Sample costs, setup fees and design fees — what is fixed and what is negotiable
The decorations industry uses three different words for charges that look similar and behave differently, and the difference matters when a buyer is comparing two quotes that look identical at the headline level. A sample cost is the charge to produce a single physical item on the production line, not a digital mock-up; it is a real cost because the factory has to schedule the line and the operators. A setup fee is the non-recurring charge to prepare production for a method — the screen, the digitised file, the cliché plate, the ICC profile. A design fee is the charge to prepare the artwork itself, which is more often than not a separate supplier's work and is sometimes rebadged by a merchandise vendor as a setup fee in order to keep the per-unit price looking lower.
Sample cost. A pre-production sample covers the factory's allocation of staff time and a small quantity of blank goods, ink or thread. The typical charge is a fixed amount per sample, separate from any subsequent production order, and is either refunded against the order, written off against a stated minimum order, or absorbed into the unit price. Where two competitors quote at different sample costs, the difference is real and worth seeing; where one supplier charges nothing, the supplier is either absorbing the cost (acceptable, and worth noting) or will load the production price to recover it (worth asking about explicitly).
Setup fee (screen). A screen is the most concrete example. The fee covers exposing the screen, registering it on the press, and bringing the colour to a print-ready density. A one-colour screen for an A3-area print is typically the cheapest unit in this category; a four-colour print on a dark garment with underbase, highlight white and discharge ink is several times that. The fee is paid once per colour per design per order; it is not paid again on a reorder that uses the same screens, which is why the question "will you hold my screens on file?" is worth asking and worth recording in the contract.
Setup fee (embroidery). The digitising fee is the embroidery analogue. A logo is converted from a vector or raster artwork into a stitch file in a format that the embroidery machine can read; the fee covers the digitiser's time and is paid once per design. The fee is not refunded against a reorder because the digitised file is kept on file. It is paid again, however, if the artwork changes in a non-trivial way or if a different machine family is used for a different garment — a digitised file for a Tajima machine is not always portable to a Barudan or ZSK without a re-digitise.
Setup fee (DTG). The pre-treatment solution and the ICC profile are the DTG setup. Pre-treatment is a chemical process applied to the garment before printing; an ICC profile is a colour map that tells the printer how to render a particular fabric's colour response. Both are constructed once per fabric per order, held on file, and not charged again on a refill of the same design on the same blank. Where a buyer moves between fabrics (from a 180 gsm cotton to a 220 gsm cotton, or from cotton to a poly-cotton blend), the pre-treatment formula changes and a new profile is built, which is a re-setup rather than a fresh design fee.
Design fees. A design fee is paid to a graphic designer or a studio for time spent preparing the artwork for production: vectorising a low-resolution raster file, separating colours for screen print, drawing a tonal map for embroidery, or building a print-ready digital mock-up. It is not the same as a setup fee, even when the merchandise supplier charges the buyer's invoice line item under the same word. A quote that confuses the two makes it harder to compare against another supplier and harder to use as the basis for a blanket order that releases the design once across multiple refills.