What are setup charges?
Setup charges encompass the preliminary labor and preparations required before the actual printing of promotional products commences. A significant portion of this work is concentrated at the beginning, especially during the screen or plate creation phase, which is why these charges are sometimes referred to as "screen charges" or "plate charges". In essence, "setup charge" is a more general term that encapsulates the entire preparation process.
So, how do some companies claim to offer 'free setup'?
Here's the inside scoop: Certain companies might promote a "free setup" by integrating the setup cost into the per-piece product price. To illustrate, if a product costs $0.50 each with a typical setup fee of $25 and you're ordering a minimum of 100 pieces, the setup charge per item would be $0.25 ($25 divided by 100). This fee is then added to the product price, making it $0.75 per piece, after which the company advertises "free setup". At times, suppliers might adopt this pricing model when selling to distributors, enabling us to offer "free setup" to our clients. Another scenario is full-color digital printing, which resembles a household color printer's operation and doesn't necessitate screen creation, making it a different pricing model altogether. But, in truth, no service is entirely free – the cost of labor remains integral. The key takeaway is our commitment: we guarantee to match or beat any competitor's total order price.
For a detailed breakdown of the intricate printing process, including screen setup, refer to the provided diagram below:
