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The mostly discussed topic related to Garments Industry is Costing. To be able to survive in the
business world of Textile &Garments as a Buyer or a Supplier one must have the proper
knowledge of Costing.

But to do so one must be able to conduct the Costing by only viewing the Papers with some
instructions related to Garments making, because it is only possible for a merchandiser to turn
paper into million pieces of Garments.

So before proceeding to further details lets view a Tech Pack for which we will proceed to
costing in the later part.

So before going forward to Costing the Tech Pack should be carefully analyzed for below issues.
1. Fabric Consumption:
For proceeding to Calculating the Consumption of the Tee Shirt need to consider the
Middle values. So for this style the values that are needed for estimating the Fabric
Consumption is as below:

Parts of Body Actuallength Allowance

Body length (Length - from nk/sh point) 42cm 8cm
Sleeve length 10.5cm 0cm
Chest width 32cm 6cm
Neck length (By Calculating) 40cm 4cm
Neck width 1cm (round up 0.8) 4cm

So from the above measurements lets find out the fabric consumption:

Firstly, the Fabric Consumed by Body Parts (Body +Sleeve) for 12pcs/Doz is as below:

(Body Length +Sleeve Length +Allowance )( Chest Width +Allowance )2GSM 12
= 0.86 kg per dozen.

So, fabric consumption for Body parts (Body +Sleeve) is 0.86 kg per dozen
After adding the Garments Process loss of 8% (Solid Dyed Gmts) the Fabric
consumption for Body parts (Body +Sleeve) is 0.93 kg per dozen.

Next, the Fabric Consumed by Neck Bindingfor 12pcs/Doz is as below:

(Total Neck Length +Allowance )(Neck Width +Allowance )2GSM 12

= 0.085 kg per dozen.

So, fabric consumption for Neck is 0.085 kg per dozen. After adding the Garments
Process loss of 8% (Solid Dyed Gmts) the Fabric consumption for Neck is 0.092 kg per

Finally, the total amount of Single Jersey Fabric required including wastage for this
particular item is = 0.93+0.092= 1.022Kgs/Dz
2. Yarn Price:
As this is a 160GSM Single Jersey Fabric. So for getting the Yarn Count required for this
Fabric will be as below:
Single Jersey Yarn Count =
Fabric GSM

So considering the Yarn count is 28s, the approx. price for this type of Card Yarn is- $
3.00 & the price for Comb Yarn is- $ 3.30 (due to comb yarn being o superior quality the
price is high).

For Purchasing Yarn, the fact which needs to be considered is that from Yarn to Fabric
Making there will be a process loss of 12% in between for Solid Garments.

Thus the Total Yarn Price =(Total Fabric Reqd Process Loss Yarn Price)
=(1.022 (1 + 12%) 3.3)
= $ 3.778
However, the Yarn Price may vary from time to time and Factory to Factory. So the
mentioned price may change with different & the capability of sourcing of individuals or
organizations. But for purchasing Yarn this is certain that when the No. of Yarn Count
increases the Yarn becomes finer& thus the price of the Yarn increases. Normally the
increase or decrease in price ranges from $0.05 to $ 0.10. but in case of Cotton Mlange,
Slub, Blended, Fiber Dyed & Fiber Composition changes the price will be totally
different from 100% Cotton Yarns.

3. Knitting Cost:
This Style contain Single Jersey Fabric for both Body & Neck Binding. So for Greige
Single Jersey the Knitting price is Approx- $ 0.3/Kg.

For Knitting, we will try to ensure the entire Yarn is properly utilized & accurate Fabric
is prepared.Thus the Total Knitting Price will be

=(Total Fabric Reqd Process Loss Knitting Price)

=(1.022 (1 + 12%) 0.3)

= $ 0.343

However, the Knitting price will differ for Feeder Stripe, Engineering Stripe or Other
type of Knitted Fabrics such as Lycra Single Jersey, Rib, Interlock, Fleece, Lacoste,
Pique etc. Also the given is an estimated value closer to actual but will vary for factory to
4. Dyeing Cost:
For Dyeing cost we will calculate the same considering it is an Average colour as the
Tech File mentions 6 option plain dye.
So if the Dyeing price is $ 2.0/Kg (this is the cost considered for Solid Dyeing) then the
total Dyeing price including process loss will be

= (Total Fabric Reqd Process Loss Dyeing Price)

=(1.022 (1 + 12%) 2)

= $ 2.289.

However, the Dyeing price will vary for Yarn Dyeing, Fiber Dyeing (Space Dyed).
Accordingly, the Processes involved for fabric making & the process loss will also differ
for Solid Dyeing method & other forms of Dyeing method.

5. Printing cost:
Though it is not mentioned on the Tech Pack, but on regular occasion the given Garments
contain a 5cm3cm rubber print at the back neck of the garments.
For such small print the price will be approx. $ 0.40/Doz. But if the print size & type
changes the price will also change accordingly.

So the print cost will be = $ 0.40/Doz.

The mentioned price is only given for 1 colour Rubber Print for mentioned measurement.
But the price will differ with increased size, No. of colours& type of print.
Also the mentioned value is a approx. one which will differ with factory to factory.

6. Cost of Making (CM):

Considering it is a Plain Tee Shirt, the machines required for this type of product is
13~15 to produce 1000pcs to 1100pcs per day. So for any compliance industry if the per
day machine cost is Tk-2000 or $ 27, then the Cost of Making per Dozen for such item
will be

Line Cost per day 12

Output per day per Line
Per day Machine Cost No .of Machine per line 12
Output per day per Line
27 15 12
= $ 4.86/Doz or $ 5/Doz (Round Up)
CM can also be calculated by SMV (Standard Minute Value) & SAM (Standard Allowed
Minute). Thus if the SMV for such item is $ 0.6 & if it takes 7 minutes with 90%
Efficiency to prepare 1pc Garment, then the CM will be

SAM of the Garments Minute cost of Labour

Line Effency


= $ 4.667/Doz or $ 5/Doz (Round Up)

However, note that the price will differ be applicable for order qty from 10000pcs to
100000pcs because if the qty is like 1000, 3000, 5000pcs then from machine setup to
reaching full flow of production takes 3 days so for calculating the CM one needs to
consider this time loss. Thus the CM will be more for smaller order qtys.

7. Accessories Cost:
Though the Accessories Cost is just a term, but in actual accessories mean all the sewing
& finishing items required to prepare the Garments.
As per given Tech File an item such as this one consists of below Accessories:

Sewing Thread:
The Sewing Thread is used for joining different garment Fabric Cut panels for
preparing the Garments. There are 2types of Sewing Thread, one is Polyester
Thread (Ply yarn) & the other is Filament Thread (Core spun yarn) which are
available in 2000meter & 4000meter Yarn Cones. In this case the Yarn used that
is used is 4000meter Cones.

In this Case, consider the Tee Shirt requires 200meters of Thread for preparing
the Garments.

Care Label:
The Care Label is used for indicating the instructions of taking care of the
Garments that is mentioned by printing on Satin Tape or on Nylon Tape by
attached the same on back side of the Garments. On some occasions the care
instructions might also be printed.
Size Label:
The Size Label is used for indicating the size of the Garments for which age
people of certain type of body structure the Garment is suitable. This is normally
a printed Sticker which is normally attached on the body by adhesive.

Mobilon Tape:
The Tape used inside the Shoulder Seam of Tee Shirts for ensuring the fabric does
not tear up due to stress on shoulders. Normally the Tapes are purchased in Kgs
which is equivalent to 1350yds of Tape.

Price Tag:
The Price Tag is used for indicating the price of the Garments that is mentioned
by printing on Paper Card & is attached on the Garments by Tag Pin.

Hang Tag:
The Hang Tag is a Brand Tag Paper Card which also is attached on the Garments
by Tag Pin/ Lock Pin.

Tag Pin:
The Tag pin is the plastic pin for attaching the Hang Tag, Price Tag with the
Garments by Tag Gun. Normally it is found in Boxes of 5000pcs.

Single Poly:
As per given measurements even if the Garments are half fold the Single Poly
measurement will be at most 36cm26cm or 14.2 10.2 per body & if per
thickness of the Poly is 200gauge. Then the weight for 1pcs of poly will be

Length Width Gauge

3300 1000
3300 1000
= 0.0088Kgs.

Blister Poly:
If 10 pcs are packed one Blister Poly, then the Blister measurement will be at
most 40cm30cm or 1612 per body & if per thickness of the Poly is
200gauge. Then the weight for 1pcs of poly will be

Length Width Gauge

3300 1000
3300 1000
= 0.0117Kgs.

Considering per body height is 2cm, then for 10pcs body the Carton Height will
be 22cm including the Carton Folding allowance. Also accordingly if the Carton
have similar measurement as Blister Poly, then with Folding allowance the entire
Carton measurement will be LWH = 42cm32cm22cm.

Thus accordingly the total Consumption will be

(Length +Width +6)(Width +Height +4)2

= Square Meter
= Square Meter
=0.93Square Meter.

Gum Tape:
The Gum Tape is used for closing the Carton after completing the packing of the
Garments & Gum Tape contains Adhesive Gum at the Back side of it. So if the
Carton measurement is LWH = 42cm32cm22cm, then the Gum Tape
required will be

(Length 2)+(Width 8)1.3

= Meter
= Meter
= 4.368Meter.
Per Final
Accessories Sourcing
Unit Price Unit Dozen Wastage Costing Formula Value
Item Unit
Sewing $0.7 200 4000 200 12 (1 + 5%) 0.7 $0.441
12 5%
Thread (Price/Cone) meter meter 4000
$0.1 1 12 (1 + 5%) 0.1 $0.105
Care Label 1 12 12 5%
(Price/Dz) 12
$0.2 1 12 (1 + 5%) 0.2 $0.21
Size Label 1 12 12 5%
(Price/Dz) 12
Mobilon 1350 0.5 12 (1 + 5%) 12 $0.056
(Price/Kg, 0.5Yds 12 5%
Tape Yds 1350
$0.1 1 12 (1 + 5%) 0.1 $0.105
Price Tag 1 12 12 5%
(Price/Dz) 12
$0.15 1 12 (1 + 5%) 0.15 $0.158
Hang Tag 1 12 12 5%
(Price/Dz) 12
$5 1 12 (1 + 5%) 5 $0.013
Tag Pin 1 12 12 5%
(Price/5000pc) 5000
$2 0.0088 0.0088 12 (1 + 5%) 2 $0.222
Single Poly 1 12 5%
(Price/Kg) Kgs 1
$2 0.0117 0.0117 12 (1 + 5%) 2 $0.029
Blister Poly 10 12 5%
(Price/Kg) Kgs 10 1
$1 0.93 0.93 12 (1 + 5%) 1 $1.172
Carton 10 12 5%
(Price/Sq.Mtr.) SqMtr. 10 1
$0.02 4.368 4.368 12 (1 + 5%) 0.02 $ 0.11
Gum Tape 10 12 5%
(Price/Mtr.) Mtr. 10 1
Total Price $2.621
8. Courier Cost:
The Cost required for Transporting the entire garments from Garments Industry to the
Sea Port is the Courier Cost. In this case if the total Garments Qty which is used for
quoting is 100000pcs, then if per Carton contains 10pcs.
Then the total amount of cartons will be 10000pcs.
And if per Carton CBM is

Length Width Height

= 0.0296 CBM.

Then the CBM for entire Qty will be

= 0.029610000
= 296CBM.

So if a Size 40feet container is of 56CBM & 20feet container is of 28CBM.

Thus total this order will require 5Containers of 56CBM & 1 containers of 28 CBM

Finally,56CBM containers cost $ 700/container & 28CBM containers cost $350/container

& total costing of

Hence for 100000pcs the Courier Cost is $3850& thus for 1 Dozen the cost will be

9. Testing Cost:
If per Colour body has to do 6tests & so for 6colours there will require 36 tests.
Thus considering each test costs $25, the total Testing Cost will be $900.
So for each body the Cost will be $0.009 & for Dozen the Cost will be $0.09

10. L/C Handling Cost:

If LC handling charge for each shipment is $50 & there is 5 Shipments.
Then total L/C handling charge will be $250 & for per Dozen the cost will be $0.03.

11. Others Cost:

For other costs $0.5 can be estimated for parcel & other services.
Finally, after summarizing all the costs the Fabric Price is = $ 3.778+ $ 0.343 + $ 2.289= $6.41

The Trims Price is = $2.621

The Print Price is = $0.4

Testing Price is = $ 0.108

Courier Cost is = $ 0.462

L/C Cost is = $ 0.03

Other Cost is = $ 0.5

CM is = $ 5.0

So total cost for making the Garments will be $ 15.531/Doz& after considering 15% profit the
total value will be $ 17.8607/Doz.

Hence the FOB for 1piece garment will be $ 1.49.

Lastly please note that the prices mentioned will largely vary for factory to factory or country to
country. The intention of preparing this document is to give a total idea where & which costs are
included while preparing a cost sheet.