The drone sector within India has grown substantially and appears to be moving into a high-growth phase. Partnership opportunities are increasing due to government support for both the use of drones in agriculture, construction, and mapping, as well as a growing need for domestically produced technologies.
For anyone looking to enter this market, it is essential that you become familiar with what your cost will be to open a drone dealership in order to get a better understanding of the amount of investment you will need to make and what your return on that investment will be before you select from among the various drone manufacturers in India.
Understanding Initial Investment
Depending on what type of business model you select for establishing your drone dealership, whether it is a single store or a multi-store operation, there are many factors that will ultimately affect how much initial investment capital will be required when you open your drone dealership. Depending on the drone manufacturer that you select to partner with, the scale and size of your dealership will generally determine how much initial investment capital will be required to set up your dealership (for example, 5 lakh rupees at the very least).
A typical first-time dealer with an entry level investment of 5 lakh rupees would generally invest in initial stocks of drone inventories, initial supplies/parts, and also benefit from onboarding and training.
In addition to the aforementioned items typically found in a first time dealer’s start up package, an established drone manufacturer will often have a much more organized onboarding process, which will help to guarantee long term stability for the dealer’s business.
Operational Expenses to Think About
In addition to the costs associated with signing up a new dealership, a dealer will also have various operating expenses. Examples of these are technician’s salaries, local promotions, logistics, replenishing spare parts and setting up service jobs.
However, compared to other types of distribution, drone dealer’s infrastructures tend to be less costly. Since drones are higher-value technologies than traditional products; therefore, the amount of revenue for a dealer per unit is also higher, giving dealers more financial efficiency.
Dealing with the correct drone manufacturing companies in India will lower the operational risk of a drone dealership by providing structured support, as well as technical training and faster service responses.
Revenue Sources of A Drone Dealership
An Agri Drone Dealership produces revenue from other sources besides selling products. There are a variety of sources of revenue that contribute to the overall profitability of a dealership.
The main source of income for drone dealers is actual drone sales, whereby dealers are paid based on their margins for each unit sold. Additionally, dealers receive recurring revenue for service-based activities and selling spare parts and performing regular maintenance services.
Many drone dealerships also earn revenue from reselling training programs to their clientele and conducting contracted services using drones for example using agricultural drones to spray crops; surveying or inspecting properties.
By working with one of the many leading Drone Manufacturers in India, a dealership can explore application diversification beyond the agricultural industry, which provides a pathway to sustaining income for the long-term.
Expectations for ROI
Regional demand, brand recognition/positioning and execution strategies are all factors that dictate ROI. The rapid rise in adoption of drones in agricultural regions is in response to government subsidy awareness.
Dealers of the best drone company in India benefit from the credibility of their brand, have better conversion rates, and have structured back-end support. Many companies seek to recoup 100% of initial investments within 12–24 months depending on sales volume and service penetration levels.
Choosing a Partner
Not all drone companies in India produce the same manufacturing quality or offer the same level of support to their dealers. Before making a decision to partner, evaluate product quality, the quality of after-sales services, regional network presence, regulatory compliance, and long term scalability.
Aligning your business with a reliable drone manufacturer in India will provide you with an opportunity to take advantage of the growing demand for domestic drone solutions that comply with policy.
We help dealers to build high income agri-drone businesses. Get in touch with our team today, call on +91 7677111150.
