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Buying Modular Buildings from the Manufacturer versus the Dealer

By March 26, 2013July 31st, 2015Uncategorized

If you need for a modular building, there are really only two avenues to pursue for acquiring that building (three if you consider trying to find a suitable used building). This commentary won’t consider the “used” avenue because it very rarely works as a viable solution for many reasons. It doesn’t take much effort to imagine all the shortcomings of trying to find, acquire, transport, remodel, and install a used building. It’s just tough to make that one work.

So, practically speaking, if you want a modular (industrialized) building, you can buy it directly from a manufacturer, or from a dealer – the middleman.  Why would someone want to buy a building from a dealer rather than directly from the manufacturer?  I don’t know.  Frankly, I can’t think of a logical decision-making process that would lead to favoring buying from a dealer rather than from the manufacturer. Where is the dealer’s value-added ingredient?

Ask yourself this question:  If you could buy a new automobile directly from the manufacturer (Ford, GM, Mercedes, BMW, or whoever), and could pay the same price a dealer pays, and you got the same warranty, wouldn’t you prefer that as compared to buying the same car and same warranty from a dealer who will charge you a higher price for the same product?  I think you would take the direct route every time.

Because the dealer is a middleman, he has to make a profit to stay in businessThat’s only fair … to him. But where does that profit come from?  Either from you, or from the manufacturer of the building. Whenever a modular building is purchased through a dealer, something is lost.  Either the price of the product goes up, or the value of the product goes down.  He adds nothing to the product for you. The dealer must make his profit, either by raising the price of the building he acquired from the manufacturer, of by pressuring the manufacturer to reduce his price – and quality and/or content in the building. All too often, both actions occur. There is no free lunch.

Direct manufacturers, such as Palomar Modular Buildings, are structured to sell direct to the customer. Their business model includes all the elements required to deal directly with the end-use customer – you. When buying your building direct from the manufacturer, you will always get more product for your money, or you will pay less money for the same product. It’s really that simple; the middleman’s profit is removed from the equation.

Additional and important advantages to buying direct include the opportunity to be closely involved with the design of your building.  You can choose interior and exterior features and equipment; be involved in a variety of other choices to customize your building for your needs. You can work closely with the Engineering department of direct manufacturers.  They are equipped to deliver and install your building. They warrant the product they build. And, perhaps most importantly, you know the people who built your building.  And they know you. You have established a working relationship with them.  This direct relationship will provide you a better solution that better fits your needs for a modular building.  So why would anyone buy a modular building from anyone other than the direct manufacturer?  Wouldn’t we all buy direct, all the time, if we could?