Labor Charge

Definition and Scope

Labor charge refers to the work fee paid to a sewing factory or processing plant. The scope of the cost varies depending on the process requested, such as cutting, sewing, finishing, inspection, embroidery, and printing. Fabric costs, accessories costs, and freight are generally handled separately from labor charges.

In sewing transactions, it is also called sewing labor charge, and it may refer to the cost of handling cutting, sewing, and finishing. CMT is an abbreviation for a production format or its cost that includes cutting, sewing, and accessory handling, but the work included must be confirmed with each trading partner.

When Used in Fabric Transactions

In fabric transactions, the cost associated with post-processing or special-order processing may be called processing fees. For example, when adding dyeing, printing, brushed finishing, or laminating, the processing fee is quoted separately from the price of the roll. Depending on the processing details, the processing cost may also be included in the price per meter.

Processing fees are set in units suited to the process, such as per roll, per meter, or per product. When requesting processing on a small quantity of roll goods, a minimum fee or a fee per roll may apply. On fabric quotations, the breakdown between roll price and processing fee should be checked separately.

Factors That Affect the Amount

There is no fixed market rate for labor charges. In sewing, the main factors that affect the cost are the item, specifications, number of sewing steps, ease of handling the material, quantity, delivery date, and quality standards. As pockets, lining, zippers, pattern matching, and handwork increase, working time and management effort tend to increase as well.

In fabric processing, the processing method, processing width, quantity, number of colors, whether a screen is needed, number of prototypes, and required quality level all affect the cost. Do not compare only the quotation amount; it is important to judge based on the unit of the unit price, minimum fee, sample fee, inspection fee, and how reprocessing is handled.

• Relationship between quantity and unit price
• Processes included in and excluded from the labor charge
• Who bears the cost of materials, accessories, screen fees, and freight
• Separation between sample production costs and mass production costs
• Settlement method when the delivery date or specifications change

Quotation Check and Notes

When making a request, provide the specifications sheet, pattern, supply conditions for fabric and accessories, quantity, desired delivery date, and inspection standards. If the specifications that form the basis of the labor charge are unclear, additional processes or unit price changes are likely to arise later. Before mass production, confirm the specifications and work details with samples.

On the quotation, check not only the unit price but also tax treatment, quotation validity period, the scope of responsibility for defects and loss, and the delivery format. Because the term processing fee can include costs other than sewing, it is better not to rely on verbal communication alone; clearly stating the target processes and reaching agreement on both sides helps prevent misunderstandings.

Frequently Asked Questions