COSTING AND PRICING OF A FABRIC

COSTING OF A FABRIC

Costing of any thing in this world is very complicated thing .

But what we think is complicated is nothing but a very simple thing if we anyalize it into the deep of it .

Factors affecting for any product suppose a grain we take as an example .

1)  Investment for the seeds

2)  Investment for Urea and Other products 

3)  Cost of water utilized.

4)  Electricity cost .

5)  Cost of labors Working in the Field .

6)  Working Capital of Land and its Depreciation cost against any loans .

7)  Profit 

8)  Wastage / Loss incurred due to Natural Cause ,  Insects , etc ..

9)  Cost of Equipments Involved during the Process stage .

As we see above just for a simple grain which we grow in our fields has very complicated but a very basic process of costing .

Same as this there are many factors which affect the cost of a fabric .

As every Investor will try to pull out  all his investment as soon as possible .

How soon he can recover his Investment is the real game .

Now we will go deep into the process of manufacturing a fabric  .

What i will require to manufacture a fabric of any kind .

1)    Land 

2)   Building 

3)   Machine 

     a)  Weaving Machine 

     b)  Warping Machine 

     c ) Grey Checking Machine 

     d ) All other Machines Involved During the process .

4)  Loan .

The total cost of the Investement will Decide the Margin cost per pick .

This is the very Basic cost which will be always constant after the investment is done .

This cost always depends and changes as per your demographic conditions and your bargain.

Every manufacturer knows this cost .

So let this cost be secret for my entrepreneur friends .

But we can discuss the another part which also plays a vital role in deciding the price of any given fabric .

Pricing of the fabric in any Textile unit is done only by the owners or the high profile managers or anyone having a good Knowledge in the field of Textiles .

Calculating the price of a given Fabric  

At any given instance lets assume the basic costing of Shirting fabirc.

Lets assume any Basic construction just for example .

The Below sort is just a hypothetical sort .

Warp - 2/80 s cotton dyed yarn .

Weft - 2/100 s cotton dyed yarn .

Ends per Inch  =  130 

Picks per Inch  = 90 

Fabric Width   = 40 inches 

Normally its given the Finished Width .

Calculating the weight of a Fabric .

Warp weight   for any given Flat woven fabric is 

= (Total on of Ends  x  Total Mtrs  x  Wastage percentage  x  Warp Denier ) / 9000,000

Therefore  for the above sort

Total Ends  =  Fabric Width  x  Ends per Inch  x Shrinkage Percentage.

Normally cotton shrinkage is 8% - 10% .

Total Ends  = 40  x 130 x 10% 

                     = 5720  ends of 2/ 80 cotton dyed yarn .

Warp weight  = 5720 x 100 x 8% x 40 / 9000,000

                        = 2.7456 kgs 

Weft weight   for any given Flat woven fabric .

= Total mtrs x reed space x picks per inch x wastage % x denier of weft/ 9000000

= 100 x44 x 90 x 1.08 x 50 / 9000,000

= 2.376

Therefore 

Fabric weight = Warp Weight  + weft weight 

                         = 2.7456  + 2.376 

                         = 5.1216 kgs for 100 mtrs 

RAW MATERIAL COST  OF FABRIC 

Yarn cost of warp and weft is to be known .

Suppose the Warp yarn Cost is 5 usd / kgs 

and the weft is 7 usd / kgs .

then the cost of  Fabric per 100 mtrs

= (2.7456 x 5 ) + ( 2.376 x 7 )

= 13.728  +  16.632 

= 30.36 usd / 100 mtrs .

PRICE PER MTRS = 0.3036 USD / MTRS .

FINAL COST OF FABRIC 

BASIC  COST =( RAW MATERIAL COST + INVESTEMENT COST ) 

FINAL COST = BASIC COST + PROFIT AS PER BASIC COST.

ASSUMING INVESTMENT COST/MTRS IS 30 CENTS 

AND PROFIT @ 30% 

= (0.3036  + 0.30 ) 

= 0.6036 USD / MTRS 

= 0.6036 + 30%

= 0.78468 USD / MTRS

FINAL PRICE = = 0.78468 USD / MTRS.

WELL THIS PRICE IS FOR MANUFACTURER HE MUST OWE IT ANYHOW TO RUN THE BUISNESS .