What is a setup cost?July 27, 2023
Chances are, if you’ve created a deal toy with us here at Altrum, you’ve paid a setup cost. But have you ever stopped to wonder… What exactly is a setup cost? Why am I paying for it? What’s the point?
If so, you wouldn’t be the only one. We’ve gotten questions over the years on what a setup cost is, and why it’s necessary in the deal toy-making process. We’re here to clear the air and explain exactly what that line item is in your sales order.
What & Why?
In short, the setup fee is exactly that. A fee to set up. When you design a deal toy with us, you may not be conscious of all the details that go into creating your final product. There are a lot of moving parts! Multiple machines are used, many different people are working on your piece, and countless steps are taken to ensure that what you receive in the mail is nothing short of perfection.
The setup fee is a one-time cost for the setup of machinery, molds, recreations, and other factory costs that are incurred at the time of producing one piece. Usually, you will see the setup cost charged at the beginning of the project when you start with a prototype. This is because when the machines are set up for your project once, we don’t need to recalibrate and set them up again when you order the remaining pieces for the full order!
Say you get the prototype, and you just don’t love it. That is ok! Sometimes when you see something in person, you change your mind. We’re only human. However, keep in mind that when re-designing and ordering a new piece down the line, you will incur new setup costs, as we need to set everything up again for a completely new design.
If you get your prototype and you love it, but you realized that you want to change the tombstone text a little bit, additional setup fees may apply as well. This varies depending on what changes are made and what machines need to be reset and is ultimately up to your Account Manager.
Maybe you’ve worked on a bunch of projects with us, ranging from super simple to crazy complex, and you’ve noticed that the setup costs range. That’s true! The number you see on your sales order for setup cost depends on the complexity of the design you choose. The more complex, the higher it will be. Why is that? Well, with extravagant and intricate designs comes a lot of testing, the calibration of different machines, and multiple stages of quality checks. With a simpler design, we are still setting up machines, but not nearly as much as we would for a spinning, light-up, 3D-printed deal toy.
Next time you start a project with us, you’ll know all about setup costs and be ready to explain them to your team. If you’d like to learn more about quotes and what specific charges mean, stay tuned for more!