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How does a garment manufacturer calculate the cost of a product before pricing it for wholesale?

Understanding how manufacturers cost their products helps buyers negotiate intelligently and understand why certain products are priced the way they are.

Garment costing components:

ComponentExample (Cotton Kurti)Typical % of Cost
Fabric1.5 meters × ₹80/meter = ₹12045–55%
Stitching / CMT₹4515–20%
Embellishment₹30 (machine embroidery)5–15%
Trim (buttons, elastic, zip)₹103–5%
Labelling + packaging₹123–5%
Overhead allocation₹186–10%
Total cost₹235100%
Manufacturer profit (15–25%)₹40–₹60
Wholesale price₹275–₹295
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