4 Commonly used Mold Settlements Method

Mold settlements  is the ultimate goal of mold design and manufacture. The price of the mold is also subject to the final settlement price, that is, the settlement price, which is the final actual mold price.

The mold settlements method starts from the time of mold design and is accompanied by each step of the design and manufacture. The procedure of each process operation, the design and manufacture, and the step of the settlement method are also performed. After the manufacturing is completed and delivered for use, the settlement method will be completed. It will end, and sometimes, after a trial period, the mold price will not be settled. Economic settlement is the evaluation and affirmation of all technical quality in design and manufacture.

The mold settlements methods of different regions and enterprises are different, but with the gradual improvement of the market economy, certain norms and conventions have also been formed. By convention, mold settlements methods generally include the following.

“Five Five” Mold Settlements Method 

On the date of signing the mold contract, 50% of the mold price will be prepaid, and the remaining 50% will be paid after the mold test is accepted. 

This mold settlements method is more popular in early mold enterprises, and its advantages and disadvantages are as follows.

• 50% advance payment is generally not enough to cover the basic manufacturing cost of the mold, and the manufacturing enterprise has to invest. That is to say, 50% of the advance payment cannot be synchronized with the whole pair of molds cost. Therefore, there is a certain investment risk for mold manufacturing enterprises.

• After the mold test is accepted, the balance will be settled, so that the mold warranty fee has nothing to do with the settlement.

• When the 50% balance is settled, due to a large amount of money and the basic completion of the mold, it is easy to cause arrears in a settlement.

• In the case of mold failure, only 50% of the original payment will generally be returned.

“June Four” Mold Settlements Method

That is, from the date when the mold contract is signed and effective, 60% of the prepaid mold price and the remaining 40% will be settled after the mold trial is qualified.

This mold settlements method is the same as the first settlement method. It’s just an increase of 10% on the advance payment, which is a little better for mold manufacturing companies.

“Three Four Three” Mold Settlements Method

On the date when the mold contract is signed and effective, 30% of the mold price will be paid in advance, and 40% of the mold price will be paid when the mold materials are ready after participating in the design review. The remaining 30% will be paid within a week after the mold is qualified and delivered for use. 

This mold settlement method is more beneficial to mold manufacturings enterprises and is currently the most popular one. The main features of this settlement method are as follows.

• The 30% of the mold price paid in advance is used as a deposit. 

• According to the joint review, inspection progress, and reliability, a second payment of 40% is made to increase the supervision of mold manufacturing progress. 

• The balance of 30% will be settled after the mold has passed the acceptance inspection and a few days of use. This method is very similar to the synchronous operation of mold design and manufacturing.

• In the event of the mold’s failure, the mold manufacturer shall pay additional compensation in addition to returning all the advance payments. The compensation is generally 1-2 times the deposit.

“Four-Three-Three” Mold Settlements Method

40% of the mold price is paid in advance on the day the mold contract is signed and effective, and 30% of the mold price is paid after the first mold trial (First Sbot). The remaining 30% is usually settled after the mold is produced for some time after the first batch of products is shipped.

This settlement method is also a relatively popular one at present, which is a relatively “three, four, and three” settlement method. It is more beneficial to the mold user, but it is unfavorable to the mold manufacturer, especially the last 30% of the price, which is more risky.

There are many settlement methods for molds, and they are not all the same. But they all have one thing in common, that is, efforts are made to organically combine the technical and economic indicators of the mold to generate mutual benefits for both parties, so that the mold can be formed from valuation to quotation, from quotation to the contract price, and from contract price to settlement price to form a real mold price.

Implement high quality and high price, strive to bring the price of molds into line with international practices, and continue to work hard in the direction of producing high-quality, precise, and excellent molds to form a common good and maximum economic benefit situation. This is the ultimate goal of die design, cutting, and use.