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The Glove Maker's Blog, Glove Sourcing Strategies for Retailers and Brands

Glove Manufacturing: The Ultimate Guide to Glove Cost (Part II)

Posted by Roger Heumann

Aug 21, 2014 3:31:00 AM

costs

In Part I of our "Ultimate Guide to Glove Cost" series, we covered the two most important cost variables, material costs and labor costs.

Today, we'll dig into Dies, Duty Rates, and other costs such as Embellishments, Packaging and Shipping.

The goal of our series is to help you weigh your options, and make better decisions.

As they say, "an educated buyer is our best customer!".

To learn about what makes up your glove costs, read on!

How Much Does A Glove Cost? (Part II)

After materials and labor costs, here are the other factors to consider:

1. Hand cutting vs. Dies: A good glove is always diecut instead of being hand cut. Dies insure consistent and accurate sizing and better fit.

The only negative of dies are their cost. Some gloves can use up to 20 dies per hand, which when multiplied by 2 hands per pair and 5 sizes can equal 200 dies. Depending upon the size of a die, pricing can range from $50-$100/die or $2,000. If volumes are significant, die charges don’t play a big factor, but for smaller orders this can be a pricing hurdle.

As glove consultants, we can suggest strategies that help to reduce some of the die costs.

  • For instance, a padded weight lifting glove can be designed for greater durability, or for lower cost. One approach would be to use 2 layers of leather in the palm, with gel in between. Alternatively, you could use 1 layer of leather with gel underneath, using fewer dies and materials, if cost was primary.

2. Duty: There are a wide range of import duties for gloves, ranging from 3% to 20%. Making good decisions at the beginning of the design process -- such as selection of materials -- can influence what duty charges will be.

For instance a glove made with a knitted material such as fleece will usually have a duty close to 20%, while a similarly constructed glove using a soft woven material might have a duty rate of 10%. For cost reasons, it is important to navigate the intricacies of US Customs rules, and this calls for a well-informed design process...

3. Other Costs: Many other factors impact costs, but the tradeoffs involved can usually be managed.

  • Embellishments: There is always a cost tradeoff between more elaborate branding and design details such as the use of logos, embroidery, and hardware, and these details can add up.

  • Packaging: When it comes to packaging, it generally helps to be super organized with what tags, bar codes and stickers you plan to apply. It is much easier and cheaper to have these applied while the glove is being made, vs having to apply them once they are delivered to you. But this isn’t always the case. Sometimes we can make recommend ways to optimize the packaging process to reduce cost.

For instance, packaging can be simple or fancy, ranging from a simple poly bag with no hang tags, to a fancy box that costs up to $5.00/pair. But instead of packing gloves in a fancy box at the factory, and paying to “ship air”, it might be more cost effective to ship flat, make the box in the USA and pack it here

  • Shipping:  Shipping choices are self-evident – cost is normally determined by dimensional size for both sea and air freight. If you are in a rush it generally adds cost, but careful planning can help.

Cost-Focused Sourcing: The Bottom Line

As you can see there are many items that go into the costing of a glove.

Our job as glove consultants is to offer you alternatives, and help you to make the best planning decisions. A good rule of thumb is set a budget, and put money into materials and components that your consumer will value the most.

In the final analysis, sourcing decisions need to be made holistically, based on what you are trying to achieve. Materials, labor cost, quality, delivery times and many other factors must all be balanced.

An experienced glove consultant can help you determine which direction will ultimately best meet your needs.

 Let us know if we can help! For a quote or consultation with our team, click below.

    

Free Guide: The Hidden Costs of Glove Manufacturing

In over 70 years of making gloves, we've learned that what you don't know CAN hurt you.  Our free guide is designed to help you find where costs might be hiding ... and eliminate them!

Topics: Private Label: Glove manufacturing, Private Label Costs/Pricing

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