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Apparel Costing
Garment, or apparel, is the second need of human beings. Additionally, it is very important to wear garments to fulfill the basic needs of a man or woman. However, complete garments reach the customer’s hands with lots of hard work and a continuous process. Therefore, it is very essential to calculate the cost of complete apparel. Unquestionably, garment costing means all the costs that are responsible for making that’s product that are responsible for fixing the price of that’s product.
In garment manufacturing units, the consumption of a garment is determined identically by how many fabrics, accessories, and other materials are required for making that garment. Altogether, garment costing is determined by calculating the expenses for making that garment. Garment costing is generally calculated by the merchandiser who is responsible for that specific garment item.
Important Points for Garment Costing
It is very important to calculate the apparel cost, where different points play an important role in fixing clothing costs, particularly. Clearly, profit and loss both depend on the cost of a garment. Generally, the progress of the company depends on the proper and accurate costing of the products. Various essential points are taken into consideration before starting the production of a garment. The following are the most common points for determining the cost of the garment:
They are-
- Yarn (natural/synthetic) costs.
- Process cost (spinning to garment).
- Process lost (spinning to garment).
- Quantity.
- Quality
- CMT (cutting, making, and trimming).
- A shortage is in process.
- Negotiation with the buyer.
- Commission percentage for the middle man.
- Buyer specification for defined products.
- Mode of shipment for export.
- Currency.
- FOB (Free On Board)
- CIF (cost, insurance, and freight).
- OH cost (overhead).
- The quota for specific products.
- Profit.
So, there are lots of points that are important for garment pricing. When one tries to calculate the cost of a garment, he or she should have clear knowledge about the process, from spinning to ready-made garment manufacturing.
Surely, a well-knowledged merchandiser can calculate proper and accurate garment costs. A fashion merchandiser always looks good in garment pricing.
1 comment
Garments buying house
Cheap, but quality materials sourcing; tight but flexible consumption and better making price negotiation with manufacturer will reduce or help to gain better prices of a garment.