Compounding fees will sink your budget if you don't plan ahead and factor in some wiggle room. Recalling stats from my previous post, I narrowly avoided over $1500 in losses (nearly 1/3 of my profit margin for the entire Kickstarter) by using a pledge manager for shipping cost collection and carefully calculating a tangled web of fees via the following methods.
My fulfillment for The Drain is still underway with a few outstanding orders and replacement packages left to ship out, but I estimate my true final costs fall within a 1% margin of collected shipping costs—an extremely relieving success in my book.
Ready for math? Let's dive in.