Setting a Price Point for Kickstarter
There are few decisions that will more seriously affect the long-term prospects of your game’s success, and in turn the success of your business than setting the price point of your game, both on Kickstarter and then in whatever passes for retail. In attempting to do so you’ll hear a lot about things like MRSP and landed cost and there is a good deal to this vital decision that needs experience and understanding. I don’t have a whole ton of that, but I’m here to offer what I’ve got.
MRSP and Retail.
Usually referred to as MRSP (maximum retail selling price) or more often in the UK as RRP (recommended retail price) either way, this is the official price that you’re saying your game will be sold at in whatever passes for retail post your Kickstarter. The traditional calculation for MRSP is five times the landed price of your product. The landed price is what it costs for you to get the game made and delivered ready to go out to retailers or even direct to customers. So, if it costs £2 to get your game made and in your hands its MRSP should be £10, traditionally. In this case a retail store would buy the game for £5 and a distributor for £3-£4. This is, for various reasons, a pretty meaningless number for most Kickstarters.
The first reason that its pretty meaningless is that the majority of Kickstarters who fund won’t make it into retail to any significant level, certainly most first projects launched in 2020 onwards won’t see a retail release. The second reason is that Kickstarter creators are not gene