Three Common Mistakes To Avoid While Deciding On the Costing Of Apparel Merchand

Posted by vivek choudhary on February 29th, 2020

Costing exercise is an important, integral part of the apparel merchandising process. Even though it isn’t necessarily the fun or glamorous part of the process in general yet it has what it takes to turn your business into a successful venture. A professional who teaches apparel merchandising course in Delhi sends a word of caution in the event that the costing of your product isn’t done correctly you may very soon run out of business.

• Here are three common mistakes committed by wannabe apparel merchandisers while settling on the cost and pricing strategy.

1. When you don’t begin with a pre-cost

o    It’s essential that you do a pre-cost.

o    The process involves considering the ideal price point of retail merchandise and working backward.

o    For instance, an expert who has pursued apparel merchandising course Delhi, says that if 0 is your ideal retail price point, then you’re required to wholesale your product at and keep up the cost of goods and manufacturing no more than to earn a reasonable profit.

o    This assessment can give you an improved idea of the amount you need to spend on fabrics, cuts, sewing, and packaging.

o    Make sure you deliberate on your target customers when considering the ideal retail price point.

o    Also, have knowledge of the perceived value of the product and how much are your potential customers willing to spend.

2. When you miss a product’s key elements

o    The most obvious items comprising apparel are the fabric along with the cutting and sewing options.

o    However, ensure you don’t forget other essential items such as size or care labels, poly bags, hangtags, etc.

o    Also, find out how the interior of the product looks like.

o    Are there any interfacing and stabilizers required to hold the shapes in place?

o    Is there any need to keep a button placket?

o    So, according to a pundit from apparel merchandising college Delhi, it’s necessary that you include every single aspect, however small it may be when you do overall cost calculation.

o    This is because when you try to calculate the retail price in its totality an extra dollar here and there can add up to your overall cost.

3. When you don’t take shipping into account

o    Since the apparel industry has a global presence you might be sourcing trims and fabrics from different countries or a number of places in the same country.

o    If you aren’t aware of the precise shipping cost you may consider the total material cost and roughly 10 percent of it would be your shipping cost.

o    A professional who teaches at an apparel merchandising college in Delhi asks to take note of the fact that such estimations work on a preliminary level.

o    When you receive the final invoice vouchers from your vendors you can get the price per piece or yard updated taking the actual amount together which includes shipping as well.

At IIFT Naraina, the best apparel merchandising college Delhi, we come up with a variety of courses and help you learn from the available best. Students who aspire to develop a career in the field of apparel merchandising can opt for a BSc in fashion designing or apparel merchandising from our institute.