- Costing technique in clothing industry:
As the MFA quota-regime ended, we presented many opportunities for buyers, suppliers and investors to collaborate with its textile industry, and to profit from the partnership. While the industry recorded a remarkable growth in a protected market environment, it faces a series of challenges that have come to the fore in the post-quota situation, notably in areas such as:
- Price competitiveness.
- Faster lead times.
- High raw material base.
- Full service offering.
- Access to market. "A Cost is the value of economic resources used as a result of producing or doing the things costed".
Costing is the deciding factor for fixing of prices and the important thing to follow in all stages like purchase, production, marketing, sales, etc. Also update knowledge about everything related to garments, is essential to make perfect costing.
Costing includes all the activities like purchase of fabrics and accessories, processing and finishing of fabrics, sewing and packing of garments, transport and conveyance, shipping, over heads, banking charges and commissions, etc.
We must be aware that there are always fluctuations in the costs of raw materials and accessories, charges of knitting, processing, finishing, sewing and packing, charges of transport and conveyance. The method of making costing will vary from style to style. As there are many different styles in garments. Hence let us take men's basic T-shirt style as example which is in regular in use.
To find out the costing of a garment, the following things should things be calculated:
- Fabric consumption.
- Gross weight of other components of garment.
- Fabric cost per kg.
- Fabric cost per garment.
- Other charges (print, embroidery, etc).
- Cost of trims (labels, tags, badges, twill tapes, buttons, bows, etc).
- CMT charges.
- Cost of accessories (hangers, inner boards, polybags, cartons, etc).
- Cost of a garment.
- Price of a garment.