Page 1 of 3 123 LastLast
Results 1 to 10 of 27

Thread: Kickstarter Pen Project

  1. #1
    Join Date
    May 2007
    Location
    Kansas City, Missouri
    Posts
    13,439

    Kickstarter Pen Project

    Since I don't make pens and don't know additional costs involved, I thought I'd post this question to see if the profit I came up with was about right.

    Here is the project:
    http://www.kickstarter.com/projects/...f=home_popular

    His project pledge was for $500, he's up to $3125 with 77 backers with 20 hours left. The backers pledge for the type of pen they are wanting, so nicer pen = higher pledge.

    Kickstarter takes 5% of the total pledge for their cut. So $3125 * 5% = $156.25

    $3125 - $156.25 = $2968.75

    $2968.75 / 77 = $38.56 each pen

    Figure that $5.30 each for flat rate padded envelope

    $38.56 - $5.30 = $33.26

    This looks to be similar to the pen kit: http://www.beartoothwoods.com/catalo...roducts_id=264

    So buying in bulk for 50+ he's probably getting them for $7.75 each and pen blanks can vary, but $.50 should cover most since many can come out of a board foot

    $33.26 - $7.75 - $.50 = $25.01 profit each pen

    So around $1925.77 total profit...Correct? What other significant costs are there?
    Darren

    To a small child, the perfect granddad is unafraid of big dogs and fierce storms but absolutely terrified of the word “boo.” – Robert Brault

  2. #2
    Join Date
    Oct 2006
    Location
    ABQ NM
    Posts
    30,014
    For starters, the pen kit you found is about twice the price that kit sells for elsewhere:

    http://www.a1penkits.com/store/pen-k...-pen-kits.html

    Shipping will be less that $5.30 Flat Rate. First Class parcel price for 8 ounces sent NY to CA is about $2.80.

    His profits will be higher than your estimate, although there are a few additional expenses like bushings and a mandrel.

    As an aside, his "French Polish" finish for the pens will look good for about long enough to ship the pens. A shellac wax finish won't hold up well if the pen is used much at all.
    When the going gets weird, the weird turn pro. - Hunter S. Thompson
    When the weird get going, they start their own forum. - Vaughn McMillan

    workingwoods.com

  3. #3
    Join Date
    May 2007
    Location
    Kansas City, Missouri
    Posts
    13,439
    Yeah, I didn't do much research on the shipping or kits.

    So how long does one spend making a pen like that?
    Darren

    To a small child, the perfect granddad is unafraid of big dogs and fierce storms but absolutely terrified of the word “boo.” – Robert Brault

  4. #4
    Join Date
    Oct 2006
    Location
    ABQ NM
    Posts
    30,014
    Quote Originally Posted by Darren Wright View Post
    ...So how long does one spend making a pen like that?
    Including the blank preparation, finishing, and assembly, it'd take a penmaking rookie like me about an hour per pen. I'd guess someone who turns a lot of pens could likely cut that time in half or more.
    When the going gets weird, the weird turn pro. - Hunter S. Thompson
    When the weird get going, they start their own forum. - Vaughn McMillan

    workingwoods.com

  5. #5
    Join Date
    May 2007
    Location
    Kansas City, Missouri
    Posts
    13,439
    Quote Originally Posted by Vaughn McMillan View Post
    Including the blank preparation, finishing, and assembly, it'd take a penmaking rookie like me about an hour per pen. I'd guess someone who turns a lot of pens could likely cut that time in half or more.
    Sounds like it could be profitable then. He also got his funding up-front and knew what he had to make rather than make a bunch and hope they sell. His initial pledge was $500, so broke down to about 12-13 pens. Profit would have been around $350, good enough to buy materials for other projects or groceries for the week.

    Anyone see where I'm going with this?
    Darren

    To a small child, the perfect granddad is unafraid of big dogs and fierce storms but absolutely terrified of the word “boo.” – Robert Brault

  6. #6
    Join Date
    Nov 2006
    Location
    Delton, Michigan
    Posts
    17,471
    i would say your trying to tell folks that making pens can be profitable and some folks should look harder at a lathe to replenish there funding they now have which is withdrawls
    If in Doubt, Build it Stout!
    One hand washes the other!
    Don't put off today till tomorrow!

  7. #7
    Join Date
    Dec 2008
    Location
    falcon heights, minnesota
    Posts
    5,609
    after looking this over, those are the same basic sierra pen kits that i get from berea hardwoods. if he's buying 50+, they are pricing out at $5.50 per kit, with a not mentioned price for over 200. he has 74/80 backers. so far his costs for the 80 pen kits is $440, with any lumber or acrylic blanks sending him well over the $500 that he was looking to raise. even his math is off. the total should have been $3160, he may have counted the total of the $25 pens twice, as he is off by $125. what a scam! i'm kind of leery of the fact that the $25 ones are sold out. reminds me of the bait and switch my brother pulled when he was 10, selling the medium sized pumpkins for $1 each, while using my $5 pumpkin (this was when $5 bought a rather large pumpkin), with a small sold sign on it. people would feel so guilty about trying to cheat this kid, that they would buy 2-3 of the smaller ones. this guy is smooth.
    benedictione omnes bene

    www.burroviejowoodworking.com

    check out my etsy store, buroviejowoodworking

  8. #8
    Join Date
    Dec 2008
    Location
    falcon heights, minnesota
    Posts
    5,609
    Quote Originally Posted by larry merlau View Post
    i would say your trying to tell folks that making pens can be profitable and some folks should look harder at a lathe to replenish there funding they now have which is withdrawls
    just felt a tremor in the spinny vortex, could larry be edging closer to acquiring a lathe??
    benedictione omnes bene

    www.burroviejowoodworking.com

    check out my etsy store, buroviejowoodworking

  9. #9
    Join Date
    May 2007
    Location
    Kansas City, Missouri
    Posts
    13,439
    Quote Originally Posted by Dan Noren View Post
    after looking this over, those are the same basic sierra pen kits that i get from berea hardwoods. if he's buying 50+, they are pricing out at $5.50 per kit, with a not mentioned price for over 200. he has 74/80 backers. so far his costs for the 80 pen kits is $440, with any lumber or acrylic blanks sending him well over the $500 that he was looking to raise. even his math is off. the total should have been $3160, he may have counted the total of the $25 pens twice, as he is off by $125. what a scam! i'm kind of leery of the fact that the $25 ones are sold out. reminds me of the bait and switch my brother pulled when he was 10, selling the medium sized pumpkins for $1 each, while using my $5 pumpkin (this was when $5 bought a rather large pumpkin), with a small sold sign on it. people would feel so guilty about trying to cheat this kid, that they would buy 2-3 of the smaller ones. this guy is smooth.
    Sorry didn't mean to confuse the point, he asked for $500, he raised well over that and is being backed by 77 folks making $3125 before costs.
    Darren

    To a small child, the perfect granddad is unafraid of big dogs and fierce storms but absolutely terrified of the word “boo.” – Robert Brault

  10. #10
    Join Date
    Dec 2008
    Location
    falcon heights, minnesota
    Posts
    5,609
    his minimal costs for pen kits alone would be around $550, let alone blanks. if he hadn't gotten anyone to sign on, he would be on the hook for 80 pen kits. let alone the costs of the blanks, and setting up that site. call me cynical, but cynical i am.
    benedictione omnes bene

    www.burroviejowoodworking.com

    check out my etsy store, buroviejowoodworking

Similar Threads

  1. Kickstarter legal action
    By Rob Keeble in forum Off Topic Discussion
    Replies: 12
    Last Post: 06-20-2015, 04:47 AM
  2. Kickstarter project .portable hydropower pack
    By Rob Keeble in forum Off Topic Discussion
    Replies: 7
    Last Post: 03-30-2015, 01:28 AM
  3. Ned's Kickstarter Build
    By Ned Bulken in forum Flatwork Project Showcase
    Replies: 55
    Last Post: 01-03-2015, 02:04 PM
  4. Good to see someone is trying out Kickstarter here...
    By Darren Wright in forum Off Topic Discussion
    Replies: 46
    Last Post: 11-12-2014, 10:09 PM
  5. Finally a consumer level 3D printer kickstarter project
    By Rob Keeble in forum New Systems and Builds
    Replies: 22
    Last Post: 11-08-2014, 04:23 AM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •