Tailoring Business II – SS3 Fashion and Garment Making Lesson Note (First Term)

Costing is calculating every cost of making a garment so that you can set a fair selling price. Direct costs are materials you can see on the dress, such as fabric, buttons and thread. Indirect costs, or overheads, are bills such as rent, electricity and generator fuel. The selling price must cover materials, your overhead share and your labour.

Behavioural objectives

By the end of the lesson, students should be able to:

• explain what costing is and why a tailor should not guess prices;
• distinguish between direct costs and indirect costs (overheads);
• list the direct materials, including trimmings, that must be charged for;
• share a monthly overhead bill across the clothes sewn in a month;
• state what decides the price of workmanship and apply the pricing formula;
• identify common pricing mistakes.

What is costing?

Many tailors fail because they look at a customer and guess a price based on how rich the person looks. This is a mistake. Costing is calculating every single penny you spent to make a dress. If you do not know your costs, you are just “sewing for fun”, not for business.

What are the two types of costs?

1. Direct costs: things you can see on the dress (fabric, buttons, thread, zip, lining).
2. Indirect costs (overheads): things you cannot see but you paid for (electricity, shop rent, fuel for the generator, transport to the market).

Important rule: If you spend ₦5,000 to make a dress and charge ₦5,000, you have not made a profit. You have only got your money back.

What are the direct costs of a price?

To get your price right, you must list your “ingredients” just like a cook.

1. The main fabric. Even if the customer brought the fabric, you must account for it if you are the one buying it. Always add a small “extra” for waste.
2. The “hidden” materials (trimmings). These are the things tailors often forget to charge for:
   • Interlining/stay: to make the collar or bust firm.
   • Thread: do not assume thread is free. If you used three different colours, count them.
   • Zips and hooks: use quality ones so the customer does not come back complaining.
   • Padding/breast cups: essential for luxury gowns.
3. Labelling and packaging. If you put your dress in a nice nylon bag with a brand label, that costs money. Include it in the cost.

How do you charge for overheads?

This is where most SS3 students get confused. How do you charge for rent on one shirt? Divide your monthly bills by the number of clothes you sew.

• Example: If your shop rent is ₦10,000 a month and you sew 20 shirts a month, each shirt must “pay” ₦500 toward the rent.

Do not forget these overheads:

• Generator fuel: if the light goes out and you turn on the “I-pass-my-neighbour”, the customer must pay for that fuel through the price of the cloth.
• Machine maintenance: every few months, you need to oil your machines or change the needle. A small part of every sewing fee should go into a “repair box”.

How do you price your workmanship (labour)?

Your skill is not free. You spent years learning how to cut a perfect princess dart or a Senator top. Three things decide the value of your time:

1. Complexity: a simple A-line skirt should not cost the same as a 6-piece padded gown.
2. Speed: if a customer wants a dress in 24 hours (express service), they must pay an “urgency fee”.
3. Your level: a master tailor charges more than an apprentice because a master tailor makes fewer mistakes.

What is the pricing formula?

Direct materials + overhead share + labour (your profit) = final selling price.

What pricing mistakes should you avoid?

To survive in the fashion world, watch out for these traps:

1. The “sentimental” price. Charging your best friend or sister too little. If you do not charge them enough to cover the direct costs, you are losing money from your own pocket.
2. Not checking the market. You should know what other tailors in your area are charging. If everyone charges ₦3,000 and you charge ₦10,000, you must explain why your quality is 3 times better.
3. Forgetting the “running around”. The time you spent in the market under the sun looking for the exact shade of blue thread is work. You must include a “logistics” fee.

Why does fair pricing matter?

Good pricing shows respect for your tools, your time and your talent. If you charge too little, you cannot buy better machines. If you charge too much without quality, you lose customers. Find the balance.

Evaluation

1. What is costing?
2. Give two examples each of direct costs and indirect costs.
3. A tailor’s shop rent is ₦10,000 a month and she sews 20 shirts a month. How much rent must each shirt carry?
4. State three things that decide the price of workmanship.
5. Write out the pricing formula.

Assignment

1. List four trimmings that tailors often forget to charge for, and say why each is needed.
2. Explain two common pricing mistakes and how a tailor can avoid them.