Garments production is a business where so many guys have to perform to a achieve target. It is hard working track where every minute is counted. Costing of garments is a mandatory task for RMG merchandisers, especially in soft-line. Overall chance of getting order and profit depends on it simultaneously. It’s all about idea, passion and most importantly execution. It’s a general trend for all to gain profit by selling the product. Profit is the key target of all companies except charity, NGO and other special companies.
But now a day’s most of the companies emphasize on profit as well as doing some social responsibilities. They are working on the theme of “profit is the byproduct of your total performance.” They always prefer consumer’s satisfaction than profit margin. If consumers become pleased, it is easier to gain profit. Generally, when income incurs above break-even point that time it is considered as profit. When two vendors ethical standard like sample, compliance, working environment, logistic service equal to each other that time costing plays a vital role to convince the buyer. There are some parameters which should be taken into consideration while doing costing.
Following parameters need to be counted for garments costing:
1) Quantity of garments
2) Fabric consumption
3) Nature of fabric
4) Knitting pattern
5) Yarn content
6) Yarn count and type
7) Yarn cost per kg.
8) Cost of accessories like hangers, cartons, ply-boards, poly-bags etc.
9) Cost of trims likes hang-tags, labels, badges, buttons, bows, twill tapes, etc.
10) Other operational charges like heat seal, print, embroidery, washing etc.
11) CMT charges.
13) Packing method and assortment
14) Any restriction on use of dyes and chemicals
15) Tolerance in dye lot and shade variation
16) Type of dyes and chemicals to be used
17) Number of garments to be packed per poly, blister and carton box
18) Quality of carton box, type and thickness of poly bag
1) Details of printing, embroidery, and lab test requirement
2) Number of color and size in the order including lab test requirement for all colors
3) Government cash incentive
4) Factory variable cost
5) Direct labor
6) Indirect labor
7) Depends on shipping method
8) Depends on MOQ
9) Level of AQL & inspection authority
10) Amount of raw materials used
11) Production lead time
12) Payment terms
13) Miscellaneous cost
14) Bank liability
15) Profit margin
16) Total utility cost
17) Sales and distribution cost
18) Office and administrative cost
19) Any hidden charges