BANK PULLS THE PLUG ON PATRIOT HOMES

Patriot Homes, an Indiana based manufactured home company, announced Monday that their bank pulled their line of credit Friday.  Company officials said that the bank has lost confidence in the housing market.

Patriot with a capacity of building 3,500 homes a year has seen its production drop to less than half that amount this year. 

The company had closed seven plants earlier but doesn't expect any further closings or workforce cuts while the company reorganizes under Chapter 11 of bankruptcy.  They are looking for funding and say they should have everything in place in a few weeks.

Patriot homes builds both manufactured and modular homes. 

Click here to visit their website:  PATRIOT HOMES

TWO MODULAR HOME FACTORY PRESIDENTS SPEAK OUT ON GREEN BUILDING

As the Green Building movement gathers speed, I've written about builders trying to bluff their way through the Green jungle.  Harris Woodward of Finish Werks in Maryland wrote an article this Friday for Modular Home Builder stating that if you want to be part of the Green Movement, you've got to put in the time and effort to learn about it.

Now two modular home factory presidents have written to voice their support of builders willing to take the time to study and earn the right to be called Green Builders. 

The first is from Vic DePhillips, president of Signature Custom Homes in Moosic, PA.

Gary,

Having been in this industry for a few years and reading as much as I can about my "craft" I wanted to comment on some articles I read on your site.

I agree with you that there are plenty of people out there that would like to have you believe that they are the expert on "Green Build" after all this is the new mantra for the housing industry. And after 10 years of being out there it is finally gaining some momentum. But how we, as manufacturers and builders handle this new market desire, will determine the  credibility of the Green Building Process.

The Guy like you describe, is the norm for most of these type of processes. He hears the buzz and "tries" to place he and his company in the limelight, but doesn't bother to do the homework required to make his positioning a complete success. By having half or less of the information and no how to make the process work, he tries to get by on BS and talk. That hurts the real guys out there, that have done a good job of understanding the process, setting up their company to do the right job and developing the right info to have their customers understand what they are getting for their dollars spent.

The NAHB has been working on a green Build program that they are in the process of rolling out. Unlike the LEEDS program, it is targeted at new homes and it is written in an "easy to understand" format. You can get more info about this at www.nahbgreen.org. I am excited about the possibilities fro this program, especially as it relates to our industry. I know that there is an effort in progress to have a clear cut program for the modular industry.

Gary, you have a great site,. I do enjoy reading the articles and your sense of humor and wit is not lost.

Vic  

The second comment is from Steve Scharnhorst, CEO of Excel  Homes in Camp Hill, PA.

Hello Gary,

I wanted to take a minute and respond to the article on your Blog concerning building green. It seems since oil became “the” high priced commodity lately and has dominated the news, everyone is jumping on the “Green” bandwagon. If you dig deep enough every manufacturer can come up with a “green” story. “Green Washing”, as it is called, takes away from the credibility of manufactures who are striving to present eco friendly products in a responsible manner. However to be a truly responsible green builder you need to dig a little deeper.

Modular construction by its very nature is more environmentally friendly, not only during the construction phase but also long after the home has been finished. During construction Excel Home’s manufactures to very tight tolerances, saving material and providing a very solid envelope for the home that will save energy costs during its long life as a family home. At the factory we reclaim nearly 100% of the construction waste in designated bins which are picked up and recycled into new products and are reused in various different ways. For Example 100% of our copper waste is reused to make new wire and other copper products, cardboard is recycled into new industrial paper products, and our gypsum is separated from the paper (which is also recycled) and used as a soil amendment for the agricultural industry. But recycling isn’t enough, Excel is on a waste reduction mission with the goal of eliminating all landfill waste by 2010. This effort will also limit the amount of recycled products we generate, reducing recycling and transportation costs. Recycling is one way a manufacturer can become green, the other is by working with vendors and suppliers who offer verified green products.

When it comes to “Green” products we work closely with our suppliers to understand their process and their ability to provide environmentally friendly products that are not just “Green Washed” but represent an environmentally friendly alternative to other products on the market. Industry groups like NAHB, Energy Star, LEED’s Certification and Green Advantage, provide guidelines and helpful process specifics that direct the manufactures and the onsite builder on how to properly construct and test homes for energy use and green product content.

Like any popular movement, there are people committed to the process and folks who want to go along for the ride. When it comes to Green, Energy efficient homes, the modular construction technique provides an advantaged product that is superior to the old way of construction, and I am proud to say that Excel Home’s is leading the way.

Best Regards,

Steve Scharnhorst

C.E.O. Excel Homes LLC

Reputable builders and factories are working hard to earn their customers trust when it comes to Green Building.  I'm sure people like these will help make Green Building something every modular builder can be proud of.

ENERGY POLICY ACT OF 2004 SCHEDULED TO END

The close of 2008 will be the sunset for the ENERGY Policy Act or 2004.  Going Green was was not a big catchword in 2004, but energy conservation was.  The Federal Government passed an act giving homeowners a $2,000 tax credit if they were able to show a 50% energy savings when remodeling or building a home.  A $1,000 tax credit was earned if the house saved 30%.

A Residential Energy Service Network, or equivalent, certifies homes to receive the credit.

If you've been using this tax credit to help sell energy conservation, make sure you check and find out if you are selling something that no longer exists.

PASS ALONG THE COMPLIMENTS

Builders and Sales Reps often are the blunt of problems from their customers, but when a customer gives them a compliment, what happens?

As a modular home builder, how many times have we heard from the customer that the set crew was very nice to the homeowner while they stood and watched their house go up.  They just couldn't believe how gently the crew placed each module or how each of the crew explained things to them when they questioned something.  The builder, that's you, probably thanked them for the compliment and promptly forgot about it.

Now put yourself in the set crew's shoes.  They probably got their at 7:00 AM after sleeping in a motel the night before.  They planned  and worked  the house set throughout the day and were interrupted about a dozen times by the homeowners.  If you say nothing to them about your customer's compliments, how will they ever know the great feeling of a job well done?

A modular home factory rep visits a builder and is told that the suggestions made by the engineer were exactly what the customer wanted.  Will he tell the engineer?  SURE HE WILL!   NOT!  It's not that he or she will take the credit, it's more likely that they will forget. 

If you have ever worked in a position where you didn't have direct contact with the final customer, did you ever feel that no matter what you did really didn't make any difference?  Absolutely!  And how would it have felt for someone to tell you that you got a personal compliment from a customer!

So the next time a customer gives your company a compliment, take a couple of minutes to find out who did the great job and call or write them and tell them that a customer gave them a compliment.  A simple ATTA BOY can make someone's day!

MASTERING YOUR OPENING PRESENTATION

Why would anyone buy a new home from you?  Did you do all the right things and say all the right words and show them pretty pictures?  You betcha!

But what really happened in the your opening presentation is probably what sold them on you in the first place.  Or maybe it didn't and that's why you're seeing some of your best prospects walking down the street to your competition.

Preparing and rehearsing your opening presentation is one of the cornerstones of selling.  Wouldn't it be great if your prospects walked in and said they wanted a 3 bedroom, 3 bath two story home that looked EXACTLY like the one you just built for your last customer.  Right down to the colors.  What!  That's never happened to you!  Wow!

Getting back to planet Earth, prospects here are more likely to come into your office, unfold a piece of graph paper or folded napkin from McDonalds and say "This is what we want".

But even before they give you their dream home plan something has to happen first.  You have to become a good interviewer.  After greeting them and THANKING them for coming in, you want to keep the conversation about them until the appropriate place in the conversation to shift it to facts about your company and then on to their plans for a new home.

Talking about their needs and desires can take up a lot of time.  Go over the plan with them and if there are any glaring problems with it, try not to shout out to them, "what the heck were you smoking when you drew these room?"  That is not cool!

After you have reviewed their plan and both you and your prospect agree on a timetable for drawing and estimating, make another appointment before they leave your office.  At this point it becomes a buying and selling process.  (Remember, they are prospects until they agree to buy a home from you.  They can be lost  at any point up till then)

Now let's go back to the beginning.  Too many of you jump right in and start talking about you and your company.  You are creating a box that your prospects might feel they have to fit in before you'll build their new home.  A lot of modular DEALERS have this problem but modular BUILDERS do not.  The biggest difference between a modular DEALER and BUILDER is the amount of front end work , design and customization, actual home building skills and final finish and follow-up is done. 

A DEALER can do all these but rarely does.  They concentrate on the sale of the modular as the entire process where a BUILDER will work with a customer from the beginning of the home through to the very end.  The modular part of the home becomes just one of the components of the project.  Is one better than the other?  You have to decide for yourself.

But either way, your opening presentation will either keep them from straying or turn them off forever.

Here are some simple steps to follow to help insure a great first meeting:

• GREETING - A pleasant greeting is always the best approach.  If you have an appointment with someone, make sure that you greet them promptly and warmly.
• INTERVIEW - At this point you should be asking questions about them and their lifestyle.  Don't assume anything.  They may have come to you looking for a two story house with a stripper pole in the bedroom and a 12 seat home theatre with reclining lounge chairs and you were thinking that they looked like your Mom and Dad.  This part takes as long as it takes but usually lasts about 30 minutes.
• ALL ABOUT YOU - You and your company can take the spotlight when they start asking about you instead of volunteering information about themselves.  Here is where you bring out the big guns.  Talk about your last three homes, give them references and explain how you will build their new home.  DO NOT APOLIGIZE FOR SELLING MODULARS and don't sit there and tell them the differences between you and the mobile home dealer down the street.
• LOOK OVER THEIR PLANS - At this point, they will usually want to go over the plans they have or look through some of your modular house plan books.  Take your time through this part.  Any misunderstanding here will slow down the process because of redraws and and more redraws.  Once you lose your way on the path to closing a sale, no amount of breadcrumbs will ever help you find your way back.

These four parts of the sales process usually takes about 2 hours.  As I told you before, if it takes less than 90 minutes you've probably skipped one of the steps and if it takes more than 3 hours, you're just rehashing things to the point that the breadcrumbs will fail you.  Here is where you ask for the next appointment.

Perfect your opening presentation and you will be surprised how many will want to come back again.

"I'LL TAKE LAUGHING GAS WITH MY ROOT CANAL. PLEASE!"

by Harris Woodward

Building green is not so much using different materials as it is transforming your business. Given the resistance to change in our industry, from housing legislation, to real estate and mortgage agents, to code enforcement, it’s not surprising that most builders equate “going green” with getting a root canal. But if you want to remain relevant and actually capture market share, and not die a slow death competing with low-priced handy men, listen up: I offer you laughing gas for the pain.

It’s called the hybrid automobile.

I remind my people as often as necessary that the home owner’s second largest investment is his vehicle, after his home. And, at least in my market in central MD, folks are paying sticker prices or more for hybrid and more efficient small cars. They are waiting months for delivery. It’s creating a backlog of orders at dealers everywhere. Why? Because faced with the prospect of higher gas prices, people will pay a premium in time and money initially in order to pay less later. Go ahead – re-read that last statement and apply it to building homes. What do you get?

ENERGY STAR® homes.

The fact is, being green starts with energy efficiency. You do NOT have to go out and study various bamboo species. You DO have to recognize that while your market may not be asking you for Energy Star at this moment, they weren’t asking for the Toyota Prius back in 2003 either. Once you introduce energy saving features like 17SEER HVAC systems, or tankless water heaters, or upgraded insulation, or low-E windows filled with argon gas, you capture their attention. And once you point out, simply, that the $5,000 investment they are making works out to just $33.27/mo. on a 30yr mortgage at 7%, you’ve captured their intentions. All you have to do is throw in compact fluorescent lightbulbs throughout and that they will save hundred$ each year, you’ve captured a customer. For $1/day, you have added value, differentiated yourself from your competition, and sold a better home without stooping to selling on price.

This “baby step” is easy to write about, but easier still if you build modular because every week the industry is adding factories that deliver Energy Star certified homes. It’s almost as easy as ordering from a menu. That you’re reading this speaks volumes about your intentions to increase your business. Now skip that football game and get educated for a couple of hours instead. This Blog was created by an Energy Star and Green advocate so that you and me could wise up.

We spent many hours building www.finishwerks.com in order to educate our prospective clients. But I welcome my peers to visit AND send their clients here because it’s full of credibly-sourced information specific to systems built homes and energy efficiency. And while you may be concerned about competition, you’ll notice that we’re limited to Maryland, so send them over. And if you’re in Maryland, send them over anyway, because what our industry needs, more than anything else right now, is consumers educated on the benefits of building energy efficient, and ultimately, greener homes. Besides, you’re good enough at what you do not to worry about losing a customer. Right?

That’s what I thought. Get Green and avoid the root canal. Because it’s inevitable if you don’t.

- Harris Woodward is owner of Finish Werks, a custom modular builder in Maryland

NUTRITION LABELING FOR NEW HOMES

A short while back, Harris Woodward of Finish Werks Homes in Baltimore, MD said that it would be great if the modular home industry had a label that could be attached to a home showing Green information in much the same way the automobile companies put mileage consumption labels on their cars.

Now Michelle Kaufmann, owner of Michelle Kaufmann Designs has written a "white paper" about just this topic.  She she designed and produced what she hopes will be a model for the housing industry to follow.  Looking very similar to a nutrition label of food, this label is a wealth of information.  I for one, can't wait for it to be the prototype for what the industry uses to inform the consumer about the Green side of building.

CLICK HERE FOR MICHELLE KAUFMANN'S WHITE PAPER

If you don't do anything else today, read this article!

HAPPY DAYS ARE HERE AGAIN FOR WORKERS AT CHELSEA HOMES

Excel Homes of Camp Hill, PA announced that they are reopening the closed Chelsea Homes plant in Marlboro, NY.  Excel had previously hired the Chelsea sales reps and engineering dept, but did not buy the Chelsea Homes business and are leasing the factory.

Steve Scharnhorst, President of Excel Homes made the announcement yesterday adding that Excel can now service the entire Eastern market from Georgia to Maine.  Excel has five manufacturing facilities making it the largest modular home builder in the East.

The former Chelsea plant should be reopened in the first part of October.  Demand for Excel Homes and it's AvisAmerica division are strong and bringing this factory online will help Excel Homes meet the demand for quality homes in the Northeast.

SEVEN LITTLE WORDS

I'm a big believer in the KISS system.  Nothing you do in business should be so complicated that the only person knowing what you want is you!  If you can't get your business' theme across to your prospects quickly and accurately, they will begin to wander away from your message and probably go to someone else.

When getting your message out there, try to think like the billboard companies.  Keep your message to SEVEN WORDS OR LESS!

Stop for a minute and try to describe your business in seven words that anyone could understand.  It's not as easy as it sounds.  Try it!

Here are some examples:

• "The Greenest Home Builder in Utah"  6 words
• "Our Next Home is Your Dream"  6 words
• "Totally Awesome Homes Available from Smith Builders"  7 words
• "Affordable is Built into Every Home"   6 words
• "You've Earned  a Bonson Home"  5 words

Every one of these is a real slogan!

These are just a couple of examples of KISS.  If you can create a slogan for your business that quickly reflects your core values, put it on everything; business cards, trucks, advertising...everything.  People will relate you and your slogan when the topic of homes comes up.

MODULAR BUILDER REPORTS 35% GROWTH

At a time when most modular home builders are struggling to keep their heads above water, Realty Development Associates in Sagamore, Mass, is achieving a 35% increase in business over last year.

There little secret is "tear down and rebuilds" and "In Law additions".  They are marketing the idea through their website and other media.  The company handles everything from tear down of the old house to the final inspection at the customer move-in.

Don Shulman, president of the company uses Westchester Homes to supply them with their modular product.

Here is an example of one of their teardowns:

And here is one from their website showing an addition:

Oops!  Looks like the little secret isn't a secret anymore.  But if you're thinking of getting into this market, make sure you do your homework and find out all the things that are needed in this type of market.

TEN TOP WAYS TO KILL YOUR BUSINESS

It doesn't matter if you sell a product that kills fleas on elephants or houses for new buyers, every new business can fail and do it quickly if you aren't watching every aspect of it.

Here are the top ten reasons for a new business to die before it's time.  Any one of these reasons will hurt a business and two or more will probably doom it to the scrap heap of failed business dreams.

1. INADEQUATE PRODUCT KNOWLEDGE.  In the case of becoming a modular home builder, a lot of people have either worked for or with a builder and thought they knew how to build a modular home.  What they didn't know was product line.  They fumble and stumble through the first few homes before they either succeed or simply close up shop.

2.  UNDERCAPITALIZED.  This is the messenger of doom for most failed businesses.  Your spouse has a good job and pays the household bills so you think you can become a modular home builder on a shoestring.  That string is a short length when you have to pay for insurances, office equipment, special tools and other items necessary to run a modular home company.

3.  NO MENTOR.  My daddy had a saying, "You can rationalize any situation".  If you have nobody to talk to or help guide you on in starting or running your business, you are bound to make mistakes.  Having someone to talk to is a wonderful thing when getting started as long as that person has your best interest at heart.

4.  POOR MARKETING.   How will anyone know you're in the modular home business without adequate advertising and that doesn't happen until you have a marketing plan.  If your advertising budget is thin, turn your marketing efforts to areas that don't require large sums of money.  Marketing requires you to think creatively and for a lot of you, that is unknown territory.

5.  AMBITION FADES.  When you first started your business you had this dream of building modular houses for a lot of people and making a lot of money.  Well, reality sets in when you realize the payday may not happen for almost year especially in today's economy.  You start looking out the window at people that have "regular" jobs and wishing you hadn't given up yours.

6.  POOR PLANNING.   The lack of a Business Plan is one way to make sure you're not going to succeed.  No plan or poor planning has doomed more businesses in the US than almost any other reason.  Be sure you begin with a Business Plan and keep adjusting it as you and your business grow.

7.  BAD SERVICE.  Enough said.  If you want everyone in town to know you, just do a poor job of customer service and you will get a reputation but not a good one.  Running a business is a service, never forget that!

8.  LACK OF PERSONAL GROWTH.  You must keep involved with learning about your trade.  Read magazines, attend workshops, watch trade videos, work with your sales rep and factory and anything else that keeps you up to date on what's new and exciting about our industry.

9.  BAD ACCOUNTING PRACTICES.  Not keeping accurate records about each house you build and not reporting to taxing agencies such as the IRS and State Revenue will bring you down quickly and also put you and your family in danger of losing a lot more than the business.

10.  LACK OF A SYSTEM.  I've seen a lot of builders that build houses by "reaction".  The homeowner calls and asks when the foundation is going in and the builder says "soon" and then panics and calls the excavator to check when he will be there.  Get your building sequence in order and follow and update it every day.

TIMES ARE TOUGH FOR EVERYONE!

     Times are tough and yesterday I opened my email to find an advertisement for an auction of a spec home near me.  The builder is auctioning off 13 properties to pay his bank before the business heads south entirely.  He is a well respected builder in my area but he's been sitting on these homes for too long.  He is a survivor and still has a lot of homes under construction for buyers throughout the area.  He is not going out of business...only the spec business.

Here's the auction description!

The home is available before the auction for $5,000,000!

This grand masterpiece home is a unique compilation of design elements from many styles of architecture, combining absolutely opulent finishes and scale with the more familiar layout of a Colonial: classically inspired yet contemporary in its livability and efficiency. The builder orchestrates the many layers of inspiration into a symphony of majesty and warmth like no other.
     A classic four-columned portico stands proudly over the Frank Lloyd Wright-inspired stained glass door and arched window. Once inside, you cannot help but be drawn into the home. A magnificent curved maple staircase leads to the second-story bridge overlooking the first floor family room and foyer. The foyer offers the perfect place for large statues and a piano, and even an alcove where artwork can be displayed on glass shelves and lit with adjustable spotlights.  The elevator and a powder room are just off the foyer.
     The first floor's East Wing houses a lovely dining room with faux finish painting, crown molding backlit by rope lighting, and room for twelve to dine. However, the dining area extends through the fluted columns toward the riverfront side of the home with a wine tasting area complete with a wet bar, a breakfast area for six, and further down, room for a table for two.
The gourmet island kitchen is a dream with 2 pantry closets, butcher block drawer, built-ins galore, gorgeous lit cabinetry, and over $45,000 worth of appliances, including a SubZero wine cooler, Viking Professional 6'x7' refrigerator, 6-burner grill vented outside, 3 ovens, 2 dishwashers, 2 warming drawers, and a trash compactor. The Black Galaxy Granite countertops sparkle and the glass block tile backsplashes shine.
     A hallway leads to the rest of the first floor's East Wing. First to one of the home's two utility rooms; this one offers Maytag Epic washer and dryer on pedestals, linen closet, deep sink, cabinetry, plenty of room for a chair, and is wired for television. Next, the home's office with a handsomely coffered ceiling. Then on to a powder room with ceramic shower stall and oil-rubbed-bronze finished faucets and bathroom accessories. Finally, to the four-car garage boasting storage space, two Rinnai hot water heaters, and stained-glass garage doors that are ultra-quiet and efficient.
      The center of the first floor is home to a family room with a gas fireplace and built-ins for a television, tons of water views, and a second staircase. A sunroom is full of water views and wired for television. The wall between the sunroom and the hallway has large windows, so even the hallway offers views of the river. Outside the media room, a charming ticket booth adds to the entertaining and playful feel. The media room with its Black Galaxy ceiling is built for maximum sound quality and the best viewing quality with a high definition screen.
      A 25-disc CD player is located in the media room, and is accessible from just about every room in the house. A whole-house intercom system provides convenience and safety. Six heating and A/C units provide customized comfort; with thermostats in each bedroom, the home theatre and the sunroom, these areas can control temperature separately.
      The West Wing of the first floor houses the main floor of the sumptuous master suite. No detail was left undone: built-in for a flat screen television, custom cabinetry, U-Line fridge, two custom closets with built-ins, and water views. The master bath offers an unbelievably gorgeous oversized tiled-shower with massagers and an overhead showerhead. The Jacuzzi tub is framed by columns marbleized to match the tile, has the conveniences of a handheld shower, soap dispenser and the luxury of several steps framing the tub allowing ample space for candles. There is a separate water closet, a double-vanity, make-up area, lovely cabinetry and tons of storage space. Upstairs, the loft to the master suite is - like most of this home - designed for comfort, beauty and convenience, and offers a fireplace, a 4' balcony overlooking the River, an extra closet and access to a large unfinished storage area.
      The rest of the second floor offers a utility room with full-size Frigidaire stackable washer/dryer. Four bedroom suites with full baths and large closets, 2 of which have balconies overlooking the water. Above the garage is a large exercise room, complete with a kitchenette, access to one of the full baths shared with a bedroom suite, a storage closet, two access doors to attic space, and two alcoves: a sitting area and a meditation room with shelves for books or artwork.
      You can take the elevator to the third floor game room. What a perfect place to entertain with its moonlight custom-painted ceiling and water views. For ease of entertaining, a wet-bar, sink, dishwasher, and full-size refrigerator. 

And if you have a hard time with that much money, maybe you could bid on this one:

It's listed for a mere $3,000,000!   And there are still 11 more properties!

SALES MANAGERS - TEN TYPES REVEALED

Almost every article you read or story you hear in the world of sales involves Sales Reps but you hardly ever hear about the Sales Manager.  It doesn't matter if you are a one person show or have a couple of people selling your homes, you either are the Sales Manager or you employ a Sales Manager.

Some Sales Managers are great.  Others not so great and some others are just grating!  Here are ten Sales Managers you don't want working for your company!

1. The "TWO SHOE" SALES MANAGER.   This guys walks in two directions at the same time.  He manages other Sales Reps and at the same time he is also a Rep.  When he became a Sales Manager (SM) he kept some plum accounts for himself.  This is a 6 out of 10 on the Bad Move Meter (BMM).

2. The "DO AS I DO BECAUSE I CAN'T TEACH" MANAGER.   Here is a poor guy put into a teaching position, which is one of the main responsibilities of an SM, and he would rather do it himself than figure out how to teach someone to do it.  He would rather send his staff to a seminar than try to teach himself.  5 on the BMM.

3.  The "THIS IS THE WAY WE"VE ALWAYS DONE IT" MANAGER.  Gotta love this type.  If a Rep has a question or a problem, the SM goes about telling them how he handled this situation 20 years ago and if the Rep still wants help, the SM bullies the Rep until the Rep gives up and walks away.  8 on the BMM

4.  The "GRUMP".   We've all had this fellow as a SM.  Between grunts and shrugged shoulders, you'll never get an answer.  And if you press them for one, be prepared to have your head handed to you.  8 on the BMM.

5.  The "I"VE GOT AN MBA" MANAGER.  Here is a SM with loads of classroom experience but little or no knowledge of the actual business we're in.  While he's learning what the company does, a lot of good Reps learn where the exit door is.  9 on the BMM

6.  The "LET ME CHECK THE NUMBERS" MANAGER.  This SM would rather look at spreadsheets and reports than talk to the Reps about what is happening in the real world.  Excuses for slow sales are not accepted because numbers don't lie!  Getting this SM head out of the computer is a real challenge.  6 on the BMM.

7.  The 'EXCUSE ME, I'M TALKING" MANAGER.  Some SM like to hear the sound of their own voice.  They go on and on and really say nothing that you haven't heard a hundred times before.  And that pause after you say something is not them thinking about what you said.  The SM is just trying to remember another story to tell.  4 on the BMM.

8.  The "WHAT SALES TEAM?" MANAGER.  This guy takes credit for all the good stuff that happens but is quick to point the finger in your direction if something is amiss.  Reps try to stay out of this guy's way because the only time he talks to them is to assign blame.  8 on the BMM

9. The "I'M IN MY SAFE PLACE" MANAGER.  When some SM get the job, they think they "have it made" and don't want anything to interfere with their position.  They hide from the staff by walking around the factory floor, keeping their office door shut or leaving the offices to "check on a problem".  9 on the BMM

10.  The "PETER PRINCIPLE" MANAGER.  In 1968 Dr. Laurence J. Peter and Raymond Hull wrote a book called the Peter Principle.  That principle is "In a Hierarchy Every Employee Tends to Rise to His Level of Incompetence."  It simply means that a great Sales Rep doesn't make for a great Sales Manager.  Often the Rep looks good on paper but falls apart within months of taking on the SM job.  By that time morale is at a low point and the Reps are polishing up their resumes.  10 on the BMM.

FIRE DESTROYS ANOTHER "MODULAR " HOME

Here we go again....a manufactured home (mobile home, trailer, double wide) went up in flames in Mt. Vernon, IL.  The cat knocked over a lit candle and caught the front porch on fire.  The family was very lucky to escape and firefighters responded quickly but all was lost.

The fire was NOT caused by the home being a manufactured home, it was an accident. 

What has me smokin' again is that the Mt. Vernon Register-News, a local media outlet called the home a MODULAR HOME! 

The article about a family nearly dying in a house fire is bad enough, but to single out that it was a MODULAR home instead of a stick built home is another insult to these people.  Their home burned down!  It doesn't matter how it was built...it was their home!

Then our industry takes another hit when the newspaper calls it a MODULAR home.   Take a look and see if you agree.

INDUSTRY NEEDS TO WAKE UP AND FIGHT

Our industry seems to be sitting back and waiting for a miracle! 

I've written many articles about sales and marketing in this blog as have Jerry Rouleau, a nationally known motivational speaker for our industry and Adrian Miller, a sales and marketing advisor.  You would think that somebody would get the message that we are heading toward a recession and push affordable modular housing as the immediate answer to our growing housing problem.

However I'm starting to think that the owners of  modular home factories throughout the US are asleep at the switch!  Oh, they do make announcements about how our homes are better built than stick and inspected throughout the process, but that's about it!

Our industry needs to put modular housing in the spotlight and work to increase our sales and the number of factories putting out our products.  If modular housing isn't the future of housing, then I have no idea what it could be.  Maybe we could do a Modular Aid with Madonna and Paris Hilton highlighting the show!  They couldn't any worse than our industry's current marketing.

Here is a another great example of "doing nothing".  In the great state of Tennessee, in beautiful Cumberland County, in the town of Crossville, 650 people jammed the Community Conference Center of the Fairfield Glade subdivision to protest modular houses coming into their community.  Their own architectural control committee (ACC) approved the homes.  Doesn't seem to matter to these 650 ignorant souls who showed up to show their support for stick built homes that populate their streets.

For the complete story, click HERE.

TROY, NY FINDS ANSWER TO AFFORDABLE HOUSING PROBLEM

Mayor Harry Tutunjian broke ground last week for four more homes in the Beechwood subdivision in Troy, NY.  The city's "Troy Home Project" is a federally funded program that seeks to solve the city's affordable housing problem by using modular homes.

It's amazing to me that in one of the original thirteen colonies, modular is accepted and even encouraged while in other parts of the country including some of the poorest in the nation, modulars are thrown in with trailers and double wides. 

For those government officials and Home Owner Associations not familiar with the difference, here are pictures of a double wide and a modular.  Take a look and learn!

PROBLEMS EASING A LITTLE FOR MODULAR DEALER

Back in August I wrote about a fellow that bought ground in the city of Slidell, LA and got permission to put up modular model homes.  After he purchased the homes, the city ripped his permit away leaving him with tons of modules on carriers at his lot.  Read the first story HERE.

In what could become a battle with the pin-headed municipal administrators, the zoning commission voted 5-0 Monday night to recommend to the city council that modular homes should be allowed to be erected as model homes in the commercially zoned area.  We now know that there are at least 5 intelligent people in the Slidell government.

At least Leith Danou, the owner of New Gulf Coast Homes made it this far.  Every modular builder in the US should be upset with his dilemma.  It could happen to you.

WHERE ARE THE SALES? IT'S NOT MY FAULT!

by Jerry Rouleau

Have your heard this before from your sales or marketing department? Whose fault is it that sales are slow now? Is it the economy, the marketing department, your PR firm or sales? Who should you blame? If you are like most people, you want to pass the buck to someone else. Take your pick, throw your dart at one of the other departments and build your case. Here is my take.

The Ecomony?

Read all the articles you want, listen to the newscasts, look for all the “For Sale” signs and you’ll most likely say, that’s it! If the market were better, like it used to be, we would be making all kinds of sales. While that may be a great call, it’s not the right answer. There are still buyers out there. Don’t look at the 20 or 40% drop in sales in your market, but focus on the 60% to 80% that is still out there. If you focus on the negative, that’s what you’ll get. Now, more than ever, you have to create more activities and do more follow-ups with them, then you’ve ever done. Guess it’s time to get back to work and stop being an order taker!

The Marketing Department?

If the marketing department would just get their act together and create more leads, we would make more sales. The only way this might be true is, if you’ve cut back your marketing budget or shut them down to adjust to the market. Then, you have fulfilled a self-fulfilling prophecy. This is probably the worst thing a company can do. There are still buyers out there and we need to be more creative than ever, in developing marketing campaigns that will create a call-to-action, for a call or a visit. Target marketing, working your referral base and Internet, are where you can make a difference, without spending a ton of money. It’s not the marketing department’s job to make sales. Their job is to create the awareness and activity.

Your PR Firm?

That’s it. It’s the PR firm’s fault! You’ve been spending money every month, and they have been getting you publicity, articles printed and story lines, but no one has called and bought one of your homes. If they just did a better job, we wouldn’t be so far behind. Wrong answer again. It’s not your PR firm’s job to make sales. Their job is to create public awareness. Always keep in mind, that the effectiveness of PR is how you use the information as a marketing tool, to help enhance the sale and give you creditability. It’s great third party testimonial. PR articles, and stories have a five-year shelf life. It’s not as important as who sees them initially; it’s how you use them to make a sale.

Your Sales Department?

If you can’t blame the first three, then it has to be the sales department’s fault. Wow, glad we got that figured out! I am sure you’ve heard the saying, “nothing happens until someone sells something”. Wait; let’s not put the full blame here. There are other factors we should consider. If your company has stopped providing the sales people with tools, stopped advertising and not providing on-going training, then we can’t put all the blame here. Yes, sales are still out there, however, the game has changed. It’s a whole different approach. What worked years back, does not necessarily work the same in this economy. As mentioned above, it’s all about getting back to work, being creative, and staying in touch with potential leads. No more cruising! It’s time to track, measure and manage all leads and activities. You can’t afford to let leads slip through the cracks. There is business out there. Are you going to get it, or are you going to let the competition beat you to the punch?

So Who Are You Going to Blame?

“Wait, there is more to this then the items you listed. You forgot to mention our specific market. Our market is different than others. We are unique. You just don’t understand.”

It’s Our Market

No matter where I have traveled in the past 18 months, no matter how bad the local market was or how many people were complaining, I always found individuals that were having a decent year and in some cases a great year. One builder/realtor in the northeast, I will just call him Dan B, told me that he was having his best year ever in 10 years! Mind you, the market area he was in was off 40%. Why is he successful, when everyone else is crying? His attitude! As part of a program that this builder/realtor attended, I handed out a sheet listing 48 Internet websites that you can list or post your homes. At the end of the program, he said he felt great because he was already using 32 of the 48 sites that I had mentioned. He is creative, he is pro-active, he is making sales, and he has the right attitude.

It’s all About Your Attitude!

If you feel the market has gotten the best of you, you are 100% right. If you feel that no one is in a buying mode, your 100% right. Guess it comes back to your attitude. It’s time to invest in yourself and improve your skills. It’s time to become a professional. Practice, reinvent yourself and then practice again.

Best of Continued Success!

Jerry Rouleau is an author, consultant, coach, trainer and nationally known speaker on “Selling More Homes”. Jerry is the author of two books and the producer and co-host of the weekly online radio program “Selling More Homes - The Monday Morning Sales Meeting” on www.BuilderRadio.com. His weekly show interviews some of the top sales people, consultants and authors regarding home sales. Jerry can be reached at jerryrouleau@comcast.net or via his websites at: www.jrouleau.com and www.BuilderRadio.com

THE PLACE TO BE EVERY MONDAY MORNING

Every Monday morning like clockwork, I open my email and find a message from Builder Radio telling me that another podcast is ready.

Builder Radio offers system builders and stick builders a convenient way to learn the basics and some tricks of the trade in marketing, advertising and selling new homes.  The commentators, Jerry Rouleau and Scott Stroud, are always upbeat about our industry and it shows with the people they interview. 

Their guests bring messages of hope and endurance during this housing slump.  They are excited to share their knowledge with us and Jerry and Scott ask the questions we have all been thinking.  And I almost forgot.........it's FREE!

If you haven't been to the Builder Radio website, simply click the banner.

A PRIMER ON PROVIDING PROFESSIONAL CUSTOMER SERVICE

By ADRIAN MILLER,    Adrian Miller Sales Training

In an increasingly competitive market, the difference between you and your competitors often boils down to one crucial factor - customer service. The reality is that it has been proven time and time again that a company’s success often hinges on how customers view the service provided. While it’s certainly helpful to utilize technology to increase customer loyalty, oftentimes it’s the basic customer service 101 that makes all the difference in the world when it comes to turning a one-time customer into a long-term client.

You Are How You Sound

It’s a given that using a negative voice and tone with a customer is an absolute no-no. However, there is frequently an overall acceptance for an unenthused, neutral voice. Call it what you like – blah, bored, tired, or detached. Customers will perceive a monotone voice as negative and unhelpful. Paying attention to voice, tone, sounding positive, energetic, and consistently upbeat should be right at the top of the list of ways to improve your customer service.

The Delight is in the Details

Your customer service team needs to be able to manage the basics of their jobs, and customers expect that. But, what makes the difference between so-so service and helpfulness that keeps customers returning is paying close attention to details. Following through, keeping promises, and going that extra mile for a customer is the key to loyalty. Customers will always appreciate that personal touch that makes them feel appreciated and special.

You Said What?

With more and more communication taking place online, often delivered in bullets or short quips, it seems that many have forgotten the benefits of courteous dialogue. “Please,” “thank you,” and “How may I help you?” are far too frequently forgotten. By focusing on using those tried and true words of good customer service, you can go a long way towards differentiating yourself from a pack of poor communicators.

Frankly My Dear, I Don’t Give a Damn!

We’ve all had the experience of being circulated around a complex phone system, trying to reach a customer service representative - punching buttons, being redirected, then placed on hold, and finally hung up on. What’s the message that a company projects with this lack of respect for their customers’ time? A message of indifference; and it’s a surefire way to make your customers run straight towards a competitor who can manage to pick up their phones. While this is one example of a lack of concern for customers, there are countless other ways that companies show they just don’t care. The bottom line here - it behooves every company to review their entire customer service process to seek out those deficiencies that create challenges for their customers.

Comfortably Numb

Your market is continuously changing, and so are the needs of your customers. This requires a customer service team to be adaptable and flexible. For this reason, watching out for signs of complacency and an inability to make improvements is crucial and must be corrected before your competitors surpass you with more innovative ways to better provide service to your customers.

It’s easy to go after the quick fix, particularly when it comes to customer service. You can certainly improve the efficiency of a team with a new phone system or software program, but it won’t necessarily improve quality. At the end of the day, successful customer service still boils down to people working with people. Treat your customers the way you want to be treated, and you will be rewarded with the loyalty of your customers.

YOU VOTED AND SAID SARAH PALIN GOOD CHOICE FOR GOP

The results of LAST WEEK'S  poll on Sarah Palin's choice as McCain's Vice President nominee are in and 63% of you said she is the best thing to happen to the GOP!

14% said she should pack her bags and go home.

BASIC LOW COST GREEN STRATEGIES

When a customer asks you for some low cost or even no-cost ways to go Green, do you know how to answer them?  I'm sure most of you would start talking about Energy Star and LEEDS but there are some very simple ways to improve sustainability without breaking the customer's budget.

Here are some areas to address when helping your customers go Green:

KEEP IT SMALL.  Design the home using the least amount of space necessary for the customer's needs and desires.  Minimize open foyers and hallways, move entry ways into groups if possible such as the garage entry and the rear outside entry into a utility area.  Create a boxed foyer area at the front entry.  Have patio doors open to a covered area.

BUILDING ORIENTATION.  Build the home along the East-West axis so the house faces either North or South.  In the South, use large windows on the North side to take in cool, diffuse air.  Windows on the South side of the house should be smaller.  Consider smaller fixed glass strip windows on the southern side.  If the house faces North use smaller windows to the North side and larger windows facing South.  Shade is necessary for southern facing larger windows.  Trees, cloth awnings or larger soffit overhangs are needed to keep the sun from baking the house in the summer.  Deciduous trees make a great summer shade solution and when cold weather arrives, they shed their leaves and allow the cooler winter sun to enter through the windows.  Keep East and West windows to a minimum.

Do not confuse "Project North with True North".  Even a slight offset will bring in extra sun and raise heating and cooling costs.

ELIMINATE CARPETS WHERE POSSIBLE.  Unless thermal comfort or foot comfort is essential, try to reduce the amount of carpeting in the home.  Bamboo hardwood flooring, tile and ceramic floors are all acceptable in today's homes.  You can get these flooring options for little more than carpet.  Carpet is not sustainable, collects pollutants and gives off harmful gases for several years after installation.

These simple choices by the homeowner will help them lower their heating and cooling costs, help with air quality and give them one more step toward going Green.

WOMEN IN CONSTRUCTION

More and more women are entering the  home building business as owners and managers.  What I don't see are a lot of women in the modular side of home building.

I am writing a series of articles about successful women contractors in our industry and if you know of any that should be included, PLEASE drop me a line.

I'll contact them and include their business in the article. 

Contact me at modularcoach@yahoo.com

WHAT IT TAKES TO BE A MODULAR HOME BUILDER

In the modular home business there are a lot of good hardworking contractors helping their customers plan, design and build homes.  But have you ever wondered about all the things you do for your customer and what experiences you bring to the table?

One of the most underrated benefits that most modular home builders have is their experience.  I see some of you putting your information on your website but in most cases modesty doesn't allow you to go into too much depth.  You might be afraid that giving your customer all of your background would sound like bragging.  Well, it isn't!

Here is a list of some of the areas you have to use when building a new home:

• Project Control and Development
• Site Planning
• Design
• Construction Methods
• Construction Materials
• Cost Estimating
• Contract Administration
• Accounting
• Business and Financial Management
• Safety
• State Specific Building Codes and Standards
• Inspection Procedures
• Engineering and Architectural Sciences

Do you really think that your customer knows that you have an understanding of each of these areas?  I don't think your customers even know that all these things go into building a home.  Anyone visiting your website should know that you are responsible for these areas of construction.

In addition to these, you are also responsible for:

• Marketing
• Advertising
• Sales
• Showroom management
• Answering inquiries and follow up
• Customer Service

Being a general contractor is a complicated occupation.  So take a look at your website and if there is no mention of your experience, make sure you add it.  And add your picture to your site!

TUNICA, MISSISSIPPI SMARTEST LITTLE TOWN IN STATE

Tunica, MS with a population of 6,600 people has to be the most intelligent small town I heard of in quite a while.  A recent Board of Supervisors meeting began with Planning Commission Director Pepper Bradford requesting that modular homes be reclassified. 

Normally that would raise a Red Flag here at Modular Home Builder, but this was a monumental request!

Bradford said that both manufactured homes and modular homes are currently subject to the same zoning regulations and he gave reasons that modular homes are not the same as mobile homes. 

He sought to put modular homes in the same classification as stick built homes!  Without much discussion the board approved the regulation change.

The little town of Tunica, MS is one smart cookie! 

Located much farther north than Jackson, it has Memphis as its neighbor.  So the next time you're in Memphis take a few minutes and go to Tunica to see the Bluesville / Blues and Legends Hall of Fame Museum.

TWO BUILDERS AT THE TOP OF THE "GREEN" GAME

For years I've rarely reviewed a particular builder's website because they all look surprising similar.  One of the best I have reviewed however is Custom Modular Designs in Rhode Island.  

I rank all of them into levels of worthiness.  At the top are the corporate websites that have all the flash you'd ever hope to see in one place.  Then there are the large and medium regional builders that have almost as much pizzazz as their big brothers.  Then you come to the small independent modular builders.

Here again I've rank these sites as Excellent, Average and "What the hell made you put that on the Internet?"  All of these sites have tried to get builders within their market areas to buy from them using pictures and promises of good workmanship.  I have not seen the need to review very many of them.

But today I'm reviewing two sites that feature Green Building.  Both sites are informative and you can get just about all the information you need when you start the Green Building process. 

Rubicon Homes in Boise, Idaho has a very good site featuring Green projects they have completed and some new ones coming on line.  Nic Stover, the owner, is a national featured speaker on Green Building and a LEED™ and Energy-Star™  modular home builder.  His featured project, the Cabarton Townhouses, is a Gold Certified Leed and Energy Star project.  If you live in Idaho and want the best modular builder, visit Rubicon Homes.

Moving to Baltimore?  Then visit one of the most complete websites featuring more information about Green Building than any I've ever seen, Finish Werks in Savage, MD.  Harris Woodward, the owner, is a wealth of knowledge on the subject and a modular home builder.  The website is intuitive and easy to follow.  Lots of pictures and videos too.  One of the suggestions I've always made was to put your picture on your website so the visitors can see who they would be working with.  Harris does this!  The only word of caution would be to put on a pot of coffee before trying to read all the information at one sitting.  It took me three visits to read everything on the site but it's worth it!

If you are a modular builder and haven't as yet embraced Green, maybe you should visit these websites and if you have questions I'm sure either Nic or Harris would be happy to to answer them.

HANDCRAFTED HOMES LAUNCHES NEW SITE AND NEW ATTITUDE

I've been visiting modular home websites for years and today I visited HandCrafted Homes' site and was just blown away.  It is crisp, clean and very informative.  It features Green Construction, Energy Star homes and my favorite...a line of homes from William E, Poole!

Located in Henderson, NC, HandCrafted Homes serves the mid-Atlantic region.

Visit their website and you'll agree that it is one of the best you've ever seen for our industry.  I reviewed Beracah Homes' website a short time ago and found their approach just as impressive in a different way.  Where Beracah's site was the easiet to use and the most minimalist site I seen in quite a while, HandCrafted's site is the most rich in content.  These two sites are leaders in what I consider the next wave of websites to attract home buyers to our industry.

 

Link to HandCrafted Homes

JACKSON CITY MISSISSIPPI COUNCIL BANS MODULAR HOMES

In what I can only describe as one of the most ridiculous decisions by a city council in any city in any country of the world, the low IQ members of the Jackson City Council have banned modular housing from coming into their wonderful city.  On the bright side, they voted to allow SIPs to be built within the city limits...GO FIGURE!

I really don't understand how people that are supposed to be helping members of their community can ban homes that are produced by manufacturers that have invested millions of dollars in their factories, hire skilled labor to build the homes, are inspected at every step of the building process and meet or exceed EVERY local, state and federal building code!

Yet they will allow a stick builder with no experience with his only investment being the truck he drives and the tools in it to build anything within the city limits. 

I can see the people that are opposed to modular housing coming into Jackson City jumping up and down with glee as they sip their Coca Cola and wait for the next alien spaceship to land in their field!

Here is a typical example of the houses that the city council has banned:

 

I know I could live in this home but apparently the people of Jackson City only want stick built homes.

PRESIDENT HOPES TO INSPIRE MORE AFFORDABLE HOME OWNERSHIP

I came across this article about affordable housing and thought I would share it with you.  Take a couple of minutes and read the complete article.  You may be surprised by the conclusions reached in the end!

Pointing out that this is the twenty-fourth commission appointed by the President, and the eleventh to operate with private funds, the Washington correspondents go on to explain that the organization will deal with the problems of home-planing, home-building and home-financing, but will recommend no legislation. Government officials and representatives of nineteen national organizations will comprise the membership.

Judging by the amount of editorial comment, the entire country is keenly interested in this new project of the President's.

"Particular attention is to be given to high charges attending second mortgages and to cost of homes in an effort to work out an easier financial situation, something akin perhaps to that behind the automobile industry," notes Carlisle Bargeron, of the Washington Post.

By this conference, as the President himself tells us, he hopes to "inspire better organization and remove influences which seriously limit the spread of home ownership, both town and country." Then he tells us more about his plan:
"The conference will be organized by a planning committee comprised of representatives of the leading national groups interested in this field, under the chairmanship of Secretary Lamont. This planning committee will in turn set up nation-wide subcommittees to determine the facts and to study the different phases of the question. ... "One of the important questions is finance. The present depression has given emphasis to the fact that the credit system in home-building is not as soundly organized as other branches of credit. In order to enable the purchase of homes on what amounts to the installment plan, it is necessary to place first and, often enough, second mortgages. Second mortgages, have, if we take into account commissions, discounts, and other charges, risen in rates in many cities to the equivalent of 20 or 25 per cent. per annum, all of which not only stifles home ownership, but has added to the present depression by increasing unemployment in the trades involved.

"The finance question, however, is only one of many. The expansion and betterment of homes in its bearing upon comfort, increasing standards of living, and economic and social stability, is of outstanding importance."
THE conference deserves the utmost support," declares the Chicago Journal of Commerce, and the Charleston Mail agrees that "the matter is one of national importance." The Cleveland Plain Dealer sums up: "It is an economic question, but it is far more than that. It is a question of strengthening the social foundations of a State."

Source: The Literary Digest for August 23, 1930

TEN SALES MISTAKES

I have always been fascinated with the process of home selling.  Watching and listening to sales people talk to prospects and hearing about their successes and more importantly, their failures, is something I truly enjoy.

I remember one sales person in PA I was observing that had the worst smelling prospects I ever had the displeasure to sit in the same room with.  This husband and wife were not only smelly, they were dirty and their manners were horrible.  As I sat there trying to figure out how to escape, the salesperson, Martha, just keep going at it like this was how every prospect smelled.  After about 45 minutes Martha had politely listened to their story, given them some brochures, calculated what they could afford and explained to them that they were not qualified for any home she sold but maybe they would be able to afford a used home in the area.  She offered them a Realtor's business card and told them she would call the Realtor and explain their situation.  They should call the Realtor later and asked if they would call her back in a couple of weeks and let her know how they were doing.  Then she escorted them to the door, thanked them for coming and said goodbye.

I couldn't believe how polite and patient she was with them.  And then reality set in when she returned to her office where I was standing, got out a can of air freshener, some wet naps and a small bottle of Purell.  She looked green.  The point of this is that even with all this going against the possibility of a sale, she kept herself composed and conducted a perfect sales presentation.  I still smile to myself when someone tells me about a customer that they blew off.  Too bad!  Martha did sell a home later that day and she and I still talk about the first couple.  Now that's a classy sales professional!  Did I mention she was only 24 years old!

Thinking about her reminded of "Sales Mistakes" that I have committed over the years .  Some more than once.  So with that as my introduction, here is my Top Ten list of Sales Mistakes:

1.  Talking too much.  We've all been guilty of this one.  Call it nerves or just "one-upmanship", this is a serious problem when trying to communicate to prospects.  They are the reason you are sitting in front of them.  Listen to their story, don't tell them yours.

2.   Failing to ask questions.  If you don't ask questions, how will you know how many bedrooms they need, what kind of lifestyle they live or what they've budgeted for their home. 

3.   Giving irrelevant information.  Do you really think they care if the countertops are made in your hometown in Nebraska or that the windows they like are shipped to the factory in cardboard wrappers.  No.  They only want to know two things.  What do you have that fits their needs and can they afford it.

4.   Not knowing your product.  Here is a sales sin of the first magnitude.  If you don't know what your factory can offer or your home lineup, how can you possibly know if you can help your prospects.  Read the factory's literature, keep up with the options, know the house plans and be able to make suggestions based on what your factory can and cannot build.

5.   Not asking for the sale.  This is not a new subject.  There are a lot of you that do a great presentation but just can't bring yourself to ask if the prospects are ready to "complete the paperwork".  This is why your great prospect went down the street and signed with someone else, they asked them for the sale. If you can't asked for the sale, get out of the business!

6.   No follow up.  After your presentation and the prospects have gone home, don't forget to keep in contact with them.  The first 72 hours after they meet with you are the most crucial to getting a sale.  Call them, email them or make another appointment with them before they leave your office.  No contact from you = no contact from them.

7.   Failing to prospect.  This includes getting referrals from previous customers and prospects, working Home Shows and open houses, writing letters to newly engaged or married couples and any other way to find buyers.  Not doing this means sitting at your desk watching the grass change from green to brown and back to green.

8.   Creating an apathetic atmosphere.  Don't size up your prospect at first glance and then just run through your presentation with the thought of seeing how fast you can get them to leave.  Don't take phone calls, let them go to voice mail if you don't have a receptionist and never excuse yourself to check on something.

9.  Not taking notes.  People want to feel important, have a sense of worth.  You have to take notes to acknowledge their importance.  Just sitting and staring at them will make them uncomfortable.  One trick I learned.  Have a manilla folder with their name on it on your desk when they show up.  It makes them feel important and you've got them in a good frame of mind.

10.  Not allowing enough time.  I have no idea why it always seems to take 90 - 120 minutes for a good appointment.  There must be some research somewhere about it but successful and even the unsuccessful appointments take up to two hours.  Thirty minutes and gone means you haven't properly presented your company, your product and the benefits of working with your business and you.  More than two hours and you start repeating things. 

MODULAR DEALER IN PA CHARGED BY STATE ATTORNEY GENERAL

Triple T Construction, dba Sunrise Mobile Homes, a dealer of manufactured and modular homes in Portage, PA is accused of failing to deliver manufactured homes, failing to order homes and many other charges.

The owners, Tom and Tina Seaman are accused of accepting $183,000 for homes that were either not delivered or not ordered.  The defendants required payment in full before ordering the homes.

Tom Corbett, the  state's Attorney General said that in one case, a Cambria County couple made a down payment of more than $27,000 to order a modular home, but failed to hear anything further from the defendants.  According to the couple's complaint, when they contacted the manufacturer of the home they were told that their order had never been placed.

Corbett said that in another case, a couple paid more than $66,000 for a home that was being held at the Sunrise Mobile Home facility in Carrolltown, until preparations could be made for the home to be installed.  A short time later, while driving by the business, the consumers noticed a truck attached to the home that they had purchased.  When they stopped to determine if the home was going to be delivered, the couple was told that the home was being repossessed because Sunrise Mobile Homes had allegedly failed to pay the financing company for the home.

Readers of Modular Home Builder have long known that street dealers such as this one tend to give modular homes a tarnished name and help keep the misconception going strong that the terms "modular" and "manufactured housing" are interchangeable. 

FORECLOSURES UP IN ONE OF RICHEST COUNTIES IN US

Howard County next to Baltimore Maryland and close to Washington, DC and one of the richest counties in the US is having it's share of foreclosure problems.

Last year over 640 foreclosures hit the county and this year another 600 are expected.   The county government along with lenders have sponsored workshops and seminars to inform and help people in the county facing foreclosures but only 20 people showed up.

With the median income over $100,000 and the average home selling for almost $450,000, the biggest problem facing foreclosed homeowners in the county is pride.  With incomes near the top of the scale, many have not even told their closest friends or relatives the predicament they are in.  Pride keeps their lawn care going and the Internet and the pool services but the mortgage payments and utilities are falling further and further behind.

Their stories don't come to light until either the For Sale sign goes on the front lawn or the legal paperwork is posted on their front door.  Then it's almost too late and a lot of the people have moved out of the houses and relocated to smaller less expensive rental townhouses or simply left the area.

But here is the part of this problem for home builders in the area.  What was once a hot bed of mega home construction has now become a county with a glut of these mansions available to buyers because of foreclosure.  Home builders that at one time wouldn't talk to you unless you wanted a house over 4,000 sq ft are now doing remodeling and repairs. 

If it can happen in Howard County, Maryland, it can happen anywhere!

SELL VALUE, NOT PRICE

By Jerry Rouleau

What is the biggest objection that sales people and customers have? In many cases, they say, “the price is to high”. If the majority of the non-productive sale people had their way, they would get the builder to lower their prices and then give a discount. For some reason, sales people feel that if the price is lower, it will be easier to sell. That is not the case. Every price is too high, if the consumer does not understand the value. Many realtors try and sell the same way, thinking if they can get the consumer to lower their asking price, it will be easier to sell the home. Builders and sales people, who sell the least expensive product, generally don’t stay in business very long. One reason is that the product is inferior. Secondly, they don’t make enough money to stay in business. The top sales people in any organization are generally not the individuals that sell the lowest priced product.

How can a customer really know what you are selling, if you don’t show them the value? If we don’t demonstrate our product or model homes, the consumer will come away with a preconceived notion, on what the home is worth. When value is shown up-front, and how it benefits the customer, they start thinking that you are offering them a lot, for the money you are asking.

When consumers visit your model home, don’t ever ask them if they want you to walk them through your model. That question should not be in your vocabulary. “Demonstrating” the model is the best way to find out about your customers and to sell value. Use your model homes effectively. If you are not selling value, and you sell the lowest price product in your market, you don’t need a model home, all you need is a photo.

Understand, that not all customers buy on price. Some consumers start off asking about price, however as you find out more about them, you will discover that they have other items that are important to them: items such as quality, warranty, reputation, brand name, and service. Take time to find out about your customer. It’s OK to ask about price early on. Find out what’s important to them in the purchase of their new home. If price is going to be the only consideration and they are not interested in quality, service, reputation, warranty and brand names, then maybe you are talking to the wrong person.

Have you ever used the term, “more is less”? Consider the following items: quality, warranty, reputation, brand name, and service. Why would these items be of importance? What are they worth? What is the long-term value of these items? Remember, the cheapest price is not always the least expensive. A consumer who buys a home for $10,000 less than your home, might end up paying more in the long run. Either their price really didn’t include everything, or based on the quality, the customer will end up replacing items. What is the energy efficiency of your home compared to your competition? How much less will your home cost the consumer every month to operate?

In the first sentence of this article I talked about the biggest objection sales people have. If price is a constant issue, then maybe the salesperson has the “hang-up” and is projecting the problem to the customer. It’s kind of hard to sell something that YOU are not sold on.

Let’s look at this, from a different viewpoint. If everyone was price conscious, we would all be driving the same least expensive car, living in the smallest home we could find, eating at the least expensive fast- food chain and watching TV without cable or satellite dish. Take a look at the cars on the road, the homes you drive by and the expensive restaurants in your area. Everyone does not buy on price alone. Yes, I agree that some people do, but not everyone. Decide if your product is the least expensive option in your market area and if it is, than sell on price alone and forget everything else. If it’s not, you need to choose and select your customers and then start selling value.

Selling value is not about selling features and advantages. It’s about finding out about your customer, and what is important to them. Many of the value items that are incorporated in your product may not have the same importance to them as other people might have. Selling value is about understanding the customer first, finding out their needs, wants and desires. From there, it’s easy to pinpoint the items of importance.

What makes you unique as a salesperson? What makes your company different? Why is your product better? Find out what your USP (unique selling proposition) is. Sit down with your team and list all the things that make you different. Make sure you target the items that make your product, company and you, an advantage to the consumer. If you make your USP about the customer, you’ll find the sales process will go a lot smoother!

Best of sales success!

About the writer:

Jerry is a speaker, author, and consultant, specializing in the housing industry. He is the author of two books and a frequent article contributor to numerous building trade publications. Jerry is also the producer of the Builder Radio Media Network, which includes BuilderRadio.com, & BuildGreenRadio.com.

Jerry can be reached at 860-589-7391, by e-mail at: jerryrouleau@comcast.net or through his website: http://www.jrouleau.com

MODULAR "CHICKEN COOPS" READY FOR SALE

Several months ago I wrote an article about the "new" type of modular home that a company had on display on a rooftop in Seattle, WA.  I called it the ugliest modular home I'd ever seen and compared them to high tech prison cells.  Well, I was wrong.  They are in fact a people version of a chicken coop.  Read the original article.

Unico, the developer of these coops, had them built in a factory and put up a single coop and a double coop version of the units that will eventually be the basis for a four story modular coop in the city.

I showed you the quality of the construction and said that "they could actually be a setback to the industry and an eyesore for the city".  Now comes word that if you want to buy either of these coops, they are available because the developer is selling them off after a whopping 1,500 people tramped through them while they were on display.  In a city as large as Seattle there were only a small handful that really wanted to see the future of ugly modular housing.

Actually the proposed apartment building called Inhabit isn't that bad looking.  You would never think that modular housing the size of prison cells could actually be a desirable living choice in Seattle.

These model apartments were on display to showcase a new modular four story apartment building Unico is preparing to build in the city.  They brag about the efficiency of modular construction and say all the right things but the proof is in the pictures.

Would you like the 450 or the 525 sq ft  coop for your next home?

The company will consider offers from $140,000 to $155,000 and crane them off the rooftop where pigeons usually roost, but the buyer has to pay for transporting them to the buyer's site and all set up and reconstruction to make it habitable. 

If you could live in one of these, I have a single wide in LA for you from that other great housing agency....FEMA!

HOUSING MEDIA DECEPTION

By: Jerry Rouleau

Now is the best time to build or buy a home. Stop listening to the media and everyone else. Are they giving you the complete picture and telling you all the facts?

Secrets that the media is not telling you

• Have you read any articles that say that the population is decreasing and the demand for housing will go down?

• Have you seen articles that say that owning a home is no longer the dream of American consumers?

• Have you read articles on how 94 to 96% of the population is still gainfully employed?

• Have your read articles that say if you a job, have down payment money and a good credit score, that you can still get a mortgage?

If you answered “no” to the above statements and feel that the population is still growing and owning a home is still a goal of most people, just think of the pent-up demand for housing that is just around the corner! What will happen when the market turns around, will prices start to climb?

“The media’s job is to focus on how bad things are and make them worse.”

Why now is a good time for you to buy or build a new home?

• Interest rates are great. In fact they are at an historic low.

• Building material prices are good and will go up, when the market opens up. The longer you wait to build, the chances that high fuel prices will effect building material cost. Do you see energy costs going down in the near future?

• If you are thinking of building a new home, contractors, sub contractors and land are available.

• Lot prices are about as low as they will be, and choice and availability are at their best.

• Money spent on a home is a better investment, than money spent on a rental.

• Money spent on a home is a better investment than money in today’s stock market

• Mortgage interest is still a tax deduction.

• Have you ever said to yourself, I wish I had bought that home or piece of property a few years ago, but thought the price was high? Now it seems like a real bargain!

Don’t wait for the “all clear to build”, from the media. By then it will be too late. When they say now is the time to build, housing costs will start to rise, labor shortages will create long delays, interest rates will rise to try to control inflation, and homes will become less and less affordable.

Low mortgage rates, combined with the lowest material and land costs we’re ever likely to see, mean that right now you can build or buy more home for the money, than you will when the housing market recovers. What this all means is that buyers who sell their homes today might get 8% - 10% less than they would have gotten back in 2005, but the cost of new construction is currently down by nearly 20% from those same levels (but already climbing.) So what’s the big deal if you get less for your home, when you can then turnaround and build your dream home at a greater value? Sure, when the market recovers existing homes will regain their previous value, but they won’t keep up with the rising costs of new construction. Do the math, now is the time to buy.

About the writer:

Jerry is a speaker, author, and consultant, specializing in the housing industry. He is the author of two books, and a frequent article contributor to numerous building publications. Jerry is also the producer of the Builder Radio Media Network, which includes BuilderRadio.com and BuildGreenRadio.com. Jerry can be reached at 860-589-7391, by e-mail at: jerryrouleau@comcast.net or through his website: www.jrouleau.com

COMPETITION FROM THE UNEMPLOYED

Lately there has been a lot of unlicensed and uninsured contractors working the home remodeling and new construction markets throughout the US.  In July, 22,000 more housing and subcontractor employees hit the unemployment lines bringing the total to 783,000!

These people have mortgage and rent payments to make, truck payments and have to put food on the table and pay for their utilities.  If you think $300 - $400 a week in benefits is going to cover that, you are totally wrong.  Even with Food Stamps, their families are in trouble.

What they have to fall back on is working for cash.  I was reminded last week that people that have projects to do around their homes really don't care if the workers are licensed or insured, only that they can save a lot of money, even in my neighborhood!  I live in a nice average section of town with a lot of two story and cape cod style homes that are all about 30-40 years old, built in the 60's.  A lot of us need home repairs because like everyone else, we've been putting them off because of the cost.
So back to last week.  As I was taking my dog, a 70 pound yellow lab named Kadie, for her early morning walk, I noticed three pickup trucks in my neighbor's driveway.  They were loaded with vinyl replacement windows and lumber.  One of the fellows was at his truck when I passed and I mentioned to him that they were there early, about 6:45 AM.  He smiled and said that he and his buddies started a remodeling business about a month ago and he is so busy that they have work until the end of fall.  He asked if I had anything I needed done around my house.
Curious as to what it would cost to replace my front door, he told me that he and his buddy could do it for $100 if I bought the door and other materials.  He never even asked where I lived or what the door looked like that I wanted replaced.  Just $100 CASH!
When I asked how he could do it so cheap he said they work for cash up front.  Then I asked if he was insured and he said he had life insurance and his auto insurance would cover him while he did my work.  WHAT!  Let me get this into my brain...his auto insurance covers him.  I told him that wasn't possible and then I asked if he had a Contractor's license?  You know what?  He didn't but he knew a guy that had one and he could use his!
Well, one thing lead to another and I asked if he and his buddies could build new homes and he told me that they are building one right now.  Some of his friends are there and he will be joining them after he finishes this job.  Again he using this "guy's" license. 
And did I forget to mention that ALL of them were unemployed and some of them were illegals!  The windows are in and look fine.  I'm going to ask my neighbor how his windows are after the next big rain and if he has any warranty from the guys that put them in.  Yeah, right!
And how would you like to be the people that are building the new home with these fellows.  If the INS shows up, the entire work force could disappear.  And I'm sure the house is perfect.  It all comes down to price.  The people that buy on price alone usually end up paying more than they ever expected with all the problems and delays and INS raids.  Good reputable builders with insurance and licenses never get a shot at these customers other than to quote them so they know how much they'll save when Juan or Boris build their new house.