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Understanding the Clothes Cost Construction and Quotation

1. Price Composition (1) Fabric Cost (2) Accessories Cost (3) Labour Cost (4) Others

2. Fabric- Understand the composition of the fabric, communicate details accurately to the fabric supplier. (1) Composition: Cotton, Linen, Silk, Polyester, Rayon (2) Structure: Knitting, Weaving, Twill Weave, Plain Weave, Satin Weave or Combined Fabric. (3) Fabric Width: Wide Goods (150cm) or Narrow Goods (135cm) (4) Weight: Weight per square meter. (5) Fabric needed in total

3. Calculation of Fabric Needed (1) Weighing (2) Area Computation (3)Actual layout of the order : It’s all about the material, model and Fabric Width

Pricing Structure

Pricing structure of clothing can basically be divided into fabric price, accessories price, fabric needed per piece, embroidery price, printing price, garment wash price, processing costs and factory profits.

As a result, the price quotation per piece includes the finding of the same material, the price of accessories and the cost production pattern-making.

If there is a new model that requires a sample, the sample cost must be calculated separately.

In addition, there are differences in quality requirements and batch quantities (the cost of 1,000 pieces and 100 pieces is very different), so according to customer requirements, the factory recalculates the labor cost and adds up to get an accurate quotation.

Where is the factory?

In the past two to three years, factories in coastal areas of China are being miniaturized and garment factories are gradually migrating to third world countries.

The supply chain is most concerned about the correspondence. When your annual sales are only (£)500,000, but you find a large factory with 500 people to make goods, it is not wise. Because your order quantity is the smallest among their customers, they will not value you at all. How then, do you find the right factory? There is a formula for reference: order quantity/10 = number of people in the factory. In other words: if your average order quantity is 300 pieces, it is most suitable for you to find a small factory with 30 people.

1. Choose a factory with the ability to do the patternmaking.

2. Do not choose a factory which does not have a patternmaker and after-finishing process, such factories may have risks in terms of delivery speed and quality.

3. It is best to know the brands that the factory is currently co-operating with, so as to understand the quality of goods the factory produces. It helps to shows that the factory has good management and production capacity.

Export cost accounting

Our suggestion is that it is best to include the shipping cost in the supplier's quotation. At present, sea transportation is very unstable so it is highly recommended to use air transportation. For large orders, the per-piece air transportation costs will be greatly reduced as well.

If you have any further questions about clothing prices, please contact us and we will be happy to advise you through years of experience.

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