{"id":4687,"date":"2017-04-26T14:00:17","date_gmt":"2017-04-26T21:00:17","guid":{"rendered":"https:\/\/www.backerkit.com\/blog\/?p=4687"},"modified":"2017-10-11T19:58:31","modified_gmt":"2017-10-12T02:58:31","slug":"go-to-market-strategies-for-project-creators","status":"publish","type":"post","link":"https:\/\/www.backerkit.com\/blog\/go-to-market-strategies-for-project-creators\/","title":{"rendered":"Go-to-Market Strategies for Project Creators"},"content":{"rendered":"<span class=\"cb-itemprop\" itemprop=\"reviewBody\"><p>Prynt, the world\u2019s first instant camera case for smartphones, <a href=\"https:\/\/www.kickstarter.com\/projects\/prynt\/prynt-the-first-instant-camera-case-for-iphone-and\">launched on Kickstarter<\/a> in 2015. It instantly prints the photos you take from your iPhone and animates them on screen through augmented reality technology.<\/p>\n<p><span style=\"font-weight: 400;\">It is the most successful French crowdfunding campaign to date, raising $1.58 million from over 9,000 backers worldwide, aided by a strong showing at the Consumer Electronics Show a couple of months prior and a mountain of press from publications like <\/span><i><span style=\"font-weight: 400;\">Bloomberg Businessweek<\/span><\/i><span style=\"font-weight: 400;\">, <\/span><i><span style=\"font-weight: 400;\">Forbes<\/span><\/i><span style=\"font-weight: 400;\">, <\/span><i><span style=\"font-weight: 400;\">Le Monde<\/span><\/i><span style=\"font-weight: 400;\">, Techcrunch, the Financial Times, and many more.<\/span><\/p>\n<p><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" width=\"1200\" height=\"675\" src=\"https:\/\/sketchfab.com\/models\/c8e91225989f47c7a3f7f49b93799aa9\/embed#?secret=Evb4z9hfDL\" data-secret=\"Evb4z9hfDL\" frameborder=\"0\"><\/iframe><\/p>\n<p><span style=\"font-weight: 400;\">Keen to capitalize on its Kickstarter success, Prynt built on its campaign momentum by implementing a comprehensive distribution strategy for online and brick-and-mortar retailers. We spoke to co-founder Cl\u00e9ment Perrot about how Prynt managed its shift into the online and physical retail market.<\/span><\/p>\n<h2><b>Tips for Determining Retail Prices<\/b><\/h2>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">The first step in going to market involves picking a price for your product. \u201cThe first time you put a pricetag on your product is in your crowdfunding campaign,\u201d Perrot says. \u201cAt that stage, you might not know much about pricing strategies, or how much your product is really worth,\u201d he says. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Perrot says he used a \u201ccombination of strategies\u201d to determine the retail price for the Prynt. In general, he says, there are three ways to determine a retail price for your product.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"> There\u2019s <\/span><b>bottom-up<\/b><span style=\"font-weight: 400;\">, which uses the cost of producing the product as a base calculation. The first step is to assemble the bill of materials (BOM) to account for the raw materials, components, assembly costs, parts, and so on that make up the end product. Perrot recommends multiplying this figure by 4x, to cover markup margins and the cost of marketing.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Then there\u2019s the <\/span><b>top-down<\/b><span style=\"font-weight: 400;\"> approach, in which the price for your product is set as high as possible, while demand is assessed and adjusted accordingly. Project creators can do this by \u201crunning competitive ads that showcase the product at different prices,\u201d Perrot says. <\/span><span style=\"font-weight: 400;\">\u201cThe number of clicks on your ads is the main metric. When the clicks start to plateau, that\u2019s the point at which you set your price.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Finally, there\u2019s the <strong>competitive pricing<\/strong> model. This involves researching your competitors as well as the broader market, finding out how your product fits in that environment. \u201cYou want to know, for example, if your product sits at the lower or upper end,\u201d Perrot says.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Perrot says that pricing pre-orders correctly is key for a smooth transition into retail. If you offer a steep discount as part of your crowdfunding campaign, it\u2019s unlikely that you\u2019ll be able to sell your product at a higher price once it\u2019s on the market. After the end of the Kickstarter campaign, Prynt offered a limited number of pre-orders for $99, the recommended retail price. <\/span><\/p>\n<h2><b>Why Amazon Matters<\/b><\/h2>\n<p>Perrot says maintaining an online store on the Prynt product website and selling on Amazon helped to boost the product\u2019s reputation and drive more sales.<\/p>\n<p>After the end of the Kickstarter campaign, the Prynt team launched an e-commerce store hosted on the company website. Perrot says a lot of effort went into making sure the e-commerce experience was as smooth and frictionless as possible. \u201cWe were focused on improving the experience for users in terms of onboarding and so on,\u201d he says. \u201cWe wanted to be certain that we would have good reviews.<\/p>\n<p><span style=\"font-weight: 400;\">Once Prynt had established a brand name, it was time to launch on Amazon. \u201cAmazon drives 90 per cent of e-commerce sales,\u201d Perrot says. \u201cEven though it cannibalizes revenue from our own store, it adds another 50 per cent more sales for us.\u201d What\u2019s more, he says, Amazon gives project creators greater control over pricing compared to other online vendors \u2013 Amazon will not discount your product to shift units.<\/span><\/p>\n<h2><b>The Importance of a Strong Retail Marketing Strategy<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Once Prynt had Amazon up and running, it was time to move into physical retail stores, starting with <a href=\"https:\/\/www.urbanoutfitters.com\">Urban Outfitters<\/a>. This was a logical step, Perrot says, as Prynt\u2019s appeal was highest among women and consumers in their twenties \u2013 a key demographic for the youth-focused apparel and accessories retailer. <\/span><\/p>\n<blockquote><p><span style=\"font-weight: 400;\">\u201cWe wanted to focus first on the retailer with the most relevant audience to our product.&#8221;<\/span><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">Prynt later launched in stores with broader demographic appeal, like Bloomingdales, Best Buy and Target\u00a0<\/span>\u201cHaving a product on a shelf can be really difficult,\u201d Perrot says. \u201cIt won\u2019t sell itself.\u201d The challenge, he says. is to develop an effective retail marketing strategy to raise brand awareness and ensure consumers are familiar with your product. \u201cWe spent money on channel marketing specific to each store,\u201d<span style=\"font-weight: 400;\">Perrot says. <\/span><\/p>\n<blockquote><p><span style=\"font-weight: 400;\">\u201cWith Urban Outfitters, we gave them a quarterly budget to spend on advertising and events, like scavenger hunts and and an appearance at SXSW.\u201d <\/span><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">Prynt also tried different marketing strategies for other retailers. For Best Buy, Prynt\u2019s marketing strategy was centered around making sure the product had prominent placement in the retailer\u2019s catalog.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Getting into retail isn\u2019t for all projects, but the increased distribution can move a lot of product. You need to show significant customer demand to get retailers to notice you, and need to have the margins to handle wholesale pricing and sponsorships for retail marketing programs.<\/span><\/p>\n<\/span>","protected":false},"excerpt":{"rendered":"<p>The co-founder of Prynt shares his strategies for going to market. <\/p>\n","protected":false},"author":4,"featured_media":4688,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[60,63],"tags":[43],"class_list":["post-4687","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crowdfunding-tips","category-post-campaign-tips","tag-pre-orders"],"acf":[],"yoast_head":"\n<title>Go-to-Market Strategies for Project Creators | BackerKit<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.backerkit.com\/blog\/go-to-market-strategies-for-project-creators\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Go-to-Market Strategies for Project Creators | BackerKit\" \/>\n<meta name=\"twitter:description\" content=\"The co-founder of Prynt shares his strategies for going to market.\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/www.backerkit.com\/blog\/wp-content\/uploads\/2017\/04\/prynt.jpg\" \/>\n<meta name=\"twitter:creator\" content=\"@backerkit\" \/>\n<meta name=\"twitter:site\" content=\"@backerkit\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Gillian Terzis\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" 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