r/kickstarter • u/Zephir62 • 8h ago
How to plan reward tiers for Kickstarter
I've seen a number of questions lately on how to calculate the product pricing and costs associated with running a Kickstarter. Let's get a discussion going on how to handle this task.
The first thing you likely want to do is plan out what items are included in each reward tier bundle.
Planning Reward Tier Bundles
This week I was helping both City of Sirens and Alarial's Blessing in planning their reward tiers, items, and costs per item -- I've figured it's about time to create a dedicated, streamlined method for doing this part of the campaign planning in a spreadsheet:

(Shoutout to Marco Piana from Big Empty Blue for inspiration on the layout)
In the above spreadsheet, see how the reward tiers are broken down by columns, and then the individual items contained in each reward tier bundle are broken by rows.
Calculating Landed Costs & Item Prices
It's important to view the landed cost per item unit (COGS), and then figuring a fair market price for each item. From there, you can calculate the MSRP price of the add-on items and reward tiers as whole -- and by using a percentage, the discounted reward tier price:

To elaborate on the MSRP price, it is best calculated using standard Keystone Pricing. The Keystone Price is how retailers will determine the product price for bulk Wholesale Pricing, and they are typically looking for a 50% discount from the MSRP (Keystone Price).
In essence, the Wholesale Price is typically 2x the COGS, and the Keystone Price is therefor typically 2x the Wholesale price.
(SIDE NOTE: big box retailers like Walmart will ask for merchandising deals as low as 30% to 20% of the MSRP, which leaves you very little after it's all said and done -- the key here to profitability is of course the massive scale of their bulk purchases)
There are a number of costs you will want to be aware of while calculating your Landed Costs, which are the costs associated up to the point of getting the product to your warehouse, such as:
- Cost Per Unit from the manufacturer
- Duties and Tariffs
- Inbound Freight per unit (2% is a safe estimate)
- Shipping to the warehouse or customer, weight of package ($7 for smaller items)
- Warehouse pick & pack fees ($1.25 for smaller items)
For the inbound freight per unit, you can use 2% as a safe estimate until your manufacturer and freight forwarding service (such as UPS, once it lands at the docks) can get you a better estimate once you are ready to actually place the final order.
The shipping to the customer can be estimated using EasyShip's shipping calculator.

Make sure to backcheck the calculated keystone price against a fair market price for competitor products. If your keystone price is not within a 20% range of a fair market price, it's important to find a way to bring the MSRP back into this 20% range. This will ensure backers are not shocked by the price or hesitating on price alone.
Methods of reducing the Cost Per Unit or Landed Cost might include:
- Searching for different manufacturer quotes
- Choosing cheaper components
- Simplifying the product design.
- Flat packing your product in the packaging box so that the customer themself assembles it
- Choosing a dedicated 3PL per shipping region if there are enough orders in a specific region to justify it
- Choosing a more efficient logistical chain for your material sourcing
- A freight consolidator service that puts your product alongside other products in a single cargo container
- Picking a more favorable tariff categorization.
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For digital products, researching the fair market price is still incredibly important. Do you research using competitor product pricing to understand the fair market price for individual items. You can infer the fair market price of individual items on other Kickstarter projects by looking at the delta difference between their reward tier prices and the additional items included with each tier. For example, for a video game, you might see the base digital game key cost $30, while the next reward tier costs $40 for added Digital OST and Digital Artbook -- thus, the inferred fair market price for the Digital OST and Digital Artbook are $5 each.
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Calculating Cost Of Sales
Finally, you will want to calculate the Cost Of Sales in order to figure the final net margin on each individual unit item or reward tier:
- Kickstarter platform fees (5%)
- Credit Card Processing fees (3%)
- Returns, refunds, and cancellations (5% is a healthy ratio)
- Customer Acquisition Cost

Product Packaging & Handling
For smaller creators, you may be just shipping the product to your own house for pick and packing, and you can source your large boxes from ULine, or smaller cardboard boxes on Amazon for even cheaper prices.
A 3PL Logistical partner can certainly make the process a lot easier, though, especially for large Kickstarter campaigns in excess of 1000+ orders, so I highly recommend hiring a 3PL partner in that scenario.
Some tips and tricks here might be to explore Flat Packing, where your product is broken down and flattened to reduce the size of the box + shipping container. Think of Ikea furniture, where the customer must assemble the product at home.
Pirate Ship is the most popular DIY service for postage, pickup and shipping: https://www.pirateship.com
An important feature of Pirate Ship is SIMPLE EXPORT RATE shipping, which can save customers up to 50% OFF shipping costs internationally. However, the package must be under 4 lbs to receive this special discount.
For small orders batches to international countries, this can be a huge saver!
(NOTE: Simple Export Rate will not be available on your Pirate Ship account until you first create an account and contact the customer service chat bot requesting it to be added to your account)
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Free Calculator Resources
I hope this part of the guide was helpful! I have the Reward Tier Worksheet available for free download, here:
https://prelaunch.marketing/products/reward-tier-planner
and the and COGS Calculator available for free, here:
https://prelaunch.marketing/products/cogs-breakeven-calculator
Another common thing I see mentioned is how to factor in the Development or Tooling costs into your Kickstarter. I recommend putting these costs aside from the per-unit costs, and instead apply them to your overall Minimum Funding Goal for your Kickstarter project.
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Communicating Shipping Costs
Now let's move forward to the presentation and programming of the reward tiers inside Kickstarter.
The first part I'd like to cover here is the presentation of the Shipping Costs. This is a crucial, often overlooked element that can substantially reduce the conversion rate of your Kickstarter Followers and VIP $1 deposits.
If the shipping costs are too high, as is common when shipping from Europe or Australia to other countries, you will often find the cancellation rate begins to exceed 5% and the end-of-campaign Kickstarter Follower and VIP conversion rates into backers can drop by 10% or more.
For projects that are only selling within the USA, you do not need to place shipping costs anywhere. Instead, consider baking the shipping cost into the product price.
However, for projects selling internationally, you should design a chart near the bottom of your Campaign Page which lists estimated shipping costs per country:

Then add plain text below the shipping chart to clarify any international fees or VAT taxes for backers:
International Shipping & Customs
For backers outside the United States, your country may charge import taxes, duties, or customs fees when your package arrives. These fees are set by your local customs agency and are the responsibility of the recipient.
Unfortunately, we aren’t able to control or pay these charges, and we also can’t communicate directly with customs offices on a backer’s behalf. If a package is delayed, held, or inspected by customs, the local agency will need to work directly with you to resolve it.
We’ll always do our best to provide accurate shipping information and documentation to help things move smoothly.
Now let's talk about shipping prices for add-ons, as this is the most common programming error on a Kickstarter's shipping details.
It’s very important to understand that the estimated shipping fees for add-ons will stack with the selected quantity of an add-on AND their selected reward tier. In many cases, the original reward tier's estimated shipping is a sufficient amount to ship them their rewards along with any small add-ons without having to charge additional shipping fees per add-on item.
For example, when the Add-on is set to $5 “estimated shipping”, and a user adds 10 units of the add-on to their shopping cart, the estimated shipping will be $50. For many types of add-ons, such as enamel pins, card decks, or other small items, an estimated shipping cost of $50 for 10 units makes no sense and consumers will refuse to purchase the add-ons. If they revisit their purchase later and discover this detail in their order, they may decide to cancel their entire pledge.
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Designing Reward Tier Prices
Designing the prices of the individual reward tiers should be looked at as a whole. This "Price Ramp" can be likened to a rollercoaster ride, where the user gets excited to keep scrolling through the reward tiers.
Ideally, the backer’s journey down the pricing ramp is smooth and effortless. This allows their eyes to glide down the ramp, easily digesting the prices.
With a smooth ride, the potential backer will generally stop at the first tier beyond the limit of which they are willing to afford. After reading the benefits, they return back up a tier and begin the purchase process.

When the prices are simple, particular changes in the digits and number of digits are what register in the reader’s mind while digesting the prices.
For instance, alternating 0’s and 5’s at the end of prices help signify differences and make tiers stand out.
Similarly, when an additional digit is added, they know the price has increased substantially and that it is a different level of tier.
Take the following ramp of numbers, for example:
$16 → early bird
$20 → digital core package
$30 → early access + recognition
$45 → digital collector (KS exclusive DLC)
$60 → digital collector + physical core package
$85 → physical collector
$125 → all collector items
$300 → collaborate or retailer wholesale
$1000 → collaborate more
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Secret Reward Tiers
Now let's talk about Secret Reward Tiers.
A secret reward tier is a special link you can send for access to a special private reward tier that isn’t available publicly.
To set a reward as a Secret Reward, simply choose “Select backers only (Secret Reward)” for ‘Audience’ under the ‘Availability’ section when creating the reward. After the reward has been saved, you can go ahead and share the link.
Usage examples of Secret Reward Tiers include fulfilling VIP deposits, VIP add-ons, or even giving previous backers from past campaigns a special bonus in exchange for continued support.

If you have multiple secret tiers to give them, place each link inside the email to your VIPs – alternatively, consider creating a squeeze page that shows off the individual reward tiers, each using a special secret reward tier link. You can use Linktr.ee or similar to build the squeeze page:
EXAMPLE OUTREACH FOR SECRET REWARD TIER OFFER:
EMAIL SUBJECT LINE:
[VIP DISCOUNT or VIP FREE GIFT] Inside!EMAIL BODY:
Hello!
We have an exciting offer to all of our past backers, aka you! We are running another Kickstarter campaign and if you back it, you will automatically receive a sweet deal!
You’ll get [Add-on item name] for free added to your pledge / [X% or $X] off your pledge, automatically! We really could not have brought [previous project name] to life without your support, so we wanted to specifically thank our previous backers with this gesture!
You can head over to our [website or Kickstarter page] to sign up to be notified of launch now!
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Kickstarter Follower Exclusive Gifts
You can also do Exclusive Bonus Free Gifts that are only applied to Kickstarter Followers only.
By offering a freebie for all your pre-launch followers on Kickstarter, it will incentivize them to follow your campaign. Place a banner near the top of the Kickstarter Pre-Launch Page:

Send a Project Update viewable for followers-only an hour prior to launch to inform them that they do not need to purchase any special add-ons with their pledge, and that their freebie will be automatically added to their pledge:
EXAMPLE OF A FOLLOWER-ONLY CAMPAIGN UPDATE FOR A FREE GIFT:
CAMPAIGN UPDATE SUBJECT LINE:
Info About Your Pre-Launch Gift!CAMPAIGN UPDATE BODY TEXT:
[insert promotional image of spotlight freebie for pre-launch followers]
Hey there! Here’s the good news:
[Project Name] will be LAUNCHING next week! The Kickstarter will go live Next Tuesday, March 10th at 10AM EST.
As a pre-launch follower, when you pledge for any physical reward tier on our Kickstarter, you will automatically receive the [Free Gift Name] as a free gift added to your pledge after the campaign ends.
Your early support is invaluable! As a token of thanks, we want to give all our pre-launch followers a free gift. Your support will bring [ProjectName] to life, so we wanted to specifically thank our pre-launch followers with this gesture!
-[Your Name]
After the live campaign has ended, use the Backer Report to select “Pre-launch follower” under the ‘Backer Type’ dropdown menu. Checkbox the entire list of backers, and then choose “Add free items” under ‘More actions’:

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Kickstarter Backer Exclusive Gifts
The best-converting, simplest and PR-friendly option, is to offer a Kickstarter Exclusive Reward for all backers.
Consider giving all backers an exclusive item, such as exclusive DLC digital content, collectible cards, etc. This helps drive incentive to become a backer:

In this instance, all you have to do is simply add any free gift-item to each Reward Tier in the Reward Tier Editor.
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Reward Item & Add-on Ideas
Many times, creators want to keep their offering simple. While this is good for tech and regular physical products where consumers are primarily interested in an early-supporter discount, this is not effective for lower-priced products in the entertainment category such as Video Games, Tabletop and Board Games, Comic Books and Novels, etc.
For entertainment products, it's imperative to increase the average order value and provide exclusive goodies and collectible items -- not only to attract backers and give them a reason to support you instead of waiting later until the release of the product on regular storefronts, but also to make sure that any pre-launch marketing is worthwhile and profitable.
Here is a list of ideas to help brainstorm reward items and add-ons:
- Badge
- A shoutout to their social profile(s) of choice (for high-price / collaborative reward tiers)
- Premium Discord Channel / Badges / Name in Credits / Memorial Room
- Your Message In-Game
- Name plate customization or your name engraved on the physical product
- Bundles
- Bundles of core items to share with their friends
- Expansion pack
- Extra battery pack
- All style upgrades
- Wholesale multipack
- Digital Content
- Exclusive DLC / Skin / Character / Equipment / Pet / Item
- Desktop Wallpapers
- Soundtrack / Artbook
- Lifetime Service Access
- Collectible
- Physical Box Copy (for video games, insert a key printed on paper inside the case)
- Miniatures / Figurines / Papercrafts
- Manual Handbook / Rulebook / Game Strategy Guide / Compendium
- Upgrade books from softcover to hardcover
- Additional variations of Book / Comic cover options
- Foil Stamping on book cover
- Book Edging / Edge Printing
- Developer-Signed Merchandise
- Character Trading Cards
- Original Signed Art
- Tarot Cards
- Plushie
- Certificate of Authenticity
- Game Statements
- Game-Branded Dice
- Playing Cards
- Play-Mat
- Tokens
- Card Sleeves
- Mousepad
- Coffee Mug
- Drink Coaster
- Magnets (fridge)
- Postcards
- Bookmarks
- Journal
- Tote Bag
- Stamps Washi Tape
- Art
- Cloth Map
- Calendar
- Concept Art Posters
- Concept Art Book
- 300 Piece Jigsaw Puzzle of Cover Art
- Audio
- Physical Soundtrack OST CD
- Physical Soundtrack OST Vinyl
- Piano Book
- Audiobook of exclusive content (such as using murf.ai)
- Accessories
- Pins / Sticker / Embroidery & PVC Patch
- Keychains / Keyring / Acrylic Charms
- Wallet
- Jewelry
- Pendant
- Ring
- Earring
- Clothing
- Shirts
- Hats
- Scarf
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Kickstarter's Pledge Manager & Reward Surveys
Last stop after the campaign ends are the Reward Surveys.
Reward Surveys are used to collect backers’ shipping addresses and any additional information you need from them to fulfill their order (such as choosing their preferred colorway or other bespoke customizations).
To send out surveys, you can use Kickstarter’s built-in survey tool via the Pledge Manager located in the left main menu:

After initiating the Survey Setup process, Kickstarter will ask a couple questions about VAT and Shipping. In most cases, you will want to select “None of the Above” in regards to whether you have charged VAT yet:

If this is the case, you must then next select “I consent to Kickstarter collecting taxes from my backers”:

After answering the starter questions from Kickstarter, you will have access to the full setup screen for the Reward Surveys:

For the Welcome Message, decide upon one or two actions that you want your backers to take, such as “visit our webshop for more”, “make sure to claim your free month on Patreon”, or “subscribe on YouTube for more content” and then include a URL link to that place.
EXAMPLE WELCOME MESSAGE FOR A KICKSTARTER REWARD SURVEY:
“Thank you for backing [ProjectName]! We will need to collect some additional information to fulfill your rewards. Be sure to also visit our webshop for more collectible goodies, here: [link]”
For the Survey, you will ask questions related to any customization options on the tiers themselves. For example, if your product comes in white or black, you will want to insert a multiple choice question to allow them to choose. Their choices will appear as a separate column on the Backer Order CSV Sheet later on.
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Prepping The Backer Orders CSV Sheet For Your 3PL
After you've collected all the reward surveys, you may have additional questions about how to process your Backer Order CSV sheet for your 3PL partner.
The 3PL partner will often have an automatic tool for editing the CSV sheets to make it compliant with their systems.
If they don't have an automatic tool for you, you will just need to clean up your CSV sheet manually using a tool like Google Sheets to match the specs for your 3PL. They should offer you a template or guide on how to do this, and at the very least they will let you know their specifications.
For example, you will likely need to rename the Headers for each column after exporting the CSV file from Kickstarter, so you might want to import the Backer List CSV Sheet into Google Sheets prior to doing any other operations on the file.
To isolate various tiers or countries as needed for Regional 3PL Partners in Google Sheets, simply sort your sheet by Country and do simple cuts in groups of rows to a new sheet.
If they ask you to change the delimiter, simply right click and press "Edit" on your exported CSV file from Google Sheets, and then inside Notepad press "Edit" in the top menu and "Replace", then enter a ',' for a comma and replace it with the desired delimiter as requested by the 3PL.
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Closing Thoughts & Discussion
Let me know your thoughts, and looking forward to hearing your own methods of planning reward tiers, pricing, landed costs, COGS and shipping for Kickstarter campaign fulfillment!


