When placing an OEM order for patio dining sets, understanding the cost breakdown is crucial for budgeting and negotiation. The total price is rarely a single figure but a sum of multiple components.

The most significant cost driver is Materials. This includes the primary frame material—such as aluminum, wrought iron, steel, or resin wicker—and secondary materials like tempered glass tabletops, cushion fabrics, and fasteners. Material grade and market volatility directly impact this cost.

Labor and Manufacturing costs cover the entire production process: cutting, welding, assembly, polishing, and finishing (e.g., powder coating or painting). Complex designs with intricate weaving or detailed welding require more skilled labor hours, increasing the expense.

Tooling and Molds represent an upfront, often one-time, investment. Creating molds for resin parts or specialized jigs and fixtures for a unique frame design incurs initial costs. For large orders, this cost is amortized, making the per-unit cost lower.

Logistics and Packaging are essential. Protective packaging for glass tops and cushions, along with sturdy cartoning, adds cost. International shipping involves sea freight charges, customs duties, and port handling fees, which must be factored into the landed cost.

Overhead and Profit Margin for the factory includes costs for factory maintenance, administration, quality control, and certification (e.g., for weather resistance). The manufacturer's profit margin is a percentage added on top of all direct costs.

Other variables affecting the final quote include order quantity (higher volumes reduce the per-unit cost), customization level (standard vs. fully custom designs), and payment terms. A clear specification sheet is vital for obtaining accurate and comparable quotes from manufacturers, ensuring you understand what each line item in the cost breakdown truly represents.