When considering an ODM (Original Design Manufacturing) project for outdoor furniture, the pricing structure differs significantly from purchasing standard catalog items. Unlike buying existing products with fixed price lists, ODM involves a collaborative development process where you create unique products tailored to your specifications.
For standard outdoor furniture, you pay for established designs, materials, and manufacturing processes. Prices are typically based on volume tiers, material choices (like aluminum or teak), and finish options. The costs are predictable and include margins for inventory, marketing, and distribution of standardized items.
ODM project pricing is more complex. Initial costs include research and development (R&D), where engineers and designers translate your concept into technical specifications. This phase requires upfront investment in prototyping, which involves creating and testing physical samples. You'll pay for mold creation, especially for custom components like unique aluminum frames or specialized plastic parts. These tooling costs are amortized over your production volume.
Minimum Order Quantities (MOQs) are crucial in ODM pricing. Higher volumes spread the substantial initial development costs across more units, significantly reducing the per-unit price. Material specifications dramatically affect cost; requesting marine-grade stainless steel instead of powder-coated aluminum, or high-density quick-dry foam instead of standard cushioning, increases expenses.
The pricing structure usually follows stages: a development fee for design and prototyping, then a per-unit production cost based on your confirmed order quantity. Manufacturers may offer lower per-unit prices for larger commitments. Unlike standard items, ODM pricing is highly customized, reflecting the exclusivity and tailored nature of the product. It's an investment in creating proprietary furniture that distinguishes your brand in the marketplace.
