Garment Price Quotation for an Order
Sanjeev Tiwari Sonu
Merchant at TCNS ltd Noida
B-tech from U.P.T.U. University,
Lucknow, UP, India.
Price quotation is based on order confirmation once style selected by buyer. We provided costing to buyer or quoted a cost to the buyer. Price quoted is playing an important role as it is way of order confirmation of garment. Once an order is confirmed, then merchandising department start working with export house. Today I will discuss about price quotation strategy in the apparel industry with the help of my job experience.
Price Quotation Procedure in Apparel Industry:
There are various types of price quote process for execution an export order. For executing an order a merchandiser should have proper knowledge about few trams such as FOB, C&F, CIF, CMT, etc. FOB is known as “free on board”, C&F is cost and freight, CIF is “Cost, insurance and freight”, CMT is “Cut makes and trims”. In costing a merchandiser is mainly quoted yarn price, yarn average rate, trims cost of garment, knitting rate, average weight, and gross weight of the garment, hand work on a garment, linking rate, stitching rate, buttoning, overhead of factory, labor cost, profit of buying houses, sourcing rate, samples submissions rate, once we quoted the price we quoted these all rates to buyer. Here given a general format of garments price quotation as below. Hope you will get an idea about price quotation.
For example, if we quoted price of a kid wear garment like new born or toddler range we take the sample average weight with a gross weight, knitting rate, according to knit structure after that we Including CMT rate, including overhead and profit and we quoted price according to buyer currency as buyer need and we quoted price after price quotation of the export house merchandiser. Price quotation we will communicate with export house merchant and we quoted price according to those costing. For this reason a merchandiser should have clear knowledge about price quotation and application of order costing process.