Garments’ costing is most important things of RMG sector. Depend on it your business will be up & down. Cost typically can be defined as’ the economic value placed upon the resources consumed to make a product.’ Costing is the process of estimating and then determining the total cost of producing a garment, including the cost of materials, freight charges, profit margin, worker and  transportation as well as the general expenses of the operating the business.

Key-note

1. Fabric Cost
2. Fabric Consumption
3. Trims & Accessories Cost
4. Embellishment Cost
5. Cost Of Making
6. Freight(Sea & Air mode)
7. Payment Mode(LC at sight/Deferred 60 Days/90 Days/120 Days, TT, Sales Contract )
8. Washing Cost(If required)

Fabric Cost: If you want find out fabric price at first you have to know below key point:

• Yarn price(Count wise)
• Yarn count allocation(As per fabric structure & GSM)
• Knitting Charge
• Dying Charge
• Special Finish(If required-Teflon Finish, Hydrophilic Finish, Peach Finish,  Mercerized, Silicone Softener, Carbon touch, UV Finish, Easy care, Brush, Anti-bacterial Finish, Enzyme)
• Process Loss
• Profit Margin

1. Yarn Count Allocation: For Find out yarn count we can follow below:

    Relation between yarn count & Fabric GSM

• Knitting Charge: The below knitting Charge are variable depend on factory profile.

• Dying Charge: The below Dying price are variable depend on factory profile.

As per above information we can find out per kg Fabric price:

2. Fabric Consumption: Here we can select a basic Tee Shirt for consumption:

Say, Body Length=70 cm, ½ Chest=52 cm, Sleeve Length=22ncm

For Rib, Neck Width/Opening= 23 cm, Neck Height=2 cm, Front Neck Drop= 10 cm, Back Neck Drop=2cm

So Total Fabric Price Per Dozen = Fabric Price per KG X Fabric Consumption Per Dozen

= $ 6.41 X 2.4211512

= $ 15.519579192 Per Dozen

2. Trims & Accessories Cost : There are many trims & accessories are used in a garments. Here we can describe shortly:

So Total Trims & Accessories Cost Per Dozen = $0.84 + $1.24

                                                                                 = $ 2.08

Total Embellishment Cost per Dozen  $1.03

Type of Different Print: There are many kind of print use in garments. Such as:

1. Water Print
2. Pigment Print
3. Rubber Print
4. Photo print
5. Digital Print
6. Plastic Print
7. High Density Print
8. Gel print
9. Discharge Print
10. Sugar Print
11. Flock Print
12. Foil Print
13. Puff Print
14. Radium Print
15. Upson Print

5. Cost Of Making : For Basic Styles:

1. Short Tee Shirt : $3 – $4 per dozen
2. Long Sleeve Tee Shirt : $4 – $5 per dozen
3. Short Polo Shirt : $8 – $9 per dozen
4. Long Polo Shirt : $9 – $10 per dozen
5. Tank Top : $2 – $2.5 per dozen

Shipping Terms:

1. CM(Cost Of Making/Cutting & Making
2. FOB(Freight on board)
3. C & F(Cost & Freight/Clearing & Forwarding)
4. CIF(Cost Insurance & Freight)
5. CIFI(Cost Insurance Freight & Exchange)
6. COD(Cash on delivery)
7. CWO(Cost with order)
8. FOW (Free on wagon.

So we can consider our basic tee shirt making cost $ 3 per dozen.

Finally our cost per dozen = ( $15.52 + $2.08 + $1.03 + $3)+ $0.12( Bank Handling Charge $0.12/dozen)

= $21.75

= $21.75/12

=1.81 per PC

So finally we can say our Price FOB $ 1.81/PC

Thank You !