Crowdfunding for launching a product can help determine if there’s demand before producing a large batch. To make this information useful, the campaign needs a prototype, a consistent price, and a production and delivery forecast. Valentí Acconcia explains in chapter 23 of Toque de Ingenio how to connect these decisions with a community interested in buying.
Guest Valentí Acconcia Company or organization: Vanacco Crowdfunding Consulting
Interview published: October 14, 2024. Episode: 23. Duration: 1 h 17 min.
In this episode:
- What needs to be prepared before launching a pre-sale campaign?
- How to validate product, price, channel, and communication with actual purchasing activity.
- Why raising money without being able to deliver it might be the most significant problem.
What is validated through a reward-based crowdfunding campaign?
Valentí distinguishes several types of crowdfunding and focuses much of the interview on the reward: people contribute money in exchange for the product or proposal being offered. In this format, the campaign allows observers to see an anticipatory purchasing decision.
That behavior provides information that goes beyond a survey. A positive response can express sympathy for an idea; a purchase requires evaluating the proposal, the price, and the waiting time. Consequently, the guest proposes crowdfunding as a tool for both funding and validation.
This case is particularly interesting for hardware teams. Before committing to a manufacturing process, they can compare the offer with a wider audience. This commercial validation requires sufficient technical development to explain what will be delivered.
The prototype allows for the presentation of a specific proposal.
Edgar asks at what stage of the development process a campaign can be launched. Valentí explains that when presenting a physical product, it’s necessary to have a prototype to prepare photographs, video, and an explanation of how it works.
The campaign transforms the product into a public promise. The images and demonstrations should align with what the team can substantiate. A visual representation alone does not resolve mechanisms, components, or the manufacturing process.
Los functional prototypes They allow you to verify the main functions and identify changes before the series. To prepare a pre-sale, it’s advisable to distinguish what has been demonstrated, what is currently in development, and what decisions affect the schedule.
That work also helps to communicate more effectively. When the team understands the limitations and advantages of the solution, they can explain the problem it solves without relying solely on an appealing presentation.
Building a community before launch.
One of the ideas repeatedly mentioned in the interview is that the platform does not replace the work involved in finding buyers. Valentí suggests identifying groups with a specific interest and comparing their proposals with the campaign before launching it.
The example of shirts with a very specific aesthetic demonstrates how a broad category can transform into a recognizable community. The question shifts from “who buys clothes” to “who values that particular proposition.”
“You need to build your fan community”.
Valentí Acconcia 18:03.
For an industrial or technological product, the same principle applies to defining the user and their usage context. This clarity is beneficial both for the campaign’s content and the design priorities. The product’s features should align with understandable purchasing motivations.
Validate the price without hiding the cost of production.
Pre-sales allow for a comparison of product, price, distribution channel, and communication. However, Valentí warns that an excessively low price can provide misleading information: offering a discount that cannot be sustained does not validate the intended business model.
The calculation needs to include the costs associated with delivering the product. The interview covers aspects such as production, shipping, suppliers, and platform conditions. The fees and tax treatment mentioned are for October 2024; the aim of the article is to create a comprehensive forecast, without basing these figures on current conditions.
In the product design and development, That forecast relates to materials, components, assembly operations, and volume. The target price shouldn’t reach the technical team until all decisions have been finalized.
A pre-production review allows us to identify what changes when moving from a single unit to a series. A handcrafted assembly feasible on the prototype may require a different approach to consistently produce a large number of units.
The fundraising goal should ensure that deliveries can be completed.
The guest realizes they won’t achieve the goal of surpassing the campaign and being able to deliver. In the first scenario, there’s a potential for learning regarding the proposal, communication, or pricing. In the second, there are already people expecting a commitment that hasn’t been fulfilled.
“You already have the demand”.
Valentí Acconcia 59:23.
An incomplete cost forecast or a problem with a supplier can jeopardize execution, even after initial commercial success. Therefore, the minimum target should be linked to a sufficiently well-developed manufacturing and supply scenario.
The interview also addresses the expanded goals. Adding color, accessories, or additional features can increase appeal, but it alters the scope of the project. Each expansion requires a technical and operational review to determine what it truly entails.
La Industrial assembly preparation Help to link the sold units with resources, operations, and controls. Commercial launch and production planning should all use the same version of the product.
Learning from a campaign to refine the product.
Valentí reports that some campaigns improved after a second attempt, following a review of costs, strategy, or communication. The initial result, on its own, doesn’t explain what happened; it’s necessary to investigate what occurred and what changed in the campaign proposal.
This reading aims to prevent confusing a campaign with a definitive assessment of the idea. Factors such as audience quality, clarity of the message, and the offer being presented, influence the response. The team needs to interpret the data alongside their knowledge of the product.
For a hardware development company, useful learning is practical: what function is valued, what question prevents a purchase, and what conditions make delivery viable. This information can guide the next design and industrialization iteration.
Questions about crowdfunding to launch a product
Do I need a prototype to launch a physical product campaign?
According to Valentí’s approach, yes: the prototype serves to demonstrate and explain the proposal. Furthermore, it helps to identify what still needs to be resolved before production and delivery.
What validates a pre-sale, besides the idea itself?
It’s possible to observe the response to price, channel, and communication. This signal becomes more valuable when the offer aligns with the level that the company can maintain.
What to check before setting the campaign objective?
The cost of production and delivery, the minimum viable volume, and the necessary resources. Achieving a certain revenue figure does not, by itself, guarantee that the production is viable.
Four key takeaways from the chapter.
- The prototype provides evidence to showcase the product.
- The community is working beforehand, before launching the campaign.
- The price should reflect a feasible delivery model.
- Expanded goals also change the technical requirements.
From learning to product development.
At i-mas, we help turn ideas into products ready for manufacturing. We can develop the specifications, prototypes and industrialisation your launch needs. Let’s talk about your product..
You can also read. Kibus’s experience in developing and validating its cooking robot..
Source: Original interview from Toque de Ingenio, published on YouTube on October 14, 2024. The experiences, figures, and plans discussed in the interview are reflective of that specific time. The references to i-mas services are the editorial analysis of the article.
