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


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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