The factory charges setup fees for screens, embroidery digitising and custom trims. What should we agree?

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The factory charges setup fees for screens, embroidery digitising and custom trims. What should we agree?

Setup fees for screens, embroidery files, custom elastic or woven labels are normal. Agree what each covers, whether it is reused on reorders, and who owns the files and tooling.

Sourcing & Supplier SelectionKnitwear Talk3 min readKnitwear Base Editorial Team
Flat illustration of a zipper, a button and a thread spool
Buyer question

Our first quote for 500 printed hoodies lists separate charges for screens, an embroidery digitising fee and a development fee for custom jacquard drawcords. Are these normal, and will we pay them again on reorders?

Main answer
Knitwear Base Editorial Team
Main answer

Many one-off setup charges are normal in knitwear orders. Screen printing needs a screen for each colour in the design, embroidery needs the artwork converted into a stitch file, called digitising, and custom trims such as jacquard waistbands, woven labels or branded drawcords often need development, sampling or a minimum order with the trim supplier. What matters is that each charge is clear, fair and not paid twice.

Ask for a breakdown

Ask the factory to list each setup item separately: what it is, the cost, whether it is per design, per colour or per size, and whether it is refundable or credited against bulk. Compare quotes on the same basis. One supplier may include setup in the unit price while another lists it separately.

Reuse on reorders

Screens can often be stored and reused, but they may be reclaimed after a period. Ask how long the factory keeps them and whether a reorder needs new screens. Embroidery files can be reused indefinitely if the design and size do not change. For custom trims, ask whether the development or tooling cost is one-off, and what the trim minimum order quantity is on each reorder.

Ownership and files

Agree in writing who owns the embroidery file, artwork separations and any custom tooling you pay for, and whether the factory will send you the files or hand over tooling if you move production. Ask that your designs and branded trims are not used for other customers.

Timing and approvals

Setup steps add time. Strike-offs, embroidery sew-outs and trim samples each need your approval before bulk. Put these steps into the timeline, and approve them in writing with photos and physical samples where possible.

Where the fees appear

Make sure setup costs are on the proforma invoice or contract, not added later. If you compare delivered costs, keep setup costs separate from the unit price and from freight terms such as the Incoterms rule quoted, so differences are clear.

For small runs, setup costs can be a large share of the cost per piece. Ask whether a simpler design, fewer colours or a stock trim would reduce them.

Sources and further reading

Standards and rules are summarised from their published scope or official guidance. Use the current edition and confirm requirements for your market.

Three perspectives on this question

Knitwear Base Editorial Team
Purchasing perspective

I'd ask for setup items listed line by line with reuse and ownership terms before we sign.

Knitwear Base Editorial Team
Merchandising perspective

Fewer print colours or a stock drawcord might cut setup costs on a small first run without hurting the look.

Knitwear Base Editorial Team
QC perspective

We'd keep approved strike-offs, sew-outs and trim samples with the order, since they become the bulk reference.

Working on a similar program?Send your tech pack, fabric references and test requirements. We reply with a quote and the questions we need answered.

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