Monday, July 25, 2011

Price Break Down For Polo Shirt

Learn Apparel Merchandising, Learn Fashion design.
Today we will learn how to calculate the price of a Polo Shirt.

Description : 100% cotton pique polo shirt with two button at front placket w/o any pocket.

At first we will calculate the consumption of body fabric from Size spec which we have got from the buyer. (For calculate the fabric consumption see my others post).

Suppose :
i)  The body fabric consumption is 4.05 kg / dozen
So, total yarn consumption will be = 4.05 + 9%
= 4.05 + 0.3645
= 4.41 kg / dozen

ii)  The current yarn price is \$4.00/kg

iii) The current Pique knitting cost is \$0.20/kg (Knitted by
circular knit S/J M/c)

iv) Average color dyeing cost is \$1.21 / kg

v)  Normally Collar & cuff consumption is 60 gram/body
(1 pc collar & 2 pcs cuff)
So,
for 12 pcs it will be - 0.06 X 12 + 9%  = 0.78 kg / dozen

vi) Collar & cuff Knitting cost is \$0.05 (knitted by flat
knitting m/c)
---------------------------------------------------------------

Now start costing

1st step
Body fabric cost calculation:

Yarn price / kg       = \$4.00
Knitting cost /kg     = \$0.20
Dyeing cost / kg      = \$1.21
_____________________
Finished fabric cost = \$5.41

2nd Step
Collar & cuff cost calculation:

Yarn cost/Doz      =  0.78 X \$4.00  = \$3.12
Knitting cost/Doz  = \$0.05 X 12      = \$0.60
Dyeing cost          =  0.78 X \$1.21  =  \$0.94
___________________________________
Collar & Cuff cost / Doz                  = \$4.66

3rd Step
Total production cost:

Body fabric cost  ( 4.41 kg X \$5.41)    = \$23.86 / Doz
Collar & Cuff cost                                =  \$4.66 / Doz
CM                                                      =  \$6.00 / Doz
Accessories Cost                                 =   \$3.00 / Doz
__________________________________________
Total production cost:                       =  \$37.52 / doz

Final Step
Fob pricing of per piece polo shirt:

Total production cost :                     = \$37.52 / doz
Commercial cost will be (3%)          =  \$0.95 / doz (Except CM)
Profit will (20% of CM)                   =  \$1.20 / doz
_________________________________________
Total FOB price (doz)                     = \$39.67 / doz
Fob price per piece will be               = \$3.3058 / pc

Final quoted price for buyer    = \$3.35 / pc (FOB)

There is several rules to quote the prices. Many others people may not be agree with my these step.But you may follow these step to quote the price.

Thanks
BIPUL

1. Great boss! I like your blog, its really worth learning to all. Can you also pls show the break down for t-shirt, tank tops, hoodies & some critical items. Further, I would be glad if you kindly let us know step by step how to booking for fabrics, accessories against an order in a excel sheet.

Thanks
Rajib
Merchandiser

2. Dear MR. Rajib,

Very soon you will get these.

Keep with us.

Regards
Bipul
ehbipul@gmail.com

3. Hello Mr. Bipul

This is Tahidul ,from "True Lotus Inc".
Brother , you are doing a great Job!!! . i must say that your blog is a Mile stone for all of us who are related with Knit Merchandising

Anyway,can we have details consumption,costing about sweater merchandising next .

Best regard

Tahidul Islam Talukder (Tamim )
Sr. Merchandiser
"Truelotus Inc "

Road#11 House #33,Flat # 2B, 2nd floor
Baridhara ,Dhaka -1212
e-mail:tamim052@gmail.com

4. Thanks Tahidul,

You may visit the below post----

http://apparelmerchandise.blogspot.com/2011/09/cm-of-sweater.html

http://apparelmerchandise.blogspot.com/2011/08/sweater-gauge-calculation-system.html

http://apparelmerchandise.blogspot.com/2011/08/list-of-require-machineries-for-sweater.html

http://apparelmerchandise.blogspot.com/2011/08/sweater-knitting-designs-classification.html

Thanks & best regards
Bipul

5. I just don't like the number in the sleeve, at least you can't choose what the number is.

Cheap Polo Shirts For Men

6. Dear Bipul Bhai
please send complete detail making of100% cotton, super fine & soft pique fabrication process with 210 Gsm & 34 dia finished ( also required yarn count & gage )

7. Dear Bipul Bhai
please send complete detail making of100% cotton, super fine & soft pique fabrication process with 210 Gsm & 34 dia finished ( also required yarn count & gage )

8. gud job bro...

9. gud job bro...

10. Thanks bipul bhai