Costing formula
Garment price at the FOB point built from fabric, trims, CM and other processes, plus commercial cost and profit.
FOB = (fabric + trims + CM + other) × (1 + commercial %) × (1 + profit %)
| Symbol | Meaning | Unit |
|---|---|---|
| F | Fabric cost per piece | currency |
| T | Trims and accessories per piece | currency |
| CM | Cost of making per piece | currency |
| O | Other processes (wash, print, embroidery, testing) | currency |
| c | Commercial cost | % |
| p | Profit | % |
Use it to build a quotation and to see which cost element drives the price.
Fabric 1.00, trims 0.08, CM 0.80, print 0.12 per piece; commercial 5%, profit 10%.
Some companies apply commercial and profit percentages on the manufacturing cost separately instead of compounding. State the method on the cost sheet.
A garment cost sheet adds fabric, trims, cost of making, processes, testing, commercial costs and profit to reach a price. This guide walks through each element with a worked T-shirt example and the checks that stop losses.
FOB price is what the buyer pays for goods delivered on board at the port of shipment. What FOB includes and excludes, how to build an FOB price from fabric, trims, CM and overheads, a worked example, and how FOB compares with other shipping terms.