Shop business terms
What is setup fee?
A setup fee is the one-time charge covering the work a job needs before the first unit is produced — file preparation, screens, digitizing or machine setup — separate from the per-unit price.
It exists because the first unit genuinely costs more than the hundredth: burning screens, digitizing a logo for embroidery, building a cut file. Splitting it out keeps per-unit pricing honest and makes reorders visibly cheaper, since the setup is already done.
The customer-facing rule is transparency at quote time — a setup fee that first appears on the invoice reads as a hidden charge. Repeat-order policy is worth writing down: many shops waive setup on straight reorders, and that promise only works if the original files are stored where the next quote can find them.
Related terms
Software that speaks the trade
PrinterFlo runs print & sign shops on one board — quotes that price by size and material, proofs approved from one link, and a production checklist the quote writes for you.