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View Full Version : Profit margin



WinPierce
09-14-2013, 01:19 PM
20 cost to make and ship. So how much should I set as the reward price? or what is the minimum I should make per item?

Thanks

admin
09-14-2013, 01:51 PM
It really depends. I mean is that the total variable and fixed costs? If so then anythign over $20 would be good. You don't want to charge too much and risk not getting the backers, but you also don't want to undercut yourself and not be able to fulfill the rewards you promised.

WinPierce
09-14-2013, 02:15 PM
anything over 20 would be good but to make a reasonable profit, what would be a good price? lets say I charge 30 so I make 10 - taxes leaves me about 6 dollars per part. Is that too much or not enough?

admin
09-14-2013, 02:40 PM
What you need to decide is if you are trying to make money from this project, or truly kickstart it to a point where once funded you will make your profit via selling whatever your project is for via various retail outlets. The project which try and break even from the actual crowdfunding part of things are usually the ones who do the best. having said this, that's entirely up to you how you run your campaign.

WinPierce
09-14-2013, 02:52 PM
Thanks, the goal would be to make enough to start the website and produce more of the product, and advertising potentially.

MatthewJHanson
09-15-2013, 02:03 PM
I usually price my rewards similar to what they would cost at retail. If you're not sure what that would be you can look at similar products from other companies.

Michael Volkin
09-16-2013, 01:55 PM
Personally I like to keep 30 cents for every dollar. Anything more than that with the fees is a tough sell

WinPierce
09-19-2013, 04:22 PM
Thanks for the input everyone, gives me more to think about and that is exactly what I wanted.

admin
09-21-2013, 05:09 PM
Let us know how it goes. Remember to always portray yourself as someone trying to make your project get the jump it needs, not just a person trying to make a buck. Good luck!