Polo Shirt Costing:

To calculate polo shirt costing, we have created a comprehensive guide to help you understand the formula for garment costing  for a knitted polo shirt. Our guide is designed to provide you with detailed information that will help you determine the cost of producing a knitted polo shirt. We have considered various factors such as product material costs, production costs, and related commercial costs.

Before proceeding with the polo shirt costing concern Merchandiser must review the order sheet and buyer product specifications carefully. Also, he must be updated on the current market price for the cost factors.

To calculate polo shirt costing must require a clear understanding of below three points:

Understanding the Polo Shirt Order Details:

As per the buyer’s order sheet, the polo shirt shipment quantity is 10,000 pieces along with the below specifications:

– Body fabric 100% cotton pique for the body parts (including Sleeve, Half moon & Pocket), Fabric GSM 200.

– Rib fabric: 1X1 flat knitted for collar and Cuff. fabric GSM is 250.

– High-density Print on the chest pocket.

– Embroidery on the back side of the polo shirt.

Polo Shirt Costing Calculation method
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Understanding Polo Shirt  making total cost factors:

To calculate polo shirt prices we need to know the total cost factors and their updated market price to quote a competitive price to buyers.

Here are the total cost elements involved in polo shirt costing.

– Current Yarn price

– Knitting price

– Dyeing cost

– Fabric wash cost

– Printing cost,

– Embroidery Cost

– Cost of making(factory CM)

– Accessories Cost

– Commercial Cost,

– Garment dye/ wash cost

– Other Costs (if any)

Understanding the Polo Shirt fabric consumption:

In another article, I calculated the fabric consumption for a polo shirt. You can go through with it as needed. Following the garment measurement chart as given by the buyer, we got their fabric consumption as below:

Polo shirt body fabric consumption =  3.18 kilos /Dozen polo shirts

Polo shirt Rib fabric (12 pc collar & 24 pcs cuff) consumption = 0.70 kilo / Dozen polo shirts

Three simple steps to calculate polo shirt costing:

First Step: Calculate body fabric cost :

– Yarn (100% cotton, combed) Price – $4.10/kilo

– Knitting price $0.25/kilo

– Dyeing price per kg- $1.50/kilo

– Enzyme+ Silicon Wash cost -$0.30/kilo

So, fabric price =$6.15/kilo

Now, adding 10% wastage to it

Finally, body fabric price =$6.77/kilo

Now, getting body fabric cost per dozen polo shirts = Fabric consumption per dozen X fabric price per kg

Body fabric cost= 3.18 X 6.77

So, Body fabric cost= $21.53/ dozen polo shirt

Second Step: Calculate flat knit Rib (collar and cuff) cost :

– Yarn (100% cotton, combed) Price – $4.10/kilo

– Flat Knitting price $0.08/kilo

– Dyeing price per kg- $1.50/kilo

– Enzyme+ Silicon Wash cost -$0.30/kilo

So, total flat knit rib price =$5.98/kilo

Now, adding wastages 10% to it

Finally, Rib fabric price =6.56/kilo

Now getting, rib fabric cost per dozen polo= fabric consumption per doz polo X fabric cost per kg

Rib fabric cost =0.70 X 6.56/dozen polo

So, Rib fabric cost =$4.59/dozen polo shirt

Third Step: Calculate production and commercial cost :

– Printing cost/dozen- $3.00

– Embroidery Cost/dozen-$6.00

– Cost of making (Factory CM)/dozen- $10.00/dozen

– Accessories Cost/dozen- $3.00/dozen

– Commercial Cost /dozen=$0.24

So, total production and commercial cost =$ 22.24/doz polo shirt

Now, we get the total cost for the polo= Body fabric cost+ Rib fabric cost+ Production, and commercial cost

Total cost =$ 21.53+ $4.59+ $22.24/ doz polo

Total cost = 48.36/ doz polo

Total cost =$4.03/pc polo (Factory FOB price)

If this order is generated through buying house (Middle man), that case also needs to add buying commission on the factory FOB price. Generally, it could be 5% -10%. We are adding 5% buying commission here:

Total cost =4.03 X 5%

Total cost =$4.23/pc polo (Buying FOB price)

I Hope, the price calculation for the polo shirt is clear to you, furthermore if any drought pls comment below

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