In this post, I have answered an interesting problem. This question was received from a fabric supplier (knits fabric supplier). Though I have not worked in knitting mills, I have tried to solve the puzzle using my understanding of fabric pricing.
The problem:
My customer needs prices/kg of Single Jersey fabric in different GSM viz 140, 150, 160 & 180.
When I calculate the cost of yarn per kg and other processing charges, I get the same price for all GSM fabrics. How should I differentiate the cost for respective GSMs? Kindly help me correct the calculation of prices.
Answer:
I am not sure how the supplier was calculating pricing for knit fabrics.
But it is true that if the knit fabric of different GSM passes through the same processes and one adds values of each process in Kg, the resulting cost will be the same per KG for all GSM fabrics. No no way of differentiating fabric prices per Kg for different GSM fabrics.
I would suggest checking these variables to come up with accurate fabric pricing per Kg of different GSMs.
#1. I am sure you will be using different counts of threads/yarns for knitting different GSM of fabrics. And yarn price per kg may slightly vary based on yarn count. If they do, you can use that data for estimating fabric prices. By using this variable you will have a different price for different GSM fabrics.
#3. If you are including post-knitting processing costs, please check how you apply labor cost/processing cost. Is it per meter or in Kg? If it is in meters then you will get a little variation in costing of the fabrics.
I hope this will give you an idea.
After reading my answer, the supplier communicated the same with the buyer. The buyer also understood the reason for getting the same pricing for different fabrics.
Problem-2:
1. S/J-140 GSM
2. S/J-160 GSM
3. INT-190 GSM
4. INT-200 GSM
5. INT-210 GSM
6. INT-220 GSM
7. VELOUR-240 GSM
8. VELOUR-260 GSM
9. VELOUR-280 GSM
Answer:
Weight (in grams) = Fabric length (in meters) X Fabric width (in meters) X Fabric GSM
Important note:
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