A garment price quotation should tell the buyer what is on offer and in what quantity. It should also state the terms and date. A low number without that detail is hard to compare and easy to misunderstand. The missing cost often appears later as a charge, a delay or a product change.
Begin with a defined product and order scenario. Then build the offer around its supply scope, price unit, delivery basis and payment terms. Keep assumptions visible, and identify the point at which a change requires a fresh price.
This article deals with the buyer-facing offer. It does not replace the factory's costing work. The internal cost sheet shows whether the order makes commercial sense. The quotation tells the buyer what the seller offers for the stated price.
The examples below use invented prices and order details. They demonstrate comparison methods, not current garment prices, freight rates or recommended margins.
Fix the product version before comparing prices
Give the quotation a product reference that links to the exact specification being priced. Include the revision date and identify any sample used as a reference. A style code alone may cover several versions of a garment.
Confirm the fabric quality and composition, with its weight where relevant. Add the colour requirements, construction and visible trims. State the size range and any feature that differs by size. The offer should identify the agreed product without making the buyer search through unrelated messages.
If an element is still open, describe the assumption precisely. For example, the zipper cost may still be an estimate. Name its type, length range and price basis. A phrase such as “standard zipper included” is weak when the buyer expects a branded component with a different cost.
Separate the requested design from a lower-cost alternative. Price both versions if useful, but label them clearly. Replacing a metal buckle with a plastic one may reduce cost; it does not establish a saving on an unchanged product.
The ApparelDiary PLM guide explains how specifications and approvals can remain linked. Keep that record so the team can find the quoted version after the price talks move on.
State the order quantity and its mix
Price the actual quantity by colour, size and delivery split. A total of 4,800 pieces does not show whether the order has two large colour runs or twenty small ones. Those orders can require different material purchases and setup work.
Ask whether minimum quantities apply to the whole style, each colour, a fabric batch or a particular trim. Keep those limits separate. Meeting a style minimum does not necessarily meet the mill's minimum for every colour.
For example, suppose a supplier requires at least 400 pieces per colour for a proposed offer. A 1,200-piece order split into three colours of 400 meets that stated condition. The same total split into six colours of 200 does not. This is an invented commercial condition, not a standard garment-industry minimum.
Record the quantity used for each price tier. If a buyer later reduces the order, ask the seller to confirm the revised price and material commitments. Do not carry a high-volume rate into a smaller order merely because the style has not changed.
Also define any allowed shipment quantity variation and how the final bill will reflect it. An order quantity, production allowance and permitted shipped quantity serve different purposes.
Explain any size or colour price differences
A single style may have more than one quoted rate. A larger size may use a different component. A special colour may need an extra process. Show the rate and quantity for each case. The reason must relate to the actual offer, not an assumed surcharge that applies to every factory.
Consider a separate invented order of 3,000 garments. The quote prices 2,400 pieces at USD 8.20 and 600 pieces at USD 8.55. Its total is (2,400 × 8.20) + (600 × 8.55) = USD 24,810. The weighted average is USD 8.27 per piece.
That average belongs to the stated mix. If the higher-priced group rises to 1,800 pieces while the total stays at 3,000, the average becomes USD 8.41. The revised total is USD 25,230, which is USD 420 more. Using the old average would hide that change.
Keep the underlying rates and quantities available even if the buyer prefers one average in the summary. Agree whether the invoice uses the individual rates or a confirmed blended rate. Also state what happens when the size or colour mix changes after the price is accepted.
Separate supply scope from delivery terms
The quotation must say who supplies each major input and who performs the work. List fabric, trims, cutting, sewing, finishing, testing and packing at a useful level. Include specialist work such as embroidery or garment washing when it forms part of the product.
An offer described as CMT needs a clear scope schedule. The label alone should not settle whether the buyer supplies thread, labels, packaging or all of those items. Identify who buys each input and who handles shortages or rejected materials.
CMT describes a manufacturing arrangement; it is not one of the eleven Incoterms rules. A manufacturing-scope label and a delivery rule belong in separate fields. The seller can explain its production scope and also state the agreed delivery basis.
For buyer-supplied materials, define receipt checks and the assumptions behind the quote. The sewing price may assume usable, approved fabric. That does not mean the factory has agreed to absorb every defect or delay in buyer-supplied material.
Record the agreed treatment of surplus material, rejected pieces and any return freight. These details affect the order even when they do not appear as a separate price per garment.
Use an appropriate delivery rule and a precise place
ICC's Incoterms 2020 guidance explains how the rules allocate costs, risks and obligations. They are not garment-cost formulas. Writing a rule beside a price does not explain the product's material or quality requirements.
State the chosen rule, named place or port and edition. The location needs enough detail to identify the actual agreed point. A broad city name may leave several warehouses or terminals in question.
ICC Academy's FCA and FOB explanation distinguishes their transport use. FCA can serve any mode, including combined transport. FOB is for sea or inland-waterway transport and involves delivery on board the vessel. For container cargo handed to a carrier before vessel loading, examine whether FCA fits the intended handover better.
Do not write “FOB airport” while intending to use the ICC FOB rule. Agree the delivery arrangement with the commercial and logistics teams. Use the same wording in the quotation and order.
The delivery rule also does not settle ownership, payment or every contract issue. Those matters need their own agreed terms. Avoid adding casual phrases that change the intended responsibilities without anyone noticing.
Keep freight payment and risk transfer distinct
An offer that includes freight is not necessarily an offer in which the seller bears transit risk to the destination. ICC Academy's discussion of CFR and FOB explains this common confusion.
Under the usual CFR and CIF structure, the seller pays the specified carriage while risk transfers on board at shipment. These are maritime rules. Use the correct named destination port and confirm the full rule for the actual transaction. CIF also requires the seller to provide the specified insurance. This does not mean the cover is unlimited.
If an enquiry says “C&F,” clarify the intended current rule and location. Do not let an informal label stand in for an agreed allocation of costs and risk. Likewise, a delivered price needs a defined delivery point and a clear account of charges included.
For quote comparison, list the costs needed to reach the same agreed boundary. That arithmetic helps compare the offers. It does not change where delivery or risk transfer occurs under either contract.
Make the price unit impossible to miss
Write the currency code and unit beside every rate. “8.40” is incomplete. “USD 8.40 per finished garment” tells the reviewer far more. Clarify whether a set contains one piece, two pieces or another stated assortment.
If a rate is per dozen, divide by twelve before comparing it with a piece rate. An invented USD 100.80 per dozen equals USD 8.40 per piece. The conversion changes the display unit, not the quoted scope or commercial terms.
Check any surcharge unit as carefully as the base price. A charge may apply per piece, colour, artwork, order or shipment. Applying an order-level fee to every garment creates an error. Leaving it out can make the offer look cheaper than it is.
Show the quantity, unit price and extended line total together. State the rule for rounding totals and handling decimal prices. Keep enough precision in the worksheet to avoid repeated rounding errors. Issue the quotation in the agreed currency format.
If more than one currency appears, preserve the original amounts. Add a comparison currency only with a stated exchange-rate assumption and date. A planning conversion is not a promise about the future payment rate.
Define what the base price includes
Build an inclusion list around the product's actual needs. Packing is a useful example. An offer may include the bulk carton but leave out individual bags, hangtags or a buyer-specific insert. The word “packing” does not resolve that difference.
State whether sample development, laboratory testing, inspection and courier costs are included. Identify the test scope and number of submissions assumed. A claim that all testing is covered is hard to use if the buyer later adds a market or changes the materials.
Keep one-time charges separate when that makes the offer clearer. Artwork setup, a mould or a development fee may relate to one order rather than every future repeat. Define when the fee applies and what a paid tool or file can be used for.
Trade.gov's export-pricing guidance highlights costs beyond basic production. These include transport, commissions, insurance and financing. Use a complete internal review to identify relevant costs. The buyer-facing quotation can then show a clear price without exposing every confidential factory cost.
If sewing conversion cost needs a separate review, use the ApparelDiary guide to cost per minute and CM pricing. Do not mistake the CM amount for the complete garment offer.
Compare two offers on the same basis
Assume a buyer requests 4,800 identical garments under one approved specification. Both hypothetical offers use the same currency, payment terms and delivery point. Both offers are FCA at the nominated consolidator's warehouse, under Incoterms 2020. The enquiry gives its full address, so both prices use the same physical point.
Supplier A quotes USD 8.40 per piece with the required packing, tests and setup included. Supplier B quotes USD 8.15 but lists several exclusions. The comparison below adds only the confirmed missing items needed for the same scope.
Item | Supplier A, USD | Supplier B, USD |
|---|---|---|
Base garment price × 4,800 | 40,320 | 39,120 |
Hangtag and individual bag | Included | 528 |
Required carton allocation | Included | 240 |
Defined test package | Included | 432 |
One-time setup | Included | 288 |
Total for the common scope | 40,320 | 40,608 |
Comparable amount per piece | 8.40 | 8.46 |
Supplier B's hangtag and bag cost is USD 0.11 per piece, giving 4,800 × 0.11 = USD 528. Its carton allocation is USD 0.05 per piece, giving USD 240. The two order-level charges total USD 720.
Comparable B total = 39,120 + 528 + 240 + 432 + 288 = USD 40,608.
Comparable B unit amount = 40,608 ÷ 4,800 = USD 8.46.
The headline rates suggest that B saves USD 1,200: 4,800 × (8.40 − 8.15). Once the known scope is aligned, B costs USD 288 more for this comparison. Neither result proves which supplier is better overall.
The example excludes costs beyond the shared FCA point. It is not a landed-cost calculation. The buyer still needs to assess quality capability and delivery evidence. Open exclusions and commercial risk also need review.
Keep unknown costs visible in the comparison
A blank cell is not evidence of zero cost. When an offer leaves an item unresolved, mark it as open and ask who will confirm it. Use separate labels for included, excluded with a known charge, excluded with an unknown charge, and not required.
Suppose Supplier B has not yet confirmed whether the quoted test package covers the specified wash process. First confirm that test scope. Only then can the USD 432 entry be treated as complete for the comparison. Until then, the comparison has an unresolved item even though its arithmetic adds up.
A useful query names the exact gap: “Does this test charge cover fabric Q12 after wash W3 for both colours?” That is easier to answer than asking whether all tests are included. Attach the relevant requirement so the supplier can confirm or revise the price.
Keep a provisional comparison separate from an accepted offer. A buyer can use an early estimate to discuss options, provided the open assumptions remain clear. When the missing information arrives, update the amount, scope and revision together.
Do not rank two offers as fully comparable while one still excludes an essential item of unknown cost. The worksheet should explain the limits of the comparison as clearly as it explains the apparent saving.
Test how quantity changes the comparison
Supplier B's variable amount in the example is USD 8.31 per piece: 8.15 + 0.11 + 0.05. The USD 720 in fixed charges is spread across the actual quoted quantity.
At 4,800 pieces, fixed charges add 720 ÷ 4,800 = USD 0.15 per piece. At 2,400 pieces, they add USD 0.30 per piece. If all other assumptions remain unchanged, the second calculation gives a comparable amount of USD 8.61.
That is a sensitivity check, not a new supplier quotation. Ask the supplier what changes at the lower quantity. Check material rates, minimums, setup and other terms. Supplier A must also confirm its own price for the smaller order.
Use the exercise to ask focused questions. Does the test fee remain fixed? Is a second colour setup required? Will a lower quantity leave paid fabric unused? Each answer can change the comparison in a different way.
Do not remove a cost simply because it is inconvenient. If the buyer chooses to supply bags, record that change. Include its own purchase and handling costs in the wider comparison.
Show payment terms alongside the price
Two equal prices can carry different payment commitments. State the method, currency, due event and timing. “Thirty days” needs a starting event, such as a defined invoice or shipment date, agreed by both parties.
Trade.gov's payment-method overview covers advance payment, letters of credit and collections. It also explains open account and consignment. These arrangements shift timing and payment risk. A bank's involvement does not make every method equivalent.
For an invented USD 40,320 order with a 30% advance, the advance is USD 12,096 and the remaining amount is USD 28,224. The quote must also identify what triggers payment of that balance. The percentage alone does not do so.
Name any agreed allocation of bank charges or other payment fees. Do not assume that a net receipt to the seller equals the amount sent by the buyer. Ask the responsible finance team to confirm the terms before the offer is issued.
Keep financing analysis separate from the product comparison. Any price adjustment for payment terms needs a stated method and clear assumptions. Do not hide it inside an unexplained “risk allowance.”
State dates as events that can be checked
Give the offer a validity date and a clear delivery commitment. Distinguish material readiness, factory completion, handover to the carrier, vessel departure and arrival. Calling all of them the shipment date invites confusion.
Lead time may start after several inputs are approved. List those inputs and explain how the team will set the start date. Examples may include a confirmed order, approved product file and receipt of specified buyer-supplied materials. Do not leave the start dependent on an undefined phrase such as “all clear.”
Agree what happens when an input arrives late. A revised date should follow a review of its actual effect on the schedule. It should not be silently assumed by either party.
The ApparelDiary guide to usable supplier lead time helps distinguish receipt from readiness for use. A material delivered to the factory may still require checks before production can start.
Label transit estimates clearly. Treat them as a commitment only if the responsible party has made that specific promise. A factory completion promise cannot by itself guarantee a carrier's arrival date.
Verify freight assumptions and validity
If the offer includes freight, get a current freight quotation. It must cover the actual route, cargo and timing. Record the rate reference and its scope. Avoid estimating freight as a permanent percentage of garment value; the relationship has no fixed basis across shipments.
Maersk's rate-lookup guidance separates freight, origin and destination charges. It also explains when a displayed rate is only indicative. This is a useful reminder to check what a rate includes before putting it into a garment offer.
Read the quotation's own validity and conditions. Maersk's validity guidance says that start and end dates appear on each quote. Other providers have their own terms; do not assume one duration applies to all freight offers.
If the garment quotation stays open longer than a supporting freight rate, resolve the gap. The seller has several options to resolve it. These include a suitable rate, a shorter validity for freight or an agreed adjustment. An open-ended promise should not be created by overlooking an expired input.
Review exceptions before issuing the offer
List exclusions where the buyer can see them, close to the relevant price or scope. A buried note can defeat an otherwise clear quotation. Resolve conflicts between the price table, attachments and message body before sending them.
Check who owns each unresolved assumption and when it will be closed. If fabric approval is open, state the basis of the price. It may use a named quality or remain provisional until that choice is settled. Do not present an uncertain input as a final commitment.
Give the quote an identifier, revision and issue date. When the offer changes, show what changed and identify the earlier version it replaces. Keep a readable record of the reason, such as quantity, material, packing or delivery scope.
The internal approver should review the complete offer, not just its unit price. A small rate change may come with much wider duties. Their cost can outweigh the saving shown in the first row.
Carry the agreed terms into the order
A pro forma invoice can present the quotation in invoice form. Trade.gov's pro forma guidance identifies the parties, item prices and totals. It also covers delivery terms, payment, timing and validity. Its use depends on the transaction and the buyer's requirements.
When the buyer places the order, check it against the accepted quotation. Use the linked product version for that review. Check quantities, prices, scope, dates and payment requirements. Raise differences before the team treats the order as ready for execution.
Do not assume that repeating the style number carries every earlier condition into a new document. Use explicit references and resolve any conflicting instructions through the agreed commercial process.
The finished quotation should help the buyer compare offers fairly. It should also explain what the seller's price covers. That clarity helps during negotiation. It also gives production, finance and logistics a sound basis for acting on the agreement.
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