Method of Garments Costing for Polo Shirt

Method of Garments Costing for Knitted Polo Shirt (Buying Costing):

A garments merchandiser is too efficient who can make perfect costing of any garments. Costing is an important part of garments merchandising. Order profit totally depends on it. As its importance on garments merchandising, today I will present an easy method of garments costing for a knitted polo shirt.

Method of Garments Costing for Knitted Polo Shirt:

At the starting of garments costing for a knitted polo shirt, a knit garments merchandiser should be known about the following matters:

1. Yarn Price,
2. Knitting and Washing Cost,
3. Dyeing Cost,
4. Printing cost,
5. Embroidery Cost,
6. Cost of Making (CM),
7. Accessories Cost,
8. Commercial Cost,
9. Others Cost.

Important tips***

• The second duty is to calculate fabric consumption and costs.
• Normally, we calculate the grey fabric consumption.
• The third duty of a knit merchandiser is, all the required fabric processing costs (knitting+ washing cost, dyeing cost) should be added with grey fabric cost. After that, we can achieve the actual fabric cost.
• At the last stage, all the other necessary costs should be added with the actual fabric cost to achieve the total cost of a garment.

Now, I will present an example below about the above discussion to remove your confusion. Hope it will be effective for you.

Example:

Suppose,

The buyer “CK” forwards a knitted polo shirt item order (20000pcs) to you with the following specification.

1. 100% cotton single jersey fabric for body parts (Body + Sleeve), Half-moon, and Pocket. Where fabric GSM is 180.
2. 1 × 1 Rib fabric for collar and Cuff. Where the fabric GSM is 225.
3. Print on the front part.
4. Embroidery on the sleeve,

Follow the below measurement sheet.

Now, calculate the garments costing (On FOB) for the above order.

Solution:

Fabric GSM- 180 for the cotton single jersey,
Fabric GSM- 225 for 1 × 1 Rib fabric.

Let,

Yarn Price per kg- $4.00
Knitting and Washing Cost per kg- $1.40
Dyeing Cost per kg- $2.00
Printing Cost per dozen- $3.50
Embroidery Cost per dozen- $5.50
Accessories Cost per dozen- $1.95

Now, we have to determine the fabric consumption for the above order.

Fabric Consumption:

1. Fabric consumption for Body parts (Body +Sleeve):    

Here, we will follow the following formula (per dozen),

= 2.50kg per dozen.

So, fabric consumption for Body parts (Body +Sleeve) is 2.50kg per dozen.

2. Fabric consumption for Collar:

Here, we will follow the following formula (per dozen),

= 0.10kg per dozen.

So, fabric consumption for Collar is 0.10kg per dozen.

3. Fabric consumption for Cuff:

Here, we will follow the following formula (per dozen),

= 0.07kg per dozen.

So, fabric consumption for Cuff is 0.07kg per dozen.

4. Fabric consumption for Pocket:

Here, we will follow the following formula (per dozen),

= 0.04kg per dozen.

So, fabric consumption for Pocket is 0.04kg per dozen.

5. Fabric consumption for Half-moon:

Here, we will follow the following formula (per dozen),

= 0.04kg per dozen.

So, fabric consumption for Half- moon is 0.04kg per dozen.

 Now, total amount of cotton single jersey fabric needed for this order is (per dozen),
= [{Fabric consumption for Body parts (Body +Sleeve) + Fabric consumption for Pocket + Fabric consumption for Half- moon} + wastage (10%)]

= {(2.50 + 0.04 + 0.04) kg + 10%}
= 2.58kg + 10%
= 2.84kg per dozen.

So, cotton single jersey Grey fabrics needed per dozen 2.84kg.

And,

Total amount of (1 × 1) Rib fabric needed for this order is (per dozen),
= {(Fabric consumption for Collar + Fabric consumption for Cuff) + wastage (10%)}
= {(0.10 + 0.07) kg + 10%}
= (0.17kg + 10%)
= 0.19kg per dozen.

So, 1 × 1 Rib Grey fabrics needed per dozen 0.19kg.

Total grey fabric needed to make the polo shirt is – (2.84+ 0.19 = 3.03kg) per dozen

As yarn price per kg is $4.00 then, total grey fabrics cost per dozen is (3.03kg × $4.00) = $12.12

Total grey fabrics cost per dozen is $12.12

Now, adding all the fabric processing costs (Knitting+ Washing Cost, Dyeing Cost) with grey fabrics cost, actual fabric cost will be achieved.

So,

Actual fabric cost,
= Total Grey fabric cost + [{(knitting cost + washing cost) + dyeing cost} × Total grey fabric] per dozen
= [$12.12 + {($1.40 + $2.00) × 3.03}] per dozen
= $22.42 per dozen.

So, the actual fabric cost per dozen is……..…. $22.42 ………………… (A)
Printing Cost per dozen……………………… $3.50 ………………….. (B)
Embroidery cost per dozen ………………… $5.50 ……..…….…….. (C)
Accessories Cost per dozen………………..…$ 1.95 ….……………… (D)
Cost of making (CM)……………………….…. $7.00 ……………..…… (E)
Commercial cost ……………………………….. $0.50 …………..…..…. (F)
Others cost ………………………………………. $0.20 ………………..… (G)

Here,

By adding A, B, C, D, E, F, and G, we will achieve the total FOB cost of garments per dozen for the above order.

Total FOB cost per dozen = (A +B + C + D+ E + F + G)
= $ (22.42 + 3.50 + 5.50 + 1.95 + 7.00 + 0.50 + 0.20)
= $41.07 per dozen.

So, the total FOB cost per dozen is $41.07

In buying house costing, profit% for the buying house (here-20%) should be added with total FOB cost per dozen.

So, in this situation, total FOB cost per dozen with profit% stands at-
=$41.07 + 20% commission
= $49.28 per dozen.

Now, total FOB cost per pcs is ($49.28 / 12) = $4.11

So, Buying House costing (FOB) per pcs garment of the above order is $4.11

Written by-

Mayedul Islam
Merchandiser at Fashion Xpress Buying House.
Badda, Dhaka, Bangladesh.
Email: mayedul.islam66@gmail.com

Speech from the writer:
The main object of this article is to show the calculating method only. So, don’t be disappointed with its result. Here, all the numbers are used for completing the calculation only. So, don’t make any comment about the calculating result, please. You can deliver your comment, advice just about the calculating method only if there’s any problem.

Besides,

If you read this article with full attention, then you can easily answer the following questions in the interview:

1. How to calculate garments costing for a polo shirt?
2. How to calculate garments costing for a polo shirt in case of buying hose?
3. Show a costing calculation method for a polo shirt.
4. Show a costing calculation method for a polo shirt in case of buying a hose.
5. Mention a price breakdown for a polo shirt.