Costing is very important part for ready-made garments sector. In garments merchandising, costing is the main process among all the others processes. If garments merchandiser can contract a perfect costing of an order then all the remaining processes will be easy to complete. A perfect costing can increase of a business.
Sweater don’t have solid or finished fabric like as woven & knit item by linking one yarn with another the shape of the different parts of sweater is made. So, there is no such consumption formula for sweater like as woven & knit.
For costing of sweater, we need to make a sample first as per requirement style, measurement & weight. It is the wise to make the sample following middle size of buyer spec. Then weight that sweater & multiple the weights with 12 pcs to know the weight of per dozen sweaters. Then add wastage percentage (generally we calculate 10-20% wastage based on styling). Generally, we can see different types of gauge like as 3GG, 5GG, 7GG, 12 GG, 14 GG. After read this article you can easily understand costing of sweater.
For sweater costing we have to know below important points.
- Weight of sweater sample.
- Yarn Price.
- Accessories Cost.
- Print cost if any.
- Embroidery cost if any.
- CM (Cost of Making.)
- Washing cost
- Commercial Charge.
- Profit
Given
1 .weight 200gm per gmts (2 ply)
2.Yarn: 100% Acrylic, 2/36s
3.Types of Gauges: 12 GG
First of all, we know that yarn cost formula is as below
Yarn cost=Yarn consumption in LBS +wastage X Yarn Price in Lbs.
And, also costing formula as below
Costing=(Yarn consumption in lbs+ wastage)X Yarn price in Lbs+ Accessories cost +Print cost+ embroidery cost+ CM+ washing cost + commercial charge+ profit.
We can assume per dozen price in the following.
- Yarn price per Ibs=$3.10
- Accessories cost (zipper, Button, finishing) =$4.00
- Print cost per dozen=$1.50
- Embroidery cost per dozen=$ 2.00
- Cost of making (CM)=$17.00
- Washing cost per dozen=$3.00
- Commercial cost per dozen=$1.00
Before costing we have to calculate yarn cost per dozen.
=(Yarn consumption in LBS +wastage) X Yarn Price in Lbs.
=200 gm per gmts (we assume 10%wastage)
=220 gm
Now we calculate per dozen
=220gm X12
=2640gm (We know 453.6gm=1Ibs)
=5.820 Ibs
Now, yarn cost per dozen as below
=5.820 IbsX$3.10
=$18.04
Now, we can calculate costing per dozen as below
Costing=yarn cost in Lbs+ Accessories cost +Print cost+ embroidery cost+ CM+ washing cost+ commercial charge
=$18.04+$4.00+$1.50+$2.00+$17.00+$3.00+$1.00
=$46.54
If we consider profit 10% then would be costing as below
=$51.194
According to buyer confirmation shipment mode price will be changeable.
Here, we consider shipment mode is sea.
So, per dozen sweater costing FOB is ==$51.194
If we consider per pc then will be sweater FOB=$4.27
Example:
Calculate the factory merchandising pricing (costing) of a Men’s sweater with Crew neck, Saddle shoulder, long sleeve, all over 4 lines (normal) diamond and 8 lines fancy cables. Yarn type- 100 % Acrylic, price $ 1.96 / lb, required yarn – 16 lbs /dzn, gauge- 3G . Shipment will be 30th Dec 2019.
Calculate the factory merchandising pricing (costing) of a Men’s sweater with Crew neck, Saddle shoulder, long sleeve, all over 4 lines (normal) diamond and 8 lines fancy cables. Yarn type- 100 % Acrylic, price $ 1.96 / lb, required yarn – 16 lbs /dzn, gauge- 3G . Shipment will be 30th Dec 2019.
Given,
Yarn Price = $1.96
Required Yarn = 16 lbs/ dzn
Yarn = Acrylic
Required Gauge = 3 G
Season = Peak as delivery 30th Dec 2019
Wastage = 6%
Cost of Manufacturer (CM)= $ 22 / dzn
Design
4 lines diamond (normal) = $ 1 x4 = $4
8 lines cabels (fancy) = $ 0.5 x 8 = $4
Total = $8
Style
Saddle sleeve = $0.50/dzn
Commercial = $ 4/ dzn
Assessment :
Yarn price = $ 1.96 x 16 = $ 31.36
Yarn Wastage = $1.96 x 16x6% = $ 1.88
Cost of Manufacturer (CM) = $ 22.00
Styling and Designing = $ 8.00
Trims usual = $ 4.00
Commercial charge = $ 4.00
Total = $ 71.24 /dzn
Hence the sweater price is $71.24/dzn. (ANS)
