1

 TEM-409
 Textile Apparel Merchandising

 Chapter-6: Garments Costing

 SK. Nazmus Saaqib

 Assistant Professor (Fashion & Design)
 Contents
• Fabric consumption
• Methods of consumption
• Accessories Consumption
• Cost sheet preparation
 Fabric Consumption
• The quantity of fabric which is required to produce a garment
is called consumption. How much fabric is required to produce
a garment, we can determine it through marker planning and
mathematical system.

• Like other business, garment factory is set for profit generation.

Profit can be improved by saving from each cost factors of
garment making. Fabric is most important constitute of
garment and it represent around 60% of total product
manufacturing cost. Fabric cost of a product depends how
much fabric is consumed to make the garment including cut
wastes and end bits.
• In garment business, the issue of fabric consumption
is very much important as it is the saving point in the
cost sheet. For knit and sweater garments,
consumption is calculated in kg and for woven
garments the consumption is calculated in yard. How
much fabric is required to produce a garment can be
determined applying the mathematical system and
the marker planning system.
Methods of Fabric Consumption

Fabric
Consumption

Mathematical Marker
Formula Planning
Method Method

Single
Part By Part
Formula
Method
Method
 Uses of Methods
• The mathematical system is a system of rough estimation.
Consumption of a sample garment or consumption as per
measurement sheet is calculated mathematically by measuring
the area of length and width of each part of each piece of a
garment.
The marker planning can be done manually or by applying the
CAD/CAM system. Now-a-days, the CAD/CAM system is
followed in the manual marker planning. With use of the
CAD/CAM system on an experimental basis it can be observed
that about 10 per cent of materials are saved compared to the
manual method.
 Marker Planning Method
• In the system mentioned here studying the range of size, following
six pcs of six sizes can be sorted out from size range. As in XS, S,
M, L, XL, XXL Besides these we can choose three pcs of three size
or twelve pcs of twelve sizes for our convenience. It depends on
our intelligence and the size range; thereafter paper pattern can be
made by grading to the above garments as per measurement sheet.
Having made the paper pattern it should have to lay each parts of
the paper pattern on a marker paper of similar fabric width. After
marking the paper pattern if we measure marker paper to length
wise, we will find an aggregate consumption of six pcs of garment.
If the aggregate is divided by six, we will find a consumption of
one pc garment. As such we will find a consumption of one dozen
garments from the above system calculations.
 An example
• For Example if You have total of 4 pcs of garments in the marker as
per size ratio & the final marker length is 6 Yds then the fabric
consumption= 6/4 =1.5 yds/Pc.
• This is the avg. consumption for the order.
• The fabric width is not considered for this equation as the fabric width
is constant for a order.
• For knit item=
(Marker length (yd.) X fabric width(inch)X GSM X 0.023223)
1000 X no of gmts
+ 8-10 % (wastage) kg/pc.
• This formula can be used to convert the marker length into fabric
weight.
 Mathematical Formula Method

• Mathematical formula method is used for rough

estimation of fabric needed to produce a garment.
• This process generally used in sample making and for
negotiation purpose in sample making program.
• This method can be used in 2 ways-
❖ Single formula method
❖ Part by Part Method
Both methods describe in following slides
Measurement Points for Tops
(Woven and Knit)
Measurement Points for Tops
(Knit)
 Consumption for Basic
Shirt/Blazer/Jacket
1
{ Back length+Sleeve length ∗ chest }∗2
• Fabric= Fabric width ∗ 36
2
+ 5% yds/pc

• The measurements must be taken in inches & with each actual

measurement add 1” as sewing allowance & then insert into formula. i.e-if
½ chest is 16” insert 16”+1”=17” into formula for better adjustment.
•
• The number at the end is the total process wastage we have to concede for
samples & rejections.
•
 Consumption for Basic T-Shirt/Polo
Shirt/Hoodie
1
Back length +Sleeve length X chest X 2XGSM
2
Fabric= + 10% kg/pc
10000000

The measurements must be taken in cm & with each actual

measurement add 2 cm as sewing allowance then insert into formula.

The number at the end is the total process wastage we have to concede
for samples, rejections, cutting wastage & our assumptions.
Standard Body Measurement
 Example of Woven Shirt
Consumption
As an example, if we take a shirt of size of XL-17” neck size:
• Back length/Length= 32.5” + 1” =33.5”
• Sleeve length =26” +1” =27”
• ½ chest=49/2=24.5” + 1” =25.5”
• Fabric cutting width= 56”
33.5+27 × 25.5 ×2
• So Fabric = + 5% yds/p
36×56
• = 1.61 yds/pc
 Example of Knitted T-shirt
Consumption
As an example, if we take a t-shirt of size of XXL-17.5” / 44.5 cm
neck size:
• Back length/ Length= 85.1 cm +2 cm =87.1 cm
• Sleeve length =68.6 cm + 2 cm = 70.6 cm
• ½ chest=129.5/2=64.75 cm + 2 cm =66.75
• GSM=140
87.1+70.6 × 66.75 ×2×140
• So Fabric= + 10% Kg/Pc
107
• = 0.33 Kg/pc
Measurement Points For Bottoms
 Fabric Consumption for Woven
Basic Trouser/Denim Trouser
Fabric=
1 1
waist X Front Rise X 2 +{ ( Thigh X Inseam ) X 4}
2 2
+5% yds/pc
Fabric width ∗ 36

Formula measurement=actual measurement +sewing allowance

(1”/2”/3”/3.5”/4”) (1” is more convenient)
Measurement must be in inches.
 Fabric Consumption for Knit Basic
Trouser/Leggings/Joggers
Fabric=
1 1
waist X Front Rise X2 + Thigh X Inseam X 4 X GSM
2 2
+10% Kg/pc
10000000

Formula measurement=actual measurement +sewing allowance (2-6

cm) (2 cm is more convenient)
All Measurements must be in cm.
 Part by Part Consumption
• Divide the garments into smaller parts as per convenience
e.g.-For a basic shirt collar, yoke, body, sleeve, cuff etc.
𝐿𝑒𝑛𝑔𝑡ℎ∗𝑤𝑖𝑑𝑡ℎ∗𝑛𝑜 𝑜𝑓 𝑙𝑎𝑦𝑒𝑟
• For part-1 =
36∗𝑓𝑎𝑏𝑟𝑖𝑐 𝑤𝑖𝑑𝑡ℎ
yds/pc.
• Total fabric= (1+2+3+4+5…..) + 3 % yds/pc.
𝐿𝑒𝑛𝑔𝑡ℎ∗𝑤𝑖𝑑𝑡ℎ∗𝑛𝑜 𝑜𝑓 𝑙𝑎𝑦𝑒𝑟∗𝐺𝑆𝑀
• Or part-1 =
10000000
kgs/pc.
• Total Fabric=(1+2+3+4+5…..) + 6 % kgs/pc.
• This formula can be used to find out consumption of any
type of garment (skirt, lungi, jacket etc.)
 Fabric Width
• The fabric width here are the fabric cutting width. Generally the cut
width of a fabric is lesser than the produced width because before
cutting we have to cut the selvedges of the fabric from two sides.
• Generally in our industry we find the following woven fabric width:
• 1.100% cotton denim fabric—60”, cutable width- 58”
• 2.100% cotton twill/plain fabric—58”, cutable width- 56”
• 3.(97-98)% cotton+(2+3)% lycra/spandex—54-55”, cutable width-
52”
• The manufactures provides us it as 60/58 or 60/57, the first
number is the produced fabric width & the second number is the
fabric cut width.
 Sweater Yarn Consumption
• Buyer provided sample weight- 180gm
Merchandiser made sample weight-190gm
Let, buyer approved the sample weight and style according to
measurement chart.
• Now,
Yarn needed per dozen garments = (190 × 12) = 2280gm=
5.03lb (1lb= 453.6gm)
In case of acrylic yarn, wastage% is 5-7%.
• So, after adding wastage% total quantity of yarn needed
per dozen garments is-,
= 5.03 + 6% (here, we accept 6% wastage)
= 5.33lbs per dozen
 Thread consumption for Garments

• It is important to know the amount of thread consumed in a

sewn product so you can:
• 1) estimate the number of cones needed; and
• 2) calculate the cost of the thread needed to manufacture the
finished product.
• Thread consumption can be determined in several ways. To
calculate the amount of thread in a seam, you can:
#Measure the actual amount of thread consumed in a specific
length of seam.
# Thread consumption ratios
 Measuring Actual Thread
Consumed
• A specified length of a given seam is measured and then the thread is
pulled out of this length. We can use the amount pulled out of this
specified length to calculate the ratio of thread consumed in the entire
seam. By dividing the amount of thread by the seam length, we get the
ratio of thread consumed. If we multiply this factor times the total length
of seam, we can determine the total thread consumed for that seam.
• Example:
Length of seam = 100 cm (1 metre)
Stitch class 401 = 2-Thread Chain stitch
Length of seam for which thread is removed = 15 cm
Needle thread removed = 19.5 cm
Needle thread factor = 19.5/15 = 1.3
Looper thread removed = 62.0 cm
Looper thread factor = 62.0/15 = 4.1
• Total Needle thread = 100 cm x 1.3 = 130 cm
Total Looper thread = 100 cm x 4.1 = 410 cm
Total thread consumed = 130 + 410 = 540 cm
Add 15% wastage* = 540 cm x 1.15 = 621 cm
• Generally, 10% to 15% wastage of thread is added to the
consumption derived. This wastage occurs due to shop-
floor conditions like machine running, thread breakage,
repairs, etc. The above example shows the total thread
consumed for one type of stitch class in a garment. By
following a similar procedure, you can calculate the thread
consumed for different stitching operations in a garment.
Machine wise sewing thread consumption/inch

1.plain m/c 1 needle 2.5 inch

2.plain m/c 2 needle 5 inch
3.over lock 3 thread 13.25 inch
4. over lock 4thread 16.75inch
5.over lock 5 thread 18.75inch
6.flat lock 3 thread 16.75inch
7.flat lock 5thread 22.25inch
8.bar tack stitching Per operation Generally 7 inch
The easier method is to use the generally applicable Thread Consumption Ratios for the various
stitch types that are listed in the table below. By relating these ratios to the length of seams using

Thread Consumption Ratios

each stitch type, total thread consumption can be calculated.
 1. The above ratios are arrived at with a stitch density of 7 stitches per cm (18 stitches per
inch).
2. These ratios are the prescribed minimum in regular conditions and marginally vary with
the factors affecting thread consumption.
3. A certain percentage of wastage is to be added to the above ratios as per shop floor
conditions. It may vary from 10% to 15%.

Example:

Length of seam = 100 cm (1 metre)

Stitch class 401 = 2-Thread Chainstitch
From the table, total thread usage per cm of seam = 5.5 cm
Total thread consumption = 100 cm x 5.5 = 550 cm
Estimated Needle thread = 550 x 0.25 = 138 cm
Estimated Looper thread = 550 x 0.75 = 412 cm
Add 15% wastage = 550 cm x 1.15 = 633 cm of thread per seam

By applying thread consumption ratios in a manner similar to the calculation in the above
example, a sample consumption working for an average sized knitted t-shirt is shown in the table
below.
Example

Thread consumption for an average-sized knitted t-shirt

These days, thread consumption and costing can be calculated without the need to pick the thread
from seams. Coats' Seamworks is a sewing management software solution that can accurately
calculate thread consumption and costing for a single sewn product or production run or any
number of sewing machines. Seamworks helps to reduce thread wastage and can give you a
competitive edge through cost effective sewing thread procurement. Ask your local Coats
contact about Seamworks.
Average Thread Consumption
Average Thread Consumption
The table below gives the average thread lengths consumed for different types of garments,
drawn from our experience. These figures include 5% wastage allowance:
• The avg. thread consumption is backed up by:
• 1.Coats Seamworks
• 2. A&E’s ANECALC spreadsheets

• For more data you can check online ref.

 Carton consumption

• No. of garments per carton.

• Total no. of garments.

• E.g.—12000 shirts, per carton contains 24 pcs of

shirts.
• So carton needed- 12000/24—500 pcs + 5%----525
pcs.
Polybag Consumption
 Shipping Terms

• 1.FOB-Free on Board
• 2.C&F-Cost & Freight
• 3.CIF-Cost, Insurance
& Freight.
Shipping Marks
 Intermodal Container
• An intermodal container (also container, freight container, ISO container, shipping
container, hi-cube container, box, conex box and sea can) is a standardized reusable steel
box used for the safe, efficient and secure storage and movement of materials and
products within a global containerized intermodal freight transport system. "Intermodal"
indicates that the container can be moved from one mode of transport to another (from
ship, to rail, to truck) without unloading and reloading the contents of the container.
Lengths of containers, which each have a unique ISO 6346 reporting mark, vary from 8
feet (2.438 m) to 56 feet (17.07 m) and heights from 8 feet (2.438 m) to 9 feet 6 inches
(2.9 m). There are approximately seventeen million intermodal containers in the world of
varying types to suit different cargoes.[1] Aggregate container capacity is often expressed in
twenty-foot equivalent units (TEU) which is a unit of capacity equal to one standard 20 ft
× 8 ft (6.10 m × 2.44 m) (length × width) container.

• For air freight the alternative and lighter IATA-defined unit load device is used. Non-
container methods of transport include bulk cargo, break bulk cargo and tank cars, tank
trucks or oil tankers used for liquids or gases.
 Container Specifications
20′ container 40′ container 40′ high-cube container 45′ high-cube container

imperial metric imperial metric imperial metric imperial metric

length 19′ 10 1⁄2″ 6.058 m 40′ 0″ 12.192 m 40′ 0″ 12.192 m 45′ 0″ 13.716 m
external
dimension width 8′ 0″ 2.438 m 8′ 0″ 2.438 m 8′ 0″ 2.438 m 8′ 0″ 2.438 m
s
height 8′ 6″ 2.591 m 8′ 6″ 2.591 m 9′ 6″ 2.896 m 9′ 6″ 2.896 m

length 18′ 8 13⁄16″ 5.710 m 39′ 5 45⁄64″ 12.032 m 39′ 4″ 12.000 m 44′ 4″ 13.556 m
interior
dimension width 7′ 8 19⁄32″ 2.352 m 7′ 8 19⁄32″ 2.352 m 7′ 7″ 2.311 m 7′ 8 19⁄32″ 2.352 m
s
height 7′ 9 57⁄64″ 2.385 m 7′ 9 57⁄64″ 2.385 m 8′ 9″ 2.650 m 8′ 9 15⁄16″ 2.698 m

width 7′ 8 ⅛″ 2.343 m 7′ 8 ⅛″ 2.343 m 7′ 6" 2.280 m 7′ 8 ⅛″ 2.343 m

door
aperture
height 7′ 5 ¾″ 2.280 m 7′ 5 ¾″ 2.280 m 8′ 5″ 2.560 m 8′ 5 49⁄64″ 2.585 m

volume 1,169 ft³ 33.1 m³ 2,385 ft³ 67.5 m³ 2,660 ft³ 75.3 m³ 3,040 ft³ 86.1 m³
maximum
66,139 lb 30,400 kg 66,139 lb 30,400 kg 68,008 lb 30,848 kg 66,139 lb 30,400 kg
gross weight
empty weight 4,850 lb 2,200 kg 8,380 lb 3,800 kg 8,598 lb 3,900 kg 10,580 lb 4,800 kg

net load 61,289 lb 28,200 kg 57,759 lb 26,600 kg 58,598 lb 26,580 kg 55,559 lb 25,600 kg
• 20′ Container
• Measurement:
• Length: 288″ x Width: 84″ x Height: 94″ = 1800288 cubic
inches
• 1800288 divided by 1728 cubic inches= 1041.83 cubic feet.
1041.83 divided by 35.32 =29.50 CBM
• A 20′ container has an air capacity of 29.50 CBM, but when
exporters ship goods packed in cartons or wooden crates, it can
only hold about 27 CBM as there will be gaps or spaces wasted .
If the rate of a 20′ container is $ 3, 500.00 exporters average
rate per CBM is about $ 130.00
• 40′ container
• Measurement:
• Length: 447” x Width: 84” x Height: 94” =3742704 cubic
inches.
• 3742704 divided by 1728 cubic inches= 2165.92 cubic feet.
2165. 92 divided by 35.32 = 61.32 CBM.
• Therefore, a 40′ container has an air capacity of 61.32 CBM.
Likewise, when the exporter ship goods by packed cartons or
wooden crates, it will hold only about 54 CBM. If the rate of
the 40′ container is $5000.00 the average rate per CBM is about
$ 92.00.
• Example: one dz of Men’s stand up collar shirt is about
0.034 CBM.
• (1) If exporter ships this shirt as loose cargo,
• 0.034 x 160.00 =$5.44/ dz sea freight
• (2) If exporter ships this shirt in a 20′ container (full)
0.034 x 130.00 =$4.42/ dz sea freight.
• (3) If exporter ships this shirt in a 40′ container, or a 40′ f
ii Cubic container (full)
• 0.034 x 92.00=3.13 per dz sea freight
 Air Freight
• Unlike sea freight, the airlines have decided to charge for the
heavy merchandise (high density goods) by weight and light
weight merchandise (low density goods) by volume. However,
as airplanes can take less weight, than ocean liners, the way they
set the standard, in the garment industry, when you ship goods
by air, you have a 70% chance to be charged by weight, about
30% chance by volume.
• If the merchandise is of high density (heavy) such as jeans, flat
packed shirt, jackets without polyester padding, T-shit without
hanger, there is a good chance it will be charged by weight. In
that case, it is not possible to save air freight by packing the
goods tighter in cartons to reduce the measurements.
• However, if the merchandise is of low density (light
weight) such as stands up collar shirts, shirts
individually boxed , jackets with polyester padding, or
down fill, T-shirts or other shirts with hangers heavy
gauge sweaters , there is a good chance it will be
charged by volume. In that case, exporter should
make an effort to make the cartons as small as
possible.
 Air freight calculation
• In case of air freight the ordering system is a bit different.
• The air freight system has some own standards ,
• For Bangladesh the freight companies calculate 6000
cubic CM=1 KG some cases 7000 cubic CM=1 kg.
• Lets assume you have cartons measurement is (50 cm X
60 cm X 40 cm)
• The gross weight per carton is 16 kg/carton
• 6000 cubic CM= 1KG
• If we measure the carton=(50*60*40)=120,000 cubic
cm.
• For air freight the carton weight
is=120,000/6000=20 kg
• The actual weight of the carton is 16 kg.
• The air freight company charge which measurement
is the higher so in this case the charge will be for 20
kg for every carton.
 Air freight chargeable weight
calculation
• 6000 cubic centimeters per kg/ .006 CBM per KG
• 366 cubic inches per kg.
• 166 cubic inches per lbs (pound).
• Example: Volumetric calculation
• Example: Volumetric calculation 1 pallet: 140 x 100 x 90 cm Actual Volume
- 1.2 x 1.0 x 0.9 = 1.26 cubic meters Calculating Volumetric Weight 1.26
Cbm Divide / by 0.006 = 210 – This will become the volumetric weight of
the shipment in Kilograms.
• The actual weight of the pallet may be 150 kgs from which the Airfreight
will be charged against the volumetric weight 210 kgs. If the pallets actual
weight is 260 Kgs it would be charged against the actual weight of the
shipment.
 Accessories Consumption
• Most of the accessories • Carton Consumption:
are piece by piece • No. of garments per carton.
consumption.
• Total no. of garments.

• E.g- 1 shirt needs – 7

buttons. • E.g.—12000 shirts, per
carton contains 24 pcs of
• So 10000 shirts- 70000 shirts.
buttons + 5% (wastage)--- • So carton needed-
-73500 pcs--- 43 GG. 12000/24—500 pcs + 5%---
-525 pcs.
 Cost & Price
• Price is the end value or worth of a certain product or service while
the cost is the total value of manufacturing the product or service.

• From a Seller's perspective: Price is what you sell something for,

cost is what you paid for it or what it cost to produce it.

• From a Buyer's perspective: Price is what you initially pay for an

item. Cost is what it takes to maintain the item.

Price=Cost +CM+ profit

• So when we are preparing a value sheet, the manufacturer
is providing the costing & the buyer is providing the
pricing.

• There are three basic standards of costing:

1. FOB
2. CF
3. CIF
 FOB
• Full meaning=Free on Board
• Here the manufacturer or exporter does not bear the cost of freight or ship
or air. It is buyer (Importer) who himself bears the ship/freight/air.
• For FOB price the following notes should be taken carefully:
1. Cost of fabric /pc
2. Cost of accessories/pc.
3. CM(Cost of making/manufacturing)/pc
4. Wash cost of garments/
5. Cost of transportation from factory to freight point.
6. Overhead cost
7. Profit/commission
• In most of the cases we only find 4 main points
in costing:
• 1.Cost of fabric
• 2.Cost of accessories
• 3.Cost of washing
• 4.CM
• The other points are merged into the CM
category.
 CF/ C&F/CFR

• Cost & Freight=FOB + Freight charge.

• In this case ship or air freight is carried by the
exporter while quoting price, the exporter quotes
price a bit higher than the FOB. The whole
responsibility including sending the goods to the
selected port of the importer is shouldered by the
exporter ship or air. Freight may vary from place to
place & shippers to shippers.
 CIF

• Cost, Insurance & Freight=CF +

Insurance charge
• In this case in addition to the bearing of
freight the cost of insurance is also borne by
the exporter. The exporter while quoting
price quotes much higher price than the C&
F value.
 Costs to be Considered
• Direct cost: Cost of raw material—70-75%.
• Indirect cost : Interest on investment, loan, working
capital, depreciation, overhead etc. ---5-7%.
• Profit: 10 - 25% depending on the order size.
• There are set patterns and guidelines followed by the
industry. It is difficult to find out costs for every process
as there are some inbuilt costs while costing. A larger
picture has been taken into account while quoting the
cost. Costing depends a lot on quantity and order
received.
 Factors to Be Considered for
Profit/Cost Determination
• 1.Quality level: Depending on the level of quality
allowance provided by the buyer we can determine
whether they want high or average quality of work.
Depending on that we can determine whether we provide
high or general CM.
• 2.Product Style: If the product is a very basic product it
will take less time for production & very small operations,
so can provide lower profit percentage & CM. As the
products gets complex both the points will increase.
• 3.Availability of the materials: If the raw materials
required for production are special & takes special order
then the price quoted should be higher than regular.
• 4.Lead time provided: If the buyer wants express
delivery than the regular lead time then we have to
provide higher product cost if possible.
• 5.Quality of life: The quality of life or the labor cost for
specific areas are high then the CM will be higher.
 Costing Sheet

• A costing sheet is an arrangement of all the costs

related to producing the garments.
• An efficient costing sheet includes all the costs from
A-Z.
• The costing is done mainly for the negotiation
purpose of the product.
• Costing sheet is an indication of both parties
intention towards the price range.
 General / Single /Final Price
Approach
• In this approach the product related costs are
enlisted in very broad/overall categories.
• This type of costing sheet preparation is good for
the costing of goods having little amount of product
details. But with this approach negotiation can be
tricky for manufacturer if not well prepared. This
one is also good for concealing the profit margin.
• This approach is good for formal/informal type of
business.
 An Example
• Costs of a t-shirt:
• Body fabric cost=$17.68/Doz ($4.41/Kg, 4.04 kg/doz)
• Washing cost =$2 /Doz
• Collar & cuff cost=$3.47/Doz
• CM =$4.56/Doz
• Accessories cost=$3.00/Doz(only sewing thread,label,carton,polybag)
• Production cost= $30.58/Doz
Profit = $1.23 /Doz
• Overhead cost =$1.15/Doz
• Total FOB =$33.67 /Doz
• Freight =$1.95 /Doz
• Total CF =$35.56 /Doz
• Insurance cost =$0.8 /Doz
• Total CIF =$36.34/DOZ
 Cost Breakdown approach

• In this approach the costs related are categorized into

major categories & then the related sub costs are listed
under them & then the total costing is done.
• This approach is good for formal business form & the
scope for negotiation is very good & easy.
• In this case the garments are goods & the details cost helps
us for reference of work.
• But the buyers needs to be well prepared for negotiation as
they need to be well acquainted with the costs.
QUOTE SHEET (TARASIMA APPARELS LIMITED)
BUYER : S.OLIVER DATE : 3-Sep-12
Article No.: 40.304.72.2151 QTY: TBC
ITEM : QS MALE SHORT PANT DEL : TBC
SIZE : 28-38 SEASON:
SL ITEM DESCRIPTION CONS/DZN U/PRICE VALUE
1 SHELL FABRIC 13.05 /YDS 3.80 /YDS 49.59
100% COTTON 10.55 OZ DENIM, Dark Blue Black, SORT - 95069473
SUPPLIER : ARVIND, W IDTH 59" (CNF PRICE GIVEN BY S.OLIVER)

2 POCKETING 3.20 /YDS 2.20 /YDS 7.04

100% COTTON TW ILL, PFD FORM, CON - 130X70/30X30
SUPPLIER : LOCALE, W IDTH 57/58"

FINANCE COST 3.5 % on Fa b prx 1.98

TOTAL FABRIC PRICE 58.61

SL ITEM DESCRIPTION CONS/DZN U/PRICE VALUE

1 TACK BUTTON, TR-BT-1028405, 20MM, S.OLIVER ASIA, HK 12.6 PCS 1.75 /DZN 1.84
2 NAIL, TR-BT-1004922, AT TR-BT-1000756, 9MM, S.OLIVER ASIA, HK 12.6 PCS 0.55 /DZN 0.58
3 EYE LET, TR-EY-1007505, 10.2X19.2MM, S.OLIVER ASIA, HK 12.6 PCS 1.60 /DZN 1.68
4 PRESS BUTTON, TR-BT-1000765, 17MM, S.OLIVER ASIA, HK 37.8 PCS 1.30 /DZN 4.10
5 W OVEN LABEL, LA-W L-1014278, SML, HK 12.6 PCS 0.50 /DZN 0.53
6 LEATHER LIKE PAPER-LABEL, LA-OT-1019155, SML, HK 12.6 PCS 4.70 /DZN 4.94
7 QS MALE - SIZE LABEL, LA-SL-1003606, SML, HK 12.6 PCS 0.25 /DZN 0.26
8 W AISTBAND TAG "JOHN" LA-W T-1008671, A-TEX - HK 12.6 PCS 0.97 /DZN 1.02
9 MAIN FIRST CARELABEL, LA-CL-1003524, LOCAL 12.6 PCS 0.14 /DZN 0.15
10 SECONG CARELABEL, LA-CL-1003525, LOCAL 12.6 PCS 0.12 /DZN 0.13
11 SPECIAL CARELABEL, LA-CL-1003488, LOCAL 12.6 PCS 0.16 /DZN 0.17
12 STRING W ITH SEAL, LA-SR-1007302, SML, HK 12.6 PCS 0.60 /DZN 0.63
13 HANGTAGS, LA-HT-1005804, SML, HK 12.6 PCS 0.50 /DZN 0.53
14 CI PRICE HANGTAG QS MALE, LA-HT-1005802, SML, HK 12.6 PCS 0.50 /DZN 0.53
15 EAN STICKER, LA-ST-1005801, SML, HK 12.6 PCS 0.25 /DZN 0.26
16 SPECIAL HANGTAGS, LA-HT-1006019, SML, HK 12.6 PCS 0.50 /DZN 0.53
17 OTHER LABELS, LA-OT-1028433, SML, HK 12.6 PCS 2.75 /DZN 2.89
18 100% SPUN POLYESTER THREAD TOP STITCH - 20/4 1800 MTR 1.98 /DZN 1.78
19 100% SPUN POLYESTER THREAD TOP STITCH - 20/2 1950 MTR 1.37 /DZN 0.89
20 100% SPUN POLYESTER THREAD TOP STITCH - 60/3 2200 MTR 1.17 /DZN 0.64
21 100% SPUN POLYESTER THREAD TOP STITCH - 20/9 60 MTR 2.25 /DZN 0.14
22 POLYBAG INDIVIDUAL 12.6 PCS 0.75 /DZN 0.79
23 W AX PAPER 12.6 PCS 0.20 /DZN 0.21
24 CARTON STICKER 12.6 PCS 0.25 /DZN 0.26
25 CARTON 1.20 /DZN 1.20
26 MISCELLENEOUS (FAB INSPECTION, TESTING, GUM & SCOTCH TAPE, TAG PIN ETC.)1.00 /DZN 1.00

TOTAL ACCESSORIES COST 27.64

FABRIC PRICE 58.61

ACCESSORIES PRICE 27.64
CM 25.00
HEAVY ENZYME STONE + BLEACH + W HISKER + TAGGING + SCRAPPING + GRANDING + TIE 16.00
PRINTED "JOHN standard fit" AW -520-10-0000/ 00-9170 1.50
SKATER PRINT, AW -520-10-2013/ 04-1100 1.50
FOB/DZN $ 130.25
FOB/PC (NET) $ 10.85
TARGET PRICE
 Merits

• This approach is good for both manufacturer & buyer.

• All the details are enlisted so it is easy to find whether any
product is missing & not.
• The price range is easy to find & there is plenty of scope
for negotiation.
• As the negotiation is done on the work sheet alone so if
anything missing then the manufacturer is not liable.
 Costing Decision

• So as a result it is important to not cast a very high price

initially as it will drive away the buyer interest to
negotiate.
• Then if you decide to work with a lower price than the
market price then the buyer might take advantage of you
& drive the price lower & lower.
• So if you have better cost management than the market
value then its better to use for your added benefit rather
than competitive advantage.
Thank You