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What's Inside a $12 FOB Jean: A Transparent Denim Cost Breakdown

When a quote looks too good, the discount is hiding somewhere. Here is where.

September 15, 2026 · 7 min read · By the INDIGO & CO. Mill Team

A $12 FOB five-pocket jean in a standard 13 oz fabric, one wash, is not a mystery — it is a stack of known line items. Here is how it typically decomposes, and which ones can honestly flex.

The Stack

Line itemShareRange on a $12 jean
Fabric (13 oz, ~1.2 m)~35%$3.80–4.50
Trims & hardware~8%$0.80–1.20
CMT (cut-make-trim labor)~22%$2.40–2.90
Wash & finish~12%$1.20–1.60
QC, packing, hangers~5%$0.50–0.70
Mill overhead & margin~18%$1.90–2.30

Which Cuts Are Honest

Which Cuts Are Lies

The Rule

Every price has a source. A quote that beats the market by 25% has changed one of these line items somewhere — fabric weight, fiber content, labor location, or wash steps. Ask which. A mill that will not say is answering you anyway.

Frequently Asked Questions

What is FOB pricing?
Free On Board — the price at the factory dock, before freight, duties, and insurance. Comparing FOB quotes across factories is the cleanest like-for-like comparison.
Why does selvedge cost more if labor is the same?
Fabric: narrower, slower weaving, plus 40–70% more meters per pair. The sewing labor barely changes — the premium is upstream, in the weave room.
What margin should I expect the mill to make?
A healthy mill runs 10–20% net. Below that, quality investment disappears; above that, you are paying for someone else's marketing. Both ends of the range are bad news.