What is a setup fee?
A setup fee is just that, it is the setup of a logo to be decorated on the product you ordered for your advertising campaign. A setup fee is a very common fee associated with just about every promotional product order. When ordering promotional products from a distributor for the first time you’re more than likely going to be faced with paying at least one setup fee.
There is a logo setup process with just about every order. The first step is receiving the artwork in vector format from the end user. Then the distributor transfers the vector artwork to a template to make what’s called a paper proof for the end user. The distributor sends the paper proof to the end user for approval to proceed with production. That’s pretty much the first step of the logo setup fee with maybe some revisions in between.
The second step is depending on what decorating method is to be used on the promotional product order. In some cases, the vector artwork is then sent to the decorator, if the distributor does not have its own in-house decoration shop. The decorator will most likely either laser engrave the order or silk-screen the order depending on the product and the end user’s requirements.
Laser Engrave Setup Fee
If you are laser engraving a logo on a pen, for instance, you will be charged a logo setup fee of $50.00 (industry average). If you want the second side of that pen to be decorated with a “different” logo you’re looking at paying two setup fees. A total of $100, plus a second location charge of $0.76 per piece.
Silk-screen Setup Fee
The setup fee works a little different when it comes to silk-screening your product. Let’s say, you are silk-screening a two-color logo on a shirt. Well then, you’re looking at paying two setup fees of $50 per color and a second color running fee of $0.76 per shirt. So that’s $100 for one logo and two colors.
So you can see the setup fee is very much a process of receiving the artwork, creating a paper proof, and prepping the order for decoration.