China Sourcing Wiki

Sourcing glossary

Tooling

Also known as: Moulds, Molds, Tooling cost, 模具, 금형

The custom moulds, dies, jigs and fixtures a factory makes to produce a specific design, usually charged to the buyer as a one-off cost before mass production.

Injection moulds, die-cutting tools and metal stamping dies can cost from a few hundred to tens of thousands of dollars, and making them adds weeks to the lead time. Some factories refund or amortise the cost over a quantity of orders; ask how it is handled before you pay.

Paying for tooling does not automatically mean you control it. Put in writing that you own the moulds, that they may only be used for your orders, and whether you can move them to another factory. See OEM vs ODM.

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