Singapore-based Haystakt is offering a twist on the crowdfunded model, dropping the price of artisanal products for every purchase made after the funding target has been reached.
Platforms such as Kickstarter and Etsy have enabled a whole generation of crafters and creatives to market their unique goods, and we’ve even seen retail outlets dedicated to only selling work from independent talents in the form of sites like TinyLightbulbs. Now Singapore-based Haystakt is offering a twist on the crowdfunded model, dropping the price of artisanal products for every purchase made after the funding target has been reached.
Makers with at least a working prototype of their original product can launch a pre-order campaign through the site, setting an initial price and minimum target for purchases that will enable them to go into production. As with other crowdfunding sites, users then need to attract the minimum number of purchase pledges to reach their target in order to achieve a successful campaign. However, sellers also set their own price curve that enables them to continue to meet their overheads while also attracting more customers. Once the campaign is successful, the price begins to drop for every new purchase made according to this curve. This is possible because makers can spread their upfront costs across a greater number of people, passing on the savings to the consumer. At the end of the crowdfunding campaign, sellers know the exact number of products they need to make and don’t need to worry about leftovers or budgeting issues.
Starting a campaign on Haystakt is free, although the site takes a 4 percent cut of sales, while PayPal takes 5 percent. Are there other ways small and independent makers can take advantage of smart finance tools to streamline their fledgling businesses?