PRICING YOUR PROJECT FOR KS
Setting a goal is important for your overall project health, but setting the pricing for each reward tier is the mechanism by which you either achieve your goal or not.
If your product is up for $5 on KS it will take far more backers (or backers buying multiples) to hit a goal. If your product is $500 on KS it will take fewer backers (goals being equal) but you’ll also be excluding many potential backers.
There are a few important considerations when setting pricing:
- What is the sales price of other similar products on the market? If your project is for a pen, is your pricing lower/equal/higher than other pens on the market? While you are not bound to current market prices if your product is unique or highly innovative, other people will be comparing your price to what they know, so keep this in mind.
- Content: The roles of video, photography and copy. If you are a copywriter… guess what? You’ll be saving some money vs. hiring a copywriter. Same if you are a photographer or if your best friend is a video editor. Pool your resources, network to find people you want to work with, and factor in their costs to your goal. If those costs require your goal to be “too high” to achieve, then do what you can to cut costs. The content development can be a significant cost, and if you don’t hit your goal you’ve just paid for all that content out of pocket with nothing to do with it and no way to recoup.
- Building an audience: While this can be a complex aspect of any campaign, it boils down to a simple concept when it comes to budgeting for building an audience. Do you already have an engaged, reachable audience interested in you and/or your product? Yes = it will be relatively inexpensive to reach them (email). No = you are going to need to advertise MORE to build that audience. This is why it’s really important to build your audience over time and not just before campaign launch… it will cost you so much more if you have not already built it, and you’ll need to factor that into your goal.
- How to get press for your KS: Press (real press that is, not pay-for-play) is about as close to free as you can get in terms of hard costs… BUT… it takes time and effort (and finesse and ideally contacts/relationships) to do it well. This means you can either put in the work yourself or hire a PR firm. There are costs associated with either route, so be sure to calculate this as a line item when determining your goal.