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Unit Economics Guide

Apparel Manufacturing Cost Considerations: FOB vs DDP.

Understand the financial anatomy of garment production. Learn how fabric GSM selection, order volume, pattern engineering, and freight incoterms dictate your true landed margin.

Cost Breakdown

Deconstructing Garment Unit Costs

First-time fashion brand founders often focus exclusively on the per-unit sewing cost, overlooking critical expense components such as fabric weight (GSM), trim customization, customs duty, and international freight.

Fenalt delivers total pricing transparency: Every quote we issue is a fully landed price - covering raw materials, pattern grading, physical sampling, in-line floor QC, customs entry, and door-to-door freight.

Disclaimer: Total landed unit cost varies based on product design, order quantity, fabric weight (GSM), customization techniques, freight mode, and destination country tariffs. Final quotes are confirmed during project intake.

Cost Drivers

Primary Cost Elements Explained

55% – 65% Cost

1. Fabric Consumption & GSM

Raw material cost is governed by fabric weight (e.g. 180gsm vs 480gsm fleece) and yield per garment.

50 vs 500 Units

2. Order Volume & Scale

Fixed factory setup costs spread across larger unit volumes lower individual per-piece sewing expenses.

FOB vs DDP

3. Freight & Customs Incoterms

DDP pricing absorbs ocean/air freight, customs entry brokerage, and import duties into one predictable figure.

Quality Assurance

No Hidden Fees Guarantee

We physically audit stitching, measurement accuracy, and label attachment on the factory floor before garments are approved for export.

Measurement Tolerance (±1.5cm)

Strict sizing curve control across all garments.

Needle & Metal Detection

100% safety inspection of finished pieces.

ANSI/ASQ Z1.4 Audits

Enforcing international AQL 2.5 quality benchmarks.

Questions

Cost Breakdown FAQ

What is the difference between FOB and DDP pricing in clothing manufacturing?

FOB (Free on Board) covers production until garments are loaded on a ship/plane in Dhaka. DDP (Delivered Duty Paid) includes production, export duties, international ocean/air freight, customs entry, and door delivery to your warehouse.

Why does Fenalt provide all-inclusive landed pricing?

All-inclusive landed pricing eliminates surprise freight surcharges, import duty spikes, and hidden handling fees - giving brand founders exact unit margin clarity before order approval.

Request an all-inclusive landed quote

Submit your apparel tech packs or design sketches for a transparent quote within 24–48 hours.

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