Garment Costing
Garment or apparel is the second need of human beings. Additionally, it is very important to wear garments to fulfilling the basic needs of a man or woman. However, complete garments reach the customer’s hand with lots of hard work and continuous process. Therefore, it is very essential to calculate the cost of complete apparel. Unquestionably, garment costing means all the costs which are responsible for making that’s products that are responsible to fix the price of that’s products.
In garment manufacturing units, consumption of a garment is determined identically by how many fabrics accessories, and other materials are required for making that’s a garment. Altogether, garment costing is determined by calculating the expenses for making that’s a garment. Garment costing is generally calculated by the merchandiser who is responsible for that’s specific garment item.
Important Points for Garment Costing:
It is very important to calculate the garment costing where different points play an important role in fixing garment costing particularly. Markedly, the 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 take into consideration before starting the production of a garment. The followings are the most common points for determining the cost of the garment.
They are-
- Yarn (natural/synthetic) cost.
- Process cost (spinning to garment).
- Process lost (spinning to garment).
- Quantity.
- Quality
- CMT (cutting, making and trimming).
- Shortage in process.
- Negotiation with the buyer.
- Commission percentage for middle man.
- Buyer specification for define products.
- Mode of shipment for export.
- Currency.
- FOB (Free On Board)
- CIF (Cost, Insurance and Freight).
- OH cost (Over head).
- Quota for specific products.
- Profit.
So, there are lots of points which are important for garment costing. When one will try to calculate the cost of a garment he or she should have clear knowledge about the process from spinning to readymade garment manufacturing.
Surely, a well-knowledged merchandiser can calculate a proper and accurate garment costing. A fashion merchandiser always looks good in garment costing.
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.