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Sourcing6 min readUpdated

CMT vs FOB vs Full Package: How Garment Factories Price Your Order

Two factory quotes for the same t-shirt can differ wildly because they are not quoting the same thing. Here is what CMT, FOB and full package mean, what sits inside each price, and how to compare them fairly.

Short answerCMT (cut, make, trim) means you supply the fabric and trims and pay the factory for labour. Full package means the factory sources materials, makes and packs the garment for one price per piece. FOB is an export term for goods delivered on board at the port, and in apparel it is often used loosely for a full price per piece. Compare quotes by their total landed cost per piece, not the headline number.

A founder gets two quotes for the same oversized tee. One factory says a low number; another quotes several times as much. Often the cheap one is a CMT price that excludes fabric, and the expensive one is full package. Neither is wrong. They are simply pricing different jobs. Knowing the terms keeps you from choosing the wrong supplier for the wrong reason.

CMT, FOB and full package at a glance

ModelWho buys fabric and trimsWhat the factory price coversBest for
CMT (cut, make, trim)YouCutting, sewing, finishing, labour and overheadsBrands with fabric sources and time to manage them
Full packageFactoryMaterials, making, finishing and packingMost small and new brands
FOB (export term)FactoryFull package plus delivery onto the ship at the port of exportExport buyers

CMT: cut, make, trim

Under CMT you buy the fabric, and often the trims, and send them to the factory. The factory cuts, stitches, attaches trims, finishes and packs.

  • Upside: control over fabric quality and cost, and you can use the same fabric across several factories.
  • Downside: you carry fabric minimums, shrinkage and wastage risk, and coordination. If the fabric is late or faulty, production waits.
  • Watch for: agree the fabric consumption per piece and the allowed wastage upfront, so you know how much fabric to send and what should come back.

Full package manufacturing

Full package (sometimes called FPP) means one supplier handles everything: sourcing fabric and trims, sampling, production, finishing and packing. You approve samples and pay one price per piece.

  • Upside: one point of responsibility. If the fabric shrinks or a trim is wrong, it is the factory's problem to fix.
  • Downside: less visibility into material costs, and the factory's fabric minimums become your MOQ.
  • Watch for: ask for the fabric composition, GSM and finish in writing, so the quote is tied to a specific quality.

Most new brands in India start full package, because managing fabric mills and trim suppliers takes time and buying power a first drop does not have. Pooled lots on Smallotz are also full package: the base product is sourced and made for the whole lot.

FOB and other price terms

FOB (free on board) is an Incoterm used in international trade. The seller's price covers the goods and getting them loaded onto the vessel at the named port of export. Freight, insurance and import duties after that are the buyer's. For domestic orders inside India, ask instead whether the price is ex-factory (you arrange transport) or delivered to your address, and whether GST is included.

TipSome suppliers say "FOB price" when they mean "full price per piece". Do not assume. Ask: "Does this include fabric, trims, printing, labels, packing, GST and delivery?"

How a garment quote is built up

Whatever the model, a full price per piece is usually made of these parts. Asking for a breakdown helps you compare suppliers and see where savings are possible.

Cost lineWhat drives it
FabricComposition, GSM, consumption per piece, wastage, dyeing and finishing
TrimsThread, rib, labels, tags, zips, buttons, drawcords
Cut and makeConstruction complexity, stitch count, line efficiency
Print or embroideryMethod, size, number of colours, quantity
Washing and finishingGarment wash, enzyme wash, pressing, checking
PackingPolybags, folding, cartons, stickers
Overheads and marginSampling, admin, quality checks, the factory's profit
Below-MOQ surchargeFixed costs spread over a small order

Your own cost per piece then adds freight to you, sampling, any rejected pieces, and packaging for your customers. Our clothing pricing guide and cost calculator take it from there to MRP.

How to compare quotes fairly

  1. Send every supplier the same tech pack and quantity. Without one, each quotes a different garment. See our tech pack guide.
  2. Ask for a cost breakdown, at least fabric, making, print and packing.
  3. Convert every quote to a landed cost per piece: add fabric and trims you would buy for CMT, freight, GST treatment and expected wastage.
  4. Compare at your real quantity, and ask for the price at 2x as well, so you can see how much is fixed cost.
  5. Check what is not in the price: sample charges, print screens, size sets, re-work.

Apparel sourcing cost control: where savings really come from

Squeezing the factory's margin rarely saves much and often costs quality. Bigger savings usually come from design and ordering decisions:

  • Use running fabrics and colours instead of custom dyes.
  • Reduce sampling rounds with a complete tech pack. Each round costs money and time.
  • Simplify decoration: fewer print colours, smaller embroidery, standard trims for the first run.
  • Keep the range tight: fewer styles and colours means fewer below-MOQ surcharges.
  • Plan ahead: rush orders and air freight cost more than they look.
  • Share fixed costs: pooling with other buyers spreads setup costs across a bigger lot. See how MOQ aggregation works.

Which model should you choose?

If you are launching or ordering a few hundred pieces, full package is usually right: one price, one responsible supplier. Move to CMT when you have reliable fabric sources, volumes large enough to buy fabric well, and someone with time to manage it. For the bigger picture of finding and managing suppliers, read the apparel sourcing guide, or ask Voz Cruda for a quote.

Frequently asked questions

What does CMT mean in clothing manufacturing?

CMT stands for cut, make, trim. The brand supplies the fabric and usually the trims, and the factory cuts, sews and finishes the garments. The CMT price covers labour and factory overheads, not materials.

What does FOB mean in a garment quote?

FOB originally means free on board, an export shipping term where the price includes goods loaded at the port. In apparel it is also used loosely for a full price per piece that includes fabric, trims, making and packing. Always ask exactly what an FOB quote includes.

What is full package manufacturing?

In full package manufacturing the factory sources fabric and trims, makes the garment, finishes and packs it, and quotes one price per piece. It is the simplest option for small brands because one supplier is responsible for the whole product.

Is CMT cheaper than full package?

The CMT price is lower because it excludes materials, but your total cost may not be. You also pay for fabric, trims, freight to the factory, wastage and your own time managing suppliers. Compare the full landed cost per piece, not the headline price.

How can I reduce garment sourcing costs?

Use fabrics and colours the factory already runs, simplify prints and trims, keep the number of styles and colours tight, order in quantities that avoid surcharges, and reduce sampling rounds with a clear tech pack. Pooling orders also spreads fixed costs.

Start sourcing

Tell us what you want to make.

Share your product, quantity and timeline. We match you with suitable manufacturers, or pool your lot on Smallotz if you are ordering under a factory's minimum.