Over the last few years, we’ve managed to work with quite a few Kickstarter project creators. The vast, vast majority of them have been extremely great to work with, easy to communicate with and when problems occur more than happy to work with us. However, I’m going to talk about the bad experiences and what is driving some policy changes.
Increased Deposit Amounts
We’re increasing and setting deposit amounts at 75% of the total shipping cost. The reason for this is the Skulltales Kicsktarter. This Kickstarter had issues from the start, including unexpected charges for brokerage and customs that were not part of the initial quote, but after all was said and done, we had shipped all 232 Kickstarter shipments to backers. Now, that worked out to roughly US$600 in handling fees that were charged (converting from CAD$ for some of them). As of today, over 3 months since the final invoice was sent, we are waiting on a US$2874.76 final bill to be paid by them, mostly resulting from the additional charges that weren’t part of the initial quote and the remainder shipping charges.
This one Kickstarter not only wiped out all the profits from doing this Kickstarter but a few others (smaller) Kickstarter’s. Unfortunately, reading the comments on the Kickstarter page and the continued lack of communication, it’s expected that this invoice will never be paid.
Not to say we won’t continue trying and at some point, we’ll probably send it to an international collection’s agency, but we literally cannot afford to risk having a Kickstarter not pay us. Thus the increased deposit amount such that if a KS project creator never pays us again, we should be mostly covered.
Late Payment Fees
An additional policy that we are instituting is the mandatory addition of late payment fees. We currently have another Kickstarter that is running over a month late on a somewhat substantial bill. In this case, we expect the bill to be paid (and thus aren’t naming the party). However, since we have to pay our suppliers, any resulting late payment does have a knock-on effect on the rest of our business.
As such, we’re instituting a 2.8% monthly late payment fee for all unpaid invoices.