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Apparel industry explores the future
2024-06-12
Garment processing - what is the difference between contract processing and contract labor?
2024/04/25
Processing is not the same as contract labor, normally, the customer processing, processing plant does not have to bear any risk, so the garment processing plant only need to report the normal processing fee can be.
If the factory package, then the factory to pay to purchase fabric, then it is an investment behavior.
Processing factory reported out the price in addition to the cost of raw materials, processing costs, but also must have his profit.
Generally speaking, the greater the risk, the processing plant will require higher profits, such as the risk of foreign orders is relatively larger than the risk of domestic orders, so the profits of foreign orders are generally higher than the profits of domestic orders, of course, it depends on the customer.
Therefore, when you are looking for processing plant contract labor and materials under the order, you have to be mentally to the bottom of the processing plant's profits, the normal standard are generally between 15% -30%.
Of course, there will be individual processing plant said, I only need 5% profit, you do it for me. But the wool comes out of the sheep, if the real only 5% profit, and is a small order, is generally not possible.
To cooperate with clothing processing designers a suggestion, in the process of cooperation with your OEM factory, to give them a little confidence, cooperate with you, the risk is small, and the order in a timely manner, so that the processing plant in the process of cooperation with you to put his profits relatively low.