{"id":4612,"date":"2021-03-10T10:21:25","date_gmt":"2021-03-10T10:21:25","guid":{"rendered":"https:\/\/www.akf-plastics.com\/?p=4612"},"modified":"2024-02-09T10:38:24","modified_gmt":"2024-02-09T10:38:24","slug":"mould-costs-from-different-perspectives-akf","status":"publish","type":"post","link":"https:\/\/www.akf-plastics.com\/en\/mould-costs-from-different-perspectives-akf\/","title":{"rendered":"Mould costs from different perspectives; how to decide wisely"},"content":{"rendered":"\t\t
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HOW TO DECIDE WISELY.<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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For injection moulding<\/a> it is well known that one requires the good old injection mould. A lump of steel with absolutely no appeal whatsoever and generally with a huge price tag. Superficially the end customer tends to think that the unavoidable mould costs are part of his problem. Only insiders know that the injection moulder, as processor, has an ever greater interest in proper tooling. Injection moulds are being purchased all over the world and there is a huge variety in considerations of how, where and at what costs to source injection moulds.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Mould costing analysis<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Let\u2019s take a look into the mould<\/a> costing analysis and purchasing strategies mainly from an economical point of view. Let\u2019s also see what end customers and processors have as mutual interests and which strategy serves best for all parties involved. End customers tend to judge the non-recurring mould costs as a bit of a pain in the ass. The unavoidable investment to set up production and sales of the products derived from the mould.\u00a0<\/p>

One might have strategic or economical reasons to really judge and assess mould costs as one-off investments. Local tax rules may play a role in how to process these costs into the accounting system but in general they are judged as costs.<\/p>

It is not more than logical and natural that the end customer, who is going to pick up the tab for the mould costs in the end, is really driven at reducing these costs. As such, by nature, the end customer will seek the lowest possible mould costs. After all one is not willing to spend more money than absolutely necessary for these tooling costs.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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Example of a complex mould.<\/figcaption>\n\t\t\t\t\t\t\t\t\t\t<\/figure>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Mould in AKF warehouse awaiting the next run.<\/figcaption>\n\t\t\t\t\t\t\t\t\t\t<\/figure>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
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Mould costs as part of the product price<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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In reality however the unavoidable mould costs should be judged as \u2018facilitating\u2019 costs in order to ensure swift, smooth, high-levelled, fast, constant and high-quality production which is supposed to feed sales. As such the mould costs are, without any doubt, always part of an amortisation of some kind. <\/p>

The investments into tooling could be better seen as part of the product price instead of a preceding burden. Unfortunately the latter is usually the way it is approached in organisations as a result of which the drive is at minimising the investment costs.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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What do we mean by this?<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Well psychologically one tends to look at a one-off investment figure. In injection moulding this usually starts with \u20ac 10K + figures. The end customer may be distraught by this amount. However it should be more in perspective if one is able to assess the meaning of these costs into the product price.<\/p>

Say the investment in the mould is quoted as being 100,000 currency units. One could blindly focus at the huge amount of 100,000 currency units but one should better make a product related analysis. If I sell the following number of products the following applies :<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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units sold<\/th>absolute mould costs relative
mould costs [per product]<\/th>		relative mould costs<\/th><\/tr><\/thead>
10<\/td>10,000<\/td>10 % of the investment<\/td><\/tr>
100<\/td>1,000<\/td>1 % of the investment<\/td><\/tr>
1.000<\/td>100<\/td>0.1 % of the investment<\/td><\/tr>
10.000<\/td>100<\/td>0.1 % of the investment<\/td><\/tr>
10.000<\/td>10<\/td>0.01 % of the investment<\/td><\/tr>
100.000<\/td>1<\/td>0.001 % of the investment<\/td><\/tr>
1.000.000<\/td>0.1<\/td>0.0001 % of the investment<\/td><\/tr>
10.000.000<\/td>0.01<\/td>0.00001 % of the investment<\/td><\/tr><\/tbody><\/table>

In that range of sales figures it becomes obvious that the mould costs are about to vaporise and are being reduced to a mere pre-financing.<\/em><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Sales risk for the injection moulder<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Of course the critical end customer will object and state that it is not guaranteed that these sales figures will be met. However there the end customer is shifting sales risk on to the injection moulder. The uncertainty in sales drives the price reduction in tooling. It is difficult but at the same time vitally important that sales are assessed properly in order to facilitate tooling investments.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Reliable and robust injection mould<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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On the other hand the processor is primarily interested in the most reliable and robust injection mould. The injection moulder will at the most ad an administrative profit margin onto the mould costs, but has interest in earning through the production output of units. For the processor the mould is a one-off thing while production should have a long term character.<\/span><\/h4>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Additional costs injection mould<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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However if the injection moulder is forced into obtaining the required injection mould at the lowest possible costs there may occur two risk situations for the injection moulder. A non-functioning injection mould may cause either additional costs, due to it\u2019s sales character mainly in the risk area of the injection moulder, or may obstruct sufficient output.<\/p>

Low quantity sales eliminate the options to recover additional mould operating costs for the processor while high quantity sales may reduce turnover in the case of malfunction tooling. In either case the profitability of the processor is being pressurised.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Mutual acceptable pricing<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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So it seems there is a conflict of interest between the processor and the end customer when it comes to mould investment costs. However if one is willing to change the cost assessment model into an amortisation model one is able to find a mutual acceptable pricing.\u00a0<\/p>

End customers should realise that incomplete marketing models shift sales risks onto the processor who might even take additional risks in order to cope with this. A cumulation of such risks usually disrupts future business relationships.<\/p>

Feel free to contact us<\/a> for more information and download our free eGuides about mould costs.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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To answer the most frequently asked questions we have compiled a handy eGuide series with Tips & Advice. Part 1 is about mould costs.<\/figcaption>\n\t\t\t\t\t\t\t\t\t\t<\/figure>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\tDownload eGuide<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Part 2 provides insight into how you can select the right supplier, cost structure, price structure and our vision on quality.<\/figcaption>\n\t\t\t\t\t\t\t\t\t\t<\/figure>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\tDownload eGuide<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

HOW TO DECIDE WISELY. For injection moulding it is well known that one requires the good old injection mould. A lump of steel with absolutely no appeal whatsoever and generally with a huge price tag. Superficially the end customer tends to think that the unavoidable mould costs are part of his problem. Only insiders know […]<\/p>\n","protected":false},"author":6,"featured_media":1826,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[830,834],"tags":[828,822,824,829],"class_list":["post-4612","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog-en","category-injection-moulds","tag-injection-moulding","tag-mould-costs","tag-moulds","tag-plastics"],"acf":[],"yoast_head":"\nMould costs from different perspectives; how to decide wisely - AKF Plastics<\/title>\n<meta name=\"description\" content=\"Mould costs aren't the end customer's problem. Only insiders know that the injection moulder, as processor, has an ever greater interest in proper tooling.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"AKF Plastics Naarden - Next Gen in Spuitgieten\" \/>\n<meta property=\"og:description\" content=\"AKF Plastics staat bekend als een toonaangevende partner in de industrie voor spuitgietoplossingen, met een speciale focus op de sectoren aviation \/ aerospace, bouw en constructie, machinebouw en automotive. Met onze 100% Nederlandse productie bieden wij de hoogste betrouwbaarheid in de markt, waarbij we voortdurend streven naar excellence in elk project. Dankzij onze rijke historie, diepgaande ervaring en een uitgebreid portfolio dat diverse industrie\u00ebn beslaat, zijn wij in staat om maatwerk kunststof producten en onderdelen te leveren die perfect aansluiten bij de specifieke behoeften van onze klanten.Wij garanderen niet alleen de beschikbaarheid van de juiste grondstoffen het hele jaar door, maar zijn ook trots op onze ISO AS9100 en ISO9001 certificeringen, die onze toewijding aan kwaliteit en veiligheid onderstrepen. Bij AKF Plastics begrijpen we het belang van maatschappelijke verantwoordelijkheid, en we zetten ons in voor duurzame productieprocessen en innovaties zoals ons Contingency Production\u2122 systeem.Onze klanten profiteren van onze flexibiliteit en de altijd beschikbare capaciteit, waardoor we zelfs de meest urgente projecten op tijd kunnen leveren. Vraag vandaag nog een vrijblijvende offerte aan en ervaar zelf waarom AKF Plastics uw ideale partner is voor hoogwaardige spuitgietoplossingen.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.akf-plastics.com\/en\/mould-costs-from-different-perspectives-akf\/\" \/>\n<meta property=\"og:site_name\" content=\"AKF Plastics\" \/>\n<meta property=\"article:published_time\" content=\"2021-03-10T10:21:25+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-02-09T10:38:24+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.akf-plastics.com\/wp-content\/uploads\/2019\/09\/AKF-Molds-01.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1080\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Johan Bakker\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Johan Bakker\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Mould costs from different perspectives; how to decide wisely - AKF Plastics","description":"Mould costs aren't the end customer's problem. Only insiders know that the injection moulder, as processor, has an ever greater interest in proper tooling.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"og_locale":"en_US","og_type":"article","og_title":"AKF Plastics Naarden - Next Gen in Spuitgieten","og_description":"AKF Plastics staat bekend als een toonaangevende partner in de industrie voor spuitgietoplossingen, met een speciale focus op de sectoren aviation \/ aerospace, bouw en constructie, machinebouw en automotive. Met onze 100% Nederlandse productie bieden wij de hoogste betrouwbaarheid in de markt, waarbij we voortdurend streven naar excellence in elk project. Dankzij onze rijke historie, diepgaande ervaring en een uitgebreid portfolio dat diverse industrie\u00ebn beslaat, zijn wij in staat om maatwerk kunststof producten en onderdelen te leveren die perfect aansluiten bij de specifieke behoeften van onze klanten.Wij garanderen niet alleen de beschikbaarheid van de juiste grondstoffen het hele jaar door, maar zijn ook trots op onze ISO AS9100 en ISO9001 certificeringen, die onze toewijding aan kwaliteit en veiligheid onderstrepen. Bij AKF Plastics begrijpen we het belang van maatschappelijke verantwoordelijkheid, en we zetten ons in voor duurzame productieprocessen en innovaties zoals ons Contingency Production\u2122 systeem.Onze klanten profiteren van onze flexibiliteit en de altijd beschikbare capaciteit, waardoor we zelfs de meest urgente projecten op tijd kunnen leveren. Vraag vandaag nog een vrijblijvende offerte aan en ervaar zelf waarom AKF Plastics uw ideale partner is voor hoogwaardige spuitgietoplossingen.","og_url":"https:\/\/www.akf-plastics.com\/en\/mould-costs-from-different-perspectives-akf\/","og_site_name":"AKF Plastics","article_published_time":"2021-03-10T10:21:25+00:00","article_modified_time":"2024-02-09T10:38:24+00:00","og_image":[{"width":1920,"height":1080,"url":"https:\/\/www.akf-plastics.com\/wp-content\/uploads\/2019\/09\/AKF-Molds-01.jpg","type":"image\/jpeg"}],"author":"Johan Bakker","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Johan Bakker","Est. reading time":"6 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.akf-plastics.com\/en\/mould-costs-from-different-perspectives-akf\/#article","isPartOf":{"@id":"https:\/\/www.akf-plastics.com\/en\/mould-costs-from-different-perspectives-akf\/"},"author":{"name":"Johan Bakker","@id":"https:\/\/www.akf-plastics.com\/en\/#\/schema\/person\/9a06f67a2e330cdea7049d67733b339e"},"headline":"Mould costs from different perspectives; how to decide wisely","datePublished":"2021-03-10T10:21:25+00:00","dateModified":"2024-02-09T10:38:24+00:00","mainEntityOfPage":{"@id":"https:\/\/www.akf-plastics.com\/en\/mould-costs-from-different-perspectives-akf\/"},"wordCount":955,"publisher":{"@id":"https:\/\/www.akf-plastics.com\/en\/#organization"},"image":{"@id":"https:\/\/www.akf-plastics.com\/en\/mould-costs-from-different-perspectives-akf\/#primaryimage"},"thumbnailUrl":"https:\/\/www.akf-plastics.com\/wp-content\/uploads\/2019\/09\/AKF-Molds-01.jpg","keywords":["injection moulding","mould costs","moulds","plastics"],"articleSection":["Blog","Injection Moulds"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.akf-plastics.com\/en\/mould-costs-from-different-perspectives-akf\/","url":"https:\/\/www.akf-plastics.com\/en\/mould-costs-from-different-perspectives-akf\/","name":"Mould costs from different perspectives; how to decide wisely - AKF Plastics","isPartOf":{"@id":"https:\/\/www.akf-plastics.com\/en\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.akf-plastics.com\/en\/mould-costs-from-different-perspectives-akf\/#primaryimage"},"image":{"@id":"https:\/\/www.akf-plastics.com\/en\/mould-costs-from-different-perspectives-akf\/#primaryimage"},"thumbnailUrl":"https:\/\/www.akf-plastics.com\/wp-content\/uploads\/2019\/09\/AKF-Molds-01.jpg","datePublished":"2021-03-10T10:21:25+00:00","dateModified":"2024-02-09T10:38:24+00:00","description":"Mould costs aren't the end customer's problem. 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