Wednesday, December 26, 2007

NEW YEARS RESOLUTONS

It's that time for more promises to be made and broken. New Years Resolutions, the fastest way to get down on yourself about the construction housing business. Here are some of my resolutions for 2008.

1. Work Harder
2. Work Longer Hours
3. Lose 30 pounds

You can use these too! Free!

Which of these has any chance of lasting longer than one week? You guessed it...losing 30 pounds.

What can you resolve to do differently in 2008? Well, first take inventory of your business. This is going to be tough because you love your business and it has served you well up until recently. You can just sit back and wait for this economic storm to pass. That is a resolution that is gaurenteed to put you out of business.

Here are my real suggestions for 2008.

Google yourself. Get a website started if you don't have one and update it if you do. Almost 75% of all new home buyers look to the web to get information.

Eat! Start eating breakfast and lunch at diners and small retaurants. Ask to put your ad on their bulletin boards if they have one. Start talking to people about what you do and have plenty of business cards with you. But be careful....remember that 30 pounds!

Be the expert. Find out if your local newspaper or radio station has a need for your expertise in construction for their audience. One important rule! Don't talk about yourself in these forums, but make sure you and your company get credit for the information. Becoming the expert in your area for new home construction will make your phone ring and that's what you want, right?

Use job signs. You cannot believe the number of jobsites I pass every week that don't have any signs except for the "job johnny" and the "roll off waste container" companies. When I do stop and ask who's building the house, I usually run into a subcontrator's worker that either doesn't know the builder or can't understand me. If you were looking to have a new house built, how would you know who to contact?

Expose yourself. No, not that way! Start by designing a table top display and a presentation for local "Home Shows". DO NOT USE "SHOW DISCOUNTS" at your booth. That sounds like a fire sale. And don't over emphasize that you "Sell Modular Homes". A lot of people will equate you with the guy down the street that sells double wides and modulars. You are a builder! You work with people to design and build great homes. You have to show them the true advantage to a custom modular home.

Get out of business. This is the tough part of the resolution business. Sit down and decide if you really can stay in business. People you talk to today won't be building for six months. Can you stay the course for that long? Can your family survive that long without problems? Only you can answer that and is a tough one. For more options and help, contact me.

If you decide that just working harder and longer will save your business, be ready for disappointment in 2008. The successful people having been planning for 2008 for some time now, but it's not to late to make and keep your own resolutions. Happy New Year!

Wednesday, December 19, 2007

GREEN AND CLEAN

Modular homes have an eco-friendly advantage over site-built homes from the moment construction begins. Being factory built, it's easier to control the amounts of waste created and recycled throughout the homebuilding process. Building materials are precut with factory-built homes, significantly reducing waste by up to 70 percent.

Modular homes with the Energy Star certification allow for even more efficiency, as well as savings. American homes use approximately 25 percent of the energy in the United States. Homes built featuring products with the Energy Star label use approximately 35 percent less energy than a typical new home, and prevent 4,500 pounds of greenhouse gas emissions each year. These homes have effective insulation, high performance windows, upgraded heating and air conditioning systems, tight duct systems and upgraded water heating equipment. Appliances in a new modular home are most likely Energy Star certified as well.

A growing portion of the population places a higher value on homes that are energy-efficient and environmentally friendly. Building homes under these guidelines is not only a smart investment, but you will also see savings in your utility bills, and a likely increase in your home's value.

Check with your factory rep and ask them about Green and Clean!

CHANGING PRICES

When is a "delivered price" not the real price? It's never happened to you? It can't happen to you?

Are you in for a real shock someday! Here's the way it should work. You get your final quote from your sales rep and then calculate your additional costs and profits. You've even figured in some percentage for overruns and mistakes. Then you give the customer their price and they say "Let's do this!" In most instances, this really is the way it works.

Now let's discuss the manufacturer that doesn't check everything that the sales rep does or worse yet, just adds costs to the sales order. A sure fire way to get "hosed" by a company is to work with one that does not have an order processing department. There are many of these. One way you can tell is to look at how the quote is presented to you. If the quote is handwriiten or on a simple form, get ready for the hammer to drop. When you visit the factory, ask to see the order processing department.

First, if they don't have an ordering processing system in place, how can they be sure that you were given an accurate quote? And if the first time the company really takes a look at your order (with your paid deposit), is when they are reviewing it for production, hang onto your butt as it will be sore very soon.

Don't fall victim to price run-ups from your factory. There is nothing worse than building a house for practice.

Friday, December 7, 2007

Are all Modular Manufacturers created equal?

We all know that all auto, TV, clothing and boat manufacturers are different. Some offer high quality at a high price, some offer low quality at a cheap price and some offer a good product at a fair price. The real difference is what we, the consumer, is actually looking to purchase.

If cheap prices were all that mattered, WalMart would be the only store in the country. If top quality was all that mattered, Rolls Royce would be our only car. For modular home manufacturers, the difference is two-fold.

What do you, the builder, and your customer get for the money?

Here's what I know for sure. Modular manufacturers are NOT created equal.

As a builder, you need to look at several very important areas. First, is there a good backup for the factory sales rep. By this I mean, do they knowledgeable people at the factory who can help you get the house you want, when you want it. Try calling a factory and check for yourself if all you get is voice mail and no return calls. That's a good indication of their response to builders.

Call other builders using that factory and ask how the after delivery service is. This is always a weak link. Visit the factory and look at the material they are using and if these products have to upgraded just to get them to your specs, let alone to your customer's.

Do they have good sales materials and displays available? Are they open to custom plans and materials?

The difference between a cheap lowball price and a quality product is usually only a couple of dollars in the modular business.

So choose wisely when comparing, it could be the difference between staying in business and losing your business.

Modular Homes Make Sense

Factory-built homes offer all the amenities of traditionally built homes, often at reduced cost and increased quality.

Modular homes are like the hybrid car of the house-building industry. They save money, they make sense, but they haven't caught on yet. General misconceptions keep many from considering going modular, and the confusion between modular homes and manufactured (mobile) homes has led to regulations and restrictions being placed by towns that have new home builders scared into going the traditional route. But the word is getting out. It turns out modular homes are in many ways superior to stick-built homes, and, once assembled, cannot be distinguished from their traditionally built counterpart.

Customize, Customize, Customize"There is nothing you cannot do with a modular home." So says Chad Harvey, the Assistant Director of Government Affairs with the Modular Building Systems Association. Harvey, who splits his time between apprising Association members of any new industry regulations and seeking new ways to educate the public on the benefits of modular homes, is a firm believer in the industry he represents. "Anything you want in a modular home, you can have."

Many people incorrectly equate modular homes with manufactured or mobile homes. To these people a modular home is a one-size-fits-all boxy construct made of low-end materials and generic products. Modular homes today can be built to any specification and any size. From a simple one-and-a-half split-level ranch to a grand, three-bath, 3000+ square foot two story — the industry has it covered. And any amenity one can think of can be included. Think whirlpool bath in the master suite, granite countertops in the kitchen, or even structured wiring in every room. Although most modular home companies use the same product for each component of each house on the assembly line, it is still possible to substitute another brand to suit a homeowner's desires.

From an article by Bob Vila: http://www.bobvila.com/HowTo_Library/Modular_Homes_Make_Sense-Building_Systems-A1854.html