Sourcing Tips · 10 Apr 2026
The True Cost of Knitwear: Breaking Down Yarn, Labor, and Logistics
Understanding the cost structure of knitwear manufacturing, from raw materials to finished garment, and where your budget goes.
By Felix Zheng
Understanding where your production costs come from helps you make smarter decisions about design, materials, and sourcing strategy. This breakdown shows where your production budget goes and how to optimize it.
The Cost Breakdown
For a typical mid-quality sweater (7GG, cotton blend), here is how costs break down:
1. Raw Materials (35-45%)
| Component | % of Total Cost |
|---|---|
| Yarn | 25-35% |
| Trims (buttons, zippers, labels) | 5-8% |
| Packaging | 2-3% |
Yarn is the single biggest cost driver. The fiber type dramatically affects price:
| Yarn Type | Relative Cost |
|---|---|
| Acrylic | 1.0x (baseline) |
| Cotton | 1.5-2.0x |
| Cotton-wool blend | 2.0-2.5x |
| Merino wool | 2.5-3.5x |
| Cashmere | 10-15x |
2. Manufacturing (30-40%)
| Component | % of Total Cost |
|---|---|
| Knitting labor | 12-18% |
| Linking & seaming | 10-15% |
| Finishing (washing, pressing) | 5-8% |
| Quality control | 3-5% |
3. Overhead and Margin (15-20%)
| Component | % of Total Cost |
|---|---|
| Factory overhead | 5-8% |
| Sourcing/management fee | 5-8% |
| Compliance & certification | 2-3% |
4. Logistics (5-10%)
| Component | % of Total Cost |
|---|---|
| Ocean freight (to Europe) | 3-5% |
| Insurance | 0.5-1% |
| Customs clearance | 1-2% |
| Inland transport | 1-2% |
Cost Drivers by Design Choice
Gauge
- Fine gauge (12GG-14GG)
- +30-50% vs. 7GG — More machine time per garment, higher skill level required, more yarn waste
Pattern Complexity
- Plain stockinette
- Baseline
- Simple stripes
- +5-10%
- Cables
- +15-25%
- Jacquard patterns
- +20-35%
- Intarsia colorwork
- +30-50%
Sizing
- Standard range (S-XL)
- Baseline
- Extended range (XS-5XL)
- +10-20% — More pattern pieces needed, more machine programming, higher sample costs
How to Optimize Cost Without Compromising Quality
1. Yarn Selection
Choose the best quality your budget allows. A slightly more expensive yarn makes a dramatically better garment. Start with: quality combed cotton or anti-pilling acrylic.
2. Design Simplification
Reduce pattern complexity on some styles while keeping hero pieces complex. A collection with 70% simple + 30% complex designs often performs better than 100% complex.
3. Quantity Planning
- 100 pieces: Higher per-unit cost (sampling and setup amortized over fewer units)
- 300+ pieces: Optimal cost efficiency
- 500+ pieces: Best pricing but higher inventory risk
4. Consolidation
Group multiple styles using the same yarn and gauge. Shared materials and machine setup reduce per-style costs.
Hidden Costs to Watch For
- Sample revisions: Each round adds cost and time
- Last-minute changes: Disrupt production schedules
- Expedited shipping: Air freight can be 3-5x ocean freight
- Quality failures: Rejected goods, returns, brand damage
Transparent Pricing
At JIERQI Clothing, we provide detailed cost breakdowns for every order, so you know exactly what you are paying for and where there is flexibility.
Want a cost estimate for your collection? Contact us with your design specifications.
Work with JIERQI
Knitwear production in Shantou from 100 pieces per design. Sampling 7–10 days, AQL 2.5 inspection.