Injection molding is a manufacturing process used to produce plastic parts by injecting liquid plastic into a steel mold. Along with other manufacturing machines and tools, injection molds are also being manufactured in China. In this post, we will discuss the standard payment terms used by Injection molding suppliers in China.
The standard payment terms of plastic parts manufacturers in China are as follows:
Chinese are business-minded people. They have extensive experience in trading as well as manufacturing. Because of this, the influence of Chinese-manufactured products and services is seen in all parts of the world. For today, we are talking about the standard payment terms of injection molding manufacturing companies in China. Let see in more detail how the payment terms work.
A transaction will start from a purchase order. A purchase order is a form of a document sent to the supplier containing details of the purchase. A purchase order is used to track and monitor inventory. The Purchase order or “PO” is sent by the buyer to the manufacturer. The PO contains information such as:
● Date of issue
● Purchase Order Number
● Details of Goods
● Quantities
● Required Delivery date
● Shipping Terms – EXW / FOB / CIF
● Name and Address of Buyer and Seller
● Terms and Conditions
On the above explanation, when you order an injection mold in China, 50% of payment is required to start. This is the initial payment made to have the supplier start work on the injection mold.
When you place an order, the order details are indicated in the purchase order. Most of the time the buyer would require a T1 Sample from the manufacturer. A T1 sample is the preliminary test sample of the finished product. To ensure that the products are done correctly when the T1 sample was submitted to the buyer, then the buyer will pay the balance for the mold fee.
The remaining 50% of the mold payment shall be completed before the factory starts mass production. This is the standard payment term of custom plastic parts/injection molding manufacturing business in China.
Now that we know the standard payment terms for injection molds from China let us discuss additional topics like the cost and the lifespan of an injection mold.
Initially, we talked about the standard payment terms of injection mold in China. As we move on to the topics about injection molding, we also want to know the cost range of injection mold in China. The injection molding technology is used mostly by companies for the mass production of plastic parts. The unit cost is low, but the tooling cost is high.
On average, the cost of an injection mold ranges from $5,000 up to $50,000. The prices mentioned for injection molds is just an approximate and again will depend on the materials used and how it functions. The more complex and large the part is, would mean the price would be higher. The same goes for the mold materials used. Molds made from Imported high-grade steel would cost a much higher price compared to local steel molds materials.
There are several materials compatible with injection molding. Here are some of the standard materials and their properties:
Acrylonitrile Butadiene Styrene (ABS) – A sturdy and stable plastic. It is suitable for high impact resistance and resistance to scratching, breaking and tearing. It has a low melting temperature and is inexpensive. This is used for electronics parts such as phone adaptors, keyboard keys, and wall socket plastic guards.
Polypropylene (PP) – Used for food storage and packaging industry, as it does not let chemicals mix with food products. It can be heated without degrading the components, and it has high chemical and moisture resistance.
Nylon – Used to produce strong mechanical parts. Nylon is sturdy and has a high melting temperature, good wear, and chemical resistance. Nylon material is commonly used for automotive parts.
Acrylic – In injection molds, we use acrylic to produce transparent parts. It is used as an alternative to glass and is weather and scratch-resistant nature.
Polycarbonate (PC) – this has excellent optical properties and is extremely durable. The materials of polycarbonate are not suitable for food storage and preparation.
Polyoxymethylene (POM) – It has a very strong, robust component used for producing mechanical and automotive parts that would usually be made with metals. An example would be gears and knife handles.
Polystyrene (PS) – This is commonly used for Hard cases for toolboxes and bodies of power tools. While they are inexpensive, they are not environmentally friendly.
Polyethylene (PE) – A lightweight thermoplastic material with high chemical resistance, elasticity, and electrical insulating properties. An example would be milk bottles, medicine, and detergent bottles, plastic bags, and trash cans.
Thermoplastic Polyurethane (TPU) – Has a soft and elastic component that is often used to produce parts that require insulation. TPU can be compatible with high temperature and is commonly used in power tools, cable insulations, and sporting goods.
Thermoplastic Rubber (TPR) – A combination of rubber and plastic. It is chemical and weather resistant with recyclable contents. It is often used in medical equipment.
