A mold fee is a charge for designing, producing, modifying or maintaining tooling used to manufacture a product. It is usually a non-recurring engineering or tooling cost separate from the unit price.
What can the fee include?
- Tool design and engineering
- Material and machining
- Prototype or trial runs
- Surface finish and inserts
- Testing and correction
- Storage, maintenance or replacement
How does the fee affect unit economics?
If a mold costs $12,000 and the first production run is 20,000 units, allocating the full fee to that run adds $12,000 ÷ 20,000 = $0.60 per unit.
Illustrative mold-fee allocation
| Scenario | Units | Allocated fee per unit |
|---|---|---|
| First run only | 20,000 | $0.60 |
| Expected two-year volume | 60,000 | $0.20 |
| Expected full tool life | 100,000 | $0.12 |
The lowest allocation assumes the forecast volume is actually produced and that no major repair or replacement is required.
Who owns the mold?
Payment does not automatically establish ownership, possession or exclusive use. The contract should state title, markings, storage location, maintenance, access, transfer and what happens at termination.
What should be accepted before production?
Approve the design, material, cavity count, expected tool life, sample parts, dimensions, tolerances and correction responsibility. Link final acceptance to a defined sample or test.
