For Garment manufacturers & suppliers · Brands & brand owners · Retail & private-label teams · Job-work & specialist units · Uniform & institutional suppliers · Tender-led suppliers · Buying houses & sourcing agents · Garment wholesalers & distributors
Define the output before entering costs
Choose the accepted quantity and size-colour ratio. Consumption must describe the same garment and specification. Record whether fabric is bought by weight or length and whether the consumption figure includes marker loss, shrinkage and other allowances. A material-yield percentage does not automatically cover rejected finished garments.
Keep three cost layers
Include overhead once. If an operation price already includes labour, equipment and overhead, identify that scope before adding another allowance.
| Layer | Typical entries | Basis |
|---|---|---|
| Material | Fabric, trims, labels | Required purchased amount and actual quotation |
| Conversion | Cutting, assembly, decoration, finishing, packing | Cost per accepted piece or explicitly allocated operation cost |
| Order costs | Sampling, tests, inspection, transport and other applicable charges | Whole-order cost divided by accepted quantity |
Work through a small example
For an illustrative 500-piece order, net fabric of 0.20 kg per piece at 95% material yield requires about 105.2632 kg. At an assumed ₹285/kg, fabric is ₹30,000 for the order, or ₹60 per piece. Add assumed conversion/trims of ₹40 per piece and ₹2,500 one-off costs: total cost is ₹52,500, or ₹105 per piece. At 20% gross margin, the selling price is ₹131.25 per piece before unentered charges. These are examples, not suggested commercial rates.
Test the assumptions that can change the quote
- Change material yield and usable width after a real marker or trial.
- Separate the cost effect of more production to meet accepted output.
- Reallocate one-off costs if the order quantity changes.
- Check decoration, colour and packing scope against the approved brief.
- Record taxes, payment/finance and freight assumptions separately rather than treating missing items as zero.
Compare estimate with actual
After production, compare purchased and consumed material, accepted output, rework and additional charges against the estimate. Explain variances by cause and update the next quotation basis. The costing tool is a material-inclusive scenario calculator, not a conversion-only invoice or net-profit forecast.
Examples illustrate a method; they are not market quotations, supplier certifications or guarantees of commercial results. Confirm your own assumptions and the requirements of the specific order.
Have a correction or a practical question? Contact Trustex Industries.