Run Charge

A run charge is the per-unit cost a promotional merchandise supplier applies for printing, embroidering, or otherwise decorating each item in an order. Unlike the setup fee - which covers the one-time cost of preparing screens, digitizing artwork, or configuring imprinting equipment - the run charge is applied to every individual piece produced. If you order 500 branded pens with a two-color print, you pay one setup fee plus a run charge multiplied by 500 for each of the two colors.

How Run Charges Affect Quote Pricing

Run charges vary by decoration method. Screen printing typically carries a lower run charge than embroidery or dye sublimation because the process is faster per unit at volume. The charge per unit usually decreases as quantity increases - a run charge of $0.80 per unit at 100 pieces may drop to $0.35 per unit at 500 pieces. When building a quote, distributors need to capture every run charge line accurately. Missed charges on multi-color jobs or multi-location decoration are a common source of margin erosion on otherwise well-priced orders.

Run Charges vs. Setup Fees

Setup fees and run charges are frequently confused by customers. The setup fee is a flat one-time cost per decoration method or color. The run charge is a recurring cost applied per unit. A single order can carry multiple setup fees - one per color in screen printing, for example - and a corresponding run charge for each. When a customer places a reorder, the run charge applies in full again. The setup fee may be waived or reduced depending on the supplier's policy, but distributors should always confirm this before quoting a repeat order at a lower total cost.