Sourcing
Tooling Fee explained
Tooling / Mold Cost
One-time mold cost for a custom part, typically USD 1,500–30,000+ depending on complexity.
Full definition
Tooling is an NRE (non-recurring engineering) charge paid before first production. Single-cavity injection molds run USD 1,500–5,000; multi-cavity or complex tools exceed USD 30,000. Negotiate four things in writing: who owns the tool, whether it can be shipped out of China, rebate terms if annual volume targets are met, and how engineering changes are priced.
Worked examples
Tooling USD 3,500, one single-cavity mold, ownership assigned to buyerTooling USD 8,000, 50% rebated after 50,000 pcs
Related terms
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