Garment costing is the process of working out what a garment costs to make and what price to quote. A cost sheet is the document that shows each cost element, how it was calculated and how they add up to the price. A clear cost sheet protects margin, speeds up negotiation and makes it obvious where savings are possible.
The elements of a cost sheet#
| Element | What it includes | Typical basis |
|---|---|---|
| Fabric | Main fabric, contrast, rib, lining, pocketing | Consumption × price per kg, m or yd |
| Trims and accessories | Labels, thread, buttons, zippers, elastic, interlining, hang tags, polybags, cartons | Quantity per garment × unit price |
| Cost of making (CM) | Cutting, sewing, finishing labour and factory overheads | SMV × cost per minute / efficiency |
| Processes | Printing, embroidery, garment washing, dyeing | Supplier quote per piece |
| Testing and inspection | Fabric and garment tests, third-party inspection | Cost per order divided by quantity |
| Commercial cost | Banking, documentation, inland freight to port, insurance to the FOB point | Percentage or fixed amount |
| Profit | Margin | Percentage |
The total up to the FOB point (goods loaded at the port of shipment) is usually called the FOB price. See FOB cost for the trade terms that change what is included.
Step 1: Fabric#
Fabric is usually the largest cost in woven and knit garments, often around half or more of the FOB price for basic styles.
- Calculate consumption: for knits in kg per dozen, for wovens in meters or yards per garment. See fabric consumption.
- Add wastage and allowances: cutting waste, end loss, shrinkage and shade allowances as your factory applies them.
- Multiply by the price in the same unit.
Step 2: Trims and accessories#
List every item on the bill of materials. Include thread (from thread consumption), labels, packing materials and a share of the carton. Small items add up: ten trims at a few cents each can be a noticeable share of a basic garment's price.
Step 3: Cost of making#
CM is calculated from the garment SMV, the factory's cost per minute and the efficiency expected for the style:
See CM cost for how cost per minute is built and why the efficiency assumption matters.
Step 4: Processes, testing and other costs#
Add supplier quotes for printing, embroidery or washing, plus testing and inspection costs spread over the order quantity. Include rejects allowance for processes with known losses, such as garment washing.
Step 5: Commercial cost and profit#
Commercial costs cover banking and documentation, transport to the port and similar costs up to the delivery point. Profit is then added. Companies differ on whether percentages are applied to manufacturing cost only or compounded; state your method on the sheet.
Worked example: basic T-shirt#
Build your own with the garment costing calculator.
Checks before sending a quote#
- Consumption based on the latest pattern and a realistic marker efficiency
- Fabric price matches the quality, width and finish in the tech pack
- Every trim on the BOM priced, including packing
- SMV reflects the actual construction, and the efficiency assumption suits the order size
- Process quotes include rejects and minimums
- Testing requirements from the buyer manual costed
- Currency and exchange rate stated
- Per piece and per dozen values consistent
Common costing mistakes#
- Costing from an early sample and not updating after fit changes that add fabric.
- Using a marker efficiency the cutting room never reaches, especially on stripes and checks.
- Forgetting minimum order charges for trims, prints and dyeing on small orders.
- Assuming running efficiency on a short order. Small orders spend much of their time on the learning curve.
- Mixing per dozen and per piece values on one sheet.
- Leaving out shrinkage allowance for fabrics that will be washed.
Using the cost sheet after the order#
Compare the actual consumption, efficiency and process costs with the cost sheet when the order ships. The difference tells you whether the next quote should change, and where the factory lost or gained money.