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Tuesday, December 12, 2017

Three Warning Signs for Modular Home Factory Management

Everyone waits until the last minute to make New Year resolutions. Many of us vow to lose weight, be nicer to others or something that improve our lives. But what happens to a modular home factory if 2018 is the same as 2017, 2016, 2015, etc.

If you own a modular home factory, work for one, sell to one and most importantly buy from one, ask yourself if your factory needs a New Year resolution of change for 2018.

Here are three warning signs every failed factory has had in the past that should be addressed in your resolutions for 2018.


The earliest sign your modular home factory is failing is when there have been no new builders added for six to 12 months. Add to that an exodus of current builders to another factory. This early warning should tell management that something is wrong somewhere in the organization.

Areas that might be of major concern in this situation are:
* The Sales Manager and/or the Sales staff
* Quality Control on the Production Line
* Design and Engineering department
* Service Department

If none of these has changed over the past year, then special attention should be given to new hires in the chain of command. There could be a power struggle going on within the company that is effecting how builders are treated and served.


Deep price cutting and discounting is another warning sign that a major problem is happening.

These deep discounts keep eroding away the profit margins every modular home factory needs to survive. Stop competing solely on price, increase prices to a fair market price and add value where possible. 

Expert and excellent service goes a long way to appeasing builders querying a price rise. Most builders would love to simply have a fair price and outstanding quality and service in lieu of deep discounts, poor quality and service. 


A high staff turnover is the third warning sign that things are taking a turn for the worse. Every time an employee leaves it is an intellectual capital loss, and often the loss of their builders as well. 

A factory in any industry won’t survive without loyal sales reps and staff. Builders being shifted from one new sales rep to another will probably send them looking for their old sales rep and the factory they joined. 

With the exception of Deep Discounting, the early warning signs of a dwindling pool of authorized builders and the loss of sales and support staff could be slowed down significantly with just a couple of changes. 

Begin training and teaching events for all your builders. There is so much they need to know about what happens within your factory. Be transparent. An educated builder is a happy builder. Have your builders help each other. Encourage them to network. 

Your sales reps have probably had very little actual sales training. Most of the time it’s simply ‘on the job’ training at their first modular home factory. There is nobody to set training guidelines and schedules. Only the sales manager, in most cases, reviews what each sales person is doing and if, God forbid, your factory has a lazy or incompetent one, the sales rep will suffer but more importantly, the factory suffers. 

Three warning signs that your modular home factory may be on the verge of failure. There are many other signs but these always seem to be present in every failed factory. 

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