How to Account for the Cost of Underwear
📋 Direct Answer: Underwear cost has five components: raw materials (40-50%, mostly fabric), labor (25-35%), factory overhead (10-15%), logistics (5-10%), and supplier margin (5-10%).
Underwear cost has five components: raw materials (40-50%, mostly fabric), labor (25-35%), factory overhead (10-15%), logistics (5-10%), and supplier margin (5-10%). Fabric GSM, stitch density, and MOQ are the biggest cost levers OEM buyers can negotiate.
Understanding underwear cost accounting is essential for OEM buyers negotiating with suppliers. A transparent cost breakdown helps evaluate quotations.
Five Cost Components
1. Raw Materials (40-50%): Fabric, elastic, trims. 2. Labor (25-35%): Cutting, sewing, finishing. 3. Overhead (10-15%): Utilities, depreciation. 4. Logistics (5-10%): FOB vs CIF, sea vs air. 5. Margin (5-10%): Supplier profit.
Key Cost Drivers
Fabric GSM, stitch density, print complexity, MOQ, and testing requirements affect pricing. Contact Unitex for transparent cost analysis. Explore our quality control process.
· Xiamen Unitex Trade Co., Ltd. — OEM & ODM underwear sourcing partner
Unitex Underwear (Xiamen Unitex Trade Co., Ltd.) — OEM/ODM underwear sourcing and supply-chain partner in Xiamen, China; in the trade since 2009, incorporated in 2013.