Textile Tutors: Costing of Polo Shirt

Sunday 22 March 2015

Costing of Polo Shirt

Description of product

Here I am going to calculate price of a polo shirt of having following configuration:

100% cotton pique polo-shirt containing two buttons in the front placket having side band with flat-knit collar and cuff and Small embroidery on left chest.

For calculating price of polo-shirt at first we have to calculate the fabric consumption from the size spec sheet given by buyer.

If you want to know how to calculate the consumption of polo-shirt then you can check my other article “Fabric consumption of polo-shirt”.

Let consider,

Fabric consumption per dozen	: 3.80 kg
So, Yarn consumption will be	: 3.80 + (3.8×8%)
	= 4.104 kg/dz

So, Fabric costing

So, costing for yarn per dozen	= US$3.90 × 4.104 kg/dz(price of yarn = US$3.90/kg)
	= US$ 16 /dz
Knitting charge (pique)	= US$ 0.15 × 4.104/dz(Knitting charge = US$ 0.15/kg)
	= US$ 0.62/dz
Dyeing Charge	= US$ 1.3 × 4.104/dz(Dyeing Charge = US$ 1.3/kg)
	= US$ 5.34/dz
So, Finished fabric cost per dz	= (16+0.62+5.34) US$/dz
	= 21.96 US$/dz

For Collar & Cuff Costing

Yarn cost	= 0.70 × 3.90 US$/dz
	= 2.73 US$/dz
Knitting Charge	= 0.07 × 12
	=0.84 US$/dz
Dyeing Charge	= 1.3 × 0.70
	= 0.91 US$/dz
So, Finished collar & Cuff cost	= (2.73+0.84+0.91)US$
	= 4.48 US$/dz

Now, production cost per dz

For Fabric	= 21.96 US$
For Collar & Cuff	= 4.48 US$
Cost Management (CM)	= 6 US$
Accessories cost	= 3 US$
So, Total Production cost	= 34.44 US$/dz

Finally FOB price

Total production cost	= 34.44 US$/dz
Commercial Cost (3% of total production cost)	= 0.88 US$/dz (without CM)
Profit ( 20% of CM)	= 1.2 US$/dz
Total FOB Price Per Dz	= 36.52 US$/dz
So, FOB price per piece	= 3.04 US$/pc