How to Calculate the Real Cost of Making a Garment in Morocco

Most brands receive a quote from a manufacturer and accept it — or reject it — without truly understanding what's inside the number. This is one of the most common and costly mistakes in the early stages of building a fashion brand.

A garment cost is not one number. It is the sum of at least six distinct cost components, each of which can be negotiated, adjusted, or optimised independently. If you don't know how those components work, you cannot have a productive conversation with your manufacturer, you cannot identify where value is being lost, and you cannot make informed decisions about pricing, margins, or production scale.

This guide breaks down every component of a garment cost calculation as we apply it at SALMH Textiles. The principles apply whether you are manufacturing in Agadir, Casablanca, or anywhere else in Morocco.

The Six Cost Components

A complete garment cost calculation accounts for the following six components. We will examine each one in detail.

1. Fabric Cost (Matière Première)

Fabric is typically the largest single cost component — often representing 40 to 60 percent of the total garment cost depending on the item. It is also the component with the most variables.

To calculate fabric cost accurately, you need three pieces of information:

• Fabric consumption: How many metres of fabric are required per garment. This is determined by the pattern pieces. A basic t-shirt might use 1.2m. An oversized coat might use 2.8m.
• Fabric price per metre: This varies widely by material, weight, and supplier. In Morocco, basic cotton jersey runs 25–45 MAD/m. Premium woven linen can reach 80–120 MAD/m. Imported technical fabrics can exceed 150 MAD/m.
• Fabric waste factor: Pattern cutting always produces waste — offcuts, selvedge losses, misalignment. A standard waste factor is 10 to 15 percent. Never calculate without it.

Formula: (Consumption in metres × waste factor) × price per metre = fabric cost per unit

Example: A hoodie using 1.8m of fleece at 55 MAD/m with 12% waste = (1.8 × 1.12) × 55 = 110.88 MAD in fabric alone.

2. Trims & Materials (Fournitures)

Trims are every component that is not the main fabric. They are frequently underestimated in early-stage cost calculations, which leads to budget overruns in production.

• Zips, buttons, snaps, and rivets
• Elastic, drawcords, aglets
• Interlinings and padding
• Threads — multiple colours may be required
• Woven labels, care labels, size labels
• Hang tags and packaging inserts

For a basic garment, trims typically add 8 to 15 MAD per unit. For a more complex piece with custom hardware or multiple label types, this figure can reach 40 MAD or more. Always list every trim explicitly — a vague "trims included" line is a red flag in any quote.

3. Construction Labour (Façon)

Labour — referred to as façon in Moroccan manufacturing — is the cost of the actual sewing and assembly. It is calculated either as a flat rate per unit or as a time-based rate (minutes per operation × hourly rate).

In Morocco, atelier labour rates vary significantly by location and quality level. Our in-house rates in Agadir reflect a premium atelier. Partner workshops in industrial zones can offer lower rates — but the trade-off is always quality consistency and communication.

For a reference point: a basic t-shirt might have 15 minutes of construction time. A structured jacket with multiple panels, pockets, and lining might require 90 minutes or more. The complexity of your design directly drives this number.

4. Finishing & Washing (Finition)

Finishing costs cover any post-construction processes: steam pressing, stone washing, garment dyeing, heat-setting, antimicrobial treatments, or quality inspection passes. Not every garment requires finishing beyond a press, but for certain product categories — denim, washed linen, athletic wear — finishing is a substantial cost line.

If your design requires a specific wash or treatment, request a separate finishing quote. These processes are often outsourced by the manufacturer and their margin on external finishing can be significant.

5. Overhead & Margin (Frais Généraux + Marge)

Every manufacturer applies an overhead rate to cover their fixed costs: rent, utilities, equipment maintenance, administrative staff. On top of this, they apply a margin — their profit. Together, these typically add 20 to 35 percent on top of the direct costs above.

This is the least transparent component of any quote and the one that varies most between suppliers. A manufacturer with high fixed costs in an expensive location will have a higher overhead rate than a smaller atelier with lower overheads. Neither is automatically better or worse — it depends on what those overheads buy you in terms of quality, reliability, and communication.

6. Branding Elements (Marquage)

If your production includes custom branding — woven labels, embroidery, screen printing, heat-transfer logos, custom packaging — these are costed separately and added to the unit price. They are not typically included in a base manufacturing quote unless explicitly stated.

• Woven label (neck + size): 3–6 MAD per unit
• Embroidery (small logo, chest): 8–20 MAD depending on stitch count
• Screen print (one colour): 5–12 MAD per unit depending on quantity
• Custom hang tag: 4–10 MAD per unit

A Complete Cost Example

Here is a worked example for a mid-weight cotton hoodie, manufactured in-house at our Agadir atelier at a quantity of 50 units.

This figure — 287 MAD — is your Cost of Goods (COG). Your retail price should be set at a multiple of this figure. A standard fashion industry multiplier is 4× to 6× for retail, or 2× to 2.5× for wholesale.

Where You Can Negotiate

Understanding the cost breakdown gives you specific levers to pull when a quote exceeds your budget. Here are the most effective ones, in order of impact:

1. Fabric selection: Moving from a premium to a mid-range fabric of the same type can reduce unit cost by 15 to 25 percent without any change to the design or construction. Always ask for two or three fabric options at different price points.
2. Quantity: Most cost components — particularly fabric and trims — decrease meaningfully with quantity. Doubling your order from 50 to 100 units can reduce the unit cost by 10 to 18 percent depending on the item.
3. Construction simplification: Removing or simplifying specific operations — a pocket, a French seam, a lining — reduces labour time and therefore cost. Ask your manufacturer to identify the two or three most labour-intensive operations in your design. Often there are simpler alternatives that have no visible impact on the finished product.
4. Branding scope: Launching without embroidery and using a heat-transfer label instead of a woven label can save 10 to 15 MAD per unit on a first run. This is a reasonable compromise for a brand's first production order.

Why Accurate Cost Calculations Cost Money

At SALMH Textiles, we charge a 100 MAD fee for every cost calculation we prepare. The breakdown above explains why.

An accurate quote requires us to source current fabric prices from our suppliers, calculate pattern consumption for your specific design, itemise every trim, determine the appropriate labour time by operation, and apply our overhead accurately. This is not a 10-minute task. It is a professional service that produces a document you can use to make real business decisions.

A free quote is, almost by definition, an estimate. It may be directionally useful but it will not hold up when production begins. The 100 MAD fee ensures you receive a number you can actually build on — and it is returned in value many times over when it prevents an underbudgeted production order from going wrong.

Summary

A garment cost is the sum of fabric, trims, construction labour, finishing, overhead and margin, and branding. Each component is calculable, verifiable, and negotiable. The brand founders who understand this breakdown are the ones who have productive manufacturer relationships, accurate pricing models, and sustainable margins from their first production run.

If you are preparing to launch a first collection or place an order with a new manufacturer, request an itemised breakdown — not a single line total. If a manufacturer cannot or will not provide one, that tells you something important about how they operate.