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Do you charge for mold storage? If so, how do you figure costs?

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ArrowheadThermoforming
Posts: 1
Joined: Tue Apr 17, 2018 12:06 pm

Do you charge for mold storage? If so, how do you figure costs?

Post by ArrowheadThermoforming » Tue Apr 17, 2018 12:12 pm

Hi everyone. This is my first post here. From talking with Troy. I'm not the only one facing this issue. Arrowhead Plastic Engineering has been in business since 1972. Over the years we have accumulated many molds that are now really causing an issue for us space wise. We are looking at charging for storage of inactive or under utilized molds.

Have any of you ever implemented such a thing? If so, how did you go about determining what to charge? I would think so formula that takes into available square footage of warehouse space, available production space (if mold occupies production area), square footage of mold, amount mold is used (or not used), etc.

I would love to hear thoughts from other members who charge for mold storage and how you decide what to charge.

I just can't help but think had we done this from the beginning how much money in storage charges we would be receiving a month!

Thanks in advance for any comments or suggestions!

hofferplastics1953
Posts: 2
Joined: Tue May 29, 2018 3:13 pm

Re: Do you charge for mold storage? If so, how do you figure costs?

Post by hofferplastics1953 » Fri Jul 06, 2018 10:28 am

We charge $1200 per year for mold storage of obsolete molds. This helps push the customers to take their obsoleted molds or scrap them.

dendecott
Posts: 3
Joined: Mon Jul 09, 2018 2:52 pm

Re: Do you charge for mold storage? If so, how do you figure costs?

Post by dendecott » Mon Jul 09, 2018 2:58 pm

We share with customers that mold storage will be added to the piece part cost based on the last time the tool was used. For example, if a tool was not used for 2 years we will calculate the cubic area of the tool and a storage cost per cubic foot. We also charge a prep/inspection cost of a minimum of 8 hours in our tool room. This is fairly new for us so I do not have much feedback to provide via our customers. Most have agreed and paid ... with a little push back. Tools that have not ran in over 5 years we "nag" for the customer to take a last-time buy or allow us to scrap r return.

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