Cost Quotation For Garments (Long Sleeve Shirt)

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In the dress manufacturing industry, merchandiser prepares a cost quotation for garments export buyer. Different cost fixation processes are used to brand this toll quotation.

There are 3 processes for fixation of export prices which are as below:

  1. FOB (Free on board)
  2. C & F (Cost & freight)
  3. C I F (Cost, insurance & freight) 

FOB way “free on board” 1.e exporter does non acquit the cost of freight of send or air. It is buyer (importer) who himself bears the freight of ship or air

C & F way Cost of freight 1.e.

FOB (toll) + Freight = C & F

In the example transport or air freight is carried past the exporter piece quoting toll, the exporter quotes price a bit higher than FOB. The whole responsibility including the sending of goods to the selected port of the importer is shouldered by the exporter send or air. Freight may vary from home to place in addition to shippers to shippers.

C I F way Cost insurance &freight. In this example in add-on to the bearing of freight the cost of insurance is too borne by the exporter. The exporter, patch quoting CIF cost, quotes much higher than C & F value one.e.

C & F + Insurance = CIF

Normally we tin can add 1% to 1-1/two% insurance accuse amongst CIF cost. During the fixation of FOB cost following notes are to be followed carefully:

  1. Cost of textile/Doz. Garments (woven/knit) or toll of yarn/doz. Garments (inwards case of sweater)
  2. Cost of accessories/doz. Garments.
  3. C.one thousand (cost of manufacturing)/doz. Garments.
  4. Cost of transportation from factory to body of water port or aerodrome.
  5. Clearing too forwarding toll.
  6. Overhead cost.
  7. Commission/net

The notes above are application in example of sending goods aboard on FOB ground. The following case volition clarify how to cook cost of a particular commodity:

Price quotation for long sleeve shirts:
Let see the quote a toll of one dozen long sleeve shirts:

 merchandiser prepares a price quotation for  Price Quotation for Garments (Long sleeve shirt)
Fig: Price quotation for long sleeve shirts for case

Fabric (30Yds 10 $0.95) cost/doz …………………………..……………………….… = the States $ 28.l
Accessories cost/doz ……………………………..…………………………………… = US $ 06.00
CM (Cost of manufacturing)/doz ……………………………………………..…… = US $ 10.00
—————————————————————————————————————————————
Sub full …………………………………………………………….…………..…….. = United States $ 44.fifty

Transport cost from mill to bounding main port or drome ½% of the higher up …………………= the States $ 0.23

Clearing together with forwarding toll two% ………………………………………………… = United States of America $ 0.29
Overhead toll ½% ………………………………………………..……………… = U.S.A. $ 0.23
—————————————————————————————————————————————
Total existent net price toll ………………………………………….……………….. = USA $ 45.86/doz
Commission 10% …………………………………………..…………………….. = United States $ 4.60/doz
—————————————————————————————————————————————
Net FOB price …………………………………………………………………….. = U.S.A. $ l.46/doz
Freight (most four%) is ……………………………………………….…………….. = United States $ two.00
—————————————————————————————————————————————
Net C & F price is ………………………………………………..……………….. = USA $ 52.46/doz
Insurance cost (one-i/2%) is ………………………………………………..……….. = U.S. $ 0.79
—————————————————————————————————————————————
Net C I F toll is …………………………………………………..………………. = the States $ 53.25/doz

You can besides like:

  1. Garment Export Procedure as well as Documentation
  2. How to Prepare Price Quote for Garment Export Orders
  3. How to Become a Successful Apparel Merchandiser
  4. Working Procedure of a Garment Merchandiser from Order Receive to Shipment
  5. l Most Useful Terms Used in Apparel Merchandising
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