Regarding clothing quotations, many people may ask some very direct questions. How much do you spend to make for a T-shirt? How much does it cost to make such a coat? Basically, when I see other people asking such questions, I know that he must not understand clothing at all!
Cost Structure
Fabric prices, accessories prices, single piece of materials, embroidery costs, printing fee, washing water fee
The cost of clothes can be roughly divided into the above aspects, the pure processing fee and the profit of the factory. So normally, an accurate quotation for a piece of clothing must be purchased to find the price of the same fabrics and accessories, and the pattern master uses the marker to discharge the consumables.
If you want to produce paper samples and car samples for the new model, you must also calculate the proofing and car version fees. In addition, there are problems with your quality requirements, batch size problems (the cost of 1,000 pieces and 100 pieces will definitely be different), and the difference will be very large. According to your requirements, the factory director will calculate the labor price and get an accurate quotation.
Difference Between Processing with Supplied Materials and Contracting Materials
Processing with supplied materials: processing with supplied materials is not the same as contracting with labor and materials. Normally, the processing factory does not bear any risks for processing with materials supplied by the customer, so the garment processing factory only needs to report the normal processing fee.
Contracting labor and materials: If it is a factory contracting labor and materials, then the factory has to pay to purchase fabrics, then it is an investment behavior. The price quoted by the processing factory must be profitable in addition to the cost of raw materials and processing costs.
Generally speaking, the greater the risk, the higher the profit required by the processing plant. For example, the risk of an external order is relatively greater than that of a domestic order, so the profit of an external order will generally be higher than the profit of a domestic order. Of course, this has to be specific. Look at that customer.
The general standard of the profit of the processing plant is 15%-30%
Therefore, when you find a processing factory to place an order for labor and materials, you must have a revenue about the profit for the processing factory. Normally, the normal standard is between 15%-30%. Of course, there will be individual processing factories who say that I only need 5% profit and I will do it for you. But the wool is on the sheep. If there is really only 5% of the profit, and it is a small order, I think only a fool will take it.
The people who work in the processing plants are all sophisticated. No one knows the numbers better than them. The profits are a little bit smaller. If the single-piece material consumption and processing costs are higher, the total profit will definitely not be less. So here is also a suggestion to the majority of merchants. In the process of cooperating with your OEM factory, give them a little confidence. To cooperate with you, the risk is small, and the order is timely, so that the processing factory will reduce his profits relatively when cooperating with you.
How Is the Processing Fee of the Processing Plant Calculated?
There is a set of standards. In the garment processing industry, each place will have a set of industry standards based on the local salary level and the scale of the factory. How much is the cut piece of clothing? how much is the last sleeve? How much is the opening of the bag? how much is the zipper? There is an industry standard for the amount of money in the tail and so on.
The processing fee for a piece of clothing is to multiply the sum of all the workers’ labor costs by the corresponding magnification. This magnification is based on the size of the factory and is normally between 2.3 and 2.5. The larger the factory, the higher the magnification.
For example, if the price of a piece of clothing is 10 yuan for the workers at the bottom, then the processing fee that the factory requires from the customer is 23-25. The more than a dozen yuan is the rent, water and electricity, taxes, and the boss’s profit. Of course, for small factories with more than a dozen individuals, because there are no orders, the profit is multiplied by 1.8 or multiplied by 2, and they will do it all. And for some large manufacturers of high-quality goods, the profit is multiplied by 3, they may not do it. It depends on the specific situation.
Regarding prices, many people like to bargain. Obviously, small orders of a few cents have to be polished with the processing plant. The processing industry does not make much money. If you desperately low the price of the factory, it may be counterproductive if you do not do it well. The most common thing is to delay your delivery. If your character is bad, you will have to add money midway. When you lower the price, he clearly knows that the price can’t be done, but he still accepts it and then increases the price. For things of a few cents, if the delivery date is timely, the quality can be guaranteed, and he can cooperate with you in processing in the future, I think it is better to choose him.
Batch Problem
Another question about price is the issue of batch size. What kind of goods do the garment production workers like to make? They are all piece-rate and make money by output. They like to make large quantities of goods. A new model is the slowest at the beginning. If the goods are only dozens of pieces, a few talents will finish the goods as soon as they open the goods. The production is not fast and efficient. If you can’t get it, you can’t get money. The clothing industry is getting more and more difficult to recruit. Workers may want to change factories if they can’t make money. So bosses want to take large orders. Our factory deal with this issue. The solution to the problem is to add 30% of the wages to the standard price for new models with less than 300 pieces, so that at least the workers can do it and the quality can be guaranteed. Therefore, if your quantity is not large and you are desperately trying to keep the price down, it is estimated that there will be no processing plant can do it for you for a long time.
Where Is the Factory?
In the past two to three years, factories in the Yangtze River Delta and the Pearl River Delta are being miniaturized. Garment factories gradually moved to Anhui, Jiangxi and other places. The next step is to spread to Henan, Hubei, Sichuan and other places. It is best to choose factories around you to save costs.
The supply chain is most concerned about the right door. Your annual sales are only 10 million. It is not wise to find a large factory with 1,000 people to make the goods. Because your order quantity is the smallest among his customers, he will not value you at all. How to count as the right person? Here is a formula for reference: order quantity/10=number of people in the factory. In other words: if your average order quantity is 300 pieces, it is most suitable for you to find a small factory with 30 people.
- Choose one with the ability to make patterns.
- Choose a complete one before and after. Many small factories do not have pattern masters and back-ends. Such factories may have risks in terms of delivery speed and quality.
- It is best to actually look at the sanitary condition of the factory. If the sanitary environment is good, it means that the factory has certain management capabilities and there are few problems.
How Can I Trust This Factory?
- Look at the history of the factory. Garment factories that can survive for more than 5 years will not be so bad.
- Proportion of older workers. Fore-commerce orders, because of the small amount, you have to constantly change style and orders. The stability of the factory is very important. If there are many old workers, it represents that the employment of the factory staff is stable.