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Indeed pay peanuts … get monkeys.
You’re never paying for a product in kickstarters.
Yes … they are going to tell you that you get it ‘cheaper’ than retail, but that is a lie (and who pays RRP at retail anyway?).
They still need a healthy margin, because unlike retail they need to have a buffer to account for the inevitable failures and issues they will run into in the design/prototyping phase.
Stretchgoals need to be ‘hidden’ by very high levels, because that is what it will cost to make them if they weren’t factored into the initial target. I’d argue that anything less than a few hundred thousand as an initial target is going to be a lie or has hidden funding.
The Mycroft kickstarter made that crystal clear as the initial design prototype proved to be impractical in manufacturing.
Mini design has similar risks, but experienced designers tend to be aware of the issues …