Garment costing is an integral aspect of the fashion and apparel industry, playing a crucial role in the overall business strategy. It refers to the process of estimating the expenses involved in the production of a clothing item, from the initial design stage to its final retail price. Accurate garment costing is essential for fashion businesses to make informed decisions about pricing, sourcing, production, and profitability. In this article, we will delve into the intricacies of garment costing, its importance, and the various factors that influence the cost of producing garments.
Accurate costing is essential for determining the appropriate retail price of a garment. Setting the right price point ensures that the product remains competitive in the market while generating sufficient profit margins.
Basic Information In A costing Sheet:
1. Picture: Add picture from PO sheet/Tech file.
2. Date: Write the date.
3. Buyer: Write the name of buyer from PO sheet.
4. Style: Write the style name from PO sheet/Tech file.
5. Item: Write the item name from PO sheet/Tech file.
6. Composition: Write about composition from PO sheet/Tech file.
7. Size: Write sample size as per buyer requirement in Tech file.
8. Intake: Write intake/season information from PO sheet/Tech file.
9. GSM: Write about GSM from PO sheet/Tech file.
10. Color: Write about color from PO sheet/Tech file.
11: QTY: Write order quantity from PO sheet.
Most Important Information In A costing Sheet:
1. CAD Consumption (Body+Sleeve): Collect Consumption from factory CAD section.
2. CAD Consumption (For Back Neck Tape/Single Jersey): Collect Consumption from factory CAD section.
3. CAD Consumption (For Neck RIB): Collect Consumption from factory CAD section.
4. Yarn (1): How many types of yarn we have to use to make this garments - we have to write here those name.
5. Count: Depending on the required GSM we have to calculate which count yarn we should use.
6. Price: We have to write yarn price of that required yarn count.
7. %: We will mention how many % we will use this count yarn.
8. Sewing Thread: We will take sewing thread consumption from IE department. And sewing thread price per DZN we have to calculate.
9. Accessories: Sewing Thread, Care Label, Size Sticker, Main Label, Price Tag, Carton, Polybags, Poly Sticker, Elastic, String, Gum Tape, Drawstring/Zipper/Elastic/Other Acc., RFID, Licence Label etc. We have to calculate every accessories separately and ofcourse per DZN.
10. Knitting: We have to learn knitting cost from knitting department.
11. Dying/washing/Peach/Brush/Hit Set/Process Loss: We have to collect these price from dying concern.
12. AOP/YD/Twisting: We need to collect these price from knitting department.
13. Rib Price: Rib price will be always $1.5-$2+ from total fabric price.
14. S/J for Back neck tape: S/J for Back neck tape will be always $6.30-$6.60
15. Print / Embroidar / Wash: We will take print, embroidary or wash price from print/wash/emb. factory.
16. CM: We have to take CM cost from IE department.
17. Bank /Commercial: We will keep this price always 2%-5%
19. Freight: Freight cost always will be $0.20-$0.30
20. Commission: Commission will depend on us, we can take 5% / 10% / 20% etc. according to our demand.
NB: I myself is still a lerner/beginer and here I will try to share daily garments marketing costing so that other lerner/beginer like me can learn from here. So if you find any issue please share with me so that I can correct myself. If you need soft/excel file please contact with me. WhatsApp
PRACTICE DAY - 1
Summary: Today we will do a marketing costing on - 100% Cotton, Single Jersey 170 GSM (Peach fabric), 95% Cotton 5% Elastane 1X1 RIB for neck, Short sleeve, round neck basic tee. And no print.
