Garments Costing – Underwears

Overall Cost Structure

The FOB cost of underwears is primarily driven by:

• Body fabric with elastane content
• Waist and leg elastics
• SMV‑based CM (Cut–Make) cost
• Washing, hygiene finishing and inspection
• Compliance, testing and commercial costs

1. Product Overview

Style: Men’s Basic Knit Underwear (Brief)
Fit: Regular Fit
Fabric Type: Cotton / Elastane Single Jersey
Fabric GSM: 180
Order Quantity: 60,000 pcs
Shipment Term: FOB
Destination Market: EU / USA

2. Standard Garment Measurement (Base Size)

The following Men’s Underwear – Size M measurements are used as the base size for fabric consumption, SMV calculation and costing.

Measurement Sheet (Size M)

✅ Note: Underwear costing is component‑based and performance‑sensitive, especially for elastic control.

3. Fabric Details

3.1 Main Fabric (Body)

• Fabric: Cotton / Elastane Single Jersey
• Composition: 95% Cotton, 5% Elastane
• GSM: 180
• Fabric width: 72” (Tubular / Open width)

3.2 Elastic (Waistband)

• Elastic type: Knitted waistband elastic
• Width: 35 mm
• Stretch & recovery: Buyer‑approved

4. Fabric Consumption Calculation

(Based on marker planning & industry practice)

Fabric consumption is calculated per piece.

4.1 Main Fabric Consumption

Based on:

• Underwear panel measurements
• Medium size range
• Marker efficiency ≈ 85–88%

✅ Body Fabric Consumption (Before Loss)
= 0.130 kg / piece

4.2 Total Fabric Consumption (Before Loss)

✅ Total Fabric Consumption = 0.130 kg / piece

5. Fabric Allowance (Shrinkage & Process Loss)

Allowance required due to:

• Fabric relaxation
• Cutting loss
• Elastic attachment distortion

✅ Standard allowance applied: 6%

0.130 × 1.06 = 0.138 kg / piece

✅ Approved Fabric Consumption = 0.138 kg / piece

6. Fabric Price & Cost

Fabric price: USD 4.30 / kg
(Bulk booking, export quality cotton‑elastane)

Fabric Cost per Piece

0.138 × 4.30 = USD 0.59

✅ Fabric Cost = USD 0.59 / piece

7. Trims & Accessories Cost

Underwear uses specialized functional trims, primarily elastic.

✅ Total Trims Cost = USD 0.65 / piece

8. CM (Cut‑Make) Cost – SMV Based

8.1 SMV Breakdown (Men’s Underwear)

✅ Total SMV = 10.2 minutes

8.2 CM Calculation

• Cost per minute (CPM): USD 0.006
• Line efficiency: 65%

CM = (10.2 × 0.006) ÷ 0.65
CM = USD 0.094

After overhead & factory margin:

✅ Final Charged CM = USD 0.60 / piece

9. Washing / Finishing Cost

Underwear typically requires:

• Light enzyme wash
• Hygienic finishing

✅ Washing & Finishing Cost = USD 0.20

10. Testing & Compliance Cost

Mandatory buyer tests:

• Fabric composition
• Color fastness
• Dimensional stability
• Skin safety (AZO / REACH)

Total testing cost: USD 900
Order quantity: 60,000 pcs

900 ÷ 60,000 = USD 0.015

✅ Testing Cost = USD 0.02

11. Commercial & Export Cost

Includes:

• LC opening & negotiation
• Bank charges
• Export documentation

✅ Commercial Cost = USD 0.07
(≈ 1.2% of FOB)

12. Total FOB Cost Summary (Men’s Underwear)

✅ Total FOB Cost = USD 2.13

13. Profit Margin & Buyer Offer Price

Profit Strategy

Underwear typically allows 6–10% margin, depending on:

• Elastic quality
• Order quantity
• Brand positioning

Assuming 8% margin:

Profit = 2.13 × 8% = USD 0.17

✅ Final Buyer FOB Offer = USD 2.30

✅ Quoted FOB Range = USD 2.25 – 2.35

14. Cost Sensitivity Points (Underwear Reality)

• Elastic price change → high direct impact
• GSM variation → fabric cost swings
• Efficiency drop → CM increases sharply
• Compliance failure → re‑test cost
• Air shipment → + USD 0.40–0.60

✅ In underwear costing, elastic & CM control are more critical than fabric price alone.

✅ This Underwear Costing Matches Your Earlier Formats Because It Includes:

✔ Product profile
✔ Measurement‑based assumptions
✔ Fabric consumption logic
✔ SMV‑based CM calculation
✔ Trims & compliance
✔ FOB & profit calculation