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AHMInternational

Commercial guide

How an FOB price is built.

What sits inside a garment FOB quotation, which components actually move the number, and how to have a productive conversation when a quote comes back above target.

Garment being measured against the approved size specification

In short

A garment FOB price is built from fabric and trims, cutting and assembly labour, decoration, finishing and inspection, packing materials, export handling, and the manufacturer's overhead and margin. Fabric is usually the largest single line, and fabric consumption calculated from the actual marker, rather than estimated. Is what makes a quotation hold through to production.

7 min read

Reviewed by AHM International product development team

Last reviewed August 2026

What is inside the number

Roughly in order of magnitude for a typical uniform garment.

Fabric
Consumption multiplied by fabric price. Consumption comes from the marker, and the marker depends on the pattern and the size ratio.
Trims
Zips, buttons, thread, elastic, labels and hardware. Small individually, significant in aggregate on complex articles.
Cutting and assembly labour
Driven by operation count. Every pocket, bar tack and topstitch line is an operation.
Decoration
Stitch count for embroidery, colour count and placement count for print.
Finishing and inspection
Pressing, trimming, measurement verification and appearance check.
Packing materials
Polybags, cartons, hangers, hangtags and labelling.
Export handling
Documentation, inland transport to port, export clearance and loading.
Overhead and margin
The manufacturer's fixed costs and profit.

Why marker-based consumption matters

Fabric consumption is the largest variable in most garment costs, and there are two ways to arrive at it. One is to estimate from the garment's dimensions. The other is to lay the actual pattern pieces into a digitised marker for the real size ratio and measure what the lay consumes.

The difference is not small. An estimate has to include a safety margin, because underestimating consumption means quoting below cost. A marker-based figure does not need that margin, and it does not move between quotation and production.

When you compare quotations, it is worth asking which method produced the number. A quotation that changes after the order is placed usually started as an estimate.

What moves an FOB price, and by how much

Directional guidance for scoping. The actual effect depends on the article. These are the levers worth discussing, not a price list.

LeverEffectWorth discussing when
Fabric composition and weightLargeThe quote is above target. An alternative construction often closes the gap invisibly
Operation countLargeThe article has many pockets, panels or reinforcement points
Colour countMedium to largeSmaller dye lots raise fabric cost and can raise minimum quantity
QuantityMediumSetup amortises across the run; the effect is biggest at low volumes
DecorationMediumHigh stitch counts or many print colours
Packing formatSmall to mediumHanging or retailer-specific packing; also changes your freight
Size rangeSmallVery extended ranges affect consumption and marker efficiency

When a quote comes back above target

The productive sequence, rather than simply asking for a discount.

  1. 01

    Share the target

    A manufacturer cannot cost-engineer toward a number they do not know. A target is information, not a weakness.

  2. 02

    Ask what is driving the cost

    A supplier who can break the price into fabric, labour, trims and decoration is someone you can work with on it.

  3. 03

    Look at fabric first

    It is usually the largest line, and an alternative construction at a similar hand feel often closes most of a gap.

  4. 04

    Then look at operations

    Reinforcement and pocket configuration can often be simplified without affecting how the garment performs in service.

  5. 05

    Re-check the quantity

    If the target assumed a larger run than you quoted, say so. Setup amortisation is real.

  6. 06

    Decide what not to change

    Some cost is buying durability. Cutting it moves the cost to replacement frequency rather than removing it.

On sharing your target price

Buyers often withhold a target for fear it becomes the price. The trade-off runs the other way in practice: without a target, a manufacturer quotes the specification exactly as written, even when a change they could have suggested would have met your number. The target tells them which options are worth presenting.

Related questions

Also asked.

No. FOB covers everything up to and including loading on board at the named port. Ocean freight, insurance, import clearance and duty are arranged and paid by the buyer.

Most often because they are answering different questions. Differences in assumed fabric quality, stitch density, trim grade and inspection standard produce very different numbers from the same sketch. Comparing on price alone without comparing the assumptions behind it is how a cheap quotation becomes an expensive order.

Only if it is answering the same question as the others. A quotation notably below the rest usually reflects a different assumption somewhere. Worth finding out where before treating it as a saving.

PUT IT INTO PRACTICE.

Send one specification and we will apply exactly this thinking to your style. Construction, materials and commercial FOB costing.

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