BrightFuture
Apparel Solutions
Apparel Solutions
Costing is the final and one of the most important tasks of an apparel merchandiser. Before doing costing, a merchandiser should have a good understanding of several important subjects.
The first thing a merchandiser should know is how to calculate fabric cost. Fabric cost calculation starts with fabric consumption . After that, the merchandiser needs information about yarn count and yarn price. The next steps are knitting cost and dyeing cost. The merchandiser should also know whether elastane (spandex) will be used in the fabric.
Nowadays, most factories have separate departments for these activities. For example, fabric consumption is usually provided by the CAD department, yarn count information comes from the knitting department, and other data are collected from different departments. However, an apparel merchandiser should still understand all of these topics because they are directly related to costing.
Note: Enter Yarn Price, Knitting Price, Dyeing Price, Elastane Price, and AOP Price on a per kg basis. Only the consumption value should be entered per dozen.
If elastane or AOP (All Over Print) is used, their costs should be included. If they are not used, these costs can be ignored.
After calculating the fabric cost, the next step is to calculate the CM (Cost of Making). A merchandiser should also have a clear understanding of CM calculation. Nowadays, CM information is often provided by the IE (Industrial Engineering) department.. After that, the merchandiser needs information about
The next step is to add the cost of screen printing or embroidery, depending on the buyer’s requirements.
After that, the merchandiser needs to calculate the cost of sewing trims and finishing accessories. For this part, a merchandiser should have good knowledge of the market because accessories prices can change frequently.
Handling charges include inspection-related expenses for QC during inspections and other hidden factory expenses.