Most garment business owners in Pakistan calculate profit the wrong way — they subtract fabric cost from selling price and think they have their margin. But this approach ignores karigar wages, overhead costs, wastage, unsold inventory, and the hidden cost of udhaar that never gets recovered. Let's fix that.
The Common Mistake: A shirt selling for PKR 1,200 with fabric cost PKR 600 does NOT mean your profit is PKR 600 (50%). After accounting for all real costs, the actual profit might be PKR 180 — just 15%.
The Wrong Way vs. The Right Way
The Hidden Costs Every Garment Owner Misses
1. Fabric Wastage
Every cutting operation produces waste — typically 10–20% depending on the garment style and cutter skill. If you're calculating fabric cost at face value (meters × price), you're understating your cost. The correct approach is to include the wasted fabric in your per-garment cost calculation.
2. Karigar Wages Per Piece
Every garment that leaves your factory has karigar wages embedded in it. Take your total monthly karigar wages and divide by total pieces produced. This gives your labor cost per piece — a number most owners don't know accurately.
3. Overhead Allocation
Your shop rent, electricity, water, and equipment maintenance don't disappear. These costs need to be divided across all pieces produced in a month. If you pay PKR 50,000/month in overhead and produce 2,000 pieces, that's PKR 25 overhead cost per garment — often ignored in profit calculations.
4. Unsold Inventory Cost
Garments sitting unsold in your godown represent capital tied up. If you have 200 shirts that haven't sold in 3 months, the interest cost on that capital (at even 12% annually) is real money leaving your pocket.
5. Unrecovered Udhaar
If 5% of your udhaar never gets recovered (a conservative estimate for manual systems), that's a 5% reduction in your effective revenue. Include this as a provision when calculating true profit.
How FabriQ Automates Profit Calculation
FabriQ's analytics module tracks all of these costs automatically once your data is set up correctly:
- Fabric cost is pulled from purchase records, with actual wastage calculated from cutting logs
- Karigar wages are automatically allocated from the karigar ledger across the pieces they produced
- Overhead can be entered monthly and FabriQ distributes it per piece automatically
- Udhaar recovery rates are tracked and used to show realistic revenue figures
Real Result: A garment factory in Faisalabad switched to FabriQ's profit tracking and discovered that their "white plain shirt" — their highest volume product — was actually their lowest margin product after accurate cost calculation. They raised the price by PKR 150 and retained 95% of their customers. Monthly profit increased by PKR 68,000 from this single pricing correction.
Your Monthly Profit Report in FabriQ
At month-end, FabriQ generates a complete P&L report showing: gross revenue, all cost categories broken down by type, net profit, profit margin percentage per product line, comparison to previous months, and your best and worst performing garment styles.
Apna Real Profit Jaano
FabriQ ERP automatic profit calculation karta hai — free mein shuru karo.
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