Setting up Pricing
The hardest part of the whole kickstarter process has been finding what I need to charge for the kickstarter. I have gotten many prices from quotes and I’m still looking at more. Then I have contacted some fulfillment companies to look at freight costs. Then comes the prices for the stretch goals and the shipping for them to get the full structure down.
Next is looking at taxes and from what I have learned is that if I would make an LLC and never draw money to myself for the profits they won’t tax to me. Money the LLC makes I can use just to fund future projects and never draw money from it. I’m not in this to make money I just want to make the games I’ve created to become a reality that anyone can get.
Otherwise 3.5% goes to Sales Tax on every sale in your state. A 11.2% Personal Income Tax would be applied to all the funds you got, and a further 15.3% self-employment tax is applied to all the funds. So if you don’t make an LLC or Corporation you have an additional 26.5% taxes from that money. If you pull money out as profit from an LLC you will apply all the taxes to that money you pull out.
As it stands now I need to dig through the shipping companies still but Game Land Manufacturing is the best price to quality I have seen and they have a benefit that I can do a 500 print run rather than a minimum of 2,000 print run minimum. This allows me to set a smaller kickstarter goal and will help me in getting more stretch goals set up along the way to make the game even greater.
So shipping looks to be around $3,000 for the freight then I’m not worrying about the customer shipping since customers will pay that part of it. Then for the game it will be around $17,000. So I’m planning on setting my goal around 19,400 eating a little of the shipping cost myself unless I more than 340 backers. If I price the game at early bird $50 and then $60 kickstarter price with a $80 MSRP I will break even at 341 backers due to some of the costs lowering slightly for the shipping the remainder of the 500 games to me. The more backers we get over that will help structure the other parts.
Again this is using Game Land and shipping cost from Funagain. These numbers can change and most likely will depending on quotes I get in.
