For brands considering an ODM partnership for outdoor furniture, understanding the cost structure is crucial for budgeting and a successful collaboration. The costs are typically broken down into two primary phases: the Design & Development phase and the Manufacturing & Production phase.

The Design and Development phase encompasses all upfront, non-recurring engineering (NRE) costs. This includes the initial concept creation, where designers translate your brief into sketches and mood boards. Following this, detailed technical drawings and 3D renderings are developed, specifying every dimension and joint. A significant cost driver here is prototyping. Creating functional samples from different materials (like aluminum, teak, or synthetic wicker) to test form, function, and durability involves labor and material expenses. Finally, the cost for creating the production molds, tooling, and jigs—essential for mass manufacturing—is accounted for in this phase. These are one-time investments that are amortized over the production run.

The Manufacturing and Production phase covers the recurring costs per unit. This starts with material procurement—the raw aluminum frames, cushion foams, fabrics, and hardware. The unit production cost includes factory labor for cutting, welding, weaving, assembling, and finishing (powder coating, staining). Packaging, tailored to protect furniture for ocean freight, and logistics to the port of shipment are also key line items. Importantly, a reputable ODM partner will include costs for quality control at various stages and necessary compliance testing for safety and durability standards.

A transparent ODM partner will provide a clear quotation separating these NRE (design/tooling) costs from the per-unit FOB (Free On Board) production cost. This clarity allows brands to understand their upfront investment versus their scalable cost per piece, forming the foundation for a trustworthy and effective manufacturing partnership.