We provide free prefab home buying tips to help potential customers make cost effective prefab house buying decisions.
Since most people are concerned about saving money, we will start this prefab home buying tips section with a discussion of how to significantly reduce the total cost of buying prefab houses or portable cabins.
In our earlier discussion on mobile transport cost, we mentioned that one area customers can reduce cost is by ordering smaller sized cabins.
As discussed on that page, the transportation cost of a 20 feet portable cabin (or prefab home) is lower than that of a 40 feet portacabin.
So, we recommended that if you're on budget and really do not need a 40 feet portable cabin, then you should make do with a 20 feet portacabin. And, in the process, save on transport cost.
However, if the suitable size for the purpose intended is a 40 feet portacabin, then you really should order a 40 feet portable cabin irrespective of the higher transportation cost.
From the discussion above, a potential customer may jump to the conclusion that it is more profitable (or more cost effective) to buy smaller portable cabin units instead of bigger ones.
Reason: The portable cabin transport cost for a 3m by 3m portable cabin is lower than that for a 6m by 3m portable cabin. In like manner, the transportation cost for a 6m by 3m prefab cabin is lower than that for a 12m by 3m portacabin.
Buyer Conclusion: Buy several small units instead of a few big ones and save on transport cost.
Makes perfect sense, right?
On the surface . . . Yes.
However, in business, it is foolhardy to consider only one element of cost.
It is because one cost element does not give the total picture.
Therefore the advice of this prefab home buying tips guide is: Evaluate the total cost involved in buying a portable cabin NOT just the portacabin transportation cost.
What does evaluating the total purchase cost reveal?
When you review the total cost involved in buying a portacabin or metal building, you will find out (and to your surprise) that you make huge savings when you buy bigger portable cabins instead of several small ones.
Let's take a simple example to drive the point home.
Suppose a 6 metres long by 3 metres wide portable cabin cost =N=2.5 million Naira per unit and the transportation cost to the customer's preferred destination is =N=160,000.
Suppose also that 12 metres long by 3 metres wide portacabin cost =N=3.95 million and the transportation cost to the customer's preferred destination is =N=420,000.
Now suppose that two customers, Mrs. Bola and Mr. Jegede living in the same neighbourhood want to each buy 3 units of 12 metres long by 3 metres wide portable cabin.
However, when Mr. Jegede compares the price of transporting two units of 6 metres by 3 metres portable cabin to that of transporting just one unit of 12 metres by
3 metres portable cabin, he decides to buy 6 units of 6 metres by 3 metres portacabin instead of 3 units of 12 metres by 3 metres portacabin.
To save on portacabin transport cost.
Here's a short calculation of the difference in transportation cost and how much Mr. Jegede planned to save.
Transportation cost for 3 units of 12 metres by 3 metres portable cabins = 420,000 x 3 = 1,260,000 Naira
Transportation cost for 6 units of 6 metres by 3 metres portacabin = 160,000 x 6 = 960,000 Naira
Transport cost savings by Mr. Jegede = 1,260,000 - 960,000 = 300,000 Naira
So, by choosing to buy several small portable cabin units (that is, 6 metres long portable cabins instead of 12 metres long portable cabins), Mr. Jegede will
save =N=300,000 in transportation cost.
Mrs. Bola, on the other hand, is more concerned about the total portable cabin acquisition cost NOT just the transportation cost.
So, she made this simple analysis, which Mr. Jegede failed to make.
Total cost of buying portable cabins = Purchase cost + transportation cost
Therefore . . .
Total cost of acquisition of 6 units of 6 metres by 3 metres portable cabin = (2.5 million x 6) + (160,000 x 6)
= 15,000,000 + 960,000 = 15,960,000 Naira
Total cost of acquisition of 3 units of 12 metres by 3 metres portable cabin = (3.95 million x 3) + (420,000 x 3)
= 11,850,000 + 1,260,000 = 13,110,000 Naira
Mr. Jegede spends 15,960,000 Naira to buy and transport 6 units of 6 metres by 3 metres portable cabin to the same destination as Mrs. Bola.
Mrs. Bola spends 13,110,000 Naira to buy and transport 3 units of 12 metres by 3 metres portacabin to the same destination as Mr. Jegede.
In conclusion . . .
Mrs. Bola saved 2,850,000.00 Naira, which is 22 percent less than what Mr. Jegede spent, simply because she chose to look at the total cost of acquisition instead of just the transportation cost.
The example above emphasizes our first prefab home buying tip . . . focus on the total cost of acquisition of your new prefab house or portable cabins NOT only the transportation cost element (or any single cost element for that matter).
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