"I need help with KS math." Topic

I am trying to get things ready for a crowdfunding campaign. So far I have the first product figured out where I need to be to fund the project.

However my math is failing me as to how to add a stretch goal without massing up the original funding plan.

I had considered doing a free set at an a certain level, but it looked like it would double the initial funding request.

Not sure now how to proceed.

In general stretch goals make the most sense when fixed development costs get spread out over increasing volume.

For example if it costs $400 USD to have a miniature sculpted, then at 100 units sold $4 USD of each figure sold needs to be allocated towards that sculpting cost. At 200 units sold the per unit cost is down to $2 USD and it may be feasible to allocate some of the income towards a side benefit.

If there is little savings in increasing volume, say the per unit cost at 600 is essentially the same as 100 stretch goals make little sense except that the public expects them.

Cory has the right idea. Here's a breakdown with some numbers pulled out of thin air.

Let's say you want to KS mini A. You need 400$ to sculpt the mini and make the mold, and then after that the production cost is relatively modest, 2$/mini in time/materials if you sell less than 200, and down to 1$/mini if you sell more than 200. You think you can probably get around 100 backers in for one mini each, so you fix the pledge level at 6$, with a goal of 600$ dollars.

However, you need to consider the supposedly obligatory stretch goal rewards. Let's say you have mini B, same cost setup. If you get 200 backers for 1200$ total, then you now have enough money to produce mini A *and* mini B; you can give each backer mini B for 'free'. It's actually not free, but the cost is distributed in such a a way as to make it possible to provide it to all the backers.

As Cory points out, this really makes sense in cases where high volume lowers end unit cost. In cases where it doesn't, you need to think about structuring the campaign differently.

-Will

Don't know if this would work, but you might consider discounts as your stretch goals: Asking for $1,000 USD initial goal, at $2,000 USD, everyone that pledged $10 USD only gets charged $9. USD You won't make the $2,000 USD, but your costs are covered (initial $1,000 USD goal), the users get their product at a savings, and you don't have to produce anything extra that might mess up your cost projections. You're mileage may vary.

Or you could do something related to your project without adding to your project for the stretch goals. If you're Kick Starting a miniature, then offer buttons, paper maps, dice, printable or pdf materials, or something. It probably won't drive people to bid more, but would act as a thank you to everyone if response is high.

hmm, yeah my head is not up to doing math tonight apparently.

I need to look at some of these ideas when I can think of how they might work. The only reason I am considering crowd funding is its going to take forever to get molding money otherwise.

I learned along time ago, don't trust what CoryfromMissoula says. It only leads to ruin… But he is correct this time!

Chris
Formerly from Missoula

Stretch goals don't need to be given away for free. A lot of small KS campaigns try to follow the Reaper model (who can afford to give stuff away as their prices are based on 60% to distributors) and lose money.

There is nothing wrong with adding a stretch goal for additional models which is charged for, but at a small discount off eventual retail.

Mike

What Black Hat said. Reaper, Mantic and the like have twisted Kickstarter into a screaming frenzy of expected "free" stuff. If it doesn't fit your model or cash flow, then it is simple: just don't do it.

Stretch goal for additional models as BH says, charge for them but money off retail price. I would take a look at what Troll Outpost did on their recent KS. No freebies, just goo minis at a good price with additional minis as stretches. Good luck.

Good point. Will sit down and run some numbers again when I am to tired to do anything else.

Yes, the stretch goal could definitely just unlock the mini as an 'add-on', it doesn't have to be 'free' to the backers. Even most of the big campaigns tend to go for a mix of free and add-on stretch goals now.

-Will