Over the years, in addition to being a boulevard retailer, sales manager for two manufactucred housing factories in California and Oregon, and later a developer, I had a number of occasions to negotiate with retailers and retailer/developers.

This article is a compendium of a series of questions a retailer or retailer/developer should ask the prospective vendor of homes or services.

It was originally published in 1999 in the Journal of Manufactured Housing in a 3 part series.  With minor updates for recent industry changes, I provide it for consideration by all.

 101 Questions to ask when
            Selecting a M/H Manufacturer or Supplier

Although this list of questions applies primarily to HUD Code built homes, then may also apply to RV Park Models and so called "modular" homes or those built to BOCA, SBCC or UBC codes.

As a reputable home retailer or developer/retailer and responsible businessperson, you want to sell your home buyers the best homes and accessory structures at the best prices, with the best factory warranty support, at a profit which provides you with a respectable return on your efforts and investment.  

Boulevard retailers have traditionally chosen to stock home products with a wide range of prices
to appeal to the widest range of home buyers, to "capture" as many of the prospective buyers
coming on the sales lot as possible.  They rarely limit their displays to a single price range or size
of homes.

For the in-community retailer, the range of home prices is intentionally somewhat more limited.
Most of the higher priced homes offer good to excellent materials and workmanship, and their
factory warranty support is usually acceptable to most retailers.  However, this is not always the
case with medium and lower priced home lines. 

Lower prices do not necessarily mean poor materials and workmanship nor does it mean the
manufacturer can slack off on providing you and your home buyer with adequate warranty
support. 

Note that actual prices range for "low," "medium," and "higher priced" homes will be
determined by various market conditions.  A "medium" priced home in one market, may well be
considered a "low" priced home in another.

     1.   Are you clear about the structural, electrical, plumbing, and interior features of the
          product, as the minimums apply to your project? 

     2.   Have you compared them with other manufacturer's products?

One of the best places to make actual comparisons between different homes is at trade shows.
On those occasions, you can go from home to home with a checklist of various home
construction or decorating features and compare them directly.  Otherwise you will have to
depend on the manufacturer's literature and what they have chosen to include in their list of
features and options.  If you can't go to a trade show or get the information from their sales
literature, you may have to visit some retail sales lots to compare various home products.

     3.   If the home construction or other features are of lesser quality  than other home or
          accessory structure features, is there an adequate reduction in price? 

     4.   Do you know what lumber grades, type of sheathing, thickness of walls and
          insulation, roofing materials, etc. is used? 

Typically, higher end homes feature construction materials and techniques that are not always
apparent visibly.  And, depending on your target market, may or may not be important.  Some
features are "overkill" for some buyers.  A lower priced home without these features if not
important to your target buyer, may be more important.

Knowing about these construction features can make you a better retailer by helping your home
buyer understand how and why they can make a stronger, safer, and longer lasting home.

     5.   Are you aware of the various capacities of the home, e.g., water heater, electrical
          service, refrigerator size, air-conditioning system capacity, etc.? 

Don't sell a home with a 30-gal water heater to a family with four girls, or a large multi section
home to a family in Texas with a 2.5 ton air conditioner.

     6.   Are you familiar with the brand name and reputation of appliance and fixture
          suppliers? 

     7.   Does the manufacturer give you direct access to appliance and fixture suppliers
          for warranty support?

Dealing directly with the appliance manufacturer instead of having to go through the
manufacturer's service staff  will save a lot of time and trouble for you in providing your home
buyer with the fastest and most responsive service.  Most manufacturers' service departments
will be happy to assist you in doing this.

     8.   Do you know the home's physical characteristics?

     9.   What is the actual house length? Is the manufacturer including the hitch or tongue
          in the length measurement?

     10.  What is the actual home width?  Does the width include the eaves or overhangs?

If you don't know the exact physical dimensions, you aren't going to be able to effectively plan
for its installation on a homesite.  This is especially true for some homesites in land lease
communities, where zoning and land use ordinances strictly dictate setbacks.

     11.  What is the actual roof pitch?  How important is it to your project?

     12.  What is the sidewall height?  Some manufacturers build homes with a higher roof
          pitch by lowering the sidewalls, and "inverting the wheel wells." 

     13.  What is the width of the eaves and overhangs?  When extended if shipped loose or
          back?

These physical characteristics of the home not only increase its favorable appearance, but offer
many advantages to the residents in meeting adverse weather conditions.

     14.  What is the "I" beam or frame spacing?

There are no standard spacings.  Pre pouring piers for home setup or stem walls for a perimeter
foundation, will require you know these dimensions in advance, unless you want to wait until the
home arrives, and then measure it.

     15.  For home installation, is the manufacturer clear about blocking and tie downs,
          foundation requirements, soil bearing requirements, etc.?  Are the setup
          instructions clear and easy to read?

     16.  Is the manufacturer willing to help you with any locally mandated foundation
          system requirements?

From time to time, various local governmental agencies want the retailer and/or installer to
comply with their special foundation system requirements.  In these cases, it is necessary that the
manufacturer assist you in

          a.    Either convincing the locals that their requirements are not necessary and
               that the manufacturer's pre designed systems are adequate, or

          b.   getting them to provide you with a design which meets the local codes.

     17.  Do you know what labor and materials are required of you and your installation
          crews to complete the home or accessory structure so it is safely habitable? 

     18.  Will the factory perform all or a part of the installation? 

There is an industry trend in the direction of manufacturer provided home installations, especially
in "modular"s and higher end multi section homes.  In some areas, the retailer completes the
"rough set" of the home, and the manufacturer comes in and completes all the interior work.
This is becoming more common in tape and texture drywall homes.

     19.  What are the range and depth of their home sizes, floor plans, and options?

     20.  Will the manufacturer build a "custom" floor plan, or modify and existing one to
          meet your home buyer's needs, at a reasonable price?

     21.  Will the manufacturer build nonstandard or non listed options?

     22.  What is the turn around time for custom work, or nonstandard options? 

Manufacturers generally don't copyrights their floor plans, so they are not truly unique.
Theoretically, any manufacturer can build any floor plan.  With the exception of size enhancing
features such as "tag" units, floor plan designs are not tied to any one price range of home.  A
good selling high end floor plan, could be duplicated by a medium or low end home builder and
could be just as successful. 

Less expensive home manufacturers tend to have a limited number of floor plans, and are usually
not as willing to provide modifications or changes.  Higher quality home manufacturers tend to
constantly review their standard floor plans, and modify them for home buyers' continuing needs.
If they don't have a floor plan you or your customer wants, they should be willing to either
modify an existing floor plan, or build the home to a customer's specifications.  Note that the
willingness for a manufacturer to do this, is dependent on the price range of the home, and their
ability to accomplish the changes with minimal negative effects on production.

     23.  What is the credit policy for deletion of standard features? 

Manufacturers want to keep their profit margins constant on their homes, so if you delete a
standard feature, don't expect to receive full credit.  Most will give you credit for labor and
materials only, but retain their overhead and profit.  So, don't be surprised if you see a feature
item listed as an option at one price, but credited at a lower price.

     24.  Are my home prices the lowest available?  Is there a lower price for larger volume
          buyers? 

     25.  Is there any type of special pricing available for other retailers?

Most manufacturers stick to a standard price list, providing discounts for volume in their rebate
or home volume incentive program.  It is rare for a manufacturer to negotiate "special" pricing
for a retailer, much to the dismay of larger home builders just getting into the business.  In fact,
in some states, California for example, excepting for volume rebates, makes it illegal for a
manufacturer to sell a home for less to one retailer than another.

     26.  Does the manufacturer provide for a "factory tour" program? 

     27.  Are you allowed to accompany the prospective buyer during the "factory tour" or
          does the factory provide someone for you to refer them to?

Factory tours are a very effective way in which to acquaint your home buyer with the quality of
home construction, and "custom" decorate their new home.  In my opinion, it is one of the most
effective sales tools a retailer has at their disposal.  The distance from a manufacturer may make
a difference not only in the use of the factory tour, but also may add home additional transport
costs.

     28.  What is the manufacturer's reputation, length of time in business, size of
          operations? 

     29.  Are they a public or private company? 

     30.  Who are the owners or majority stockholders? 

     31.  What is their commitment to your market? 

     32.  What is their commitment to the industry? 

     33.  What is their financial condition?  Have you seen a copy of their latest Annual
          Report.  There is lots of good information in there, if you know how to read it.

It may take a little time and effort to review a manufacturer or supplier's history and financial
condition, but it will be worth it in the long run.  Their length of time in the business, and
financial strengths if "long and strong" are going to make them much easier to deal with.  They
will have well-trained staff, and will be able to provide you with well built, reliable home
products for your home buyers.  

     34.  Are they a responsible member of an industry trade association?

     35.  What does the Attorney General or Better Business Bureau say about their business
          practices? 

     36.  What do other reputable retailers say about the way they do business?

     37.  What is the structure of their warranty support? 

     38.  Is it provided by in-house technicians, or is it delegated to a third party? 

     39.  Will they let you reimburse you for performing perfunctory warranty work under a
     pre approved  "work order" approval system?

     40.  Is the manufacturer willing to pre ship materials which predictably will be needed for
          warranty and service work?  

     41.  What kind of retailer relationship does the manufacturer offer?  Do they offer a
     franchise? 

     42.  Will the manufacturer give "territorial" protection based on a minimum stocking
     level and minimum yearly home purchases?

Establishing a viable relationship with a manufacturer is critical to providing the best in quality
housing for your customers.  Communication with the sales department in terms of pricing,
options, delivery scheduling, etc. need not be difficult for a retailer or retailer/developer.  As your
volume of purchases from a given manufacturer goes up, so does their willingness to provide you
with good support.  It's one reason why some retailers will handle a single product line, rather
than splitting their inventory among several manufacturers.  And, you will be able to get "higher
up" in the percentage volume rebate program, through higher volume of purchases.

     43.   Do they require you to be exclusive with their products?  Or, do they have a
     minimum number of homes which may be in inventory at all times?

     44.  What kind of marketing incentives to they offer? 

     45.  Is there a "rebate" or volume discount program?

     46.  What percentage is paid on what dollar volume?

     47.  On what invoice costs are the rebates paid?  Do they exclude certain costs from the
     rebate calculation?

     48.  When are the rebates to be paid? 

     49.  Can you combine sales from multiple sales centers? 

It is interesting to note that in some states, virtually all homes are "purchased" through a central
buying group, which allows all the participating retailers  the highest possible percentage rebates,
since all purchases are in effect made by a single retailer.   Individual retailers who don't buy
through the group, only get the rebates based on their individual purchase volume.

     50.  Are there any "offsets", such as payment of the invoicing on time, or complying with
     the manufacturers customer support program?

     51.  What kind of advertising and promotional support do they offer?

Unlike some consumer products such as automobiles, the public in general has little knowledge
of how a home is "positioned" in the marketplace.  There is virtually no brand name identity in
the mind of the public, as advertising dollars are too small for them to be created.  So, some
manufacturers have programs for establishing company owned model centers where sales leads
from the general public are gathered, and provided to their various retailers on a territory by
territory basis.  In addition, some manufacturers will pay a portion of your advertising as
"cooperative ad" reimbursement, if pre-approved with their logo, indicia, or and other
information or if you use their pre-designed ads. 

     52.  Will they provide you with sales leads?  Is their website designed to "capture" sales
     leads?

     53.  Do they pay a part of cooperative ad costs?  

     54.  What kind of sales training is offered? 

Several larger and more progressive manufacturers offer regular sales training for their retailers.
It is a "double edged sword".  Not only does the salesperson get some advanced ideas on
handling prospective buyers and lots of information on the home products features and benefits,
but it also introduces the manufacturer's staff to those who will be in effect, representing them to
the general public.  This is an important part of building a strong retailer-manufacturer
communication link.

     55.  Do they have educational seminars, for your service and support staff?

A very important part of a manufacturers job is to see that the retailers installers and service staff
know about their home products.  A knowledgeable retailer staff or support person can be an
asset to the manufacturer and to the home buyer.  This can effectively created through a
manufacturers regular training sessions. 

     56.  What kind of sales materials are available? Will they reprint their floor plans using
     your retailer name and address information? 

Having high quality sales materials for prospective buyers isn't something a lot of retailers have
the time or expertise to get done.  Progressive manufacturers have such sales materials, and
provide for either custom printing for individual retailers, 

     57   Do they have a website?  And how is it supported? How do they send you buyer         
        inquiries?

     58.  What kind of pre-designed advertising  artwork is available? 

     59.  Will they give you access to their advertising design agency?

     60.  What kind of technical assistance will they provide when you get your first products?

Especially for multi section homes, many manufacturers will send a service staff member to be
present at a retailers first home installation, which serves to eliminate questions which may occur
and solve unanticipated problems before they occur.

     61.  Will the manufacturer  assist you in the initial installation?

     62.  What is their current backlog?  If you ordered a home today, when will it be
     delivered?  

     63.  Are they willing to commit to a maximum delivery schedule on home orders?  

     64.  Does seasonal weather in your area affect home shipments?  What can the
     manufacturer do to mitigate weather related problems?

In areas where severe weather, home shipments can be problematic.  High winds, freezing road
conditions, rain, snow, sleet, hail all can contribute to home damage when being transported from
the factory to the homesite or the retail sales site.  In order to make production schedules, it is not
unknown for a manufacturer to ship a home when it should be.  And, how do they protect the
homes for adverse shipping conditions?   

     65.  How much notice do they give you of price increases? 

     66.  Are they willing to protect you on home pricing?

It is possible for a home manufacturer to inform a retailer of an increase in cost after the order is
placed, but before the home is shipped, just as in any otherwise agreed to, vendor-vendee
relationship.  Since a retailer may be contractually "locked" into pricing with a home buyer, it
may be wise to have previously agreed with the manufacturer how any cost increases may be
handled.

     67.  Will the manufacturer  allow you to designate you own "custom model names" as a
     measure to help protect you against competitive retailers predatory ricing?

In an area where several retailers or retailer/developers are selling the same homes, smart
prospective home buyers can compare pricing by comparing model numbers.  By asking the
manufacturer to use your unique model names instead of numbers, this comparison may be made
more difficult.  This is especially true where there is a boulevard retailer and a developer
handling homes in the same marketplace.  For obvious reasons, the developer may have a much
higher pricing structure on the homes than the boulevard retailer, which may have a negative
effect on the sales of homes within the development.  A prospective home buyer may want to
know why a particular model sells for more in the development than it does on the boulevard.

     68.  Who arranges for home transport, the manufacturer or you? 

     69.  Does the manufacturer have it's own transporters?

     70.  Is the full cost of transport included in the invoice? 

You will note that although the costs of transport are included in the invoice, this and some other
costs such as the HUD fees, may not be included in your volume rebate.

     71.  Does the transporter have "excess" insurance coverage?

In many areas, the minimum insurance the transporter carries may not be enough to cover the
actual invoice price of the home being transported. 

     72.  What is the F.O.B. point?

     73.  If an in-community retailer, will the manufacturer  ship F.O.B. the community?

Asking the manufacturer to deliver FOB your project can save you a lot of time and money in the
event the home is damaged during transport.  If damaged, technically it has not been delivered to
you and it is then up to the manufacturer to sort out the damages and repairs with the transporter
and/or the insurance company.

     74.  When does my home order go against my floor plan credit line?

     75.  When is the home to be paid for?  At shipment?  After shipment?  

     76.  Are there any special shipping requirements getting the home from the manufacturer
     to my sales location or homesite, such as flag cars?

These costs will vary with the location to which the home is being shipped.  And, there may be
some "curfews" in force which disallow the home to be transported on certain highways during
busy traffic periods.  In addition, in some states, homes are precluded from being shipped over
certain roadways during the frost season, because of potential damage to the roadways.

     77.  If a multi-section home section is damaged in transport, how will the manufacturer
     handle the rebuilding of the home section? 

     78.  Will the manufacturer  rebuild it adjacent to the original other section? 

     79.  Will the manufacturer  accept the insurance company's check as payment in full for
     the damaged home? 

If one section of a multi-section home is severely damaged during transport, what happens?  Is
the section re-transported to the factory for re-building.  If so, will it match the section not being
re-built?  Who pays for the cost of re-transport?  By not being re-built along side the other
section(s) will there be some additional setup issues?  Will the manufacturer accept re-
transporting all home sections so the damaged one may be re-built in the context of the other
units?

     80.  Is any special equipment such as a crane required? 

     81.  Are special slings or setup fixtures required? 

     82.  Who supplies or specifies slings or setup fixtures?

Many "modular" manufacturers and some HUD code home manufacturers will provide
installation services for the retailer.  If so, what do they provide as a part of the required
installation process?

     83.  Is the home designed for "roller" installation?

     84.  Is the home shipped on caissons?  This is typical for "modulars".

     85.  Who pays for the return of the caisson?

     86.  How much credit is given for the return of the caisson?

     87.  Is the home shipped on a returnable chassis system?

     88.  Who pays for the return of the frame?

     89.  How much credit do I get for the return of the frame?

Although all HUD code homes are shipped on a permanent frame system, this is not true for all
"modulars".  Some have returnable frame systems, and some leave the frame on the home as a
part of the foundation.  If there is a returnable frame system, find out all about the procedures,
credits, return policies, etc. before you select the a company to do business with.

     90.  Does the manufacturer provide support for your participation in trade shows? 

     91.  Does the manufacturer have banners, literature,  and other trade show materials for
     your use? 

     92.  Will the manufacturer provide factory sales representatives at my participating trade
          shows?

     93.  How many homes must be stocked to maintain my exclusive retailer status? 

     94.  Where is the nearest other retailer selling the manufacturer's homes? 

     95.  Will the manufacturer  allow in-community retailers to be in your market area? 

     96.  If you are in an in-community retail sales center, will the manufacturer  restrict your
     sales of homes outside your community? 

One of the least understood parts of the relationship with home manufacturers is their level of
marketing support for retailers. Some provide virtually nothing, and others have a high level of
support.  Higher support levels tend to be associated with higher priced home products.

     97.  Will the manufacturer  give the rebates on your home sales to the local retailer, as an
          incentive for him to allow in-community home sales in his territory? 

In some cases, where a manufacturer is reluctant to sell to a developer who is in a boulevard
retailers "territory" (whether in writing or not) a "deal" can sometimes be made to allow the
retailer to receive the rebate on homes shipped to the developer, or at least let them count in the
dollar volume to compute the rebates.

     98.  Will the manufacturer  give the local retailer credit for sales volume in terms of
     qualifying percentage from your home sales as an incentive for him to allow
     in-community home sales in his territory?

     99.  Will the manufacturer guarantee fixtures, carpeting, drapes, and appliances shipped
     will be the same as you are showing in your model center? 

After setting up a model display center, it is nice to know that the features you are showing in
your homes are the same as currently being shipped by the manufacturer.  If not, make a deal
with the manufacturer that when they change a feature item, that they will support updating your
model center.  This is especially important for those developer/retailers who plan to have their
model center on display for several years.

     100. What is the length of time for the same fixtures, carpeting, drapes, and appliances to
     be shipped which are identical to my model homes to be guaranteed? 

     101. Will the manufacturer  pre-ship in fixtures, carpeting, drapes, and appliances
     advance of product line changes?

Note: Some of the questions as they relate to "modular" and panel systems, were inspired by an
article in Panel Systems magazine.

This is intended only as a guide in your selection of manufacturer or supplier.  It is not a
complete checklist, but is intended to stimulate your negotiations to provide you with the best
quality homes, support and service for your deserving home buyers.

Edward Hicks
Consultants Resource Group, Inc.
P.O. Box 2795
Brandon, FL 33509
(813) 661-5901
Easteddie@aol.com
www.mobilehomepark.com/
www.factorybuilehome.com/