Castalia and the Cost of Tariffs

The new tariffs on Switzerland has consequences for the Bindery

President Trump has imposed a 39 percent tariff on Switzerland. This has a direct impact on all the Castalia Library books now being produced in Switzerland, beginning with the Byzantine histories and Dracula. Now, the tariff is imposed on the declared value, not the retail price, so it's not quite as bad as it looks, but it is a bit of a problem going forward since the discounts provided to subscribers for paying in advance don't account for this additional expense to the 12 or so books now in production.

Now, even if we jacked up the subscription prices by 40 percent, our books would be a much-better value than Easton Press books, which go for $168. However, we know things are tight, and we don't want to price our books out of the reach of subscribers who can't afford a price increase right now.

So what we're contemplating doing is to add a T-version of our base subscriptions to Library and History, similar to the Euro version of History, that will allow those subscribers who can a) afford the additional tariff cost and b) want to support the bindery. Libraria and Cathedra prices have a sufficient cushion to absorb the additional expense; we priced Cathedra with the expectation that there would be a tariff, although we were hoping for something in the 10-15 percent range. That would mean increasing the monthly subscription price from $50 to $75 for Library.

Another option, indeed, one that we'd originally contemplated from the start, is going back to producing all the US books in the USA, while producing the higher-quality books from the Bindery for Europe and the rest of the world. This would complicate our production runs, but since we could still produce all the interior book blocks from the same tariff-neutral location, would be entirely viable from a manufacturing standpoint. The primary downside is that we would have to establish another shipping operation instead of being able to rely solely on the US one.

Speaking of US production, THE SWISS FAMILY ROBINSON has passed the stamp test and will be getting bound and shipped to the warehouse very soon.

Anyhow, if you're a Library, History, or Cathedra subscriber, please feel free to share your thoughts on how you think we should address the situation.

EDIT: The discussion on SocialGalactic has come up with the option of pushing the release schedule of Library books back one month, so three months go toward one book instead of two. The downside is the increased price per book, the upside is that no one has to pay any more than they’re accustomed to paying and it would give us more time to catch up on the backlog. This would probably not apply to Libraria without a discount in the subscription price, and would not be necessary for Cathedra.

Just another option to consider that we hadn’t originally thought of. We’ll hold a poll here this week so that we can determine the option that is most favored by everyone.