Garment Prices-The fair deal

What strikes you when you see this topic? What should be the fair price of a garment? Is the quote from the supplier the best quote? or, do we have some scope of improvement?

This question always arises in any buyer's mind when he or she is out to place an order with any supplier.Traditionally, the cost for a product was based on approximation or guesswork and with experience one could come to a conclusion that the price quote is correct and win win situation for the buyer. But, was it correct? No.

Fair price according to me should be a price which the supplier is willing to work at for a decent if not exorbitant profit margin. The price point which the buyer can shell out for their product without hampering their retail sale margin may again be a fair price. If any of the party don't agree, they can move ahead and negotiate with other supplier.

Recently, we have seen or read about some reports in the media that exporters in Bangladesh are not happy with the FOB prices being offered to them. So, the question arises, Are the buyers' arm twisting the suppliers? The answer could be a palin yes or no. But the retail scenario worldwide has forced the buyers to search for a cheap country of origin with a technological knack.

Surveys all around the world shows that people are spending less on apparel and more on experiences around the world. A person may not think twice before buying an Iphone but the same person hesitates to spend a few dollars on apparels which may suddenly go out of fashion.

Here are a few points which should be considered both by buyers and suppliers during price negotiations.

• Price agreed upon should fulfill the needs of both the parties.
• Buyer should get the intended quality product.
• Supplier should not struggle to pay the employees
• Short term pains should be considered for long term gains

To summarise, the fair price of a garment should be such that both the shops keep running and no one should go out of the business. But at the same time, both parties should keep innovating in order to survive and thrive.