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Fees and Taxes and Margins! (oh my)
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Fees and Taxes and Margins! (oh my)

by heph on Sat Jan 31, 2015 9:55 pm

I'm planning a Kickstarter for digital fashion accessories and would love some advice on how much to charge. I've read the advice of 2-3x cost as a minimum retail, but am learning that "cost" has a ton of factors, and I'm not sure which apply.

For example, Kickstarter doesn't allow me to collect sales tax where the reward would be delivered to a party in my state (California). The state still requires that I *pay* sales tax on these transactions. If I increase the retail price by 10% to cover sales tax, that becomes the new baseline sale price for calculating tax liability *and* has me overcharging out of state parties. How is this typically handled?

In addition, Kickstarter (and Amazon payments) will take around 10% off the top of all donations for their fees. Should I account for that as part of cost (again, raising the price 10%), or let it eat into the 2-3x margin?

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Joined: Sat Jan 31, 2015 6:55 pm

Re: Fees and Taxes and Margins! (oh my)

by adafruit_support_mike on Sun Feb 01, 2015 3:05 am

There are laws about discussing pricing and promotion online. They have to do with cartels, price fixing, and a bunch of other stuff.

It's a subject we don't allow because our lawyer already has other things to do.

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Joined: Thu Feb 11, 2010 2:51 pm

Please be positive and constructive with your questions and comments.