Tuesday, January 31, 2012

10 REASONS BUILDERS SWITCH FACTORIES

When there are enough factories to choose from, many builders jump from factory to factory for a variety of reasons and a lot of it boils down to price.

The builders that jump from one to another factory for price will always be with us but what about the other builders.  Why did they jump ship?

Here are 10 reasons that a modular home builder, even a loyal builder, will leave you and begin looking for the next great factory to buy their homes.


1.  The factory hires a bad sales rep. Some people should never interact with customers. Does it ever work when you hire them and try to force the fit? NO, it does not.

2.  Blame the builder. Yes, builders get confused. They even do things wrong. They might not understand your process or misunderstand your rules. But please don’t get snippy. They’re just trying to support your company with our business.

3.  Don't listen to their feedback. Critical feedback is your best source of improvement. If your builders are talking, listen and respond. Or…just stick your head in the sand and think you know best.

4.  Don't create complicated systems.  Don't force your builders to adapt to processes and systems created solely from an internal perspective. Eventually most of these new systems will be scrapped but by that time your builders will have moved on.

5.  Promote the worst people.  This is the Peter Principle in action.  "Everyone rises to their level of incompetency."  Just because a sales rep is willing to accept your Sales Manager position, it doesn't mean you should give it to them.


6.  Stop being innovative.  Nothing like stagnation to drive your builders away. Let your competitors innovate – you’re happy to stay in 1985.

7.  Accept anyone as a builder.  Don’t just accept them, ask for them to become your builder over and over. Never mind if they don’t more than one house a year.  Never mind that they've been with 5 other factories before you.  It will all work out in the end but not before some of your loyal builders defect because you set the bar too low.

8.  Accept nobody as one of your builders.  Make it nearly impossible to become one of your builders. Don’t call prospects back, don’t make it easy to find information on what it’s like to be one of your builders.  Your factory is so good that you only choose the best.

9.  Force your production people to use outdated, cheaper and inferior products in your homes.   Now try to figure out where all your good builders went.  Buying cheap means we can sell cheap and isn't that the best reason?

10.  Pay no attention to your competitors.  Your builders are SO LOYAL they’ll stay with you no matter what, right? They won’t notice when your competitor is providing something better.  Wrong!

5 comments:

William said...

Hmmmm...I think you missed some obvious reasons why builders switch Coach.
How about the products they get from their manufacturer are berift with problems from quality issues (misfabrications, loads of cosmetic problems, shortages/missing items, etc.) And to go hand in hand with that the longstanding problem of NO AFTER SALE SERVICE on above problems. Once delivery is made the factory, and the sales rep, are nowhere to be seen.
And the big one -- no respect from the manufacturer to the builder. The builder is always wrong and they always feel they get the sharp end of the stick when dealing with their manufacturer.
Someday the manufacturers will truly realize they are only in existance DUE TO THEIR BUILDER BASE. Without those builders the manufacturer has no reason to exist.

Anonymous said...

Coach:
Have just the opposite problem. Had a terrific sales rep for 14 years doing a ton of sales and then the factory came under new command and control and they decided they wanted younger sales reps. Result is that I do not see the new sales rep at my site during the set, do not have a sales rep to provide assistance with customer service, do not get help with the orders, etc and I get very little help with the multitude of cosmetic and structural problems with the unit. Consequently, found it easier to just switch to someone else!

Joshua said...

First, to William. I always hope that after all the articles I've read here about bad service, bad workmanship and poor follow up, that these have started to be addressed by the factories. From your comment I guess some of those things have not been fixed yet by some factories.
As for Anonymous 2:26, I have found that readjusting territories and replacing older qualified sales reps with cheaper inexperienced ones always has been a problem and will continue to be as long as Sales Managers don't know how to effectively use their sales staff. I was "adjusted" away from territory because I got too much business and too much commission from my builders. I left my factory (took my builders with me)and went with another factory in 2006 and haven't looked back since. Last I heard, they are on the rocks.

Judy said...

Another reason to leave a manufacturer is components within the home and not willing to make floor plan changes. If I cannot have a manufacturer willing to "get with the times" and see what is out there selling for cabinets, trim, counter-tops, etc. and be willing to make changes to their floor plans in a timely matter then I will go out and find a manufacturer who will.

Judy said...

Another reason to leave a manufacturer is components within the home and not willing to make floor plan changes. If I cannot have a manufacturer willing to "get with the times" and see what is out there selling for cabinets, trim, counter-tops, etc. and be willing to make changes to their floor plans in a timely matter then I will go out and find a manufacturer who will.