Thursday, April 22, 2021

Modular Factories Tell Sales Reps to Stop Prospecting

The law of supply and demand applies to many situations in the business world and modular factory sales reps are finding out first hand that demand isn't necessarily a good thing.

If you have ever wanted to be a modular home builder and have been watching what is happening in new home construction, you've probably tried calling a modular home factory to learn how to become a new builder.

Rude Awakening Moment

Now it's time to call a modular home factory to learn how to become one of their builders. Surprise! They won't return your call or your emails. And it starts happening at every single factory you contact.

Turns out that once a factory reaches a 3-6 month backlog in orders, the sales reps are told to stop talking to new modular home builders. They're even told to hold back answering inquiries from experienced builders that are simply looking to find a new factory to build the homes they just contracted to build.

Two major factors are at work here. The first one, of course, is the factory has too much production already booked months out and wants to make sure their existing builders and developers are taken care of.

The second reason is the factory has neither the time nor the training to work with all those new modular home builders that want to begin building with modular.

So what's a builder to do? 

You can't wait a year to start a successful modular home business. The path to getting your first modular home ordered,  delivered and set without someone to show you steps to will probably result in failure.

One way to success can be found in franchising. Almost every type of business you can imagine has a franchise available to shorten the learning curve and help you plan for success. McDonald's, Jiffy Lube and even Grocery stores offer franchises.

New home construction is no different. I know two franchises that can help builders get on the path to starting a new company. 

One is Epcon Communities franchise which helps builders plan entire new communities and the other is Impresa Modular Franchise, the only franchise for new modular home builders.

Even though they serve two distinct segments of the construction industry, both are good at helping new businesses get started on the right path.

The bottom line...

If you are ready to begin a career in off-site construction, don't count on much help from the modular housing industry at this time. It's not in the cards for you unless you investigate the franchise route.


Gary Fleisher is the Managing Director and contributor to the Modcoach Network and its affiliated blogs. Email at modcoach@gmail.com

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1 comment:

Kevin said...

Gary you are correct, the path is not well light for those wanting to enter Modular as a means of construction. Do not misconstrue my comments I am about to make, I am in favor of Franchising however not all can afford that route.

The upfront cost and ongoing annual cost to operate a franchise narrows the already slim profit margin builders face at present given the rising cost of lumber, scarce supply of all building supplies and the continued impact COVID places on all industry.

What I am about to suggest is not the norm in franchising however if the cost factors of franchising were on the back end of sales, rather than front end, and the training cost were covered by the Franchisee on the front end more may see that path as a means of success.

Franchising is the only means Independent Builders will be competitive going forward by having a real voice at the table. Most of us are too busy fighting alligators to drain the swamp, we need a collective voice to retain our share of the market.