The rise of "custom" modular homes is becoming prevalent in the market. Manufacturers are swiftly meeting the demands of property developers and individuals with just a click.
The primary advantage of modular buildings has always been their speed. Builders can erect numerous houses quickly because the factory has standardized floor plans, architecture, and various design options established well before the construction process begins.
In the past, large manufacturers used to provide developers with catalogues showcasing potential flat layouts. Deviating from these layouts would often incur up to a 30% increase in project costs.
However, today's catalogues present a different scenario. They consist of around 50 pages, each showcasing a unique project along with numerous finishing and facade options. The product has become more "standardized."
Clients frequently request custom lighting fixtures or unique sinks and urinals. Despite these changes, the builder isn't concerned, as the factory will purchase and install everything as requested.
The procurement department spends time sourcing and delivering materials to the factory. For example, a light fixture may cost 100 euros, but with shipping and, in some cases, customs costs added, the actual cost rises to about 180 euros. Additionally, if a special fixing is needed for installation, the procurement department has to work again, further increasing the price. Sometimes, unforeseen structural requirements arise mid-project, necessitating additional support for the wall. In the end, everything is installed as required.
However, these special-order installations end up costing more than the initial 100 euros estimated by the customer. In reality, the total cost surpasses 300 euros, with the factory only earning its usual fixed profit.
Are there any factories willing to take on this risk and factor in these project changes in advance?
My advice: Standardize the product. Focus on streamlining production and increasing the number of modules produced, rather than installing designer fixtures.