Tooling cost

The one-off cost of the injection mould, die or print plate.

What it changes for you

Amortised into the unit price above a threshold quantity - which is why MOQ and unit price move together.

In practice

Tooling is the one-off cost of the injection mould, die or print plate. Factories amortise it into the unit price above a threshold quantity, which is why a quote for 5,000 pieces and a quote for 50,000 pieces are not the same product at a different price: they carry the same tooling across different volumes. Ownership is the part buyers most often skip: whoever holds the mould decides how easy it is for you to move the programme later.

Questions about Tooling

Who owns the tooling if I pay for it?

The paperwork decides, not the practice. State in writing whether the mould or plates are owned by you or by the factory, and whether they transfer or are bought out if you move the programme to another supplier.

Why does the unit price fall as quantity rises?

Because the same tooling cost is spread across more pieces. The material and labour per unit barely change; the amortised setup is what drops.

Other terms

• FOB (Free On Board) - Seller delivers the goods on board the vessel at the named port; cost and risk transfer there.
• EXW (Ex Works) - Buyer collects at the factory gate.
• MOQ (Minimum Order Quantity) - The smallest quantity a factory will run for one specification.
• Colourway tolerance - The measured range a factory will hold between sample and repeat production.
• AQL (Acceptable Quality Limit) - The sampling standard (ISO 2859-1) defining allowed defects per inspected lot.
• HS heading 9507 - The Harmonized System heading covering fishing rods, hooks, reels and artificial bait.

Send a specificationAll 14 terms