Fabric is certainly the most significant cost component when it comes to garment and clothing production. This component often accounts for more than half of the garment production cost.

Quantity and fabric type influence the price of the fabric and depend on the different types of fabric out there such as yarn, knitted, power loom, fiber (cotton, polyester, blended fabric, silk etc.). These different types of fabric vary from one to another in terms of price and which can also be affected by other parameters like availability, specs, colors and patterns needed.

Fabrics need additions to be fully functional in a garment and these additions to the fabric are simply known as trims. Trimmings are the materials that are attached to the garments. It includes zippers, buttons, threads and other items that are needed to make your clothing work.

Quality of items and quantity needed sums up the cost of trims. However, there are also various types of trims and like fabric their material and types vary in terms of pricing. It is a big advantage to do research in order to come up with the specific trims perfect for a product and achieve quality without compromising on the budget.

The default formula for calculating in-house custom manufacturing labor cost with wholesale clothing manufacturers is total cost per hour multiplied to the number of hours it takes to make the style, divided by the number of units produced. If there is contractor intervention, expect additional service charges added on to the labor cost calculation.

((cost per hour * total number of hours) / no. of units produced or line efficiency in %)

The next apparel product development process step requires you to determine all the dimensions of your product. Consider the length, width, height and even thickness of your clothing product. Create a variation of the measurements for different sizes (S, M, L, XL,...) so the manufacturing company will have clear set of instructions to follow for different variations of the product. The more different sizes you have, the less efficient and more expensive is the sewing process.

Aside from the three main components above, there are other services need to be paid for depending on the type of garment or custom clothing produced. The most common value added services are printing, custom tags, washing, embroidery, patching and custom retail packaging (including labels).

These services are all associated to garment manufacturing and should be added as part of the cost estimation process. However, be reminded that there could be factors which can alter the traditional calculation of these values.

Manufacturers and clothing suppliers oversee the cost estimation process. Depending on the system implemented by a company, they are equipped with costing knowledge and are aware of fluctuations and changes in prices of garment components happening in the market. Especially fabric prices can vary due to seasonal demand and shortages if a type becomes very popular suddenly.