Article Index


Costings

To help you calculate the finished cost of each garment you need to consider:

Fabric consumption
To calculate this you need to know the width of the fabric for each design and the ratio of how many of each size (for each design) you can cut from one metre length of the fabric. An example of a ratio for a bikini set could be 2 small, 4 medium and 2 large per metre. If a garment has binding and or strapping the fabric consumption can be harder to calculate and there must always be an allowance for wastage. If orders are not in ratio quantities the fabric consumption can only be calculated once the fabric has been cut. This can mean a higher cost and more fabric waste.

Fabric cost
This is generally a fixed cost but some companies may offer discounts for larger orders so this needs to be taken into consideration along with transport costs.

Cost of trims
This can include thread, elastic, labels, tags, badges, buttons, zips etc.

Cut Make and Trim (CMT) charges
This is usually calculated from the sampled garments and is based on how many of each garment can be made in an hour. For production the cost is usually per piece. Where the client indicates that volumes may be different for every order then there may be a sliding scale of charges.

Cost of accessories
For example hangers, polybags, hygiene stickers etc.

Other charges
This can include embroidery, heat transfers, tagging and bagging etc.

Maintaining a database of these costs can be difficult without using specialist software. Keeping a record in Microsoft Excel is a relatively easy way of keeping track of costings and stock levels. Accounting software like Sage and Quickbooks also have facilities to build and maintain assembled items and keep very accurate stock levels which are automatically maintained when garments are manufactured.

There are also specialist software applications for the garment industry.  The easiest and cheapest is World on a Hanger which is web based software.