Calculate the costing
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This document discusses how to calculate yarn consumption and pricing for fully fashioned knitwear. It outlines key factors like garment weight, wastage percentage, gauges, and production costs. Standard cost margins (CM) are provided for different gauges and seasons. Additional charges are listed for styling elements like raglan shoulders. An example calculation is provided to determine the FOB price of a men's sweater based on its design details, yarn weight, and production costs. The total FOB price is $58.85 per dozen after factoring in costs like material, CM, styling, designing, trims and commercial/logistics fees.
Calculate the costing
- 1. Khaled MD. Ridwan Calculate the Yarn Consumption and Costing / Pricing Techniques for the Fully Fashioned Knitwear What is consumption? How many yarn are required to produce one dzn sweater. Fully fashioned knitwear What are the basic requirements? Knowledge about gauges4G, 5G, 7G etc. Knowledge about material/yarn100% acrylic Weight of the garments15lbs/dzn Wastage Mainly 6%:
- 2. Khaled MD. Ridwan What are the objectives of costing? Determining the competitive and correct pricing. What are the basic requirements? Understanding styling and designing. Knowledge about different gauge. Mode of business term (FOB, CFR, CIF, etc). Mode of Payments (L/C type and payments term). Nature of business (Factory or buying house). Condition Considering a compliance Factory (FOB). Not any (CM/CMT) base factory.
- 3. Khaled MD. Ridwan Season based one gauge. Types and gauge Peak Season Off peak season Standard CM ranges (Complianced factory) CM based on gauge and season. Types of Gauge: Off peak 3G ....................................$20/dzn ..........................$22/dzn 5G ....................................$21/dzn .........................$23/dzn 7G ....................................$22/dzn ......................... $24/dzn 10/12G .............................$24/dzn ..........................$26/dzn Additional Charges: Styling and designing charges 1. For raglan and saddle = $0.5/dzn 2. Drop and set-in = $0.25/dzn 3. For straight shoulder = No additional charges because no increase and decrease. Designing Charges 1. Cables (Normal)------$0.25/line/dzn 2. Cables (Fancy)--------$0.50/line/dzn 3. Cables (Butterfly)----$1.50/line/dzn Diamond 1. Normal Diamond-------- $1.00/line/dzn 2. Fancy Diamond---------- $1.50line/dzn Example: *Calculate the costing/pricing of a mens sweater with crew neck, raglan shoulder, long sleeve, allover 6 line normal cables, and 4 lines normal
- 4. Khaled MD. Ridwan diamond in 5G 100% acrylic yarn. Shipment: 10th September. Weight: 15 lbs/dzn FOB Factory merchandising say yarn price $1.50/lbs. Solution: 15+6% =15.90 lbs/dzn $1.50 = $23.85 CM = $21.00 Styling = $0.50 Designing... = $5.50 Trims/Accessories.. = $4.00 Commercial+Logisti+Mise .....= $4.00 .. FOB factory ...........................= $58.85/dzn