In the denim purchasing and retail industry, most buyer only focus on price negotiation with factory. However, a experienced buyer know price on paper only part of it. There are several hidden manufacturing cost are eating the profit if not managed well
As a leading denim manufacturer in china, we can say there are 5 hidden cost which impact the FOB price and profit. Whether your are buyer or sourcing for brand, it you get this right here, you can make you
The cost of repetitive sampling is one of the most easy overlooked cost. Especially for small MOQ denim order, several times sampling is a profit killer. For example, while order units is 500pcs, once remaking sample twice, it already make the price increase $0.5 per each pair, the cost of making sample and courier fee won’t disappear.
You may think this is supplier responsibility, I should get a corrected sample. But won’t the supplier pass these costs on to you? What to Do?
– Provide a full Tech Pack with precise technical details
– Work with experienced supplier in pattern and who has 3D garment sampling
– Evaluate if minor errors on the sample can be corrected directly during bulk rather than remake
Getting the sample right at the first time and reducing the repetitive sampling is most important way to saving cost
Normally, the fabric cost is taking around 30-40% of the jeans cost. The fabric consumption is directly effect the cost.
When choose the fabric, you can’t just see the units price. It is trap here, you must consider the shrinkage. Cheap Denim fabric usually with high shrinkage, that means the fabric consumption is more and you have to buy more fabric. All denim factory won’t tell you the actually consumption ,but you need to evaluate the feasibility of the quote.
Moreover, average traditional manual cutting efficiency range is only 85%, but the digital CAD pattern making can push the utilization rate above 90%. For big-volume production, automated cutting system can minimize human error and reduce the fabric consumption by 2% at least.
Washing is the soul of the denim jeans. But different denim washing technical will has different production risk and waste rate.
Acid washing or heavy bleaching washing has higher wastage than rinse washing. You must alert the hidden quality risk when different washing technical but exact same wastage rate.
Moreover, denim manufacturer will try the first lot which is the way of control final look of the collection, however, it will have risk of washing again and again lead to the wastage and drives up both lead times and unit costs.
Solution: Working with premium washing mill or denim supplier such as Reego, getting washing color right the first time to avoid rewashing , keep the wastage under normal level.
Do not underestimate the trims you use on your jeans. You may think the label is small,only few cents can’t effect on cost, surely label themselves are cheap,but that’s only when producing them in massive quantity.
Almost all the brand need customized trims with logo, and most trims supplier operate on high MOQ or minimum charge for customized trims, so that hidden charge is added to the unit price. The more customized trims you used on the sample that means more hidden fees adds up. And every style has its own unique trims that will lead to more wastage or dead stock.
Solution: Standardize accessories as much as possible or using available stock trims on the market, consolidate the fragmented trims so that can optimize production and reduce the cost. Standardization is not only about aesthetic or stylish but also about Financial Velocity,
For most of brand, delivery delay or a quality defect isn’t just a technical issue—it’s a direct hit to the sales and retail margin.
Many of brand only do the final inspection before shipping, but even the mistaken has found at the last moment, some error can’t be reversed or have pay more cost for fixing it.
Actually we think during production inspection is more important especially for denim production. Because once garment are washed, the washing mark can’t be fixed perfected if need correcting any of top stitching. It can’t let you see any save in the price, but getting it right will reduce the manpower and mental energy in long run.
Reducing denim bulk purchasing costs is not just negotiation price with factory, it is about efficiency. By avoiding repetitive sampling and standardizing trims, you protect your retail margins and improve the production efficiency. We believe a smooth production run is the best way to save money. Partnering with a professional manufacturer like Reego, we focus on getting the washing and fit right at the first time, avoid the hidden cost as much as possible .Ensures your bulk denim production remains high-quality, cost-effective, and transparent from start to finish.
In Reego practice, it is not only sewing. We need to select the most suitable fabric and test the shrinkage, try the washing color to ensure the sample meet the requirement. We also do final inspection of sample details before sending, to sure the sample you get is perfect.
Moreover,we always strive to lower the waste through the whole production process , as part of of our commitment to sustainable production. To support the new brand, we offer flexible trial order solution to meet their small batch needs.
In Reego practice, communication is essential. Before staring, our design and pattern master will review all the technical details and discuss any difficult point, that will help minus the potential errors and ensure the fit, color, styling is wanted and this jean is manufacturable.
02Feb
07Feb
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