Tuesday, May 8, 2018

What Builders Should Look for When Shopping for a New Modular Factory

​Finding the right modular home factory for your business can be challenging. If you don't choose the right partner, you can run into a wide range of issues, from product quality to cost to shipping delays or even being caught in a factory bankruptcy.

Choosing a manufacturer for your modular home business is kind of like dating. You don't want to rush into a long-term relationship before you get to know the person.

And just like dating you need to make a list of the most important attributes you're looking for (price, quality, customer service) and compare them. Your homes are a reflection of everything you stand for, so it's not something you can afford to take lightly.

While pricing is extremely important, it shouldn't be the only factor you use to select a partner. Quality and service after the set is just as important . If the home arrives in poor condition, your customers won't be happy.

Related Article: Why Factories Lose Builders

Finding a modular home factory that is reliable is also important. Nothing can be more frustrating than having your home being moved back on the production schedule because the factory just signed a contract for a large commercial project.

Ideally, you should find a partner that delivers a quality product on time at a cost that allows you to be competitive. While that sounds easy nothing could be further from reality. Delays from the factory and even your customer can affect delivery time, increased raw material costs with little or no warning which cut into both the factory’s and your profit are just two of the many things that can cause problems.

You also have to know what a modular home factory is capable of producing.

This seems like a simple question, but many builders fail to look into the minimum threshold of capabilities they need from their modular factory. You may need a factory that is capable of contemporary homes in your market area or townhouses for an investor you’ve found only to learn that the factory you’ve partnered with does not have that capability.

Putting pressure on your factory to produce these products can result in having them build product that needs more work in the field than expected which cuts into your bottom line profit.

When you’re evaluating a potential factory partner, if you’re doing most of the talking, you’re probably doing it wrong. Builders make the mistake of asking yes or no questions of the factory rep, which doesn’t give factory people the opportunity to fully explain themselves. Instead, asking more open ended questions allows for you to listen to what the factory people have to say and allows you to make your best judgement on whether they can provide what you need.

Many modular home builders are using more than one factory to supply their homes as the complexity of design and production in today’s new homes may go beyond a factory’s ability.

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