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:
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?