Separate tooling and setup fees from product price

Tooling, moulds, artwork setup and programming can be one-time or recurring costs. A unit price that omits them can look deceptively low. The RFQ should ask what has to be created before production and who controls that asset afterward.

Define the requirement

List known tooling or setup requirements and attach design revisions. Ask whether the supplier is using an existing tool or making a new one. State whether the quoted price should include amortisation or show tooling separately; use one comparison approach across suppliers.

Questions to send with the RFQ

Ask who owns the tool, where it is stored, how it is maintained and what happens if production moves. Request separate line items for design changes and replacement. Ownership and transfer rights belong in a negotiated contract, not an assumption based on who paid an invoice.

Review the answer

Compare the expected initial order cost and the consequences for later orders. A low unit price with expensive tooling may still be sensible at scale, but the buyer needs the time horizon and control rights in view. Avoid mixing hypothetical future volumes into the first-order decision.

An example to adapt

For a hypothetical injection-moulded cap, Supplier A may charge a separate mould fee while Supplier B spreads it across units. A comparison should show both the first-order cash cost and the later per-unit treatment.

Decision before sending

For every tooling charge, request an asset description rather than just a cost line. A buyer should know whether the fee creates a mould, a print plate, a fixture or a design service, because those have different reuse possibilities. Record the design revision and any maintenance assumptions. If later orders are expected, compare the effect of the fee across realistic volumes, but keep the first-order cost visible. Contract terms must confirm any ownership or transfer rights before payment.

Source context

The FAR line-item rules separate distinct priced items and quantities. Ask a supplier to show tooling, setup, ownership and repeat-order charges apart from product unit price so a first-order total can be reconstructed later.