Cost Breakdown of a Men’s Woven Cotton Shirt sold in USA Market

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Do you know the actual manufacturing cost of the cotton shirt you are wearing? What the other costs added to the retail price? How much mark-up is added by retailers? The following cost breakdown chart gives answers all of your questions.




Cost Heads
Amount ($)
Fabric
CMT (Cut-Make-Trim)
Quota Category
FOB Price (for Complete garment)
3.00
2.00
1.80
6.80

Duty (19.8%)
Freight
Clearance and  inland transport
LPD (Landed Duty Paid)

1.34
0.30
0.14
8.58

Private Label importer price Mark-up
Wholesale Price

Retail price mark-up
Retail Price


3.68
12.26

18.39
30.65


Source: David Birnbaum. 2005. Source-it, Global material sourcing for the clothing industry. Hypothetical case study based on standard US costing. Retail mark-up includes R&D, design, marketing, head office costs, other costs.

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Online Clothing Study: Cost Breakdown of a Men’s Woven Cotton Shirt sold in USA Market
Cost Breakdown of a Men’s Woven Cotton Shirt sold in USA Market
Online Clothing Study
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