Compare garment quotations on the same basis

Fix the comparison basis

A lower price matters only when both offers cover the same garment, quality, accepted quantity and responsibilities. Send every supplier the same style/specification revision, colour-size ratio, fabric and trim requirements, approval stages, delivery destination and dates. Mark missing information as unknown; it is not a zero-cost item.

Compare accepted pieces and material yield

This invented example uses 1,000 accepted saleable pieces. Net material consumption of 0.240 kg per piece at 96% material yield requires 0.240 ÷ 0.96 = 0.250 kg purchased per piece, or 250 kg total. Here 4% loss is a share of purchased material, not a 4% addition to net consumption. Do not apply the allowance again if consumption already includes it. Garment rejects, size-ratio changes, shrinkage and cutting constraints need separate consideration.

Separate the components

These figures demonstrate arithmetic, not market prices. Add relevant order costs such as sampling, testing, inspection and freight on a consistent basis. Check that overhead is not already included in an operation rate.

Distinguish markup from margin

At ₹120 cost, a 20% markup gives ₹144. A 20% gross margin on selling price gives ₹120 ÷ 0.80 = ₹150. The gross margin at ₹144 is 16.67%. Buyer-supplied material still has an economic cost to the buyer, while a job worker may invoice only conversion. A conversion-only invoice cannot be ranked against a full-package offer without adding the missing scope.

Resolve exceptions before placing the order

• Record quotation validity, currency, tax treatment to verify and payment assumptions.
• Agree sample approvals, inspection and rework/rejection responsibility.
• Confirm freight scope, destination, dates and partial-delivery assumptions.
• Keep the final specification, approved sample and change history together.

• Calculate your own cost scenario
• Download the supplier quotation checklist