Hello my dear merchandiser. Hope all of you doing well in your work place. Garment costing is very common to all of you. All of you know about the procedure by which one can calculate the cost of manufacturing goods. You can give quotation for a product which is also important for a merchandiser. Here, I like to share my experience to you. I think that could be very helpful for the fresh merchandiser and experienced merchandiser who have practical experience in this field.
Garment Costing: Garment is the fashion of the world. Now days, men take the apparel as a fashion. Different types of apparel are manufactured by the manufacturer. Garment costing is done by considering all the cost regarding to manufacturing the garment. Costing is the process to estimate the total cost of apparel manufacturing. A merchandiser fixed the price of the garment by considering from the raw materials cost to final product cost. Costing also consider the quotation process and profit of the products. By doing all of that’s task the merchandiser fixed the price of the garments.
Major Considering Points before Garment Costing: Garment costing is very easy task if anyone has enough knowledge about all the process stage of manufacturing. Here, I have mentioned some major points which should consider before garment costing. They are-
- Fabrication: Manufacturer is the seller of the products. The manufacturer makes the products as the willing of the buyer. Before taking an order the merchandiser should confirm about the fabrication of the products. The merchandiser should confirm the strong source of fabric supply.
- Fabric Color: Merchandiser should confirm about the fabric color. How many colors and style will be? What is the color ratio of the total quantity?
- Size Specification: Buyer will confirm about the size of the garment. They will give the sample which is approved for bulk production. Merchandiser will confirm the PO sheet which is considered before garment costing.
- Quantity: Merchandiser will confirm about the approximate quantity before garment costing.
- Shipment Date: Merchandiser will fix the shipment date by discussing with the buyer.
- Test Requirement: Merchandiser will confirm that the product shall test or not.
- Inspection: Most of the buyer inspects the product before taking the delivery. Merchandiser will confirm the inspection process whether it inspect directly by the buyer or third party. If third party inspect the products then who will pay the charges.
- L/C Payment Terms: Merchandiser will follow all the terms and conditions of L/C.
- GSP: GSP is another important term before garment costing.
So, there are lots of points which must considered by a merchandiser before garment costing. This costing could be in a buying house or in the export department of a garment manufacturing unit.
Price quotation is very important for the both buyer and seller. The understanding between the seller and buyer should be fine. When a seller gives a quotation he or she should be careful. The quotation letter should contain all the information which is required for understanding all the points of dealing. The price is fixed by analyzing all the cost seen and unseen in a process. The price fixation should be fine.
In garment pricing, the merchandiser will be well known about the process sequence of apparel. In the other hand, in jute section, the merchandiser should know about the price of jute materials, process cost, over head cost, maintenance cost, carrying cost and other cost which is required for exporting jute goods in domestic or abroad. Main fact is that, a well knowledge person can give price quotation which is suitable with the present situation.
Contents of Price Quotation: Quotation is the letter of dealings. In a quotation followings points should be contain. They are-
- Type of quotation.
- Quality of the products offered for sale.
- Total quantity of the products offered for sale.
- Sale price of unit products.
- Total sum of price of the products.
- Payment types like cash or credit, cash discount, cash discount and other allowances.
- Duties details.
- Shipment date, time and place.
- Packing, labeling and insurance details.
- Error and omission expected (E and O.E).
- List of destination of the documents copy.
So, lots of points should be maintained in the price quotation. One can give additional information in the quotation it depends on the buyer requirement.
To get best buyer the seller should send the best possible quotation. On depends on the quotation, the will place an order because it is the basis on which the interested buyer decides whether to buy or not.
At last, the price quotation of products should be courteous, clear and concise.
The manufacturers of products are the seller of the products. A quotation is a business offer made by a seller for the interested buyer who wants to buy the certain goods at specific prices and on certain terms and conditions. The seller of the products always likes to offer better opportunity for his buyer. This the mutual agreement on which the dealing is completed. The seller always bound to fulfill the demand of the buyer. If the buyer faces any difficulties with the products they can complain to the seller.
Types of Quotation for Exporting Products: During pricing a products following quotation is considered. They are-
- LOCO: LOCO is the lowest quotation price. LOCO means on the spot. LOCO means that the buyer will carry his product form the seller godown to his or her factory or warehouse. All the carrying expenses are beared by the buyer.
- F.A.S: Free Along Side Ship (FAS) determines that the seller will bear the carrying expenses from the seller godown to the ship and the buyer will give the expenses from the ship loading to the buyer godown.
- F.O.W: Free On Wagon (FOW) determine that the seller will bear the expenses from the godown to the nearest railway station rest carrying will be done by the buyer.
- F.O.B: Free On Board (FOB) determines that the seller will bear all the expenses which required reaching the products in the board of ship at the port of shipment. Product loading expenses also carried by the seller.
- C&F: Cost and Freight (C&F) determines that the seller will bear all the expense which is required to send the goods from the seller godown to the buyer godown. Seller will not bear the insurance cost in this quotation.
- C.I.F: Cost Insurance and Freight (CIF) means that the seller will bear all the carrying cost and insurance charge of the product during caring the products from the seller godown to the buyer godown.
- C.I.F.E: Cost, Insurance, Freight and Exchange (CIFE) determines that manufacturing cost, insurance charge, carrying cost and exchange cost will be include in product price.
- C.W.O: Cash With Order (CWO) determines that the buyer of the product will send money along with the order. Order will not be executed without receiving with the order.
- C.O.D: Cash On Delivery (COD) determines that the buyer will pay cash after receiving the desired products to the desired destination which is ordered by him.
- FRANCO: In this quotation, the seller bears all expenses up to the buyer’s warehouse.
- F.O.R: Free On Rail (FOR) determine that the seller will bear all the expenses from the seller godown to the railway station. Seller also bears the loading cost. Rest expenses will bear by the buyer.
So, there is lots of quotation. One can easily understand the meaning of quotation if one can get clear idea about quotation.