Overall Cost Structure
The FOB cost of a knitted polo shirt is mainly driven by:
- Body fabric and rib fabric consumption
- Trims (buttons, labels, packaging)
- SMV‑based CM (Cut–Make)
- Optional embroidery or printing
- Washing, testing and commercial costs
1. Product Overview
Style: Men’s Polo Shirt
Fit: Regular Fit
Fabric Type: 100% Cotton Pique
Fabric GSM: 220
Order Quantity: 50,000 pcs
Shipment Term: FOB
Destination Market: EU / USA
2. Standard Garment Measurement (Base Size)
The following Men’s Polo Shirt – Size L measurements are used as base size for fabric consumption, marker development and costing.
Measurement Sheet (Size L)
| Measurement Point | Measurement |
|---|---|
| Chest (½) | 56 cm |
| Body Length (HPS to Hem) | 72 cm |
| Shoulder Width | 46 cm |
| Sleeve Length | 23 cm |
| Armhole | 25 cm |
| Bottom Hem Width (½) | 56 cm |
| Placket Length | 15 cm |
| Collar Height | 4.5 cm |
✅ Note: Base size (L) is standard industry practice for consumption and marker calculation.
3. Fabric Details
3.1 Body Fabric
- Fabric type: 100% Cotton Pique
- GSM: 220
- Fabric width: 72 inch (Tubular or Open Width)
3.2 Rib Fabric (Collar & Cuff)
- Fabric type: Cotton Rib
- GSM: 320
- Usage: Collar and sleeve cuffs
4. Fabric Consumption Calculation
(Based on marker planning & industry practice)
Fabric consumption is calculated per piece, not per roll.
4.1 Body Fabric Consumption
Based on:
- Polo shirt measurements
- Medium‑to‑large size ratio
- Marker efficiency ≈ 82–85%
✅ Body Fabric Consumption
= 0.270 kg / piece
4.2 Rib Fabric Consumption (Collar & Cuff)
Includes:
- Rib collar
- Sleeve cuffs
- Placket facing allowance
✅ Rib Fabric Consumption
= 0.030 kg / piece
4.3 Total Fabric Consumption (Before Loss)
| Fabric Component | Consumption |
|---|---|
| Body Fabric | 0.270 kg |
| Rib Collar & Cuff | 0.030 kg |
| Total (Pre‑Loss) | 0.300 kg |
✅ Total pre‑loss fabric consumption = 0.300 kg / piece
5. Fabric Allowance (Shrinkage & Process Loss)
Cotton pique fabric requires allowance for:
- Relaxation shrinkage
- Cutting & spreading loss
- Fabric handling loss
Standard allowance applied: 5%
Final Fabric Consumption
0.300 × 1.05 = 0.315 kg / piece
✅ Approved Fabric Consumption = 0.315 kg / piece
6. Fabric Price & Cost
Pique fabric price: USD 4.40 / kg
(Bulk booking, export‑quality, solid dyed)
Fabric Cost per Piece
0.315 × 4.40 = USD 1.386
✅ Rounded Fabric Cost = USD 1.39 / piece
7. Trims & Accessories Cost
Typical Polo Shirt Trims
| Trim Item | Cost (USD) |
|---|---|
| Sewing thread | 0.05 |
| Buttons (3 pcs) | 0.12 |
| Main label | 0.05 |
| Care & size label | 0.05 |
| Hangtag | 0.07 |
| Polybag | 0.06 |
✅ Total Trims Cost = USD 0.40 / piece
8. CM (Cut‑Make) Cost – SMV Based
8.1 SMV Breakdown (Actual Polo Shirt)
| Operation | SMV (minutes) |
|---|---|
| Cutting | 1.3 |
| Body sewing | 4.2 |
| Placket making | 2.6 |
| Collar attach | 3.2 |
| Sleeve attach | 2.8 |
| Buttonhole & button | 1.9 |
| Finishing & packing | 2.0 |
✅ Total SMV = 18.0 minutes
8.2 CM Calculation
- Cost per minute (CPM): USD 0.006
- Line efficiency: 55%
CM = (18 × 0.006) ÷ 0.55
CM = USD 0.196
Factories apply overhead & profit loading:
✅ Final Charged CM = USD 0.95 / piece
9. Printing / Embroidery Cost (Optional)
Left Chest Embroidery (Typical Polo)
- Stitch count: 4,000 stitches
- Rate: USD 0.10 per 1,000 stitches
Embroidery cost = 4 × 0.10 = USD 0.40
✅ Embroidery Cost = USD 0.40
(If no embroidery, this cost is zero.)
10. Washing & Finishing Cost
Typical processes:
- Enzyme wash
- Silicon softener
| Process | Cost (USD) |
|---|---|
| Enzyme wash | 0.25 |
| Softener | 0.10 |
✅ Total Washing Cost = USD 0.35
11. Testing & Compliance Cost
Buyer‑required tests:
- Fabric composition
- Color fastness
- Dimensional stability
Total testing cost: USD 800
Order quantity: 50,000 pcs
Testing Cost per piece = 800 ÷ 50,000 = USD 0.016
✅ Testing Cost = USD 0.02
12. Commercial & Export Cost
Includes:
- LC opening & negotiation
- Bank charges
- Courier & documentation
Assumed at 1.2% of FOB
✅ Commercial Cost = USD 0.07
13. Total FOB Cost Summary (Men’s Polo Shirt)
| Cost Component | USD |
|---|---|
| Fabric | 1.39 |
| Trims | 0.40 |
| CM | 0.95 |
| Embroidery | 0.40 |
| Washing | 0.35 |
| Testing | 0.02 |
| Commercial | 0.07 |
✅ Total FOB Cost = USD 3.58
14. Profit Margin & Buyer Offer Price
Profit Strategy
- Polo shirts typically allow 6–10% margin
- Assumed margin: 8%
Profit = 3.58 × 8% = USD 0.29
✅ Final Buyer FOB Offer
= USD 3.58 + 0.29 = USD 3.87
✅ Quoted FOB Price Range: USD 3.85 – 3.90
15. Cost Sensitivity Points (Real Factory Insight)
Small changes significantly impact cost:
- Fabric price ± USD 0.10/kg → ± USD 0.03 per piece
- Efficiency drop by 5% → CM increases by 10–12%
- Air shipment risk → + USD 0.50–0.80 per piece
✅ This is why polo shirt costing must be precisely engineered and efficiency‑driven.
