9 questions
MOQ and pricing
Minimums come from fabric, cutting and production setup, and they are quoted per style and colour. Prices are built from fabric, trims, labour and packing, and only quotes on the same basis can be compared.
Is the MOQ per colour, per size or per style?
Usually per style and per fabric colour, because fabric is bought and cut per colour. Sizes within a size run are normally not separate minimums. Ask for the minimum stated per style and per colour in the quote.
Why is the price higher for small quantities?
Setup costs such as pattern making, cutting markers, line setup and fabric minimums are spread over fewer pieces. A small run therefore carries more fixed cost per garment than a large one.
How is the price per garment calculated?
Fabric consumption multiplied by fabric price, plus trims, the labour for cutting, sewing and finishing, packing, overhead and margin. Details such as lining, embellishment and complex seams add labour and material.
What is the difference between EXW, FOB and DAP prices?
Under EXW the goods are made available at the factory and you arrange transport. Under FOB the seller loads the goods on board the vessel at the port of export, which applies to sea freight. Under DAP the seller delivers to a named place and you clear import. A term further along the chain includes more costs in the price.
How do I compare quotes from different manufacturers?
Put them on the same basis: the same fabric and composition, trims, size run, labels and packing, the same shipping term, lead time and payment terms, and the same sample cost. A lower unit price with a different fabric or shipping term is not a cheaper offer.
What are typical wholesale-to-retail markup multiples?
Many fashion retailers apply a multiple of roughly two times the wholesale price or more, but it varies with market, taxes, brand position and sales channel. Work backward from the retail price you can achieve and see what landed cost it allows.
What additional costs should I budget besides the garment price?
Samples, labels and packaging, inspection or testing, freight, cargo insurance, import duties and taxes, customs broker fees, local delivery, and possible returns or reworking.
How do I calculate landed cost?
Add the garment price, freight, insurance, duties, taxes that you cannot recover, broker fees, local transport and any inspection or testing, then divide by the number of sellable pieces. Compare that figure, not the factory price, with your retail price.
Is there a price difference between woven and knitted garments?
It depends on the fabric or yarn, the construction and the details. Neither is cheaper in every case, so compare actual quotes for the styles you are considering.
General information, not legal or customs advice. Rules change and differ by country: confirm the details that apply to your shipment with your customs broker or importer.