Negotiating with Apparel Manufacturer – Using Bills of Material

Often apparel manufacturer asks your target cost of the garment you want to get produced. This is a smart move from apparel manufacturer to read your mind and know how much you are willing to pay. This you can say is the first step to enter into a price negotiation. I will give the example through a small example. When you are going to market to buy Gregory and vegetables or meat you have some price in your mind for each item. For example, say for 1 kg lamb meat say you have thought the price should say $50. But when you get the same in $40 you are happy because you saved $10 / kg.




Now, in this case, apparel manufacturer is trying to access how much you are willing to pay / piece of garment. With your answer, the vendor is quite clear how much profit he is going to make from you. This decides whether working with you is profitable or not. Here if your price is higher than vendors expectation vendor would make more profit and visa vis. Now you know what may happen. But to what extent it may affect your profit margin is a big question.  Am I scaring you for losing more money on apparel manufacturer? Are you wondering whether you end up paying much more than the actual price of the product? With this confusion, you end up negotiating hard and loose a genuine clothing manufacturer.


Right Way to Price Negotiation with Apparel Manufacturer


But, the bottom line is both brand and apparel manufacturer are right. Unless you know how to calculate price the right way you continue to negotiate and play blind. We all know that not all people are excellent negotiators. So the best way to arrive at a right price and close the deal in a win-win position is by using BOM. BOM ( Bills of Material ) is the material specification that you can create only when you have the tech pack. When you have the Technical design of a garment you know what goes where and in what quantity. When you are producing of 10 / 15 pics, this does not matter much. But, when you are planning for a mass production tech pack is inevitable. So, to get the price right you must get the tech packs prepared and from there you can prepare the bills of material. So it is important to realize that you need a professional tech pack designer. A technical designer with experience in ground level experience in a factory environment.


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