Amortizing the Costs of Tooling

Amortizing the Costs of Tooling

When you are preparing to run a new roll formed part, one of the biggest costs is the upfront cost of tooling. While Roller Die + Forming’s Standard Tool Library helps defray some of this expense, there are still projects that require building additional tooling. If you’re facing significant tooling, think about amortizing the costs of tooling over a period of time.

Consider the following advantages of amortization:

  • costs of toolingAllows You to Focus on Other Costs: When you’re getting a new project running, you’re worried about prototyping, logistics, raw materials, and many other factors. All of these items will have upfront costs of money and time. The ability to amortize the cost of tooling takes one factor out of the upfront total and spreads it out over time.
  • Payment and Production: Sometimes, the tooling cost for one portion of the product can outweigh the rest. Amortization allows you to schedule payments to suit your business’s needs. You can put the money where it needs to go without exceeding your budget. With the budget managed, building the tools you need to start production for your product will help meet your timeframe.

Roller Die + Forming

Put your resources to work making and selling your product and amortize the cost of your tooling over time. As a result, you’ll get the great roll formed part you purchased on a timeframe that works for your project.

Contact Roller Die + Forming today to learn about our tooling options.