Why math, not panic, will save your campaign
A few weeks ago, my wife and I welcomed our third child into the world – a beautiful baby boy named Gil.
And like any “experienced” parent, I thought: I’ve done this before. I know what to expect. Sleepless nights? Sure. Diaper duty? Easy. One-handed living? Been there.
And then Gil arrived – and reminded me: chaos doesn’t care how prepared you think you are.
Chaos is the plan sometimes.
No matter how ready you feel, life (and business) can throw curveballs that completely rewrite the script. Schedules get shredded. Plans dissolve. You lose control of outcomes you thought were locked in.
And when chaos shows up, emotions come rushing in too. Excitement. Fear. Frustration. Overwhelm.
In fact, my 8-year-old son put it better than I ever could. After a particularly emotional meltdown, he said:
“Dad, I’m just so happy about Gil… that sometimes my happiness gets confused and turns into anger.”
Wow. I feel like that is wisdom many adults still struggle with:
When things get intense, our emotions can overwhelm us.
What does this have to do with tariffs?
(Yes, I’m comparing U.S. tariffs to a newborn baby. Work with me here)
Well, a new wave of tariffs on products from China is hitting the board game industry – hard.
When our world feels uncertain, our emotions are amplified and can overflow.
And just like with a newborn, we have two choices:
- Let the emotions run wild, turning into a survivalistic fight or flight mode.
- Or accept the situation, switch into problem-solving mode, and adapt.
You Are Already a Problem-Solver
The fact that you’re here, making games, building a business, working toward a dream – proves one thing:
You already know how to solve problems.
- You’ve fixed broken game mechanics.
- You’ve found ways to reach and excite players.
- You’ve kept moving forward despite every obstacle thrown your way.
This is no different.
How to Survive the Tariffs (and Thrive)
I reached out to multiple industry experts, pulled insights from emergency sessions we hosted at our Duckademy, and boiled everything down to practical, doable steps:
First – Just like the Jedi Code says:
There is No Emotion – There is Math
- Tariffs are a math problem, not the end of the world.
- No knee-jerk reactions. Don’t double your MSRP. Don’t panic.
- Treat it like bad weather: unwelcome, but manageable.
Numbers don’t panic. Numbers don’t argue. Numbers tell you where you stand and what options you have.
Here is a common mistake I see many publishers assuming for some reason:
Tariffs apply to your manufacturing cost, not your MSRP.
Example:
- $10 unit cost × 100% tariff = $10 extra cost per unit.
- Not $60 × 100% tariff = $60 increase. That’s wrong!
The actual financial hit is big, but manageable when you run the real numbers – not apocalyptic.
The key is to focus on your margins.
Before doing anything else, decide:
What is the minimum margin you need to stay profitable?
A healthy target is often 40% margin after all expenses (production, landed cost, fees, etc.).
When tariffs hit, they chip away at your margin – but they don’t erase it.
Example for a $45 game:
| Situation | Without Tariffs | With 20% Tariffs | With 54% Tariffs | With 104% Tariffs |
| Unit Manufacturing Cost | $8 | $9.60 | $12.32 | $16.32 |
| MSRP | $45 | $45 | $45 | $45 |
| Approximate Margin | ~49% | ~47% | ~44% | ~39% |
Even at 104% tariffs, your product is still sellable – margins tighten, but they don’t vanish.
If your margins fall slightly but stay above your target,
– You don’t need to change your MSRP.
– You stay competitive and attractive to buyers.
If your margins drop below your minimum target you make small adjustments – not huge ones:
- Slightly negotiate discounts with distributors (ex: move from 60% to 57% off MSRP).
- Cut minor costs (shipping subsidies, credit card fees, etc.).
- Slightly increase prices – but only if truly necessary – and only by a few dollars.
Example:
- If a $60 MSRP drops below target margin, you may need to bump it to $62 or $65 – not $90!
Second: Practical Strategies to Offset Tariffs
1. Treat tariff costs like shipping fees.
Don’t raise your base game price. Pass tariff costs into your shipping rates brackets as a surcharge for U.S. customers only.
2. Leave shipping ranges broad.
Set worst-case and best-case expectations for your shipping + tariff costs. Build in wiggle room (example: $20–$24) for unexpected changes.
3. Charge shipping later.
Wait until your product is ready to ship before charging – when your real costs are clear, giving you a buffer for things to hopefully improve.
4. Don’t spend Kickstarter funds early.
Only spend what’s needed for manufacturing and shipping. Keep a safety net for surprises.
5. Negotiate across your supply chain.
Negotiate small discounts (1-3%) with manufacturers, freight companies, and distributors. Sharing the burden can make a big difference – but don’t go too low! You might get flagged and hit by customs that could cost you much more in delays and fines.
6. Explore Free Trade Zones.
Import into U.S. Free Trade Zones where tariffs are only paid once products are sold, giving you more time to prepare and adapt. This might be a solution you can explore with your fulfillment partners.
This too shall pass.
Focus on building your audience, telling your game’s story, and creating games people love.
It’s equally important to stay positive publicly – while others are doom-posting, be the calm in the storm.
That’s what will build trust.
That’s what will sell games.
That’s how you survive – and grow stronger.
Just like parenting a newborn, the secret is adaptability, patience, and unwavering love for what you’re building.
And if you ever need to vent, brainstorm, or get help figuring things out, I’m right here.
Just hit reply.
And one day, hopefully, I’ll be playing some of your games with little Gil.
Cheers,
Ori