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“Tolling” refers to processing resin supplied by the customer into finished goods instead of resin purchased by the extruder.
The advantage of this practice is cost. It’s simple. If we do not use our operating capital to purchase resin, it costs much less. We pass the savings along and only charge for throughput costs. This eliminates all discussions about resin pricing since the customer purchases the raw material.
We agree on a sliding scale for scrap and reimburse for overages. Work in progress at the end of the month is inventoried off-site for the customer’s books.
By the way, we don’t charge extra for our expertise and TLC. | 
