Open Costing is knowing what goes into your apparel product and how your supplier makes it.

It’s also about knowledge and responsibility.

Open costing gives you benefits when it comes to understanding your product to negotiate better. But more importantly, it is your responsibility to know and to present a full understanding of the parts used in your garment and that fair wages are paid.

Create an account to manage your costing sheets and supplier info. Download Excel and PDF templates that you can use and upload existing costing sheets.

FOB pricing impact on EBIT

Labour Cost Calculator

FOB pricing impact on EBIT

The gross margin of apparel brands depends on a sound sourcing strategy and product profitability discipline.

Fair Wages


Open Costing as a Negotiation Tool

Apparel brands work with suppliers to create their products. But what exactly goes in to the garment? How much time and labour cost is included to ensure that fair wages are being paid? What are the nominated components? Who is the sub supplier? How much do the components cost?

You need to know which components go into your products, from which supplier and which location. On top of enabling sustainability, open costing gives you the tools to negotiate with your suppliers.

A costing sheet is broken into 4 cost types:

1. Prime Cost = Direct Materials + Direct Labours + Direct Expenses

2. Works or Factory Cost = Prime Cost + Works or Factory Overheads

3. Cost of Production = Works Cost + Administration Overheads

4. Total Cost / Cost of Sales = Cost of Production + Selling Overhead + Distribution Overhead

Open Costing Example

Open Costing Questions

Costing Sheets

There are already tons of tools out there to manage Costing Sheets and Bill of Materials: Excel, PLM software you name it. This is not about the tool, this is about mapping the correct costing and costing knowledge. Use whatever tool you like - we will import your BOM in any format you have available (even PDF!).

Financial Calculator is a tool provided by
Newtrims International AB
Jörgen Kochsgatan 9, 6 vån,
21120 Malmö, Sweden