The three numbers that matter
- ASP (average selling price) — what a typical unit sells for. In the FactorDrones model, a blended $900 across consumer, enterprise, FPV, and parts.
- Variable cost per unit — cost of goods + shipping + payment/marketplace fees. Here about $698.
- Contribution margin = ASP − variable cost = $202 per unit. That's what each sale contributes toward fixed costs.
Interactive break-even calculator
Break-even units = fixed costs ÷ contribution margin. Seeded with the model's Year-1 numbers — change anything.
Why blended ASP matters
A resale mix behaves nothing like a single product. The model blends ~60% consumer (~$650), ~15% enterprise (~$2,750), ~15% FPV (~$550), and ~10% parts (~$300) into that $900 ASP. Shift toward enterprise and both ASP and gross margin rise — a key growth lever. Same math for spraying: simple herbicide passes plus premium multi-product jobs set your per-acre revenue.
Margin of safety
The model breaks even at about 91 owned-inventory units in Year 1 but projects 260 — a margin of safety of ~169 units. That cushion is what lenders and investors look for: how far sales can fall before you stop covering fixed costs.
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