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Module 2 — Costing and Negotiation
Covers garment costing structures and buyer negotiation practice.
What you will be able to do
Build a cost sheet you can defend line by line, and negotiate without giving away the margin by accident.
The practical work
Cost one style from scratch: fabric consumption with wastage, trims, CM from SMV and the minute rate, testing, commission, overhead and profit, up to FOB. Then run a negotiation on the same style and record which line each concession came from and what it did to the margin.
Prerequisite: Read module 1 and pass its quiz first.
Reading for this module
Read these 4 Garment Ed subjects in order, then take the quiz below.
Practical worksheet
Cost one style from scratch: fabric consumption with wastage, trims, CM from SMV and the minute rate, testing, commission, overhead and profit, up to FOB. Then run a negotiation on the same style and record which line each concession came from and what it did to the margin.
- Identify requirements and assumptions.
- Record evidence and calculations.
- Choose a decision and containment action.
- Assign an owner and verification check.
Module quiz
5 questions on Module 2 — Costing and Negotiation. Answer them all, then check your score before moving on. 4 correct or more is a pass. Your best score is saved on this device, and to your account when you are signed in. This is a self-check, not an accredited assessment.
1. Fabric consumption is 1.8 m at 4.20 USD/m with 5% wastage. What is the fabric cost per garment?
2. SMV is 18 minutes and the minute rate is 0.075 USD. What is the CM?
3. FOB price differs from CM because FOB includes:
4. A buyer asks for 4% off a 10 USD FOB with a 6% net margin. What is the honest analysis?
5. Which is a real cost reduction rather than a margin giveaway?
Applied assessment
Build and defend a price from a cost position, and recognise which concessions destroy margin rather than cost. 6 questions that ask you to decide or calculate from a real situation, 75 per cent to pass, unlimited attempts.
Take the applied assessmentStructured certification
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