Net profit possible for my first campaign?
  • truthbetold247
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    Net profit possible for my first campaign?

    by truthbetold247 » Sun Jun 28, 2015 6:54 pm

    I'm developing a consumer product for KS/IGG & I would like to get an approximate financial overview of the costs & the profit/loss I can expect on my 1st campaign.

    Both platforms charge about 4-10% if the project is successfully funded, my tooling cost will be around $15,000 & I'm working with a part-time partner that will be receiving 20% of the net profits. Of course there are a ton of other costs such as fulfillment, shipping, labor, marketing, packaging etc.

    I was planning on setting the fixed funding amount to $15-$20,000 to cover the mold costs & a few other costs, absorbing the rest. The product will cost about $3-4.00 each & sell for $15-20.00. Based on all these cost factors, what are your thoughts on the fixed funding amount & how many units needed to sell to be profitable?


  • kelly101
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    Re: Net profit possible for my first campaign?

    by kelly101 » Mon Jun 29, 2015 4:36 pm

    If you only want to cover the cost of tooling then the final funding price is set already right?

    If you want to actually crowd fund the whole manufacture then your goal is very low.

    Would need to know what your making, but generally a manufacturer would be looking to build 10K units of an item before they will even quote you (if its a plastic gizmo)

    So be careful when absorbing the costs - think 10,000 * 4 = $40,000 to manufacture + machining = $55,000 + Packaging and delivery that's at least $2.00 so now your total is $75,000 ...

    If your funding goal is $20K then you still need to come up with $55K

    Again I don't actually know what your making so its hard to work out, but make sure to do the maths or you could end up in debt!! (Which would suck!!)
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    Bag Hero
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    Re: Net profit possible for my first campaign?

    by Bag Hero » Thu Jul 02, 2015 3:15 am

    I agree with kelly101 and your goal is too low, Your campaign is more challenging than the average since you have a lower cost item and will need a good volume of backers.

    I would recommend you figure out your total cost and then add 20% to that as your funding goal. If you are financially set to cover cost outside of the molds just make sure you have a solid handle on what that amount will be.

    Is your product design finalized? Do you have CAD or STEP files ready for a manufacturer?

    Will you be making this in China?

    Most platforms will cost you 8-10% when you factor in CC processing fee's.

    You have a healthy profit margin if you can make for $3 and sell fro $20.

    Good luck and please share the product info when you are ready.
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