteries have been around for decades and are produced by numerous factories, so their profit margins should be very slim.
2 Likes
He mentioned that the cost is 1/10 of the retail price. Since the manufacturer doesn’t receive the retail price but sells wholesale, retailers like Walmart and AutoZone are taking 1/3 to 2/3 of the profit from that retail price. For example, they might pay $33 for a battery that sells for $100. Their markups are significant, partly due to covering employee and store expenses, as well as managing inventory and handling returns. So, if the battery costs $10 to make and sells for $33, that reflects a more typical profit margin in the US. I work in specialty chemicals, and our margins are similar.
2 Likes
They do not officially disclose their profits, but it’s rumored that they sell for around $40 to $60. Based on my experience as a retail manager, I assume they use a similar logistics system. I would guess the plant sells them to a distribution center, which then sells them to distributors.
These distributors sell them to retail distribution centers, which in turn sell them to retail stores, with the consumer being the final customer. It’s also possible that the distribution center sells directly to a distributor, who ships them to retail stores.
Regardless, there are likely several intermediaries between the factory and the consumer, all making a profit.
2 Likes
I recently crashed my Air 3, and just the main PCB cost $250. The total repair bill was about $440. The main flight control board is much more expensive than the motors.
2 Likes
Costly to purchase, but probably not to produce.
1 Like
It really varies by drone. However, batteries aren’t always inexpensive. For instance, a TB65 (for the DJI M350) costs around $1200, and you need two to fly 
.
2 Likes
It depends on the type of drone.
For an analog 5", the most expensive parts are either the flight controller (FC) or the 4-in-1 ESC, depending on whether you buy a stack or individual components.
For a digital 5", the camera and VTX combo, which comes as a single unit, is typically the priciest.
As the drone size increases, the cost of the power train rises significantly. Larger ESCs, motors, and batteries are much more expensive. The rest of the components generally cost about the same regardless of the size.
If you are considering the entire system, for analog you will need the drone, goggles, radio, and charger. For digital, you’ll need the goggles, drone, radio, and charger, in that order.
2 Likes
Our motors cost $280 each, our batteries are $350 each, the electronics stack is $15k, and the payload is $11k.
Our pilots cost over $75k a year. So, the pilots are definitely the most expensive component.
2 Likes
Hmm, what type of drones are these? 
1 Like
Large inspection drones.
1 Like
Is it a Delivery drone?
Actually it is an Inspection one.
Lol, $75k a year? I fly DJI Agras T30 and T50 and earn half of that in just 3 months… too bad it’s only seasonal.