Newcomers to the fashion industry often base costings on the sum of a style's fabric, trims and labor-and to that they simply add their markup. However, every other activity of the business erodes that markup, and they find themselves with an unsustainable profit-or a loss. This guide will help you avoid these pitfalls to guarantee a sustainable profit.
Apparel Costing details traditional and current costing methods for the fast-paced and e-commerce-focused fashion marketplace. You will learn industry-specific product/style costing that can be applied to garments produced both locally and globally. You'll also learn how to calculate line item percentages on indirect cost factors, such as factory sourcing, overhead, administration and product development.
Key topics include: Target Market Pricing; Variable vs Fixed Costs; Direct vs Indirect Cost Factors; Cost-Based vs Value-Based Costing; Domestic vs International Production Costing; Effect of Sourcing on Costing; Sustainability in Costing; Fast Fashion vs. Slow Fashion
1. Costing Timeline
2. Traditional Apparel Costing
3. Global Production Sourcing and Costing
4. Activity-based Apparel Costing
5. Wholesale Costing vs Private Label Costing
6. Other Business Cost Factors
7. Product Development Cost
8. Target Market Pricing
9. Profit Margins
10. Accounting for Markdowns, Discounts and Chargebacks
11. Ways to Cut Costs
12. Costing for Today's Changing Market
Glossary of Costing and Pricing Terms