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Old 12-18-2019, 01:17 PM   #2
philreed
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Join Date: Aug 2004
Default Re: Kickstarter general question about profitability

Quote:
Originally Posted by syncrogt1 View Post
But can a game Manufacturer still be profitable selling $373 worth of game for $140? I am trying to be more informed.
Kickstarter allows us more margin to operate. For games that ship to stores, we go through three layers, each one of which takes a percentage.

* Fulfillment service - takes a % of the total MSRP.
* Distributor - takes a % of the total MSRP.
* Retailer - takes a % of the total MSRP.

With Kickstarter, we have zero levels between us and you. We have expenses, yes, that are not a part of traditional distribution (managing the project, tracking all backers, fulfillment costs to ship to all backers), but those expenses are less than the % the traditional model consumes.

Once a game is no longer on Kickstarter, and goes into either direct sales or traditonal distribution sales, we adjust numbers. Kickstarter backers believe in us and our projects, and they get a deal.
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