This presentation summarizes key aspects of cost negotiation for apparel merchandising. It discusses how Bangladesh has become a major exporter of ready-made garments, contributing most of the country's foreign currency earnings. It then outlines the merchandiser's role in product development, sample making, costing, and negotiating orders. Sample types include fit samples, PP samples, and lab test samples. Formulas are provided for calculating fabric consumption and a typical cost sheet is shown. The presentation aims to equip merchandisers with the skills needed for cost negotiation.

1. Welcome To The Presentation On
COST NEGOTIATION
Submitted To
Dr. MashiurRahmanKhan
Associate Prof.And Head Of The Dept. of AME
Bangladesh University Of Textiles
Apparel Merchandising
Dept. of AME
Sub. Code: AME-556

2. This Presentation Is Submitted By:
Md. Firoz Kabir
ID: 2014-2-4-015
Dept. Of AME
BANGLADESH UNIVERSITY OF TEXTILES

3. In 1980s Bangladesh Had Began To
Export Ready Made Garments
Today This Sector Is Considered As
Most Growing And Largest Sector
Which Contributes 87% Foreign
Currency Earnings

4. In The Fiscal Year 2012-13
Bangldesh Exports 87% Textile
Goods Left Only 13%

5. According To BGMEA
5600 Garments
Factories Are
Producing Different
Types Of Garments.
About 4.2 Millions
Peoples Are Doing
Work In This Sector
And Most Of Them Are
Women

6. What Types of Products Are Being
Produced in Our Country?
Woven
Shirt
Pant
Jeans
Jakcet
Formal Dresses
Fasionable Baby Garments
Ladies Wear
Night Gowns
Dress ,etc
Knitted
Sweater & Home
Textile
T-Shirt
Polo Shirt
Swimsuit
Different Types of Jersey
Lingerie
Mens Under Garments
Trousers
Winter Wear
Different Fashionable Items, etc
Vairous Kinds of Sweaters
Bedding Textiles
Blankets
Carpets
Various Non-Woven Textiles ,etc

7. WHO ARE THE CUSTOMERS?
Bangladesh Is
Working For
Numerous
Famous
Brands For
Fashion
Across The
World

8. WHO ARE THE CUSTOMERS?

9. WHO ARE THE CUSTOMERS?
USA IS THE
MAJOR MARKET
FOR WOVEN
GARMENTS
EU IS THE MAJOR
MARKET FOR KNIT
GARMENTS

10. Apparel Merchandising Is Directly
Related To Negotiating Orders,
Buying And Selling Goods Trough
Maintaining Better Relation And
Liaison With Both Buyers, Suppliers
As Well As Factory Management

11. Merchandisers Are
Considered As Key
Persons In Apparel
Industry For Their
Responsibilities

12. Merchandisers Should Have Knowledge About
 Basic Textiles
Raw Materials Of Textiles
Different Process In Textiles Producing
Should Know About Yarn, Fabric, Dyeing Procedures Etc
Knowledge About Different Fashionable Garments As Well As Basic Items
Different Constructional Knowledge Of Garments
 Fabrics, Trims And Accessories Cost And Production Lead Time
Better Communication Skill And Good Personality
Good Command In English In Both Oral And Written

13. Prime Six Roles Of A Merchandiser
Product
Development And
Oder Negotiations
Doing Consumption
And Costing
Sample Making And
Submission For
Approval
Making TNA Chart
And Proper Filing
Negotiation With
Suppliers For
Booking And Buyers
For Further Approval
Attend to PPM & Co-ordination
With
Factory Key
Responsibilities And
Others

14. What Happens During
Product Development
As Given By Buyer
Full Bill Of Materials
A Typical Measurement Chart
A Garment Specification Sheet
Sometimes Block Pattern

15. Bill Of Materials

16. Bill Of Materials
BOM Contains
Fabric Details

17. Bill Of Materials
BOM Contains
Thread Details

18. Bill Of Materials
BOM Contains
Trims Details

19. Bill Of Materials
BOM Contains
Wash Details

20. Measurement Chart

21. Measurement Chart
MC Contains
Description of Each
Point of Measure

22. Measurement Chart
MC Contains Size
Range

23. Measurement Chart
MC Contains
Tolerance Limit

24. Measurement Chart
MC Contains Different
Measurements for Different Sizes

25. Garment Specification Sheet

26. Garment Specification Sheet
Stitching Details Are Completely Shown
By A Typical GSS

27. What Happens During
Product Development
As Made By Factory
Develop Pattern As Per MC and Block Pattern
Select Fabric and Trims As Per BOM
Cut The Fabrics as Per Pattern
Sewing Samples as Per GSS

28. SAMPLES
Samples Are Very
Important Elements
For Bulk
Production. Sample
Making As Well As
Getting Approval
From Buyers Is Very
Important Job For
Merchandisers

29. SAMPLES
Samples Are Very
Important Elements
For Bulk
Production. Sample
Making As Well As
Getting Approval
From Buyers Is Very
Important Job For
Merchandisers
Types Of Samples:
Proto Sample
Development Sample
Salesmen samples or promotional
samples
Fit samples
Size Set Samples
Counter samples or reference samples or
approval samples
Wash test/Lab test samples
Fashion show samples
Shade Band Samples
Pre-production samples
Tag/Sealer Sample
Production samples
Shipment samples

30. Different Types Of Samples
Are Asked ByDifferent Buyers
But
F. our Basic Type Of Samples Are
AskedBy Most Of The Buyer

31. Fit samples
Fit Samples Or Size
Set Samples Are
Made By Following
Actual
Measurements.
These Samples Are
Fitted To Dummy
For Checking
Fittings As Well

32. Fit samples
Fit Samples Or Size
Set Samples Are
Made By Following
Actual
Measurements.
These Samples Are
Fitted To Dummy
For Checking
Fittings As Well
Characteristics
All Measurements hit the MC & within
Tolerance
Construction and Stitching should as
per GSS
Sample Must Follow The Full Styling
Designed By Technician
Fabrics use must actual but trims
may not be actual

33. PP Samples
PP Samples Are
Made By Following
Full Workmanship.
This Is An
Important Sample
For Bulk Production

34. PP Samples
PP Samples Are
Made By Following
Full Workmanship.
This Is An
Important Sample
For Bulk Production
Characteristics
Samples Must Follow Full Workmanship
Actual Fabircs as well as trims used
Stitching and Design must be as per
specification sheet
In Bulk Production Follow This
Sample strictly

35. Lab Test Samples
Lab Test
Samples Are
Not Asked By
Buyers For
Approval.

36. Lab Test Samples
Lab Test
Samples Are
Not Asked By
Buyers For
Approval.

37. Lab Test Samples
This Samples Are The
Requirement For A
Legal Issue That There
Are Not Presence Any
Substance Harmful For
Wearer And Safety Of
Products

38. Lab Test Samples
This Samples Are The
Requirement For A
Legal Issue That There
Are Not Presence Any
Substance Harmful For
Wearer And Safety Of
Products
Characteristics
Samples Make With Actual Fabrics And
Trims
Make It Ready For Testing As Buyers
Specification
Samples Should Not Fail At Any Point
Test Reports Is Required To Release
Inspection Certificate As Well

39. Who Test These
Samples?

40. Top/Production Samples
Top Of Production (TOP) Are
The Samples Asked By Buyers
At Bulk Production Stage To
Make Sure That Factory Is
Doing Right Thing

41. Top/Production Samples
Top Of Production (TOP) Are
The Samples Asked By Buyers
At Bulk Production Stage To
Make Sure That Factory Is
Doing Right Thing
Characteristics
Samples Are Collected From Bulk
 These Are The Samples Focus
Original View Of Mass Production
Before Going To Ship Out These
Samples Are Sent To Buyers
 Approval From The End Of Buyers Is
Required To Ship The Final Goods

42. Consumption Calculation
This Is The
Required
Amount Of
Fabric To
Make A
Garment

43. Consumption Calculation Formula For Knit Top
(Measurement in CM)
B.L + S.L. + Allowance) X 1/2 Chest X 2 X GSM X 12 ÷(10000 X 1000) kg/dz
Here,
B.L -Body Length
S.L -Sleeve Length
Allowance -Allowance would have considered for both B.L and S.L
GSM -Gram Per Square Meter
10000 means cm is converted into meter
1000means gram is converted into kg

44. Consumption Calculation Formula For Knit Top
(Measurement In Inch)
(B.L + S.L. + Allowance) X 1/2 Chest X 2 X GSM X 12 ÷(1550X 1000) kg/dz
Here,
B.L -Body Length
S.L -Sleeve Length
Allowance -Allowance would have considered for both B.L and S.L
GSM -Gram Per Square Meter
1550 means inch is converted into meter (1 inch = 39.37" where inch square will be 39.37"X39.37")
1000means gram is converted into kg

45. Consumption Calculation Formula For Woven Bottom
Basic Consumption Formula For Woven Bottom:
Length x Width x 12
(Fabric Width x Unit)

46. Consumption Calculation Formula For Woven Bottom
A Typical Example :
Some Measurements
Waist -35"
Outseam -42"
Inseam -3o"
Thigh -26"
Hip -44"
Bottom Opening -18"
Fabric cut able width -56"

47. Consumption Calculation Formula For Woven Bottom
A Typical Example :
Total Leng and Width Values:
Length = 42"+ 2"(Waist Band Height) + 3"(Al) = 45"
(I have considered out seam for length but you can consider in seam along with back rise length
and waistband length for total length)
Width = 26"+ 3" (Al) = 29" (In case of 1/2 t high circular the formula will be multiplied by 4)

48. Consumption Calculation Formula For Woven Bottom
A Typical Example :
Fabric required for making one dz pant:
(Length x Width x 12)/(Fabric Width x Unit)
= (45" x 29" x 12) / (56" x 36")
=15.88 yards/dz
= consider as 16 yards/dz
Considering 5% wastage
= 16+0.8 yards/dz
=16.8 yards/dz

49. After All CAD Consumption Is
Perfect For FabrCiAcD CBonosuomkptiionn g
Contains All Sizes
Pattern So Efficiency
Will High With
Minimal Wastages

50. Consumption Calculation Of Sewing Threads
Merchandisers
Have Not
Enough Time For
Thread
Consumption
Because It Is
Very Time
Consuming Job

51. Consumption Calculation Of Sewing Threads
What We Really
Most of the
Merchandisers
Follow a Common
Consumption Value
Like This Chart
Do?

52. Costing
Buyers Are Asked For
Costing After Getting
Development Samples
From Factory.
Sometimes They Might
Be Asked For It Just
After Giving A Tech
Pack To Compare With
Others Factories.

53. Costing
The Basic Requirements Of Garments Costing Are:
 CM Of Particular Styles
 Fabric Consumption
 Printing Cost
 Embroidery Cost
 Wash Cost
 Trims Cost(zipper, Button, Label, Tape Etc)
 Accessories Cost (Tag Pin, Hanger, Price Ticket, Hang Tag Etc)
 Transport Cost

54. A Typical Cost Sheet

55. A Typical Cost Sheet
It Contains
Fabric Cost

56. A Typical Cost Sheet
It Contains
Total Trims
Cost

57. A Typical Cost Sheet
It Contains
Wash Cost

58. A Typical Cost Sheet
This is The
Final FOB

59. After The Satisfaction Of
Buyer In Both Samples
And Costing They Will
Confirm The Order

60. A Order Confirmation Mail looks like That

61. A Order Confirmation Mail looks like That
Now The Order
is Confirmed

62. That’s It

63. Thank You All.