Steve Jackson Games Forums - View Single Post - Kickstarter general question about profitability

syncrogt1 · 12-18-2019, 10:39 AM

This is more of a Kickstarter question than a specific CW question but here goes: How can SJG stay profitable with each additional stretch goal that is included in one of the reward levels, if no additional money is being made? Profit would be going down.

I understand that stretch goals drive the overall project $ total higher, and I assume that would drive the price per unit down since more of the same item are being made (larger production run = lower cost per unit, usually, but it usually isn't a linear price decrease.) I also get that some of the stretch goals are NOT included in a reward level, that makes sense. Companies should make money on each item they sell or they shouldn't be in business.

But can a game Manufacturer still be profitable selling $373 worth of game for $140? I am trying to be more informed.

12-18-2019, 10:39 AM	#1
syncrogt1 Join Date: Jan 2015	Kickstarter general question about profitability This is more of a Kickstarter question than a specific CW question but here goes: How can SJG stay profitable with each additional stretch goal that is included in one of the reward levels, if no additional money is being made? Profit would be going down. I understand that stretch goals drive the overall project $ total higher, and I assume that would drive the price per unit down since more of the same item are being made (larger production run = lower cost per unit, usually, but it usually isn't a linear price decrease.) I also get that some of the stretch goals are NOT included in a reward level, that makes sense. Companies should make money on each item they sell or they shouldn't be in business. But can a game Manufacturer still be profitable selling $373 worth of game for $140? I am trying to be more informed.