In response to the recent article Modular Housing Industry Needs to Get Off Its’ Butt Now, a modular home builder wrote the following comment, signed his name and his company.
Before the slow down I did nothing but modulars, when the bottom fell out of the market I found other work and from time to time sold a mod mostly from references from old clients. This week I took delivery of a simple ranch that came with a preframed porch. We found that porch stuffed in the living room along with the gable ends, collar, ties, sheetrock, and all the siding. It took 7 of us an hour and half to pull this mess out of the LR and cost me 1-1/2 hours of extra crane time–Strike one, The fit and finish of the framing is terrible, overhangs are crooked, rim joist go every which way, on one box the bridging goes from 2×10’s to 2×8’s to 2×6’s ??? I guess they ran out of 10’s ?? Strike two. I called the sales rep. and got ba, ba, ba STRIKE THREE !!! no more mods for me it’s not worth the trouble. And you wonder why sales are dropping —I don’t!
It really doesn’t matter which factory he bought the home from, what is important is that this is not an isolated case. We’ve all been in this industry long enough to have many war stories about factories doing things like this and as well as builders doing some really dumb things that they blame on their factory.
Another builder wrote me yesterday about the service tech a factory just sent to a house that had issues with the windows when the house arrived. When the tech arrived he was met by the owner, as they were living in it by now, and he told her that the windows his factory sold were cheap and he was surprised anyone would buy a modular home. When the homeowner told the builder what was said by the service tech he immediately sent of an email off to the factory owner and GM and as of last evening he still hadn’t gotten a satisfactory reply from the factory. Maybe it is being resolved right now.
Now that a factory has possibly lost a builder, what can be done to fix the problem.
Here’s a step-by-step plan.
1. Get Out of Denial
You probably think you know why your customer left–but you probably think wrong. Most people believe the primary reason a builder left is that the customer found a lower price elsewhere or the builder’s needs changed. But if you ask builders why they switched factories, the reason is usually either “bad customer service” or “poor quality.”
The lesson here: Do not assume you know what actually happened.
2. Discover the Real Reason
I don’t want to point out the obvious, but: If you don’t ask, you’re not going to find out. In other words, the owner or GM must absolutely speak directly with the builder who gave your firm the heave-ho.
Approach them respectfully and with a sincere desire to learn and improve. In some cases, you’ll get an earful right off the bat, but in other cases, you’ll need to probe to get the honest answers.
Either way, you’ve need the straight scoop in order to use the situation to your advantage.
3. Fix the Real Problems
If the problem is anything except the “the builder’s needs changed”–which, it turns out, is the reason only 14 percent of the time–then you need to address the issue that the builder raised. If your quality or your customer service sucks, make the changes necessary to improve them. If your price isn’t competitive, either drop the price or figure out a better way to articulate why your higher price is justified.
Fixing the problem, by the way, is the best way to keep a defection of one builder from becoming an exodus of multiple builders.
4. Keep the Relationship Alive
While you’re fixing the problems, keep your former builder in the loop. That doesn’t mean pestering him/her with junk emails, but it does mean informing them about the progress of the changes and improvements that you’re making.
Any communications along these lines must make it clear that the builder’s opinions and complaints are not just being acted upon but are sincerely appreciated. And if the changes help you win new builders, be sure to thank the former builder.
5. Revisit the Lost Customer
When you’re completely sure that you’ve addressed the issue, it’s entirely appropriate to ask the former builder to revisit the decision. It’s far easier to get a former builder to return to the fold than it is to acquire new ones.
And that make sense, if you think about it. When you exhibit an honest effort to improve, most people are willing to give you a second chance.
