Last reviewed: Sep 15, 2026
In lighting, the term tooling covers anything from a stamped metal bracket to a mould for a composite base. These are one-time costs, they are frequently rolled into a unit price, and the way they are handled decides who can walk away from the relationship.
What counts as tooling
A typical new lamp design may involve several of these, with very different costs:
| Item | Typical scale | Amortisation |
|---|---|---|
| Stamped or formed metal parts | Modest | Often absorbed into the unit price |
| Die-cast base mould | Substantial | Per unit surcharge or paid up front |
| Composite or ceramic mould | Substantial to high | Tied to a volume commitment |
| Shade frame jig | Modest | Usually absorbed |
| Packaging die | Modest | Absorbed or charged once |
Paid up front or amortised
Amortising tooling into the unit price keeps the first order small and creates a hidden liability: if you move to another supplier, you have paid for tooling you do not own. Paying up front costs cash and buys control, provided the agreement says the tool belongs to you and can be removed.
Write down three things
Whatever the commercial arrangement, the agreement should state:
- Who owns the tool, and what happens to it if the relationship ends
- How many times the tool may be used before it needs refurbishment, and who pays
- Whether the tool may be used to produce the product for anyone else
Tool life is a cost line
Moulds wear, and a worn mould produces flash, poor fit and eventually a visible line on the product. Ask for the expected shot count and plan a refurbishment into the programme's third year rather than treating a quality decline as a supplier failure.
Development budgets in perspective
For most wholesale programmes, development is a small share of the first year's cost and a large share of the risk. Spending on the sample and the golden reference, rather than on a broader range of new models, produces the better return almost every time.
Related reading
Frequently asked questions
What are tooling costs in lamp development
Tooling covers the molds and fixtures needed to make a specific shape or part, and it is mostly a one-time cost amortized across the units produced. A unique base, shade, or arm usually needs its own tool.
How do I know if tooling is worth it
Compare the per-unit saving or the price premium the design earns against the tool cost spread over expected volume. Below a volume threshold, a stock platform is cheaper than a tooled design.
Does new tooling affect the safety listing
A new tool that changes the luminaire's construction can require re-certification, adding time and cost to launch. Confirm with the supplier which changes stay within the existing listing before committing to the tool.
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