How to Cost a Garment
How to cost a garment using our fashion costing sheet!
Investing money into any new business is scary and a fashion brand is no exception. Making that first leap often is when you have to pay for your first production run.
What if the products don’t sell?
Most factories do not have small minimum order quantities, meaning you may be ordering more garments than you are comfortable with. Many will not allow deposits either therefore beginning manufacturing will be probably the largest cost you incur as well as it being upfront too.
So it is incredibly important to budget well for the whole process, from development to sampling to even getting the final garments shipped to you.
We have developed a extensive costing sheet for you to use throughout the whole process,
The costing sheet is broken down into sections;
The overview of costs will constantly update as you enter prices into all other sub sections. Use this costing too to keep an eye on totals.
This section will depend on how involved you are planning on being in the production process. For instance some productions are fully factored (they source and supply all materials) where some factories will only provide CMT (cut, make, trim) meaning you will need to supply materials such as fabric and zips.
This is where you’ll breakdown the costs of the actual production. This could include and is not limited to, pattern making, grading, cutting, sewing, logo application like screen printing or embellishments.
Depending on your decisions in the supply chain, this section of the costing sheet could be empty or full. Perhaps you are manufacturing locally and selling locally therefore there are limited shipping costs. Or some brands opt for the factory to send out the garments in custom packaging that the factory have sourced. Shipping and duties is often a hidden cost that can set you back if you haven’t factored it in prior to setting prices.
After you have filled in all costs shown and any additional costs you found in your product journey it is time to set the RWP (Recommended Wholesale Price) and RRP (Recommended Retail Price). This will depend on your makeup, which will relate to your production costs and desired profits.
Check out our costing sheet template to ensure your garment production is financially sound!