Whether you're a JourneyQuest backer, a Valdemar/Grandmaster backer, or are signed up for the upcoming Gamers campaign, chances are that you're wondering how we plan to manage the uncertainty and new costs associated with the chaos and uncertainty of Trump's trade war.
Here's the summary:
JQ4 – Product is already in the USA, although we may have to order more depending on survey results. We hope that domestic shipping won't be affected. International shipments will depend on the destination country.
Mercedes Lackey's Grandmaster – Books are currently exempt from the new tariffs. We'll ship to non-US backers from Hong Kong and to US backers from Los Angeles. More about contingency plans below. Grandmaster is being manufactured in China and Canada.
Gamers: Attack of the Pwns – We're trying something new. Check out the poll. (By the way Valdemar fans, Larry Dixon co-wrote the upcoming Gamers episode with us!)
Also, please note that shipping costs have skyrocketed since the pandemic. We have no control over those costs. Whatever it costs to get the items out to you is what we'll charge you.
Even if you're not a Gamers fan and won't be pledging for the upcoming campaign, we'd like to hear from you in the poll below! Your answers help us plan the next Mercedes Lackey campaigns as well.
Thanks!
TARIFFS - A BRIEF EXPLAINER
Tariffs are a tax imposed by a country on imports. Buyers are responsible for paying tariffs, not manufacturers and definitely not the country of origin. Typically the company who purchased the goods will pass along the cost of the tariffs to consumer—they're considered part of the cost of the item.
Several factors affect a company's decision to manufacture outside of the USA. The most important are that some items aren't feasible for an independent to manufacture Stateside—specifically, anything that requires a custom steel mold, including dice, miniatures, and many board game components. Pricing is a secondary aspect—and one that ZOE has traditionally worried less about. If it could be made in the USA, we made it in the USA, even if the cost was higher. Finally, there's the question of harm—which country or location or manufacturer treats its employees well and uses sustainable resources? What is the impact of our spending? How will what we pay in tariffs be spent? What policies do our dollars support? Current events have changed that calculus for us.
We should also note that the current US tariffs are imposed under the International Economic Emergency Powers Act (IEEPA). "Informational materials" are exempt from regulation under the IEEPA, which means that books are NOT subject to the new tariffs and remain at 7.5% tariffs for import from China. Paper from Canada, Mexico, and the US is USMCA compliant and is also not subject to the new tariffs.
For now.
NEXT STEPS
Now that we have clarity about the scope and impact of the tariffs situation, we can proceed with launching our next campaign, for The Gamers: Attack of the Pwns, which we shot earlier this year.
We would like to offer custom dice and miniatures for this campaign, but currently the tariffs on those goods would more than double the retail price.
We also want to offer DVDs, Blu-rays, and an Ultimate Dungeon Showdown booster pack.
We also don't want global uncertainty to delay delivery of the campaign and its rewards (as happened with JourneyQuest 4 and COVID.)
Therefore, we're polling you to determine how we move forward.
Option 1: $130,000 – All Digital Campaign with Print-on-Demand rewards. We calculate our margins on physical items, reduce the cost of the associated reward levels by that amount, then give backers at those levels codes to order the items at cost from DriveThruRPG, DriveThruCards, and a minis-on-demand service. You get your rewards as quickly as they can print them. We also provide the digital files for the rewards so you can print them yourself. This is the fastest fulfillment timeline. Since we already shot the movie, we just have to finish post-production and send out the files.
Option 2: $130,000/$175,000 – All Digital Campaign with Physical Stretch Goals. The same as Option 1, but if we raise enough to cover the cost of higher tariffs then we add the physical items to your pledge at no extra cost, plus we add the custom Gamers dice and minis to the $100 and higher levels. Downside – fulfillment could take 6-9 months longer than the digital plan. This puts us on a typical fulfillment timeline.
Option 3: $160,000 – Print in the USA, no dice/minis. We raise the prices of the reward levels, eliminate the miniatures and dice from the campaign, and offer discs, patches, books, and cards in the USA. 6-9 month fulfillment timeline. This is the safest way to get physical rewards into your hands, but it's also more expensive for each individual backer.
Option 4: $175,000 – Standard ZOE campaign with all rewards, including dice and miniatures. We plan for the cost of up to 150% tariffs, manufacture the items in China that can only be made in China, pay the import fee, and backers get everything that we originally planned. This is the riskiest campaign, but it gets everyone the most stuff for the lowest price. 6-9 month fulfillment timeline.
THE FUN STUFF
Want to be the first to see the completed trailer for the newest Gamers film?