COLUMN

Pricing for Japan: why the most expensive set sold best

Many overseas brands assume Japan wants the cheapest option. In COFFEEJACK's Japanese crowdfunding campaign, 154 of 244 backers (63%) chose the most complete, most expensive set. Here is what that campaign shows about pricing a launch in Japan.

COFFEEJACK portable espresso maker held in one hand

ANSWER FIRST

In short: offer the full kit, and use the early-bird ladder to reward speed, not to discount the brand

Japanese backers will pay for a complete set when it is clearly explained. A higher price also means you need fewer buyers to reach the same total.

By Yuki Nojiri, CEO of Eifer, Inc. (Tokyo). Since 2019 Eifer has launched or supported 58+ overseas brands in Japan.

THE CAMPAIGN

COFFEEJACK on GREEN FUNDING

¥11,046,630

Raised from 244 backers (closed)

63%

Of backers chose the most complete set

44%

Of the total came from 100 early-bird units of that set

WHAT HAPPENED

The set nobody expected to lead

COFFEEJACK is a portable espresso maker from the UK that had raised about USD 799K from 3,793 backers on Kickstarter. A Japanese client company we supported secured the exclusive Japan rights and ran its first Japanese campaign on GREEN FUNDING.

The campaign offered the machine alone, a portable set and a complete set. The team expected the middle option to sell best. The order turned out to be the opposite: the complete set first, the machine alone second, the portable set third.

The complete set was planned at ¥74,200 for general sale. The first 100 backers could get it 35% off at ¥48,230, the next tier 30% off at ¥51,940, then 25% off at ¥55,650. Those 100 early-bird units alone brought in ¥4,823,000, 44% of the campaign total.

LESSONS

Four pricing lessons for a Japanese launch

1. Don't assume Japan wants the cheapest option

When the value of a complete set is clear, Japanese backers will choose it. We have seen the same in another coffee product, where the set around ¥50,000 was the best seller.

2. Use an early-bird ladder to reward speed

Discounts that step down as each tier sells out give people a reason to buy early, without setting a permanently low price for the brand. Each sell-out on this campaign raised the price of the complete set by ¥3,710.

3. Higher prices mean fewer buyers needed

At an average of about ¥45,000 per backer, ¥11M took 244 people. At ¥12,000 per backer, the same total would have taken more than 900. Finding 244 committed buyers is a very different job from finding 900.

4. Price with Japanese costs in mind

Prices shown to consumers in Japan must include consumption tax, currently 10% for most goods. Crowdfunding platforms also charge a fee on what you raise, and the price has to leave room for localization, certification, ads and support. Agree on the wholesale price and the Japanese retail price together, not one after the other.