Cost Breakdown of a Kuwaii Garment (%)
Raw material costs — This is the cost of every single component or raw material we need to purchase to make a Kuwaii garment. This would include fabric, buttons, zippers, fusing, elastic, threads, trims and anything else that might come up!
Wastage — This is a small allowance we add in per garment to cover any thing that might go wrong in production. This could include such things as sections of the fabric that is faulty, finished items that may have a flaw or fault in them, cleaning fees for stains on garments, and lots of other things that can go awry in the production process.
Manufacturing costs — This is the cost per item that we pay to our makers. The way we calculate the cost per garment is by working out with our manufacturers how many hours it takes to make one Kuwaii garment, then calculating that time by the TCF award wage per hour. We pay our makers on TCF level 5 which is the highest level on the award.
Wholesale Margin — This part of the income from the sale our garments goes to cover everything in the behind the scenes running of our business. In summary: the rent of our Head Office studio, the wages of the production team (5 x permanent & 1 x casual), the design and sample making costs of our products, the wage of our designer, photography, hair, make up, model and studio fees, graphic design fees, parades and other events, bank fees, insurance, motor vehicle fees, postage, legal and web development fees, amongst a long list of other expenses.
Retail Margin — This part of the income from the sale our garments goes to cover everything to do with the running of our three stores and our online store. These expenses include the following: rents of our three stores, plus outgoings, rates and bills such as electricity, phone and internet, repairs and maintenance in our stores, our retail staff wages (9 people) plus superannuation, workcover and taxes related to those, supplies and other expenses such as packaging, events and promotions in store, merchant and bank fees, and other expenses to do with the running of our stores.
Profit — Every cent of profit we make is invested back in our business to improve our products, processes and customer experience.