Mark-up on manufactured home

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Allan

Mark-up on manufactured home

Post by Allan » Tue Jul 17, 2001 6:06 pm

We are in the market for a 16 X 56 (or close) for a small lot on one of the Finger Lakes in NY. The last dealer we visited showed us the various options available for a model in the size range we need. At the end of the session, he "hinted" that the prices he quoted are "sticker prices." What type of mark-up does the dealer have to play with, so that when the deal is made, we have bought at a fair price?

Ron

RE: Mark-up on manufactured home

Post by Ron » Wed Jul 18, 2001 4:48 am

On Negotiation: Contrary to popular opinion, the MH dealers have about a 25% margin on the base price of the house. Out of this margin, they pay for their overhead and sales commissions. There is not much room left to bargin with, from their perspective.

Your best chance to get a "good" deal is similar to buying a car. Look for some close out prices on units they have had on the lot for a long time. Also, visit MH shows, if in the area, as you can usually get $1000 to $5000 off, if you make the deal at the show.

Another cost cutting measure is to take as few add ons to the home as possible.
Supply your own furniture, Heat Pump or AC unit, and sub contract on your own for skirting, plumbing and electrical. All of these items are marked up by the MH dealer so you can save some serious money here.


Dan O'Flaherty

RE: Mark-up on manufactured home

Post by Dan O'Flaherty » Thu Jul 19, 2001 9:43 am

The markup on a home, as mentioned includes the normal overhead of runnng a business but also other things that may change from retailer to retailer.
What does the price include, the home (of course) and the "set up". What does the set up include? Tie downs, skirting, steps, removal of tires, running gear and hitch are all things that may or may not be included.
Always remember the lowest price is not always the best value.

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