{"id":4691,"date":"2017-05-01T10:28:07","date_gmt":"2017-05-01T17:28:07","guid":{"rendered":"https:\/\/www.backerkit.com\/blog\/?p=4691"},"modified":"2017-10-11T19:55:10","modified_gmt":"2017-10-12T02:55:10","slug":"razor-sharp-strategies-for-add-on-sales","status":"publish","type":"post","link":"https:\/\/www.backerkit.com\/blog\/razor-sharp-strategies-for-add-on-sales\/","title":{"rendered":"Razor-Sharp Strategies for Add-On Sales"},"content":{"rendered":"<span class=\"cb-itemprop\" itemprop=\"reviewBody\"><p>An add-on is an optional item that can be added to a Kickstarter pledge without changing pledge levels. In the early days of crowdfunding, add-ons were extremely common in tabletop games, where project creators typically offer them in the form of extra cards, expansion packs, and components. Since then, add-ons have become popular for projects in all sorts of categories.<\/p>\n<p><span style=\"font-weight: 400;\">Think add-ons are irrelevant to your campaign? Think again. Jamey Stegmaier of Stonemaier Games <\/span><a href=\"https:\/\/stonemaiergames.com\/kickstarter-lesson-14-the-value-of-add-ons\/\"><span style=\"font-weight: 400;\">recounts his experience<\/span><\/a><span style=\"font-weight: 400;\"> crowdfunding tabletop game Viticulture on his blog. He initially believed that add-ons were \u201cclutter\u201d \u2013 unnecessary items that distracted from the main product \u2013 but recalls that backers would ask why his campaign didn\u2019t have add-ons. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">He soon changed his tune. \u201cSome backers want more stuff, so you should give them an opportunity to get that stuff and support you in the process,\u201d he writes. And then there\u2019s a clear financial benefit, too. \u201cWe had the $65,000 stretch goal in sight, and so existing backers started adding more stuff to their pledge to help us get there.\u201d<\/span><\/p>\n<h2><b>Testing Demand with Add-ons<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Add-ons let backers to snap up what they missed during the initial campaign, or to pick and choose additional items that are outside their pledge level. From a business perspective, they\u2019re justified: it\u2019s easier to sell to an existing customer than a new one. Your backers are a captive audience. \u00a0Sometimes, like in Stegmaier\u2019s case, they can be so successful they unlock a campaign stretch goal. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Some project creators use add-on as a tool for gauging market validation. Gareth Everard, the project creator behind <\/span><a href=\"https:\/\/rockwellrazors.com\/\"><span style=\"font-weight: 400;\">Rockwell Razors<\/span><\/a><span style=\"font-weight: 400;\">, used add-ons in BackerKit to \u201ctest demand for different products before proceeding with full production\u201d. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cWe make razors on Kickstarter, but the gamut of men\u2019s grooming products spans a bit wider,\u201d Everard says. He wanted to see whether it was worth selling a full suite of men\u2019s grooming products and accessories.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cWe used add-ons like Kickstarter, but of course we weren\u2019t going to launch combs and shaving creams on their own KS campaign,\u201d Everard says. \u201cThe great news was that we were able to see demand for every single product except for one. We\u2019re able to test and pre-sell thousands of these products, so it\u2019s a win-win for everyone.\u201d Once add-ons for the Rockwell Razor Model T campaign have shipped, he plans to offer these products on the company\u2019s Shopify store. <\/span><\/p>\n<h2><b>What Makes a Good Add-On Item?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Ideally, add-ons should be relevant to a crowdfunding campaign\u2019s core product. They might enhance the original product in some way, or are a limited-edition item that isn\u2019t offered in any pledge level. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">For Everard, he chose add-ons that aligned with his aim for providing a \u201cfuller, more complete range of men\u2019s grooming products to add more value for people who are interested in upgrading their grooming routine\u201d. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">His campaign for the Rockwell Razor Model offered add-ons such as shaving cream, post-shave balm, beard oils, and beard conditioner, as well as additional hardware like beard brushes and folding combs. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">When deciding which items to offer, be sure to factor in shipping costs (particularly if you are shipping physical items separately from pledge rewards; whether the item can be easily produced in bulk; and what value it offers to backers.<\/span><\/p>\n<h2><b>Budgeting and Pricing Add-ons<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">\u201cThere are a lot of production costs associated with the razors, but fortunately we have an existing product, the Rockwell 6S, which is revenue-generating,\u201d Everard says. \u201cThe minimum orders for consumables are much, much lower than new custom razors,\u201d he says. This meant that there were lower upfront costs for add-ons, which were easily covered by the cash-flow from Everard\u2019s existing business. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Everard says he determines pricing for add-ons by researching market trends and evaluating the offerings of competitors. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cWe have a consistent, across-the-board pricing strategy so that we can afford to go direct to the consumer, wholesale, and sell to our international distributors but still offer a very competitive direct-to-consumer price.\u201d<\/span><\/p>\n<h2><b>Keeping Backers Satisfied<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Everard says his first Kickstarter campaign for the Rockwell Razor was \u201ccrazy\u201d. Things didn\u2019t quite go to plan. As he wrote on a <\/span><a href=\"https:\/\/venturebeat.com\/2016\/03\/13\/how-my-kickstarter-blew-up-my-life\/\"><span style=\"font-weight: 400;\">blog post <\/span><\/a><span style=\"font-weight: 400;\">\u00a0for VentureBeat, significant manufacturing quality issues derailed the initial success of the campaign. \u201cIt was at this time that we discovered the error of our ways,\u201d he wrote. <\/span><\/p>\n<blockquote><p>\u201cHaving not visited the factory during production, and having not assembled, quality controlled, and shipped the razors ourselves, we\u2019d never taken a close look at the full production product \u2014 we\u2019d just assumed everything would be great. So we deserved every moment of Kickstarter fury that was about to follow.\u201d<\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">Determined to rectify the situation, Everard \u201cwent all in with his personal savings to ship out a replacement razor to all of our backers for free\u201d. It was a costly move, but it worked: he says backers were \u201cquite loyal because of our significant effort to get it right\u201d. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Doing right by backers in the first campaign led to two more successful Kickstarter campaigns, and made an engaged, supportive base of backers more willing to buy additional products.<\/span><\/p>\n<p>&nbsp;<\/p>\n<\/span>","protected":false},"excerpt":{"rendered":"<p>Rockwell Razors&#8217; Gareth Everard shares his wisdom. <\/p>\n","protected":false},"author":4,"featured_media":4706,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[60,63],"tags":[40,39],"class_list":["post-4691","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crowdfunding-tips","category-post-campaign-tips","tag-add-ons","tag-shipping"],"acf":[],"yoast_head":"\n<title>Razor-Sharp Strategies for Add-On Sales | 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\/razor-sharp-strategies-for-add-on-sales\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Razor-Sharp Strategies for Add-On Sales | BackerKit\" \/>\n<meta name=\"twitter:description\" content=\"Rockwell Razors&#039; Gareth Everard shares his wisdom.\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/www.backerkit.com\/blog\/wp-content\/uploads\/2017\/05\/rockwell.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 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