I’m always on the hunt for nuggets of gold!
That’s what I call little tips, tricks, or strategies that you can use to improve your crowdfunding campaign.
From being in this business for a while, I’ve come to realize that most often, the best tactics aren’t talked about very much, because they are “fringe topics.”
Usually, they are so new or so secretive that they haven’t yet hit the mainstream. Funny enough, this describes Kickstarter and crowdfunding itself!
A lot of people STILL don’t know what Kickstarter or crowdfunding is. They haven’t heard about it.
They don’t realize that a successful campaign can bring you thousands of dollars in funding and a massive base of new customers.
It’s my goal to share the benefits of crowdfunding with the world and to bring these little Kickstarter hacks to you as I discover them.
Today’s video shares a unique strategy that you can use to price your products before going on the Kickstarter platform. I think you’ll like it!
Wasn’t that cool!?
Yeah buddy! That’s what I call a unique pricing strategy…
Wanna know something weird? No one that I know likes to talk about money. It’s a “dirty topic.” You shouldn’t talk about it at parties or even in board rooms.
For someone to reveal how much they make is… *gasp*… shocking! Or tacky.
Pricing is also something that people shy away from. It’s scary to ask a customer to actually pay for something. The first time do it, your palms will sweat. It’s even harder when you don’t know the price.
You need to know your price, or else…
When you fail to know your price for a product, it’s impossible to sell it.
Your sales pitch isn’t grounded in reality. Without a price, someone can’t say “yes” or “no.” They can just express some interest or some dissatisfaction with your offering.
If a customer is only vaguely interested in your product, you won’t get anywhere. They gotta know what it’s gonna cost them!
At the same time, finding out the perfect price for your product is really hard. You don’t want to charge too little that you don’t have any margins. You don’t wanna charge too much that no one buys it.
This is why I found this pricing strategy to be a non-invasive way to discover that perfect price. All you gotta do is follow the steps that I outlined.
Once you finally have your price, you’ll be able to get a true feel of your customer’s demand. You’ll instantly get a sense for the “supply and demand” of the marketplace and where you fit in it.
How to approach the “margins” for your product…
Margins are an extremely important topic for every business owner, no matter whether you’re producing a board game, a novel, or a cool tech gadget.
Margins represent your profit from selling a product. It’s the difference between the costs it takes to make the product and the sale price.
A lot of consumers think that business owners just profit this difference, but in reality, this margin goes towards:
- Marketing and advertising the product
- Customer service and operations
- Ordering more inventory
- A small portion goes to profits that are distributed to the owner
One of the major challenges of running an ecommerce business is inventory. This is why Kickstarter is so special. It allows you to meet large minimum order quantity demands from manufacturers.
Once you’ve fulfilled the Kickstarter orders, you will have a small amount of “profit” left over that you can use to either order another batch of products or continue to advertise your brand.
Often times, the owners of a business will not be able to withdraw a salary, let alone a distribution, for the first year, if not more. This is the harsh reality of business.
While I would strive for margins with your Kickstarter campaign, I wouldn’t make this the primary reason for your launch.
Your early bird reward and limited quantity rewards tiers will likely not have much profit to speak of. However, you will likely see profit ones these sell out.
Instead, I would focus on the brand opportunity and the exposure to an entire batch of customers. This the real engine behind crowdfunding and the reason that it’s so powerful!
Your value should always exceed your price!
The value that you deliver with your products should always exceed the price customers must pay to “own” those benefits.
For many creators, this can leave them scratching their heads. They might not think that their product is valuable enough to justify the asking price, or they might doubt themselves.
Often times, I also see that some creators will set too low of a price point, to the point that they won’t be able to hit their actual funding goal given their list size and online clout.
Thankfully, Kickstarter has a built-in way to actually enhance your offering. Through the use of reward tiers, you can include multiple benefits for a reward tier, thus raising the overall price for the core offering.
Basically, this means that you’re “packaging” the product as an experience. The backers aren’t only gaining access to a copy of the product. They are also getting a whole bunch of other stuff when the back the campaign at a particular reward tier.
Now, this probably all sounds a bit theoretical when you don’t have an actual price to work off of. That’s exactly why I put together this video for you.
When you watch it, you’ll discover this unique pricing trick that you can use to gauge the demand of your customers.
If you do like this video, it would mean the world to me if you took a second to leave a positive comment on YouTube and subscribe to the channel!
I look forward to unearthing more strategies that you can use to enhance your crowdfunding campaign.
