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Custom Bag Price Breakdown: Where Does Every Dollar Go? (A Factory's Open Calculator)
2026/1/12

“Why does this bag cost so much?” It's the most common, and fair, question in custom manufacturing. Unlike retail, a factory quote isn't arbitrary—it's the sum of tangible, line-item costs. Transparency here builds the foundation for trust. Let's dissect the real cost of producing a custom bag, using real numbers from our production floor.

The Building Blocks: A Real Cost Breakdown

Let's analyze a standard custom pencil case (20x10cm) as a reference. The percentages are estimates based on typical promotional orders.

Cost ComponentDetails & CalculationCost Range (Per Piece)% of Total Cost*
1. Main Fabric600D Oxford (¥3.5-4.2/m). A 22x22cm piece requires ~0.037m. With cutting efficiency, cost per piece is calculated.¥0.13 - 0.16~10-15%
2. Hardware
  • Nylon Zipper Tape (¥0.35-0.5/m): 0.25m used.

  • #5 Nylon Slider

¥0.13 - 0.21~10-20%
3. Labor & AssemblyCutting, sewing, and assembly. The most variable cost, rising yearly with skill demand.¥0.7 - 1.2~40-50%
4. Lining & Extra DetailsLining fabric and additional labor for an inner pocket.¥0.3 - 0.8~15-25%
5. PackagingOPP bag (25x13cm) & 5-ply export carton (cost Share).¥0.11 - 0.25~5-10%
6. Overhead, Tax & MarginManagement, operation, 13% VAT, and a sustainable factory margin for service and warranty.¥0.3 - 0.8~15-25%

*Percentages are illustrative and shift significantly with order size, complexity, and material choices.

The Volume Leverage: Why 10,000 pcs Costs Less Than 1,000 pcs

Price isn't just about adding up parts. Efficiency and scale drive down the cost per unit in non-linear ways:

  • Material Procurement: Buying 1 roll vs. 10 rolls of fabric. Suppliers offer tiered pricing (e.g., ¥10/m for 1-50 rolls, ¥9.8/m for 50-300 rolls). Purchasing less than a full roll can inflate costs by 30-50%.

  • Fixed Cost Amortization: A ¥300 shipping fee for raw materials Share across 1,000 units adds ¥0.3 each. Across 10,000 units, it's just ¥0.03.

  • Production Efficiency: Workers and machines gain speed and reduce waste with large, repetitive runs.

This is why MOQ exists and why unit prices drop with quantity—it's the economics of scale in action.

The Hidden Cost Multipliers: “Small Requests” That Add Up

Beyond base specs, these commonly overlooked requests significantly impact the final quote:

  • Fully Custom Components: A custom-molded拉头 or printed OPP bag requires new tooling and has its own high MOQ.

  • Special Material Sourcing: A unique Pantone color may require a fabric mill to run a minimum dye lot of 1,000kg, far exceeding your order needs.

  • Multi-Step Approvals & Revisions: Each additional sample round or design change after production begins incurs extra labor and delay costs.

Beyond the Numbers: What Are You Really Paying For?

A price Infinitely close to cost means no margin for service, quality assurance, or problem-solving. It's a transactional, high-risk model where any issue leads to dispute or loss.

A reasonable, sustainable price includes:

  • Risk Mitigation: It's your order's insurance. It covers professional project management, proactive quality control, and the factory's ability to handle unforeseen issues without compromising your delivery.

  • Partnership Value: It enables communication, transparency, and the willingness to go the extra mile to ensure your success.

In a market with countless suppliers, finding an honest, capable partner who won't cut corners on your behalf is the ultimate efficiency. It leads to stable, fast, and repeatable cycles—the true driver of long-term business growth.


Get a Transparent Quote for Your Project

We believe an informed client is our best partner. Share your specifications, and we'll provide a detailed, line-item cost analysis—no hidden fees, just clarity.

   📱 Get a Cost Breakdown on WhatsApp        ✉️ Email Your Specs to info@bincai-intl.com  

Next Step: Send us your design or even a similar product photo. We'll show you the “why” behind the price.


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