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Cotton bales wrapped in white cloth stacked in a yard.
Buying yarn, step 6 of 13

Put the quotes on one basis

Work the spread per count, then land each quote with freight, duty and the cost of the payment term.

The yarn costing template builds the landed cost line by line: fibre, waste, noil and its credit, conversion, packing, freight, duty. Divide the conversion charge by the count before comparing quotes, and use the count converter when two quotes arrive in two systems. The cost of the payment term, the last line of that landed cost, is worked on the calculators page from the deposit, the days and your own borrowing rate.

Now the whole sum, on a real order. One of the six worked cases is a yarn purchase and it stops at this step: a Leicester knitter buying twenty tonnes of Ne 30/1 combed cotton yarn out of Karachi, costed line by line to the warehouse door before VAT, and then into pounds.

Worked case 3: A Leicester knitter buys 20 tonnes of cotton yarn United Kingdom. Costed to the warehouse door, every line shown. Opens here.

“One container of 30s combed from Pakistan. What does it cost me landed, and in pounds?”

Ne 30/1 combed ring spun cotton yarn, heading 5205, one forty foot box from Karachi to Felixstowe. Britain charges duty on the customs value, which includes freight and insurance, and the rate on this line is 0.00%.

Landed at Leicester, before VAT $65,256.50
Which is $3.26 a kg
In pounds, at the rate the site holds £48,936.26

That total is 8 lines. $3,356.50 of it comes from the duty rates, border charges and freight index the site holds, each printed with the day it was read; the other $61,900.00 is round placeholders you replace with your own quotes. The full case shows every line, what it was worked out from, and what the site cannot tell you.

Open case 3 in full, line by line or see all six cases side by side.

Tools for this step

  • Yarn costing template Excel

    Build a kilogram of yarn line by line from the fibre up, including the cleaning and combing waste most buyers leave out of the sum.

  • Yarn count converter Excel

    Type a count and its system into two cells and read the same yarn in every other system, so two quotes in Ne and tex can be compared.

  • Freight reckoner Excel

    Turn the box rate you were actually quoted into the cents per kilogram that belongs in your costing, at the load you will really achieve.

  • Box rate to cents per kilo

    Read your quoted box rate down the side and your realistic load across the top, and take the freight cost per kilo off the grid.

  • Cost of payment terms

    Put the deposit, the days and your own borrowing rate in and read what the term costs you in interest, so two quotes on two different terms compare on one line.

Every tool for this guide, grouped by what you are trying to do, is on the tools page.

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