My project is a CD release that costs roughly $700 for CD production, shipping materials, etc. Limited edition of 95 CDs, backers who donate $10 or more get a free copy. It costs $3 to ship a CD in the US.
(International backers will have to pay shipping separately. So let's put them to the side for the moment.)
Since shipping costs are put TOWARDS the campaign goal, I should increase my budget total to $1000, right? Or… do I just set the goal at $1000 and tell the backers that shipping is included?
If it's $10 for a CD, shipping included, should I select "no shipping involved" for the campaign settings? Will I still get an address to which I can send a CD? Idk what a receipt from KS looks like. Shipping is something I have to do on my own at least with international backers anyway.
Or do I just set the campaign goal at $1000 and have people pay for the CD at $10 and also the shipping at $3? (That seems unnecessary but this process of understanding how shipping relates to the budget line is hurting my brain)
Related question: for the people who do the shipping separately, have you found that people find it annoying that they have to purchase a CD and then go somewhere else to pay for shipping? I would probably just have people make a donation through my website for the shipping costs.
I'm sorry if these are stupid questions but it makes no sense to have the shipping costs contributed towards the campaign goal. So I'm trying to wrap my head around the concept here.
If you're only making 95 CDs, and charge $10 each INCLUDING shipping, you can bring in a maximum of $950, minus 10% in fees ($95), so $855. Is $855 enough for you to produce, package, and pay postage on 95 CDs?