FOB vs CM vs CMT: garment pricing terms explained

When you ask a Bangladesh supplier for a price, the first question back is often “FOB or CM?”. The two prices can look very different for the same shirt, and comparing them side by side is one of the most common mistakes new buyers make. Here is what each term covers, with a simple example.

What is CM (cut and make)?

CM is a service price. The factory cuts your fabric, sews the garment and finishes it. You, or your buying house, supply the fabric and usually the trims. The CM price covers labour, factory overhead and the factory’s margin. It is normally quoted per dozen in Bangladesh, and per piece for overseas buyers.

CM suits buying houses and liaison offices that already buy fabric in bulk and want to control it themselves.

What is CMT (cut, make and trim)?

CMT goes one step further. The factory also sources or applies the trims (thread, labels, buttons, zips, interlining) and handles finishing and packing. You still supply the main fabric. Some suppliers use CMT loosely, so always ask exactly which trims are included.

What is FOB (free on board)?

FOB is an Incoterm, not just a costing method. On an FOB quote, the supplier buys the fabric and trims, makes the garment, packs it and delivers it on board the vessel at the port of loading, usually Chattogram for sea freight. Risk passes to you once the goods are loaded. You pay freight, insurance and import duty from there.

For a brand in the UK, EU or USA, FOB is the easiest way to compare suppliers, because one number includes everything up to the port.

Side-by-side comparison

A simple example

Imagine a basic cotton shirt. On a CM quote you only see the making charge. On an FOB quote the same shirt also carries fabric, trims, washing, packing, testing and local transport. Fabric alone is usually the biggest part of an FOB price for cotton basics, often well over half of it. That is why an FOB price can be several times the CM price for the same garment, and why you should never compare one supplier’s CM with another’s FOB.

Other terms you may see

• CMP: cut, make and pack. Like CM, but the factory supplies packing materials such as polybags and cartons.
• CFR / CNF: FOB plus sea freight to your port.
• CIF: CFR plus insurance.
• DDP / LDP: delivered to your door with duty paid. Convenient, but you lose sight of the freight and duty costs inside the price.

Which one should you ask for?

• New or small brand abroad: FOB. One clear number, and the supplier owns fabric quality.
• Buying house or liaison office in Dhaka: CM or CMT, if you already manage fabric.
• Large brand with nominated fabric mills: FOB with nominated fabric, so the factory buys from your approved mill.

How to read an FOB quote

Ask for the quote broken into lines: fabric (with consumption and price), CM, trims, print or wash, packing, testing, transport and commission. If one supplier is much cheaper, look for the line that is missing or the fabric that has changed. We wrote more about this in our step-by-step guide to sourcing clothing from Bangladesh.

FAQ

Is FOB price the price I pay in total?

No. FOB stops at the port in Bangladesh. You still pay freight, insurance, import duty, customs clearance and delivery to your warehouse.

Why is CM quoted per dozen?

It is the local habit in Bangladesh, especially between factories and buying houses. Divide by 12 to compare with a per-piece price.

Can a supplier quote both FOB and CM?

Yes. We quote FOB for brands abroad and CM or CMT for local buying houses, on the same costing sheet.