Manufactuerer and Dealer Mark Ups/Commissions

The Art & Science of marketing Manufactured Homes. Retailers, sales people community operators and managers share experiences.
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Joined: Mon Nov 26, 2012 4:25 pm

Manufactuerer and Dealer Mark Ups/Commissions

Post by Johnc » Mon Nov 26, 2012 4:31 pm

I am developing a program to assist veterans in acquiring affordable housing. As this needs to be a profitable program I am wondering what the mark ups or commissions are from manufacturers to dealers and dealers to sales personnel as I would be developing qualified buyers.

David Oxhandler
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Joined: Tue Oct 02, 2007 8:37 am

Re: Manufactuerer and Dealer Mark Ups/Commissions

Post by David Oxhandler » Mon Nov 26, 2012 5:04 pm

Manufacturers build homes from thousands of components. There is no mark up as it is not a resale but a newly created product. The builder can add as much profit as they like. Unlike in the auto business MH builder dealer price lists are carefully guarded and often covered by confidentiality agreements. Builder and dealer profit is limited by the forces of the local market and varies greatly from region to region across the country.

The only way to find out what dealers are paying is to get licensed and apply to a builder to carry their line of homes. In most states if you sell more than three homes a year you MUST acquire a dealer's license and a state sales tax registration. This is not a very expensive or complicated process but one that you would be well advised to see through if you intend on being in any business that retails manufactured homes.
David Oxhandler
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