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Calculating Rewards Costs
Posted: Mon Dec 08, 2014 2:21 am
by lostinwebspace
Does anyone have a formula for anticipating the cost of your rewards? I'm having a pain of a time trying to figure out a formula that doesn't reference itself.
Re: Calculating Rewards Costs
Posted: Mon Dec 08, 2014 5:45 pm
by WhimIndie
While I have no clear cut formula for calculating the cost of a reward, what you can do is research (I know, the old fashioned way) how much it costs to manufacturer said reward, package, and ship it. Let's say you offer a 24x36 inch poster as one of your rewards.
Price of printing: $20 per poster
Mailing material: <$1
Price to mail (United States Postal Service Standard Post) : Between $5 and $6
Total Price of Reward: About $26 or so...
So, that means, you're reward would have to be at least $26 to break even, but then if you want to make gains, you have to ask yourself, "what is this poster potentially worth to the person backing my project." Food for thought, happy researching.
Re: Calculating Rewards Costs
Posted: Mon Dec 15, 2014 3:12 pm
by LawnBuddy
While mailing material is expense try getting a Business Account. With USPS they will give you a discount on mailing whether domestic or international and they will give you free mailing supplies.
Re: Calculating Rewards Costs
Posted: Tue Dec 16, 2014 2:53 am
by lostinwebspace
Eh. Unfortunately I'm Canadian. I can ask Canada Post, but USPS wouldn't be able to help me in that regard. Thanks, though.
Re: Calculating Rewards Costs
Posted: Tue Dec 16, 2014 1:29 pm
by noenddesigns
Yes, there really isnt a formula because it will depend on your product. Shipping material as you all have talked about is a big one. Shipping, depending on the size of your item can be huge. I suggest shipping to Canada, the US, UK, and the EU rather than letting it ship "world wide". Shipping costs are hard to calculate for every possible country and again if the package is big the shipping costs can be too. Since Europe tends to be a fairly reasonable cost of shipment, why not throw that in. Every pledge helps push your project higher.
Here is a rule that I tend to use
I live in Atlanta and to calculate my shipping cost for the US I use Medford, OR 97501. It is the furthest away from me and therefore the most expensive to ship to with both USPS and UPS. If the package goes to anywhere closer than I get a small bonus that can apply to that one person in Alaska that decides to buy one. That way I don't have to force additional expenses on anyone or clutter up the pledge levels with rules like "Add $50 for HI and AK"