New brand owners are sometimes surprised to find quote lines that have nothing to do with unit price: print preparation, sample development, testing. These are setup costs, usually paid when a product starts rather than with each batch. Understanding them protects your margin, because folding them into pricing the wrong way can turn a product that looks profitable on paper into a loss.
One-time versus recurring costs
Recurring costs follow each unit or batch and change with quantity. One-time costs arise when something reusable is prepared for future batches, and they stay fixed however many units you order.
| One-time (often) | Recurring with every batch |
|---|---|
| Sample development and revisions | Oil or ingredients |
| Label and packaging design | Bottles, caps and droppers |
| Print tooling (plates, screens, label die) | Printed labels and cartons |
| Custom mould for a non-standard bottle | Filling and packing labour |
| Stability, challenge testing and safety assessment | Per-batch quality checks |
| Brand or product registration | Freight, insurance and duties |
This table is illustrative. What counts as one-time versus built into the unit price varies by manufacturer, so ask for every line to be classified.
The main items
Sample and formula development
A new formula takes specialist time and materials. Ask how many revision rounds are included and what happens after that. Also settle formula ownership in the contract, because paying for development does not automatically give you the formula.
Design and print tooling
A label needs an approved file and a cutting die, while direct printing on glass needs a dedicated screen. A logo change after tooling can mean new tools, which is why a firm artwork approval process matters.
Custom moulds
Standard stock bottles need no mould. A unique shape needs an expensive mould and large minimums. For most early-stage brands, a standard bottle with a distinctive label is the wiser choice.
Testing and documentation
Stability, microbial challenge and safety assessment are typically done once per formula and container, then repeated after a material change. Check whether they are included or done at an external lab at your expense.
Line setup
Some factories charge for setting up and cleaning the line, especially on small batches. It may appear as its own line or inside the price, one more reason to read the quotation line by line.
Spreading the cost per unit
Setup cost per unit = total setup costs ÷ units you expect to sell in 12 to 24 months
- A cautious forecast raises the per-unit share, which is safer than optimism.
- Choose a realistic recovery period; five years is too long for tooling tied to a design that may change.
- If several products share tooling, spread it over the whole range.
This fits with the approach in unit economics for beauty brands.
Questions to ask before signing
- Which lines are one-time and which are inside the unit price?
- Do these fees return on later orders?
- Who owns the tooling and moulds, and where are they stored?
- How many sample rounds are included, and what does the next cost?
- What happens to the offer if orders pause for a long time?
- Does a logo or legal text change trigger new fees?
FAQ
Are setup costs negotiable?
Sometimes, but it is better to negotiate their terms: sample rounds, credit against later orders and tooling ownership. See what can be negotiated besides price.
Are they paid up front?
It varies: at sample approval, or spread over the first order. Put the arrangement in writing in the quote.
Do they recur on reorders?
Usually not while design and tooling stay the same, but a new label, container, formula or worn tool can bring them back.
How can I reduce them without hurting quality?
Start with standard bottles, freeze the design before printing, launch one or two products, then expand. Our working process shows how we handle this.
Summary
Separating one-time from recurring costs lets you price on a sound footing and avoid cash-flow surprises. Send us your product idea and expected volumes, and our quote will show what is one-time and what sits inside the unit price. Request a quote from Assil Ouargane.
