Are you launching a crowdfunding campaign and want to offer rewards for your backers? This article will provide pricing tips for those that want to offer great rewards to their backers at a reasonable price while still being able to make a profit on the reward. This won’t be universal, as there is a wide range of different rewards that you could offer, which may not be the most cost-effective or efficient that you can offer.
There are a few things that you will want to consider when choosing the right price for your rewards. First, you should focus on your main reward, and that will be the product that you are trying to crowdfund. Many campaigns have multiple different rewards that they offer to the backers to try and gain more traction for the campaign. These other rewards are just a bonus to the main product/service that the company is trying to create.
So let’s look into your main reward for the crowdfunding campaign.
Some of the factors that you will need to consider when pricing your reward is as follows:
Manufacturing costs
Before considering the price of your reward you will need to know how much it costs to build your product. You should know the price to produce both your product and the packaging. There are several companies that will provide both of these services at once.
Adding MSRP costs
You may be wondering what MSRP is, well it’s the manufacturer’s suggested retail price. This means you should figure out what you would want to price out the product when it’s retail. That way you will know what discount your backers are receiving when they are purchasing the product from your campaign.
Shipping costs
Next, you will want to factor in the shipping costs. Be sure to choose a reliable service for shipping and ask about the prices to ship internationally. You should know the cost and the time that it will take to do the shipping.
Reviewing similar products
You should probably take a look at similar products to yours. The last thing that you want to do is price your product too low and leave money on the table.
Now let’s take a look at some of the specific tips that you can use to get the most out of your campaign.
Excluding lower tiers
If you exclude the lower reward tiers on your campaign, you can raise more money. More people are inclined to purchase rewards than donate money as statistics have shown. So if you optimize your rewards to start at a specific amount, you can gain more money for your campaign.
Add higher tiers
In addition to the removal of the lower tiers, if you want to optimize the campaign further, you can add rewards that are a higher tier. This can give your backers another incentive to donate even more to the campaign. As long as you are providing extra value with the higher tier, it can be proven to increase your funding.
Using the number 9
This is an old sales tactic that companies have been using for a long time. When you’re using the number 9 instead of a whole number, it makes it easier for the client to rationalize the purchase.
If you keep the above tips in mind when pricing out your rewards, you will likely garner the best results and provide yourself and the backers with the most optimal price for your product. You can then mark up your product when you are selling it outside of your crowdfunding campaign.