For most startup founders, “cutting costs” implies an uncomfortable negotiation: asking the factory to lower their labor price or switching to cheaper, lower-quality fabric.
This is the wrong approach. It damages relationships and hurts your brand reputation.
True cost reduction comes from Cost Engineering—optimizing the product design and manufacturing process so it is naturally cheaper to produce. Here are five technical strategies to lower your Cost of Goods Sold (COGS) without sacrificing quality.
1.Optimize “Marker Efficiency” (Fabric Yield)
Fabric usually accounts for 50–70% of a garment’s total cost. If your pattern generates high waste, you are literally throwing money in the trash.
- The Concept: A “Marker” is the layout of pattern pieces on the fabric roll. Marker Efficiency is the percentage of fabric actually used in the garment versus the scraps left over.
- The Fix: Ask your pattern maker or factory to run a “Mini Marker” before ordering fabric.
- Low Efficiency: 75% usage (25% waste).
- High Efficiency: 85%+ usage (15% waste).
- Action: If efficiency is low, slightly adjust the design (e.g., add a center-back seam or reduce the sweep of a skirt) to fit the puzzle pieces better.
Pro Tip: Avoid “bias cut” designs if you are on a budget. They consume significantly more fabric than straight-grain cuts.
2.Fabric Consolidation (The “Platforming” Strategy)
Startups often make the mistake of picking a different fabric for every style in a collection. This destroys your buying power.
- The Problem: Buying 100 yards of 5 different fabrics means you pay “sample surcharges” on all of them.
- The Solution: Use Fabric Consolidation. Pick 2 core fabrics (e.g., one Heavyweight French Terry and one Single Jersey) and use them across your entire collection (hoodies, joggers, shorts, tees).
- The Benefit: Buying 500 yards of one fabric allows you to negotiate a better price per yard and reach MOQs (Minimum Order Quantities) easily.
3.Standardize Your Trims (“Common Parts”)
Custom hardware looks premium, but custom molds are expensive and require high minimums.
- The Strategy: Use “Stock Trims” for hidden components and spend money only on visible branding.
- Zippers: Use standard YKK zippers for the functional fly, but add a custom puller tab.
- Buttons: Use standard dye-to-match buttons, but sew them with a contrast thread color for visual interest.
- Why it works: Factories buy standard trims in bulk. Using their stock inventory saves you setup fees and lead time.
4.Move to “Tier 2” Manufacturing Hubs
Everyone wants to manufacture in the most famous districts (e.g., Portugal’s Porto region or China’s Guangdong province), but these areas are expensive due to high overheads.
- The Shift: Look for factories in emerging or “Tier 2” regions within major manufacturing countries.
- The Trade-off: Logistics might take 2–3 days longer, but the CM (Cut & Make) cost can be 15–20% lower.
5. Simplify Construction Details
Complex sewing operations increase labor time (minutes per garment), which directly increases cost.
| Complex Design (Expensive) | Engineered Design (Cost-Effective) | Why it Saves Money |
| Welt Pockets | Patch Pockets | Welt pockets require precise cutting and internal fusing. Patch pockets are sewn on top. |
| Engineered Prints (Placement print) | All-Over Print (AOP) | Engineered prints require manual cutting to center the image. AOP allows for fast automated cutting. |
| Lined Garment | Clean Finished Seams (Hong Kong Finish) | Eliminates the cost of lining fabric and the labor to sew a second layer. |
Reducing production costs is not about squeezing your factory’s profit margin; it is about eliminating waste. By increasing marker efficiency, consolidating fabrics, and simplifying construction, you can reduce your unit cost by 15–25% while maintaining a high-quality product.
Smart design is the most powerful tool in your supply chain.
