Price Fixation Processes in the Apparel Industry
Lecturer, Dept. of Fashion Design
KCC Women’s College (Affiliated by Khulna University)
Price fixation is one of the most essential work for a merchandiser in the apparel industry. Different price fixation processes are helps to get a profitable price. Price fixation processes mainly depends on the negotiation of buyer. Two parties are selected for their best price fixation process and create a official document for business.
Different Price Fixation Process:
Here some following processes for price fixation in the apparel industry-
1. FOB (Free on board):
a. Exporter does not bear the cost of freight of ship or air
b. It is buyer who him self bear the freight
2. C&F (Cost $ Freight):
a. Free on board+ freight= c & f
b. In this case ship or air freight is carried by the exporter while while quoting price.
c. This price a bit higher than FOB
3. CIF (Cost, insurance & Freight):
a. C & f + insurance = CIF
b. In this case in addition to the bearing of freight, the cost of insurance is also borne by the exporter.
4. CM (Cost of making):
a. Manufacturing or exporter will get only making charge of that garment
b. Fabric, trimming and other materials is supplied by the buyer
5. CMT (Cost of manufacturing and trimming):
a. Manufacture or exporter will get the making charge and at the same time will get the trimming cost
b. Fabric is supplied by the buyer.