Glossary · Business & Sourcing
What Is Tooling Fee?
A tooling fee is the one-off charge for cutting the steel tool that produces a packaging component. It is quoted per component rather than per order, sits outside the unit price, and is usually payable whether or not the project reaches mass production.
Why it matters when you source
Two suppliers can quote the same unit price and land thousands of dollars apart once tooling is added. Ask for the tooling line separately and in writing, and ask who owns the tool afterwards — a mould you did not pay to own is one you cannot move to another factory.
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