Costing for denim pant | Factors that affect denim costing

Costing

Costing is a very complex process, with set patterns and guidelines followed by the industry, and it is difficult to find out the cost for each process where there is some built-in cost. Garment costs include all activities such as the purchase of raw materials and accessories, fabric weaving, fabric processing, finishing, sewing, garment packing, transport, transportation, shipping, overheads, banking charges, commissions, etc. In general, apparel traders and the top management of a garment company are actively involved in pricing apparel. The garment industry follows various strategies for determining costs.

Factors that affect denim costing

Factors that have effects on cost are fabric, trims, accessories, and other decoration costs, storage, cutting, making, trimming costs, clothing testing, commercial costs, financial costs, shipment costs, and manufacturer's profit. These special factors greatly influence the making of a garment. There are many sub-factors in these eight factors. Fabric is the most important element for making a particular garment and about 50% of the cost is required for the fabric. Some of the factors that affect the price of fabric are fabric GSM, the quantity of fabric, the nature of the fabric, length/width, shrinkage, country of origin, and market demand. The cost of trim accessories and other decorations is most important in preparing a final cost sheet. From the point of view of clothing where the fabric is kept before the process of making it is called the store which also affects cost. Thus, the sewing, cutting, and sewing thread has an effect on the cost. Different types of tests such as colorfastness test, construction test, performance test, strength and stretch test, water-resistance / rain test, accessories test, print durability, the appearance of clothing after cleaning, pocket reinforcement, dimensional change after home laundering test. Cost of clothing Commercial cost means additional cost excluding CM cost. Sometimes you have to pay for transportation like shipping by courier to the buyer and this cost includes the commercial cost. Financial cost refers to the cost that the company incurs through operations, from factory costs to surcharges below the supply chain. Prices of raw materials, semi-finished products, and fully finished products, including administrative costs such as rent, salaries, insurance, and utilities. Highly related to the cost of various shipping terms such as FOB, CNF, and CIF. The profit of producer is also responsible for the cost.

Costing for denim pant

Denim pants have a huge future for the RMG sector in Bangladesh. Without a doubt, the most important factor is the value you owe in a globally competitive market. It is difficult to stay in the clothing market without providing the lowest-priced clothing. The study focuses on the whole factor which is directly related to the FOB cost of basic denim pants where fabric cost, trim, and accessories cost, storage, charge-making cost, washing cost, test cost, commercial cost, and profit are shown chronologically. All of the calculations are done based on an industrial framework and collected both primary and secondary data from six different denim pants manufacturers and exporters. The research has provided reliable principles of fabric cost, thread cost, CM calculation, and required poly; the calculation and cost of the cartoon have been done very carefully. The study also provides a possible wash and test to capture the total price range as well as display the total FOB cost. Manufacturers, exporters, retailers, and consumers of denim pants will find the apparent method of cost and its parameters.

Fabric costing

1.575 yards of fabric is needed for a particular denim long pant. Fabric manufacturers need to pay not only $ 2.63 / yard to purchase or import but also freight, 3% per yard cost. So be sure to pay this money to buy clothes.

Description           Consumption               Cost $/yard                                                  Price in $

Fabric                     1.575 yards          $2.63 (CFR Bangladesh at 120 days sight LC)       $4.14

Pocketing fabric     0.229 yard           $1.15 (BD local miller price)                                   $0.263

Total fabric cost                                                                                                                  $4.403

Trims and Accessories Costing for denim Pant

Generally, making denim pants requires some trimming and accessories according to the style or needs of the consumers. The designer relates all the materials according to the required fabric estimate and design with trim and accessories. Typically, to complete denim pants, the common trim and accessories needed such as main label, zipper, care label, rivets, price ticket / UPC ticket, hanger/sizer, size sticker, interlining, matchbook, adjustable elastic buttons, trim-fabrics sewing thread 100% spun polyester-ASTRA, pocketing fabric snap/shank button, poly carton. These are the trim and accessories commonly used for denim pants. 

Description                                        Cost in $

Care label                                              0.04

Main label                                             0.03

Extra label (traceability label)               0.02

Price ticket                                             0.02

Poly                                                        0.05

Cartoon                                                   0.10

Thread 100% spun polyester                  0.20

Zipper                                                     0.12

Snap/shank (1 pcs)                                  0.07

Rivets 4 pcs                                             0.08

Adjustable elastic-3/4"                            0.08

Adjustable elastic button-22l                   0.02

T/C pocketing                                           0.12

Cotton fused interlining                            0.05

Total cost                                                  1.00

CM Costing

If the factory's direct and indirect cost per month is $ 250,000, the total line is 10, the number of machines per line is 60, the total number of machines is 600, the number of working days per month is 26, output per line output 150 pcs per hour, daily working hours 8 hours. So, our CM cost is as follows,

Average cost per machine per day= Total Direct & Indirect Cost/(Total no. of Machine × No. working day per month)=250,000/(600×26)=16.03 

Line cost per day= per day (8 hours) machine cost × No of machine per line= 16.03 × 60 = 961.8

Actual output per line per day= Working hour per day x Output per hour= 8 x 150 =1200

CM cost per piece = Line cost per day/Actual Output per line per day= 961.8/1200=$0.80

Total CM cost=  Total CM cost + (add profit 20% of CM cost is) =  $0.80 + $0.16 = $0.96

Denim wash price in Bangladesh

For denim pants, some important washing is required to enhance the look and make them more attractive. There are two processes like as dry and wet process are done for washing denim. Dry Processes such as Hand Sand, Grinding, Whisker, Crinkle, Laser Whisker, 3-D Crinkle, Destruction, PP Rub, PP Spray, Resin Spray, Tagging, Heat Pressing, Pocket Marking, Center Crease, Seam Marking, all over Crease Mark, Tint, Blowout, Patch Attaching, Chevron/knee Star. These all are usually the dry process that is used for denim pants. Wet processes such as rinse wash, enzyme Wash, enzyme stone Wash, Ice-or Snow Wash, Enzyme Wash, Tinting, Enzyme Stone with Bleach, Net Bleach, Caustic Wash, Resin Wash, Acid Wash, Milk Wash, Random Bleach Wash, and Tie wash, etc. These are the wet process commonly used for denim pants.

Denim wash cost chart

Type Of Wash	Wash Price			Adult (Denim)	Adult (Non-Denim)	Remarks
R (Rinse Wash)/Garment wash	$ 0.170			$0.15	$0.13
Bleach wash only	$ 0.250			$0.22	$0.20
Stone wash only( no Enzyme)	$ 0.200			$0.18	$0.17
LE/ME/HE	$ 0.250			$0.22	$0.20
LES	$ 0.250			$0.23	$0.21
MES	$ 0.250			$0.25	$0.23
HES	$ 0.300			$0.27	$0.25
LEB	$ 0.300			$0.27
MEB	$ 0.300			$0.30
HEB	$ 0.300			$0.30
LESB	$ 0.300			$0.30
MESB	$ 0 .300			$0.32
HESB	$ 0.350			$0.34
Acid wash (With towel)	$1.10	-	$1.20	Case by case
Acid wash (Without towel)	$ 0.750			Case by case
4 Tint	$ 0.170			$0.15
1B(2) Hand sand (front )	$ 0.200			$0.18	$0.18
1B Hand sand (front & Back)	$0.25	-	$ 0.27	$0.24	$0.24
1C Allover Hand Sand Or, Special H/S	$0.40	-	$ 0.45	Case by case
Hand sand touch up for laser				$0.15
2A PP (Front)	$  0.150			$0.14	$0.14
2A PP (front & back)	$ 0.184			$0.17	$0.17
2C (PP Spray all over)	$ 0.430			$0.30	$0.30
2AR (PP replacement)- Front only				$0.25
2AR (PP replacement)- Front & back				$0.30
3A whiskers (front only)	$0.16	-	$ 0.20	$0.17	$0.17
3A whiskers (front & back)	$0.25	-	$ 0.27	$0.22	$0.22
3A whiskers (front with chevron)	$0.162	-	$ 0.23	$0.20	$0.20
3A whiskers (front & back with chevron)	$0.27	-	$ 0.32	$0.25	$0.25
5A Grinding - Bottom Hem only + Pocket (f/b)	$0.10	-	$ 0.13	$0.10	$0.10
5A Grinding -Waistband only	$ 0.100			$0.08	$0.08
5A Grinding -Front pocket & Bottom hems + back pocket / flap	$0.15			$0.15	$0.15
5B Abrasion (1 place size: 1" to 2") without repair stitch & backing	$             0.12			Case by case
5B Abrasion (2 places & above) without repair stitch & backing	Case by case			Case by case
8 Tacking x2	$ 0.050			$0.05	$0.05
8 Tacking x4	$ 0.100			$0.10	$0.10
10 tie(short)	$ 0.500			Case by case
10 tie (long)	$ 0.600			Case by case
3D Resin whisker	$ 0.400			$0.35	$0.35
3E Whisker crease	$  0.300			$0.28	$0.28
6B1 - PP rub front and back waistbands	$0.05	-	$ 0.20	Case by case
6B2 - PP rub front & back on the waistband, pockets, back yoke, and if any tack area	$0.05	-	$ 0.20	Case by case
6B3-PP rub Front and back Top blocks, inner and outer seams, and hems	$0.05	-	$ 0.20	Case by case

Wash cost = Whisker + Hand sand + PP + Tint + Enzyme stone with bleach = 0.20 + 0.20 + 0.18 + 0.17 + 0.30 = $1.05

Tests are required for denim pants

Denim pants require two types of tests, physical and lab tests. Physical tests such as fabric count, seam slippage, yarn count, fabric weight, colorfastness to crocking, crease retention, colorfastness to rubbing, stretch, and recovery, colorfastness to water, abrasion resistance, sea watercolor stability, soil release, colorfastness to phenolic yellowing, cpsia, colorfastness from non-chlorine bleach, spiral/twist, spirality test, tear strength, smoothness retention, tensile strength, pilling resistance, button attachment strength. Lab Tests such as Formaldehyde, Absorbency Test, pH, Humidity Test, AZO test, etc.

FOB Costing

The cost of FOB is one of the most significant and important costs for a manufacturer. Thus, all costs, including the total FOB cost for basic denim pants, are calculated. The FOB cost for denim pants is $ 7.733.

Description                                                                                                          Cost in $

Fabric Cost                                                                                                                4.14

Pocketing Fabric                                                                                                        0.263

Trims and Accessories Cost                                                                                      1.00

Washing Cost                                                                                                             1.05

CM Cost                                                                                                                      0.96

Test Cost (approximate)                                                                                              0.08

Total Cost                                                                                                                     7.493

Commercial Cost and Financial Charge 3%                                                                0.24

FOB Cost                                                                                                                     7.733

Conclusion

Costing for denim pants is one of the most important factors for its competitive market. Without a competitive price, it is very difficult to exist in the world market. Through this complete report, the total FOB value for basic denim pants is displayed chronologically with all the relevant cost factors. So, from the study, it can be said that about $ 7.733 is required to deliver very basic items. Costs can fluctuate with testing, washing, and item variations. So, the main reason when spending is the cost of shell fabric, pocketing fabric, trims and accessories, washing, CM, and other expenses. This is the basic field where costs are calculated.