Garments Costing Factors In Apparel Industry

Garments Costing Factors:

Costing is the very important & crucial part of garments sector. A smart merchandiser thinks how to utilize save money & maximum profit of a company. He should think many important factors for garments costing because he is the proactive person for profit earning. He must analysis cost factors of a garment. So, I will present what are the factors related for the garments costing.

Firstly, A smart merchandiser analysis & will get accurate information from factory in the following factors.

Fabric description & sourcing.
Fabric Consumption.
Trims costing & sourcing.
Washing information.
Printing costing.
Embroidery Cost.
Cost of Making (CM).
Testing of garment.
Commercial charge.
Profit %
Mode of Shipment(Air or Sea)
FOB

Fabric description & sourcing.

Fabric description is the very important part for the costing because it is depend on fabric nature & it will changeable during wash & it can be measurement discrepancy after making garments. So, a smart merchandiser need follow below points when he will source fabric & advice to buyer.

Fabric constructions.
Fabric composition.
Fabric Weave
Actual Shrinkage of fabric(by mill)

Finally, a smart merchandiser will investigate & best sourcing for this fabric. He must to know below points during souring the fabric.

Fabric price.(Best price)
Mode of shipment.
Fabric Production lead time.
Testing parameter.
Mode of payment.

2.Fabric Consumption:

Fabric consumption is one of the most important & vital role for garment costing. A Garment costing will bear approx: 35% to 45% price of a total garment cost. A smart merchandiser need to more analysis about consumption. He must to know below important factors for effective garments costing.

Product Item.
Sample type & fitting.
Block pattern.
Graded pattern.
How many parts of a sample.
Shrinkage(added)
Grain line(way of garments)

Trims Costing & Sourcing:

A smart merchandiser must be careful about trims what will use in garments. And, he also knows how to source. He must takes responsibilities trims sourcing where are the best price. So, a smart merchandiser should think & dimensional oriented about trims & sourcing. He must be careful below points in the following.

Trims items selection.
Suppliers’ selection.
Price negotiation.
Production Lead time.
Sourcing local or aboard,
Quality Assurance.
Time commitment of historical data.

Washing Information:

A smart merchandiser must know wash instructions in buyer reference sample. He should vast knowledge about washing process into garment. A wash can change garments looks & move into a new product. He must know below points during costing stage.

Dry Wash or mechanical process:

Sandblasting.
Grinding.
Thread bare hole.
Destroy.
Whickering.
Brush.
PP spray.
Tacking & tag pining.
Crinkle.
Hand Scraping.
Chevron, hand spot.
Ripping, pilling cuts.
Repair patch along with bleach spot.
Resign application.
Local tint.

Wet wash or Chemical process:

Garments wash.
Enzyme wash.
Enzyme stone wash.
Enzyme bleach wash.
Acid wash.
Pigment wash.
Caustic Wash.
Stone Wash.
Bleach wash(Ice or Snow wash)
Tie Dye wash.

Print Costing & Sourcing:

A smart merchandiser must know what type of print in sample & what is the print cost? He should be careful about artwork. Print factory must be near in garments manufacturing otherwise it can be production hamper & costing will be increase. He follows below points.

What types of print?
Print Artwork.
Production leads time.
Production output.
Mode of payment.

Embroidery Costing & Sourcing:

A smart merchandiser must be careful about embroidery because sometimes sample has critical embroidery design & production will be slow. So, during costing stage a smart merchandiser must concern about embroidery productivity & need to developed alternative embroidery factory. An embroidery factory must be near in garments manufacturing. So, he must be careful below points during costing.

Types of embroidery.
Embroidery layout.
Productions lead time.
Alternative factory develop (if support emergency).
Mode of payment.

Cost of Making (CM):

Cost of making calculation is the important part of a garment. Garments manufacturer pays their worker salaries from this CM. A smart merchandiser calculates the production output that particular style. A smart merchandiser gets clear idea CM from SMV & related cost of a factory. During costing a merchandiser must careful below points.

Production output of a particular style.
Direct & indirect cost of a factory.

Testing Parameter of garments:

A smart merchandiser need to know what are testing parameters of the regarding buyer. So, he needs to add testing charge into costing sheet. And, he should know what are testing parameters & testing charge of a garment. He must follow below garments testing parameter during costing stage.

Fiber content.
Fabric weight.
Count constructions.
Shrinkage after laundering.
Fabric strength.
Seam strength.
Pilling resistance.
Color fasting to washing.
Color fastness to light.
Color fastness to rubbing.
Color fastness to perspiration.
Ph value

Commercial Charge:

A smart merchandiser must know how to add commercial charge to import & export any goods from aboard. So, he should maintain commercial charge to add during costing stage. He must know below important points.

- LC charge(Master LC & B2B LC)
- CIF Charge.
- Bank endorsement charge.

Profit %:

A smart merchandiser must know how to add profit% into costing stage. He needs to discuss with management what profit % to add into costing sheet. Without profit a factory cannot develop or sustain in the market. He should think & best profits calculate of a factory or company.

Mode of Shipment:

A smart Merchandiser must know what type of shipment mode? Buyer determined what type of shipment mode. Sometimes, shipment can be sea or Air. So, on the basis he should calculate ship mode charge added into costing sheet. He must need to know below important points.