BASIC COSTING (EXPORT)

The hardest thing about starting a shoe line, or just starting your business plan to a shoe
line, is coming up with the price that you want to sell your shoes at. When a designer
draws a new shoe, or a footwear product line manager starts a new line plan, it is
important to have an idea of what the different shoe parts cost. To meet the target selling
price and avoid high import duty categories it is critical to get your price right. Here is
quick cost breakdown of the standard parts of a sports shoe.

A cost sheet is a statement that shows the various components of total cost for a product
and shows previous data for comparison. You can deduce the ideal selling price of a
product based on the cost sheet.
A cost sheet document can be prepared either by using historical cost or by referring to
estimated costs. A historical cost sheet is prepared based on the actual cost incurred for a
product. An estimated cost sheet, on the other hand, is prepared based on estimated cost
just before the production begins.

Importance and objectives of cost sheet

1. Determining cost
2. Fixing selling price
3. Cost comparison
4. Cost control
5. Decision-making
 STEPS OF COSTING:

CONFIRM CONSUMPTION FROM R&D WITH

WASTAGE MARGIN

CONFIRM THE MATERIAL

CONFIRM THE UNIT PRICE OF MATERIAL FROM

SUPPLIER

MULTIPLY UNIT PRICE OF MATERIAL WITH

CONSUMPTION

ADD ALL THE MATERIAL PRICE

(BILL OF MATERIAL OR BOM COST WILL BE FOUND)

9(
*With the BOM cost/material cost some other cost are added for finding total price or FOB

OTHER COST INCLUDES:

• Common material cost • Transportation cost

• Knife cost • Management/shipping/Admin cost
• Mould cost • Factory overhead
• Other cost • Commercial cost
• Direct labour • Profit
• Testing cost • Commission etc.
• Sampling cost
• Documentation cost
 ➢ Common material cost: Common material includes marking pen, jhut, super
glue, different brush, thread cutter, scissor, pen, pencil, paper, Cutting board
(50x450x900mm price is around $40-$60) etc.
➢ Knife cost: Knife cost sometimes beared by buyer. But most of the time it
beared by supplier. Usually price of one set of knives is around $600
➢ Mould cost: Mould cost most of the time beared by buyer. In this case, the
buyer has every right to transfer or take the mold at any time as per their
requirement. Mould includes last, chiller mould, DIP mould etc.
• LAST: $ 10 - $13
• Chiller mould: $320 - $370
• DIP mould: $3000 - $4000

➢ Testing cost: Some countries have some special requirements of testing like
azo dye, phthalate, arsenic etc. For these types of special requirements
normally in housed testing facility is not available. In that case Intertek, SGS,
Tud Suv etc. is selected to carry out these tests. Regularly other tests are
carried out like bonding strength test, tearing test etc.
➢ Profit: Profit is different for different factory or management.
➢ LO (LABOUR+OVERHEAD): LO relates to SOT
LO=SOT X Efficiency X CPM (Cost per minute)
Let’s consider SOT of a shoe is 45 min, Efficiency is 65%, CPM is .035
Then the LO will be = (45/.65) *.035
= 2.42

CPM
The "CPM Calculation" tool enable us to go in details in the factory cost but also to have
an overview of the cost structure
Global cost from Industrial Costing divided by the working minutes give us the Cost Per
Minute (Cost Structure) we split by cost category
By putting in relation SOT, Efficiency and PPM (CPM + Profit) we get the industrial
LOP per model according to the reality of the field
 YEARLY DATA & CALCUL

Detail of all the factory costs split in two main categories:

A. Labor cost CPM

Labor cost category is split according to the number of operations identified in the SAM (Standard
Allocated Minutes) of the process
It is necessary to get the information and to fill the number of HC (Headcount) per operation, the
"Average Gross Annual Salary" which
is the basis Salary and the "Other indirect income and charges" which includes all the benefits for the
workers

B. Overhead CPM

In the Overhead CPM => Production Overhead and Non-Production Overhead are separated to have a
clear view about what is linked and
not linked to production
The Overhead represent all the cost of the factory excluding the Direct Labor (Production)

- Cost of management
Production and Non-Production
- Buildings
- Machines
- Equipment Production
- Other (Production)
- Non-production equipment
- General and Administrative expenses
- Financial cost Non-Production
- Other (Non-Production)
 CBD Sheet

CLIENT NAME MERCHANDISER NAME

BRAND NAME TECHNICIAN 35 CURRENCY

ARTICAL NO. STYLE KIds EXCHANGE RATE 0.62

PAYMENT TERM:
SIZE RANGE 28-39 COLOR BLACK
OFFER PRICE
SAMPLE SIZE 35 SEASON AW22

COST SIZE 35 LAST/MOLD NAT RUN JR

ORDRER QTY 50,000.00 CONSTRUCTION strobel

SL DEPARTMENT NAME COMPONENT NAME MATERIAL CODE NO MATERIAL NAME CON/ PAIR UNIT UNIT/PRICE SUB. TOTAL TOTAL IN USD

1 CUTTING DEPARTMENT Upper 03-SYN-981./R-11-137-Blk SYNTHETIC-9810014362_FID_COAT_LXC140C 1.4MM 0.050000 MTR 6.166000 0.051500 0.3175
/R_8571642-UM11-137 CM-DKT-N07A BLACK

2 Collar Lining 06-TEX-98IN-152-GREEN TEXTILE-9810000173-FID_KNIT_2DCK 0.034000 MTR 1.410000 0.035020 0.0494

INTERLOCK160G-- 152 CM-DKT-A27A GREEN

3 Collar Lining 06-TEX-FITRINDDBD-152-WHITE TEXTILE-FID_KNIT_2D TRICOT INNER DDY BD--152 0.034000 MTR 0.380000 0.035020 0.0133
CM-DDY-N00 WHITE

4 Collar Lining 09-FOA-FIZA-2-152-WHT FOAM / SPONGE-FID_F_EF7 ZANT_ZANT2080-2mm- 0.034000 MTR 0.298000 0.035020 0.0104
152cm-WHITE

5 Collar Foam 09-FOA--111-WHT FOAM / SPONGE-9810002844 - FID_F_EF8 0.020500 MTR 2.370000 0.021013 0.0498
ZANT_ZANT4080_10MM / 8535915 ---111 CM-WHITE

6 Back counter reinforcement 29-EVA-EV-3232-BLK EVA / LATEX FOAM-EVA-(32 +/- 3)-2mm--BLACK 0.014500 MTR 1.460000 0.014790 0.0216

7 Webbing 41-STR-PE1C(AMEGT-10-BLK STRAP-PES 1C (ATT0161- MEK) GTZ-1383--10 MM- 0.334000 MTR 0.118000 0.340680 0.0402
BLACK

8 Toepuff 16-TOE-98-0.4-11.45-WHT TOE PUFF-9810000111-FID_TP_TEXON_ETOE-0.4 MM- 0.015800 MTR.SQ 2.600000 0.016116 0.0419
1X1.45 M-WHITE

9 Counter stiffener 17-COU-83-11.45-WHT COUNTER STEFINER-9810000086 - 0.013000 MTR.SQ 3.470000 0.013260 0.0460
FID_HC_TEXON_RITE/MERIT_DC_1.25 / 8397847--
1*1.45M-WHITE

10 Strobel 21-INS-ONSI-0.85-58-DN-WHT INSOLE BOARD-9810000118-FID_SI_TEXON_SPRINT / 0.036000 MTR.SQ 1.270000 0.037080 0.0471

ONE SIZE-0.85 MM-58''-DKT-N00A WHITE

11 Insocks MESH-9810000701-FID_KNIT_2DCK STG MERRY 0.036000 MTR 1.470000 0.037080 0.0545

MESH--112 CM-DKT-A27A GREEN

12 Insocks 29-EVA-Ha38+/-4-4384-DN-WHT EVA / LATEX FOAM-Die Cut EVA / Hardness 38 +/-3-4 0.036000 MTR 2.920000 0.037080 0.1083
mm-43''X84''-DKT-N00A WHITE

13 belt lining 06-TEX-Ca-44-Blk TEXTILE-Cambrelle+ADH--44''-DKT-N07A BLACK 0.004700 MTR 2.520000 0.004794 0.0121

14 Eyestay Lining 08-INT-980.-0.6-111-GRY INTERLINING-9810011706- 0.005400 MTR 2.592000 0.005508 0.0143

FID_REINF_HY_SUPERLIGHT+ADH-0.6 MM-111 CM-
GREY

15 Tongue Lining 06-TEX-98IN-152-GREEN TEXTILE-9810000173-FID_KNIT_2DCK 0.014200 MTR 1.410000 0.014626 0.0206

INTERLOCK160G-- 152 CM-DKT-A27A GREEN

16 Tongue Lining 06-TEX-FITRINDDBD-152-WHITE TEXTILE-FID_KNIT_2D TRICOT INNER DDY BD--152 0.014200 MTR 0.380000 0.014626 0.0056
CM-DDY-N00 WHITE

17 Tongue Lining FOAM / SPONGE-FID_F_EF7 ZANT_ZANT2080-4mm- 0.014200 MTR 0.596000 0.014626 0.0087
152cm-WHITE

18 Tongue 05-MES-98HD2T-152-Blk MESH-9810020046-FID_KJQD_3D HDJ2332X-03 2T/R-- 0.013400 MTR 6.280000 0.013802 0.0867
152 cm-DKT-N07A BLACK

19 VAMP 05-MES-98HD2T-152-Blk MESH-9810020046-FID_KJQD_3D HDJ2332X-03 2T/R-- 0.072000 MTR 6.280000 0.074160 0.4657
152 cm-DKT-N07A BLACK

20 Velcro Hook 07-VEL-983HPA1CONSI-100-Blk VELCRO-9810000818-HOOK 3HA1 PA66 1C/ ONE 0.044000 MTR 1.112000 0.044880 0.0499
SIZE--100 MM-DKT-N07A BLACK

21 Velcro Loop 07-VEL-983HPA1CONSI-100-Blk VELCRO-9810000816-LOOP 3HB1 PA66 1C/ ONE SIZE-- 0.057000 MTR 1.112000 0.058140 0.0647
100 MM-DKT-N07A BLACK

22 Screen Print Ink 32-CHE-VA05-WHT CHEMICAL-INVISIBLE INK - Winson - VA 059---WHITE 0.000800 KG 15.780000 0.000816 0.0129

23 Screen Print Ink COMMON MATERIAL-SCREEN PRINT INK---Black-SNC- 0.001000 KG 13.360000 0.001020 0.0136
501

24 Cleaner 32-CHE-CLAG-108 CHEMICAL-CLEANING AGENT-P-108F--None 0.000420 KG 2.288000 0.000428 0.0010

25 Cleaner 32-CHE-MeDr CHEMICAL-Medium Dry-718---None 0.002040 KG 7.460000 0.002081 0.0155

26 LABEL 20-LAB-HeTrQTLo-GREEN LABEL-Heat Transfer QTR Logo(Newfeel)-(28-30,31- 1.000000 PAIR 0.083000 1.030000 0.0855
33,34-36,37-39 size group grading)--DKT-A27A GREEN

27 LABEL 20-LAB-HeTrHeCaLo-GREEN LABEL-Heat Transfer Heel Cap Logo(Newfeel)---DKT- 1.000000 PAIR 0.015000 1.030000 0.0155
A27A GREEN

28 Adhesive - 1 32-CHE-LAGL-451 CHEMICAL-LAMINATION GLUE-Panda 451--None 0.004500 KG 2.112000 0.004590 0.0097

29 Adhesive - 2 32-CHE-LAGL-1608 CHEMICAL-LAMINATION GLUE-Panda 1608--None 0.018000 KG 3.161600 0.018360 0.0580

30 SEWING DEPARTMENT Binding Materials 10-ELA-FOTHSO15-15-Blk ELASTIC-FOLDED THIN SOFT 150--15 MM-DKT-N07A 1.120000 MTR 0.069000 1.153600 0.0796
BLACK

31 thread1 THREAD-THREAD-8116714 - M40 NYLBOND 6.6 3.500000 MTR 3.570000

BONDED NYLON-40/3---D9810

32 D-Ring 14-ORN-D--283318.5343920.5-GREEN ORNAMENTS-D-RING--Size(28-33)=18.5mm &Size(34- 2.000000 PCS 0.030000 2.020000 0.0606

39)=20.5mm-DKT-A27A GREEN

33 Shoe Lace 33-LAC-10-6 LACE-8357640 - ELASTIC LACES NEWFEEL GTX- 1857/ 0.670000 MTR 0.160000 0.683400 0.1093
8430400 - 1000mm--6 MM-DKT-N07A BLACK / DKT-
A27A GREEN

34 Thread upper 11-THR-ONSI-BLK THREAD-THREAD-8116714 - M40 NYLBOND 6.6 62.000000 MTR 0.002080 63.240000 0.1315
BONDED NYLON-40/3---BLACK

35 Strobel Thread 11-THR-ONSI-NATRL THREAD-THREAD-8116714 - M40 NYLBOND 6.6 3.500000 MTR 0.002080 3.570000 0.0074
BONDED NYLON-40/3---NATRL

36 Strobel Thread 11-THR-M4NY6.BONY-403 THREAD-THREAD-8116714 - M40 NYLBOND 6.6 3.500000 MTR 0.002080 3.570000 0.0074
BONDED NYLON-40/3---G9403

37 Strobel Thread 11-THR-M4NY6.BONY-403 THREAD-THREAD-8116714 - M40 NYLBOND 6.6 3.500000 MTR 0.002080 3.570000 0.0074
BONDED NYLON-40/3---K1539

38 Strobel Thread 11-THR-M4NY6.BONY-FUWHT THREAD-THREAD-8116714 - M40 NYLBOND 6.6 3.500000 MTR 0.002080 3.570000 0.0074
BONDED NYLON-40/3---FUWHT

39 Care Label 20-LAB-CaLa-2839-WHT LABEL-Care Label-ACTIWALK SUPER LIGHT BLACK 2.000000 PCS 0.012000 2.040000 0.0245
GREEN-28-39-WHITE

40 Cleaner 38-COM-CL COMMON MATERIAL-CLEANER-PCX--None 0.001000 KG 2.860000 0.001020 0.0029

41 Adhesive - 1 32-CHE-RuBaGl-82502 CHEMICAL-Rubber Based Glue-Loctite Bondace 8250- 0.010000 KG 3.540000 0.010200 0.0361
2--None

42 Adhesive - 2 32-CHE-NoPUHome-7094 CHEMICAL-Non PU Hot melt-Technomlet Meltace 0.004000 KG 5.580000 0.004080 0.0228
709/4--None

43 Adhesive - 3 32-CHE-NE-033031 CHEMICAL-NEOPRENE-C-031F--None 0.006000 KG 0.006120

44 LASTING DEPARTMENT Outsole 24-OUT-ONSI-DN-WHT OUT SOLE-9810002480-FID_BD - GI - IMEVA IM003 1.000000 PAIR 1.263000 1.020000 1.2883
ABR / ONE SIZE-ACTIWALK SUPER LIGHT--DKT-N00A
WHITE

45 Primer outsole 32-CHE-UVPrfoPh CHEMICAL-UV Primer for Phylon-Loctite Bondace P-6- 0.003000 KG 3.910000 0.003060 0.0120
2--None

46 Upper Primer 32-CHE-PrfoSy-2322 CHEMICAL-Primer for Synthetic-Loctite Bondace 232L- 0.003000 KG 2.790000 0.003060 0.0085
2--None

47 Upper Primer 32-CHE-PrfoMe-2322 CHEMICAL-Primer for Mesh-Loctite Bondace 232HF-2 0.002500 KG 2.710000 0.002550 0.0069
--None

48 Hardener CHEMICAL-HARDENER-Loctite Aquace ARF -50--None 0.000294 KG 19.280000 0.000300 0.0058

49 Cleaner 32-CHE-CLAG-108 CHEMICAL-CLEANING AGENT-P-108F--None 0.001200 KG 2.288000 0.001212 0.0028

50 Cleaner 32-CHE-ClfoPh CHEMICAL-Cleaner for Phylon-Loctite Bondace PC-03-- 0.003000 KG 3.250000 0.003060 0.0099
None

51 Adhesive - 1 CHEMICAL-PU ADHESIVE-Loctite Aquace W-01--None 0.005880 KG 6.000800 0.005998 0.0360

52 Adhesive - 3 32-CHE-RuBaGl-82502 CHEMICAL-Rubber Based Glue-Loctite Bondace 8250- 0.001200 KG 3.540000 0.001212 0.0043
2--None

53 PACKING DEPARTMENT TAPE 34-PAC-TrTa-12-TRNT PACKING MATERIAL-Transparent Tape--12MM- 0.330000 MTR 0.017269 0.333300 0.0058
Transparent

54 Poly Bag/Shoe Box PACKING MATERIAL-POLY BAG-PE UN-PRINTED 1.000000 PCS 0.022500 1.010000 0.0227
POLYBAG - L-16.00 X W-11.00 Opening - W-INCH - T-
0.08 MM-#32-35--None

PREPARED BY APPROVED BY FINANCE DEPARTMENT APPROVED BY HEAD OF BUSINESS

55 Poly Bag/Shoe Box PACKING MATERIAL-POLY BAG-PE UN-PRINTED 1.000000 PCS 0.025300 1.010000 0.0256
POLYBAG - L-18.00 X W-11.00 Opening - W-INCH - T-
0.08 MM-#36-39--None

56 Poly Bag/Shoe Box PACKING MATERIAL-POLY BAG-PE UN-PRINTED 1.000000 PCS 0.016100 1.010000 0.0163
POLYBAG - L-14.00 X W-9.00 Opening - W-INCH - T-
0.08 MM-#28-31--None

57 Cord 34-PAC-PLST-125 PACKING MATERIAL-PLASTIC STING--125mm-None 1.000000 PCS 0.001000 1.010000 0.0010

58 Cord 34-PAC-ELbl0.mmElLi-BLK PACKING MATERIAL-ELASTIC-BCN-007084 black 0.8 0.500000 MTR 0.001000 0.505000 0.0005
mm Elastic Link------BLACK

59 shoe tree 34-PAC-Shtr-283018731352173639261-WHT PACKING MATERIAL-Shoe tree-#(28-29)=187mm #(30- 2.000000 PCS 0.031000 2.020000 0.0626
33)=217mm #(34-39)=261mm--NATURAL

60 Master Carton 34-PAC-MACA-604020 PACKING MATERIAL-MASTER CARTON-60*40*20 CM-- 0.097500 PCS 1.460000 0.098475 0.1438
None

61 Carton Tape 34-PAC-PrCaTa-70-TRNT PACKING MATERIAL-Printed Carton Tape--70 MM- 0.304000 MTR 0.017600 0.307040 0.0054
Transparent

62 TRACABILITY 34-PAC-Tr PACKING MATERIAL-Tracibility---None 2.000000 PCS 0.005000 2.020000 0.0101

63 LABEL 34-PAC-CALA PACKING MATERIAL-CARTON LABEL--- 1.000000 PCS 0.010000 1.010000 0.0101

64 LABEL 34-PAC-RFLA PACKING MATERIAL-RFID LABEL---None 1.000000 PCS 0.042000 1.010000 0.0424

65 LABEL 34-PAC-Adla PACKING MATERIAL-Adequat label-Junior--None 1.000000 PCS 0.001000 1.010000 0.0010

66 TAG 34-PAC-Ta PACKING MATERIAL-Tag-Only For India-MRP Tag- 1.000000 PCS 0.001000 1.010000 0.0010
None

67 TAG 34-PAC-Ta PACKING MATERIAL-Tag-Only for India-Uni Tag-None 1.000000 PCS 0.001000 1.010000 0.0010

68 TAG 34-PAC-Ta PACKING MATERIAL-Tag-Only For Russia-QR Code- 1.000000 PCS 0.001000 1.010000 0.0010
None

DIRECT MATERIAL COST 3.96

1 Common Material Cost 0.01

2 DC-Knife Cost 0.01

3 DC-Last Cost

4 DC-Mould Cost

5 DC-Others Cost

6 DIRECT LABOUR 1.35

7 TESTING COST 0.01

8 Sampling Cost (D/S, Q/S, SS/S, C/S, Ph/S)

9 Documents Cost

10 Transportation Material & Components

11 Management / Admin / Shipping / Merchandising

12 Factory Overhead 0.58

13 COMMERCIAL COST 0.16

14 Other

15 Profit 0.48

16 Commission

17 Loop Cutting Machine

ARTICLE FACTORY COST 6.56

PREPARED BY APPROVED BY FINANCE DEPARTMENT APPROVED BY HEAD OF BUSINESS