Your 6% Profit Margin Is Actually 2% — Garment Export Order Math | BUSINESS BEHIND THE PRODUCT

Your 6% Profit Margin Is Actually 2% A ₹1.5 crore garment export order with a 6% quoted margin looks like ₹9–10 lakh in your pocket. But by the time production finishes, that 6% has quietly shrunk to 2%. In this video I break down the exact garment costing math — and the dangerous trap most garment manufacturers and apparel exporters fall into without realizing it. 0:00 The order arrives — 50,000 pieces @ ₹300 0:30 The ₹9–10 lakh profit illusion 1:08 Production starts — and nothing goes to plan 1:39 Rework: how ₹5/piece wipes out lakhs 2:22 Rejection: 10,000 pieces sent back to the line 3:17 Late delivery — the buyer cuts the price 3:57 The final number: ₹3 lakh left = 2% margin 4:31 Should you refuse low-margin orders? 5:35 The 3 margins every factory must track 6:47 High turnover ≠ high profitability 7:23 What to do before you close your next order You'll learn the 3 margins every factory owner must track before accepting an order:• Quoted Margin — the price the buyer agreed to pay • Operational Margin — what production actually costs after rework, rejection, and fabric wastage • Realized Margin — what finally lands in your account after late-delivery discounts Using a real 50,000-piece example, I show how a ₹5 rework charge, 10,000 rejected pieces, and one delayed shipment quietly wipe out lakhs of profit — turning "6% profit" into a 2% reality. If you work in garment costing, production planning, or export order management, this is the math that decides whether your factory makes money or bleeds it. Remember: high turnover does not mean high profitability. 👉 Subscribe for more real factory-floor lessons on garment manufacturing, apparel export, production planning, and costing.