Wool Sweater Cost Breakdown: A $19 Illustrative Model

Wool knit factory cost sheet, wool yarn & finished sweater workshop shot

Quick Answer: This illustrative wool sweater model totals RMB 118.14 (USD 16.41) in allocated production cost and uses a USD 19 selling-price assumption. It covers a basic 350g, 100% wool, 12GG crew-neck sweater, 500 pieces in five colours of 100 pieces each, at USD 1 = RMB 7.20. Yarn accounts for USD 12.08, or 73.6% of model cost. The original costing date and trade term are not recorded; USD 19 is not a current quotation or an offer to supply.

Key Takeaways

1. The USD 19 example needs its specification and commercial boundaries. This wool sweater manufacturing cost breakdown uses a 350g, 100% wool, 12GG sweater knitted with 2/26Nm yarn, ordered in five colours with 100 pieces per colour. Estimated production cost is USD 16.41 per piece, leaving USD 2.59 in illustrative surplus, or approximately 13.6%. Buyers should compare fibre content, garment weight, yarn allowance, colour split, finishing, packaging, quality control and trade terms before deciding whether two quotations are comparable. The surplus is USD 2.59, or 13.6% of the assumed selling price; it is not an audited accounting profit.

2. Yarn is the dominant cost, rather than labour or factory margin. The finished garment weighs 350g, but the model costs 378g of yarn after an 8% production allowance for setup, yarn ends, repairs, colour changes, washing variation and other commercial production risks. At RMB 230 per kilogram and an exchange-rate assumption of USD 1 = RMB 7.20, yarn costs RMB 86.94, or USD 12.08, per garment. Raw material therefore represents 73.6% of estimated production cost.

3. A USD 15 price is below this model’s allocated cost. USD 15 equals RMB 108 at the stated exchange rate, while estimated production cost is RMB 118.14. A lower quote may use lighter weight, cheaper yarn, less than 100% wool, simplified washing, reduced finishing, excluded trims, a larger quantity assumption or an intentionally low first-order margin. A low price is not automatically dishonest, but it must be matched to the actual product specification and included services.

4. Transparent simplification is the practical route to lower cost. Reducing colour count, using an available yarn shade, simplifying packaging, increasing quantity or adjusting garment weight can lower cost while keeping the quotation clear. Removing essential quality control, omitting normal yarn allowance or presenting a fibre-content change as the same product creates a misleading comparison. The buyer’s goal should be a clearly defined cost boundary, not merely the lowest factory number.

Table of Contents

What Does the USD 19 Costing Model Assume?

This is an illustrative costing model for one defined wool sweater program, not a universal market price for every custom sweater. The model assumes a basic crew-neck silhouette without intarsia, jacquard, embroidery, zippers or other labour-intensive details. It uses a 350g finished garment weight, 100% wool, 2/26Nm yarn, 12GG knitting, five colours and 500 pieces in total.

Final commercial prices can change with yarn availability, size ratio, stitch density, wastage, colour minimums, testing requirements, delivery terms and the exchange rate agreed when the order is confirmed.

Scope limitation: The USD 19 figure illustrates the specification and assumptions below; the missing costing date and trade term prevent its use as a comparable commercial quote. It should not be transferred to a different fibre, weight, construction, colour plan, testing scope or trade term without a new quotation.

Production specification used in the USD 19 wool sweater model
Item Production specification
Fibre composition 100% wool
Yarn count 2/26Nm
Yarn purchase price RMB 230/kg
Knitting gauge 12GG
Finished garment weight 350g
Order quantity 500 pieces
Colour quantity 5 colours
Quantity per colour 100 pieces
Washing process Softening wash, shrink-control treatment and hand-feel finishing
Illustrative selling price USD 19 per piece
Exchange-rate assumption USD 1 = RMB 7.20
Example date Original costing / quotation date not recorded. Article publication: 12 July 2026; this is not evidence of the costing date or current price validity.
Trade term and named place Not recorded. No EXW, FOB or CIF basis can be assigned to USD 19 from the available source. Obtain a named place or port, Incoterms edition, inclusions and exclusions in a new quotation.
Exchange-rate date / validity USD 1 = RMB 7.20 is a model assumption, not a verified current or historical spot rate. Rate date and quotation validity were not recorded.
Specification limitations Base size, size ratio, plain-stitch details, knitting density, finished-weight conditioning basis and actual shrink-control route were not recorded; confirm them after sample review.
Evidence boundary Published educational example; no dated costing sheet, yarn invoice or supplier offer was available for verification. Independent testing and third-party inspection are excluded; freight, insurance, duties, taxes and destination charges are not established as included.

How Do Yarn, Weight and Quantity Affect Sweater Cost?

This page explains the costing method for the defined wool style. It does not set a universal sweater price or calculate cashmere costs. For cashmere-specific assumptions, use the existing cashmere example in Further Reading; for trade-term comparisons, use the existing EXW/FOB/CIF quotation guide. Requote every material or order change against an agreed specification.

A supplier should quote every material option against the same tech pack, colour split, finishing requirement and delivery term.

How material, garment weight and colour split affect cost comparison
Material or order scenario Weight / quantity reference Cost comparison Buyer interpretation
100% wool 350g; 500 pieces; 5 colours; 100 pieces per colour USD 19 model selling price; USD 16.41 estimated production cost; yarn is USD 12.08. This is the only fully costed scenario in this article. Yarn represents 73.6% of production cost.
Cashmere Weight, yarn count, blend ratio and order structure must be defined separately. Requires a separate supplier quotation; no cashmere unit-cost figure is used in this model. Separate material example: see the cashmere cost breakdown in Further Reading. Its USD 70 example is not a wool price comparison or a current offer.
Cotton blend Blend ratio, yarn construction, finished weight and gauge must be defined separately. Requires a separate supplier quotation; no cotton-blend unit-cost figure is used in this model. Do not assume a blend is cheaper until yarn price, consumption, knitting efficiency, finishing and minimums are confirmed.
Lower garment weight Example comparison: 220g fine-gauge top versus 350g sweater Lower material consumption can reduce cost, but the final effect also depends on yarn, density, structure and finishing. Weight should be measured and agreed at the correct production stage, especially when washing affects dimensions or hand feel.
One colour versus five colours 500 pieces in one colour versus five colour lots of 100 pieces A single-colour order is usually more efficient than five smaller colour batches. Each colour introduces separate setup, material control, washing separation and colour-specific inspection.

How Is the USD 19 Wool Model Built?

Within this wool example, the costing sequence moves from the approved technical scope to costed yarn consumption, conversion work, factory operating allocations and a commercial margin. Each stage must remain tied to the same garment specification.

01

Freeze the specification

Confirm fibre, yarn count, gauge, finished weight, construction, colours, quantity, wash and trade term.

02

Cost yarn consumption

Apply the 8% production allowance: 350g × 1.08 = 378g, then multiply by RMB 230/kg.

03

Add conversion work

Include knitting, linking and sewing, washing, finishing, trims, packaging and routine quality control.

04

Allocate operating costs

Account for equipment, energy, maintenance, production management, order service and local handling.

05

Set the commercial price

Add RMB 18.66 illustrative surplus to RMB 118.14 production cost, producing the RMB 136.80 / USD 19 price.

Complete Knitwear Manufacturing Cost Breakdown

This knitwear manufacturing cost breakdown estimates RMB 118.14, or USD 16.41, in production cost for each 350g, 100% wool, 12GG sweater. The table separates material, knitting, assembly, washing, finishing, packaging, quality control, equipment and order-service costs so buyers can see what the model selling price covers. Each line is an allocation within the defined 500-piece, five-colour scenario, not a verified supplier invoice or audited factory cost.

It should be used as a transparent costing framework, not as a substitute for a style-specific quotation, sample review or confirmed supplier production plan.

Per-piece production cost for a 350g, 100% wool, 12GG sweater
Cost item Amount Share of production cost What the cost covers
1. Wool yarn RMB 86.94

USD 12.08

73.6% The model uses 378g of costed yarn per garment: 350g finished weight plus an 8% production allowance. The model allowance covers machine setup, tension adjustment, waste panels, yarn ends, panel repair, colour changes, damaged pieces and washing-related weight variation across five colour lots. At RMB 230/kg, 0.378kg of yarn costs RMB 86.94. For 500 pieces, the model yarn quantity is 189kg before supplier purchase-lot rounding. The 8% is an example allowance, not measured waste for an actual order.

If certified wool is requested, the specific yarn and transaction should be verified rather than assuming certification automatically applies.

2. 12GG knitting RMB 6.50

USD 0.90

5.5% This allocation covers computerized flat knitting technology, machine time, programming for a basic structure, operator labour, machine setup, five-colour yarn changes, electricity, panel inspection and minor panel repair. Fine-gauge 12GG knitwear needs appropriate yarn preparation, machine settings and density control to achieve a clean and refined surface. The figure applies to a basic design only.

Intarsia, jacquard, pointelle, cable structures, engineered ribs and complex fully fashioned shaping require additional machine time and separate costing.

3. Linking and sewing RMB 4.20

USD 0.58

3.6% Linking and sewing assemble the knitted panels into a finished crew-neck sweater. The allowance includes shoulder linking, sleeve attachment, side seams, neck-trim attachment, loose-yarn finishing and an initial measurement check. This work is only USD 0.58 in the model, but excessive cost cutting at this stage can create uneven shoulders, distorted necklines, missed stitches, bulky seams and poor alignment.

These defects may be difficult to identify in a quotation but become obvious in wear, fit review and final presentation.

4. Special washing treatment RMB 5.50

USD 0.76

4.7% The washing allocation includes softening wash, shrink-control treatment and hand-feel adjustment. It covers chemicals, water, energy, washing equipment, labour, trial washing and separate batch handling for five colours. Washing affects more than softness: it can alter finished measurements, stitch appearance, surface character and colour. Buyers should therefore assess the approved sample after its final washing process.

Shrink-control finishing alone does not justify a machine-washable claim; care instructions must reflect the specific yarn, treatment and finished-garment test results.

5. Finishing and pressing RMB 3.20

USD 0.44

2.7% After washing, each sweater requires controlled drying, steaming, shaping, measurement correction, thread trimming, surface cleaning, final hand-feel review, pressing and folding. Finishing does not add a separate visible component, so it is often underestimated in a low quote. However, it strongly influences garment symmetry, finished dimensions, surface cleanliness, presentation and the first hand feel experienced by the customer.

A quote that omits finishing detail should be clarified before approval because the visual standard may differ even when the yarn and knitting gauge are identical.

6. Trims and packaging RMB 2.80

USD 0.39

2.4% This allowance covers a basic private-label package: woven neck label, size label, fibre and care label, hangtag and string, spare yarn, tissue paper, individual polybag and carton allocation. It does not establish a universal packaging price. Custom woven labels, FSC-certified hangtags, recycled packaging, barcode stickers, premium boxes and retailer-ready packing can increase the amount.

Buyers should define labels, fibre-content information, care instructions, barcode needs, folding method and carton requirements before requesting a final factory quotation.

7. Knitwear quality control RMB 1.50

USD 0.21

1.3% The quality-control allocation covers routine in-process and final checks, including yarn-lot and colour review, knitted-panel measurements, linking quality, finished garment measurements, surface defects, colour consistency, garment weight, labels and packaging. It does not include independent laboratory testing or third-party final inspection.

Where pilling, dimensional change, colour fastness or harmful-substance requirements apply, buyers should define the method and acceptance level. Useful references include ISO 12945-3 for the random tumble pilling method and OEKO-TEX STANDARD 100 for its harmful-substance certification framework. Neither reference is a test report for this garment or proof that YouTricot or this order is certified.

8. Equipment, energy and maintenance RMB 1.80

USD 0.25

1.5% This line allocates part of the operating cost of computerized knitting machines, linking equipment, washing machines, dryers and pressing equipment. It includes equipment depreciation, electricity, preventive maintenance, spare parts and machine downtime. Different allocation methods can make line-by-line comparisons misleading, but stable knitwear production relies on maintained machines, reliable settings and available technical support.

Buyers should evaluate whether a low quote still allows for the equipment control required to repeat the approved sample in bulk production.

9. Production management and order service RMB 3.20

USD 0.44

2.7% This model allocation covers production planning, purchase-order administration, five-colour tracking, specification review, sample and approval records, warehouse handling, communication, defect risk and remake risk. Although the total order contains 500 pieces, it is divided into five colour batches of only 100 pieces. Each colour requires setup, material control, washing separation and colour-specific inspection.

A smaller style-colour quantity needs its own allocation; the 500-piece model cannot establish its unit cost.

10. Local handling and commercial administration RMB 2.50

USD 0.35

2.1% This final cost line covers local handling, carton movement, basic commercial administration and document preparation. It is not presented as a statutory tax rate because tax treatment, export rebates, local transport and document costs depend on the legal seller, invoice structure, shipment method and agreed Incoterm. A model selling price, EXW price and FOB price are not automatically the same.

Buyers should confirm the named place or port and the applicable Incoterms 2020 rule whenever they compare international knitwear quotations.

Cost and factory-price summary
Cost summary RMB per piece USD per piece
Total production cost 118.14 16.41
Model surplus 18.66 2.59
Illustrative selling price 136.80 19.00

Frequently Asked Questions

These answers explain how to use the USD 19 model without treating it as a universal sweater price. A reliable knitwear quotation must define the material, yarn count, weight, gauge, construction, colour split, washing, packaging, quality requirements and trade terms. When one supplier includes these elements and another changes or omits them, their prices do not represent the same product. Use the questions below to test whether a quote is sufficiently detailed for commercial comparison.

What Does This Wool Sweater Cost Model Actually Show?

In this defined case, a 350g, 100% wool, 12GG sweater costs approximately USD 16.41 to produce and has a selling-price assumption of USD 19 per piece. The answer changes with yarn composition, yarn price, garment weight, stitch structure, colour quantity, the agreed style-colour quantity, washing, trims, testing, quality requirements and trade terms.

A buyer should avoid using this USD 19 figure as a benchmark for cashmere, cotton blends, a different weight, complex stitch structures or a different order size without receiving a comparable specification-based quotation.

How Is the Yarn Cost of a Wool Sweater Calculated?

Start with the finished garment weight, add a realistic production allowance and multiply the result by the yarn purchase price. In this model, the calculation is 0.350kg × 1.08 × RMB 230/kg = RMB 86.94 per garment. The costed yarn quantity is therefore 378g, rather than 350g. The 8% allowance reflects setup, irregular loss and material risk across five colour lots. It should be checked after sampling and size grading rather than assumed to be identical for every factory, yarn or construction.

Is 2/26Nm Wool Yarn Suitable for a 12GG Sweater?

It can be suitable, but yarn count alone does not confirm the final construction. Ply arrangement, knitting density, stitch structure, garment dimensions and intended hand feel must be tested on the selected machine. Two sweaters using the same nominal gauge can still differ in weight, opacity, recovery, surface appearance and cost.

Buyers should approve a washed swatch or prototype before bulk production and should ask the factory to record any yarn, density or finishing assumptions made while preparing the quotation.

How Does the Five-Colour Split Affect This Wool Order?

Each colour requires separate material handling, batch identification, machine setup, washing separation and colour-specific inspection. Five lots of 100 pieces do not have the same production efficiency as one lot of 500 pieces, even when total quantity is unchanged. Colour minimums and yarn availability can also affect commercial feasibility.

For YouTricot, 50 pieces per style per colour is conditional on the feasibility of the yarn, colour, structure, trims, testing, finishing and technical route; it is not the quantity basis of this 500-piece example. Buyers should ask other suppliers whether the same basis applies and should request the cost effect of reducing colour count or using available stock-yarn shades.

Does Shrink-Control Treatment Make a Wool Sweater Machine Washable?

No. Shrink-control treatment does not automatically make every wool sweater machine washable. The final care claim must be supported by the actual yarn, treatment, garment construction and finished-product test results. ISO 5077 provides a method for determining dimensional change after washing and drying, but it does not guarantee a particular shrinkage outcome. Buyers should review the approved sample after final washing and follow the finished garment care label.

Drying instructions must also follow the validated finished-garment care label.

Is the USD 2.59 Model Surplus Guaranteed?

No. USD 2.59 is the illustrative surplus generated by this one costing model, calculated from USD 19 revenue less USD 16.41 estimated production cost. Illustrative surplus is not the same as final net profit. Exchange-rate movement, late material delivery, reworking, replacement garments, unplanned machine downtime, payment terms, quality claims and production delays can reduce the final result.

The 13.6% model margin is an arithmetic result, not evidence that this margin is commercially sufficient or typical.

Which Changes Could Reduce This Wool Style’s Cost Transparently?

Options to cost and compare include reducing colour count, simplifying packaging, using an available yarn shade, increasing quantity or adjusting garment weight. These changes should be recorded in the revised specification and quotation. Removing essential quality control, omitting normal yarn allowance or changing fibre composition without disclosure is not a responsible cost-saving method.

Buyers should ask the supplier to show the unit-cost impact of each proposed change so that a lower price can be evaluated alongside its effect on appearance, performance, feasibility at the agreed style-colour quantity and delivery.

How Could RWS Requirements Affect This Wool Cost Model?

The USD 19 model does not establish an RWS-certified supply route or include a verified certification premium. If RWS wool is specified, ask for an alternative yarn offer and a separate cost-and-schedule impact covering availability, colour-lot minimums, applicable chain-of-custody certification and transaction documentation. A supplier certificate alone does not certify YouTricot or every garment. There is no fixed percentage premium or extra-day allowance in this example; any change must come from the actual sourcing route and document plan.

How Is the USD 2.59 Model Surplus Calculated?

At the model exchange rate, the model leaves approximately USD 2.59 in illustrative surplus per sweater, equal to a 13.6% model margin. The calculation is USD 19 × RMB 7.20 = RMB 136.80 in revenue; RMB 136.80 − RMB 118.14 = RMB 18.66 in illustrative surplus; and RMB 18.66 ÷ RMB 136.80 = 13.6%. This illustrative surplus must still absorb commercial risks such as exchange-rate movement, late materials, reworking, replacement garments, quality claims, payment terms, machine downtime and delays. Because the model already allocates equipment, management and local administration, this is an illustrative surplus after the listed allocations, not a verified financial-accounting gross margin. Reconcile labour, energy and overhead boundaries to avoid double counting before using the model in an actual quote.

Important distinction: The calculated USD 2.59 is illustrative surplus under this model. It is not guaranteed net profit.

Price–Scope Comparison Matrix

For the same 350g, 100% wool, 12GG, five-colour specification, the price must be evaluated together with what the supplier has changed or excluded. This matrix does not claim that every USD 15 or USD 19 sweater is identical. It shows how the original model should be interpreted when a buyer receives a lower price. The safest comparison is a written quote that confirms material, weight, yarn allowance, construction, finishing, packaging, inspection and Incoterms on the same commercial basis.

How buyers should interpret USD 15, USD 16.41 and USD 19 price points
Price or cost benchmark What it means Scope-comparison caution Buyer action
USD 15 comparison price USD 15 equals RMB 108, which is RMB 10.14 below the RMB 118.14 calculated production cost. Reconcile scope Identify the changed condition: fibre content, weight, yarn, allowance, washing, finishing, trims, quantity assumption or excluded service.
USD 16.41 production-cost benchmark This equals the model’s estimated production cost and leaves no surplus allowance for production risk. Reconcile scope Confirm whether the supplier has a different scope, a larger-volume assumption or a temporary commercial arrangement.
USD 19 model price This supports the model’s RMB 118.14 production cost plus RMB 18.66 illustrative surplus. Verify assumptions Still verify yarn, weight, colour split, washing, packaging, quality control and the applicable trade term in writing.
Any price without a technical scope A single number cannot show whether the garment, commercial terms and exclusions match another quotation. Reconcile scope Request a quote-ready tech pack, cost inclusions, exclusions, the agreed style-colour quantity, a sample plan and a named Incoterm before comparing suppliers.

What Changes the Cost of This Wool Sweater?

Custom sweater cost changes when a technical or commercial variable changes, even if the garment appears similar in a product image. Yarn is the largest cost component in this 100% wool model, so material price and garment weight have immediate commercial impact. However, factory efficiency, stitch complexity, colour split, finishing, packaging, testing and delivery terms also affect the final quote.

Buyers should ask suppliers to quantify the cost effect of each proposed change rather than negotiate a target price without adjusting the production scope.

  1. Fibre composition: Confirm the specified wool yarn. Changing fibre or blend requires separate costing and approval; other-material cost models belong in their own examples.
  2. Garment weight: A 350g sweater uses considerably more material than a 220g fine-gauge top, particularly when yarn is the main cost component.
  3. Gauge and stitch structure: Gauge alone does not determine cost; density, garment dimensions, machine time and structure must be considered together.
  4. Order quantity and colour split: YouTricot’s conditional minimum of 50 pieces per style per colour depends on yarn, colour, structure, trims, testing, finishing and technical-route feasibility. Commercial feasibility also depends on yarn availability, colour minimums, gauge, design complexity, finishing and the quantity assigned to each colour.
  5. Washing and finishing: Softening, shrink control, brushing, enzyme washing and special hand-feel treatments require trials and process control.
  6. Trims and packaging: Labels, hangtags, barcodes, custom boxes and retailer-ready packing should be specified before the final quote.
  7. Quality and testing: Measurement tolerances, pilling, colour fastness, shrinkage, fibre composition and harmful-substance testing can affect both cost and lead time.
  8. Trade terms: EXW, FOB, CIF and other terms allocate transport, documents, cost and risk differently; the named place or port also matters.

Read the full guide here : Knitwear FOB Price, EXW and CIF Quotation Guide

What Should Buyers Ask Before Comparing Sweater Quotations?

A comparable knitwear factory quotation should make the product scope, included costs and commercial responsibilities visible before the purchase order is confirmed. Buyers should not compare only the final unit price, because one supplier may price a different yarn, lower garment weight, simplified washing, separate packaging or another Incoterm. The checklist below turns the USD 19 example into a practical supplier-comparison tool.

Apply the checklist to this 500-piece wool style, keeping its five 100-piece colour lots explicit.

  1. Is the quoted composition exactly 100% wool?
  2. What yarn count and yarn price are assumed?
  3. What size and size ratio does 350g represent, and how is finished weight measured and conditioned after washing?
  4. Is yarn loss included in the quotation?
  5. Does the price cover five colours?
  6. Are colour minimums or dyeing surcharges included?
  7. Does the price include softening and shrink-control treatment?
  8. Are labels, trims and packaging included?
  9. What quality checks are included?
  10. What is the quote date, validity, exchange-rate basis, named Incoterm and place or port?
  11. What happens if bulk measurements differ from the approved sample?
  12. Are testing and third-party inspection charged separately?

Read the full guide here : Knitwear Tech Pack and RFQ Checklist

Read the full guide here : China Knitwear OEM Sourcing Guide

Quotation boundary: A comparable price requires the same technical scope, included services, trade term and quantity basis. Testing, third-party inspection, premium packaging, custom dyeing and complex structures may require separate costing.

About the Author

Frank, Founder of YouTricot · YouTricot Blog

Frank is the founder of YouTricot, a high-end knitwear OEM/ODM manufacturer. His background includes 20 years of industry experience across Prato, Italy and Dalang, Dongguan, China.

Request a Knitwear Cost Review

If your team is developing a custom wool sweater, submit the current tech pack, target fibre composition, garment weight, gauge, colour quantity, the agreed style-colour quantity and delivery requirement for a practical review. A useful cost review identifies which variables are fixed, which decisions remain open and which proposed savings would alter the product or commercial scope. YouTricot can then prepare a style-specific quotation based on the actual yarn, construction, washing, packaging and quality requirements.

Request a Practical Knitwear Cost Review

Further reading on sweater and cashmere costing

This page owns the worked wool example. Use the cashmere article for the separate cashmere cost model, and the quotation guide above for general trade-term comparison. The two material examples are not interchangeable price benchmarks.

For the separate cashmere material example: Cashmere Sweater Cost Breakdown: A USD 70 Example

Choosing the fibre before the yarn: Cashmere vs Merino Wool vs Alpaca Procurement Comparison

For development scope and timing; a symbolic sampling fee is fully deductible from later bulk production orders: Custom Sweater Sample Cost: Scope, Timing and Fee Credit

For supplier evaluation after the specification is defined: How to Find a Reliable Low MOQ Sweater Factory: A 5-Step Sourcing Guide

Related sourcing topics

custom sweater cost ·
knitwear factory quotation ·
knitwear manufacturing cost breakdown ·
MOQ for custom knitwear ·
wool sweater cost