In order to calculate the cost of knitted garments, you must find out the cost of the material, labor cost, design cost and manufacturing overhead. These components are essential factors.
To find out the cost of the material, the first thing you must do is decide what fabric supplier is being used. Different suppliers charge different prices, and this can greatly impact the overall cost of the garment. Comparative shopping is key if price matters and budget constraints are an issue.
Labor costs can greatly vary depending on the skill level of the labor force being employed and the area in which the garment is being made. Factors such as local labor laws and cost of living must be calculated when determining the labor costs. A laborer in Boston tends to make more than one in Philadelphia, according to USA Wage.
A design cost is generally paid to the person or entity that designs the garment. Before any production can begin these costs must be taken care of.
Finally, manufacturing overhead must be factored into the cost of creating the garment. Overhead includes things such as cost to heat or cool the manufacturing facility, the light bill, machine costs, electricity costs, etc.