MISTAKE #1 – You pick a factory based solely on price!
The old adage is really true. “You get what you pay
for”. This is especially true in the modular housing business. If you want
to be a good builder you should decide to deal with a factory because of the
overall value you receive, NOT because they are the lowest priced.
Here’s why…
Value = Quality + Service + Price
Just like in your construction business, you hire the best
people and buy the highest quality products – consequently you have to charge
more for your services.
Total Value is all three. Quality, Service and Price!
The 3 most common problems YOU WILL have when you choose a factory
that only offers the lowest price:
Dirt cheap modular home factories don’t usually stand behind
their work if there is a mistake. Sure, other factories might deliver a home for
a little less money, but how will they treat you if there is a mistake with
your home? To give the cheapest price, they usually have low-wage,
inexperienced employees that have not been adequately trained. They also cut
corners by using cheaper materials and lower quality products. You get what you
pay for. The little bit of money you saved ends up costing you more in the long
run. Believe me, this is a little saying you should take to heart: “The
good feeling of a cheap price is long gone before the stench of poor quality is
ever used up.”
The lowest priced factory also tends to offer the lowest
quality. Your home is YOUR IMAGE. It directly reflects on your professionalism
and the standards of work you are willing to accept. If you hand over shoddy houses
it rubs off on your company image. Plainly said, “Shoddy or low quality homes
because of cheap price makes you look bad.” No amount of savings is worth
this. You’ve worked too hard and spent too much money to build your company
image. Why throw it away for the few pennies you save on a lowball factory
price?
And the third reason why choosing the cheapest factory is a
problem is that you will get charged extra for things other factories normally
include in their quote in the first place. You’ll be charged extra for such
things as additional fees, surcharges and design work.
Cheap factories will nickel and dime you to death. What
seemed like a good price actually ends up costing you more in the end. This is
just a tactic some factories use to get you in the door.
MISTAKE #2 – You think all factories are the same.
Every factory is different. No two factories are really the
same, even the ones that have multiple factories. Every factory has a different
layout and different employees who know how to do certain kinds of jobs well.
Every company has a different number of employees, each with different
abilities, and different lead times to complete your house.
Factory home building is art, science and craftsmanship
combined. Most people who buy houses don’t truly understand that despite all
the technological advances, factories still use a lot of the same techniques as
thirty years ago.
Contrary to what a lot of builders think, factory
construction is not just running lumber through an assembly line. It takes
craftsmanship to turn out quality homes. You must have great design and organization
before you build. Factories then have to adjust scheduling, purchasing, line
moves and purchase materials before they can send a home to the production line.
Then, they have to do all the finish work such as cutting, fitting, wiring, drywalling,
plumbing, trim, wrapping and shipping.
MISTAKE #3 – You always have three or more factories
competing with each other for your homes.
You may think this is a good way to do business. And it is
to some extent. But here is why it usually isn’t a good way to deal with factories.
A good factory has enough loyal builders that they don’t
have to deal with price shoppers.
Once you find a good factory, you must be loyal to them. If
you flip-flop from factory to factory, a good one won’t be motivated to keep
YOU as a customer. Price is important.
But price should not be more important than good quality and good service.
Every modular home factory sales rep expects to bend over
backwards for their loyal customers now and again. He or she might have to work
all night, quote a super rush job, or pull off a miracle. Provided the builder
is loyal, the factory rep will do all he can to help you meet the builder’s
demands.
All good factory reps will be loyal to you if YOU are loyal
to them. Loyalty doesn’t come instantly but is built over time. It’s like a
savings account…if you add to it continuously, it will be there when you need
it.
MISTAKE #4 – You don’t give your factory enough time to do
your job properly.
Mistakes happen when you rush!
When you’re in a hurry, you may forget to tell your factory
rep certain instructions. Or you might make a mistake on your original floorplan
because you were concentrating on getting it done, instead of getting it done
right.
Before you work on quoting your next home, talk with your factory
rep. Get your factory involved from the beginning because there might be a more
efficient way or cost-saving way to finish your project on time that you don’t
know about.
You can save time, money and headaches from the very
beginning by communicating with your factory!
Why do most people do the opposite of this and wait until
the last minute to talk to the factory? Because everyone takes the factory for
granted. Everyone thinks the factory can easily take care of their work. Most
everyone thinks the factory is sitting around waiting for their job to come
through the door. This isn’t the case.
You should think of your factory and factory rep as your
“project partners”. Consult with them. Let them know in advance what
your customer wants. Ask them if there are any tips they can give you to make this
project go smoother.
You are not the only builder your factory has. When you walk
in the door saying you NEED IT NOW, a factory can’t always help you. You need
to work together.
