RETHINKING YOUR BUSINESS FUTURE

Here's a question for you.  How would like to buy a business that has no customers, has recurring monthly debt, loan obligations and takes about year before any money comes into the old bank account?

If you said, "Hey, that's for me!", I've got about a thousand small independent home builders that would gladly sell you their business!

The housing slump is almost at the bottom.  Even though some builders are staying busy, many others are walking around their empty offices trying to think of ways to get customers.

Small home builders by the hundreds are closing their doors or turning to other areas of the business such as remodeling, deck building and landscaping.  Others are beefing up their advertising and marketing efforts.  But whatever you do, you have to admit that it's not business as usual in the home business.

Manufacturers of modular homes are closing their doors throughout the US and Canada.  Illegal aliens are returning to their home countries and many builders and their subcontractors are working for cash.

But even though times are tough, there is opportunity!  Try to remember what got you in the business in the first place.  Then go about doing the basic things you did then.  I doubt if many of you had hundreds of thousands of dollars to spend when you started your bushiness.  Even fewer of you had any real working knowledge of marketing, sales and prospecting, but you learned.

Don't throw those things out with the bad economy!  Go back to the way it was when you started and try bootstrapping again.  You put everything you had on the line and took risks that you probably would shy away from today.  Why?  It's time to take risks if you want to stay in this business. 

Be the first builder in your area to really promote the hell out of Green!  Be the first builder in your area that gets a lender on board that actually has money to loan.  Be the first builder in your area that talks on the radio about building new homes.  Be the first builder to offer wind power as an option.

Stop walking around your office thinking about how green it is for the other guy....they're looking at you with the same envy!  Now's the time to get up, learn something new, talk about it to everybody and soon people will start knocking on your door!

WEDDING PICTURE

Charles Bevier, the Editor of Building System Magazine, sent me a congratulations on my daughter's wedding, but wanted pictures.    This is not as good as the professional ones that are coming, but here are the Bride and Groom.

BUYER'S REMORSE AND THE HOUSING SLUMP

I was talking with some friends last evening and the topic turned to politics.  That's usually a bad subject but this time it wasn't about the candidates or their campaigns.  The talk turned to voter remorse.

Now I had never heard of voter remorse before and was interested in what TJ, a local councilman, had to say.  He said that in all elections, unless you are absolutely, 100% sure of who you're voting for, there is a moment of hesitation before you make your choice permanent.

Thinking back on the last several presidential elections that's exactly what I had done.  I stopped just before I punched my election card and asked myself if the person I was going to vote for was the best choice.  I remember taking quite a long time before voting in the Bush - Gore presidential election and actually changed my vote at the last minute.  I won't tell you how I voted but it's important to know that I did change it.

Your customer is now having the same decisions to make.  Do they vote for you by signing to have you build their new home or do they hesitate and give you an excuse why they can't?  Not all the reasons for Buyer's Remorse are your fault.  Today the economy and worries about keeping their job is giving them second thoughts.

If your prospect does not sign with you and gives you some excuse why they can't, put yourself in their shoes and try to see this new home decision as they see it.  So how do keep them from having second thoughts?

That answer is a mystery today.  Unless you can guarantee them that their job is safe and that a recession isn't coming, about the only thing you can do is keep talking with them.  Help them by staying in touch with them and working through problems.

The old saying about everything coming down to the price is still right, but now you have to add in the economy in general and if their job is safe.  You now have to be more of a consular than ever before.  So don't write off a buyer that wants to slow down the process, there are just too many things they are concerned about besides buying that new home.

HOME PRICES STILL DROPPING

Home prices dropped by the sharpest annual rate EVER in August. The Standard & Poor’s/Case-Schiller “20 city housing index” dropped 16.6% from August of last year.

Their “10 city index” dropped 17.7%. This is the sharpest drop in 21 years.

Economists see little indication that this is the last drop.

The National Association of Realtors released September numbers showing the median price of new and used homes fell another 9%.

With banks consolidating, make sure your customers are on top of their home loan applications as some of the merged banks are pulling the rug out from under their applicants.

STICK BUILDING VS MODULAR HOUSING

I was looking examples of framing techniques and found a great example of how some stick builders put up framing.  What happens when the customer isn't looking NEVER happened!

Sit back, get some popcorn and enjoy and then tell me that stick building is better...if you can.

OUTSTANDING CUSTOMER SERVICE MAKES THE DIFFERENCE

This weekend my daughter got married...Thank You!

While this may not seem like much of a way to start talking about customer service.  What I experienced may very well help you in your business.

My first great customer service experience was at the doggie day care we found for Katie, our yellow lab.  Since the wedding was 120 miles from my home, my wife and I had decided we would find a pet friendly hotel and put Katie into day care there during the rehearsal and the rehearsal dinner and the next day during the wedding and the reception.

Enter Camp Bow Wow.  The friendly staff "interviewed" Katie about two weeks before the wedding to see if she would be a "fit" for the other dogs...she was.  The lobby was better than some hotels I've stayed at and there were indoor and outdoors play areas for the dogs as well as private large kennels with down beds, low level lighting and soft jazz during nap times.  This is a franchise with about 80 locations across the US.  If you ever need this type of service, it is great!

Then the caterer for the wedding announced just before the reception that he had never done a wedding before but had done some large parties.  Eric was the PERFECT caterer.  He was pleasant and took time to tell us about each of the 6 appetizers, 3 salads, 7 entrees and the 3 additional desserts he had prepared for us.  He and his staff from Shannon Catering put on such a great buffet that I'm sure all the single guys and gals there were going to get him to do their receptions too!  

What does this have to do with home builders?  Everything!

Good customer service and attention to details will give you and your business more referrals than you can ever attract with all your advertising and gimmicks.  So take a lesson from these two companies, do a good job and sweat the small things for each and every customer and people will beat a path to your door.

STICK BUILDERS OFFER SOME UNUSUAL INCENTIVES

With the housing market in the outhouse, stick builders are offering just about anything to get you to buy their homes.  The biggest incentives come with the homes already in their inventories but new sold construction also has incentives.  Here are a few:

$6,000 to $35,000 in options at NO COST!

100,000 to 250,000 air miles!

Complete kitchen upgrades and many other no cost options.

2.99% first year mortgage, 3.99% second year and 4.99% for the remainder of the mortgage including ZERO DOWN PAYMENT!

New cars and boats!

Angelina and Brad will adopt a child if you buy a new home.  (just kidding Brad)

Very few modular builders I've met recently are offering much in the way of incentives.  Most of these builders do not have inventory as just about everything they sell is for new customers.  But get ready, you might have to join the incentive bandwagon soon.

BUSINESS WEEK CONTRIBUTOR "DISCOVERS" NEW TYPE OF HOUSING

Every once in awhile I come across a magazine article that makes me stop, reread it again and again to make sure I really read understand it, and then I ask myself what the hell were they thinking.

That happened when I read a Business Week article written by G. Michael Maddock and Raphael Louis Viton, of Maddock Douglas, a branding and marketing company.

It seems that one of their former clients is about to become a homebuilder and is going to be building "green" homes.  These fellows are apparently interested in his progress in the home building business and think they discovered a new type of home construction.

They call it MANUFACTURED HOMES.  They think this type of construction will be the equivalent of Henry Ford revolutionizing the auto industry.  It seems their former client is buying his homes from All American Homes and they are sure that this is the wave of the future.

I cannot go on about this any longer without busting a gut from laughing, so CLICK ON the link to the article.

 Why Not Mass Produce Green Homes?

Here is just one excerpt from the article that shows that even people who's business is innovation and branding don't know about our industry:

This is Lean Six Sigma at work. This is process innovation. There are fewer steps, and the right parts are in line when you need them. Everything fits together with amazing precision. These homes can be delivered just-in-time from a central location. They can be built 24 hours a day. They can employ innovation—like green technology—because the installation and training has been centralized. Sure, other folks can build a customized "green" home. But finding someone who can mass produce them is rare.

So if there are any other manufacturer's of modular housing out there, lets' hear from you before All American Homes puts all the stick builders out of business as these two fellows suggest will happen!!!!!!!!

NATIONWIDE HOMES DONATES HOUSE TO VETERAN

Nationwide Homes in Martinsville and Tidewater Modular Homes in Virginia Beach teamed up to donate a new home to Cpl. Jonathan Bartlett, a 23 year old veteran of the Iraq war.  Bartlett lost both legs serving our country.

He toured his new home while it was on the line being built in Martinsville recently where the entire factory workforce turned out to greet him.  "I'm really at a loss for words, I'm really humbled" he told the Nationwide employees.  They are building him a 1,475 sq ft handicapped accessible home through the Homes for Our Troops program.

Homes for Our Troops is a non-profit organization that provides homes to military personnel with severe injuries or disabilities sustained in active-duty wartime. Tidewater Modular Homes of Virginia Beach teamed up with Nationwide to provide the house for Bartlett, which will be set on its foundation in Chesapeake on Veteran’s Day Nov. 11.

“I love the house,” he said. “Wow, you could play tennis in this thing!” he said as he viewed the master bathroom. The ranch-style modular home has an open floor plan, wide hallways and doorways and is Americans with Disabilities Act (ADA) compliant.

WANDA SYKES ON THE BAILOUT

MARQUEE HOMES CLOSING FACTORY

Marquee Homes in Clarion, PA , a division of Commodore Homes, is closing its doors in December after five years of production. 

95 hourly employees and 9 salary staff were given their 60 day notice of layoff.

Production will be sent to Pennwest Homes in Butler County, outside of Pittsburgh to help keep that plant healthy.  Plant spokespeople say that if business increases, the plant could be reopened in 2010.

Commodore Homes recently laid of 30 people at their plant.

GETTING GOOD TESTIMONIAL LETTERS

I was watching TV the other night and saw so many people giving testimonials that I just had to ask myself if they really make a difference if I was shopping for deodorant, a male enhancer, a new car or the latest improved Tide detergent.

Probably not.  But that doesn't mean you shouldn't get them for your business.

Getting them however can be a little tricky.  Some of your customers will give you good ones, some will give you a so-so one and some you can do without!  So what makes a good testimonial?

Plain vanilla testimonies are bland and boring. "Thank you for taking the time to do such a thorough job. I will definitely use your service in the future and recommend you to others!"

One of the best ways to get and present testimonials is to have a testimonial scrapbook laying on a table in your office.  Show it to your prospective buyers.

When someone builds a home with you, ask them if it is OK to take a picture of them in front of their finished home.  Then ask if they would write about their experience working with you.  It shouldn't be more than 3 paragraphs as people tend to get lazy and only read about that much.  If it sounds to lame or boring, ask them to jazz it up. 

Then take the pictures, blow them up to 8 x10, put them in a scrapbook with the picture on the left hand page and the testimonial on the right side page.  That way your prospects can put a face with the story and it also shows the house you built. 

Try to get at least 6 of them before you put the book out and until you get that many, have single sheets of their testimonial and picture.

An interesting side note to this process.  Because you want as many testimonials as you can get, you will work harder to earn them!  Now that's a good thing!

DESIGN HOMES SHOWS OFF NEW WEBSITE

One of my good friends in the business, Curt Martz, a sales rep for Design Homes, is an reader of this blog.  He told me that Design Homes LLC had recently redesigned their website and asked me to visit it and hopefully write an article about it. 

Well, I visited it and here is my review.  Click here to visit the site: Design Homes LLC

Their site has changed and for the better.  Everything is clean and bright with testimonials, videos, nice home plans and other things that will keep a prospect on the site for quite a while.

One of the neatest things about the site is the link on the Home page to a 441 page on-line book showing their standard features, options and explanations of different things every prospect should know.   This is a great sales tool.

Now for a little constructive criticism.  There is no place for prospective builders to sign up for information or any personalized email addresses anywhere that I could find.  There is a link in the News section to their blog that only has one entry and it's over a month old.  They either need to update it at least twice a week or drop it completely.

Other than these things, Curt was right,  it's a great site and one of the best I've seen in quite a while!

5 SHOWROOM BLUNDERS

After visiting literally hundreds of builder showrooms, I am still amazed that some builders ever sell a single house. Their showrooms look terrible and the product selections are deplorable at best.

The other day I visited a builder that had a 10' x 15' office/showroom and a separate small personal space.  It was one of the nicest showrooms I've seen in a long time.  I complimented him on how great it looked and asked how he was doing in this terrible housing market.  He told me that he is doing about the same as last year when he built 18 houses. 

Looking around, I really had a hard time believing that he did that many houses, but when I stepped into his "back office", I started to understand how he did it.  It was 10' x 10' and had a small conference table he said he used with subcontractors, a large desk with computer, printer and a 22" monitor.  His filing system was neat and up to date with very few papers and invoices lying around.  A scheduling board on the wall kept track of all his homes under construction and another had prospect names.

When I asked him how he kept everything so neat and organized, he told me that he had worked for a couple of builders before and that he vowed to never have a showroom that looked like theirs!  Here are what he considers the 5 biggest showroom blunders:

1. Having a dirty showroom.  With subcontractors coming through his office every day, dust and dirt is a problem.  He takes a few minutes every morning when he first gets in the office and runs the sweeper, dusts the displays and cleans all the glass.  Time: 10 minutes a day.

2.  Using old displays.  He remembers the other builders not keeping up with the new tile boards, carpet displays, cabinet selections, etc.  He found himself always apologizing to the customer about products that were no longer available but still on display.  He calls his suppliers once a month and asks if they have gotten new product displays.  Time:  An hour a month.

3.  Parts and pieces everywhere.  If one of his workers brings a faucet or extra tile back to the office and leaves it there instead of putting it in the storage area, he fines them!  Nothing says shoddy like leftover product lying around the showroom.

4.  Not having a place to sit on the floor.  In all the years he has been doing this, he is always amazed how many people sit on the floor picking out tile, paint colors, carpet and cabinet styles.  He has a nice table for this, but he thinks because the showroom is so clean and neat, the customers just throw things on the floor and jump into it. 

5.  Having a dirty bathroom.  If you have ever gone into a typical showroom bathroom, he said that it is a disgrace.  The fan usually has the cover missing because they needed it on a job, the toilet is brown with rust stains and the waste basket is overflowing.  He invited me to look in his bathroom.  It was small and very, very clean!  Time: 5 minutes a day.

Do addressing these items help make you sell more homes?  YES!  Enough said.

MODULAR MANUFACTURER ACHIEVES "GREEN CAPABILITY" CERTIFICATION

New England Homes, Inc., a modular home manufacturer based in Greenland, NH, has been certified as a “Green Building Capable Manufacturer”. TRA Certification, an independent 3^rd party certification and inspection firm, recently completed an evaluation of the New England Homes manufacturing facility “Quality System” and found that their construction methods, and many of the products used in their homes, to be green capable based on various “Green Building Initiatives”.

According to various Proponents of individual green home certification programs, “A green home incorporates environmental considerations and resource efficiency into every step of the building and development process, to minimize environmental impact. The design, construction, and operation of a home must focus on energy and water efficiency, resource efficient building design and materials, indoor environmental quality, and must take the home’s overall impact on the environment into account”.

This TRA third party certification recognizes the Quality System and process controls employed by New England Homes as achieving a capable manufacturer status for production of “Green Buildings”. Based on their standard building practices and the products used, New England Homes can achieve a “Silver” rating, as measured by typical green building proponent criteria. Consumers who purchase a New England Home will be provided with a detailed specification showing how their home qualifies to the applicable standards. The builder and the consumer must then comply with the balance of the construction requirements including the site work and finishing details in order to receive a final certification through available Green Programs. Industry ratings for these programs generally range from Bronze to Silver and Gold. New England Homes standard operation and building guidelines, brings their standard homes to the “Silver” level. Consumers wishing to achieve a “Gold” rating can do so by selecting various building product upgrades which are offered as well as through on-site completion details. New England Homes is the first manufacturer of modular homes in the nation, and in the system-building housing industry, to meet these independent third party requirements for certification of their Quality System as “Green Capable”.

TRA Certification, Inc. is an internationally accredited certifier of Quality Management Systems. TRA is active worldwide, offering these certifications that also include environmental management systems aspects. The TRA program titled “Green Building Capable Manufacturer” provides a Modular Building manufacturer with an “upfront recognition” of their ability to produce “Compliant Green Buildings”. TRA Certification is based in Elkhart, IN and can be reached at 800.398.9282 or via e-mail at: isomail@trarnold.com. "TRA Certification participates in all applicable green building initiatives, including LEED, NAHB Green Energy Star, green product acceptance and can provide evaluations based upon the manufacturer's choice of programs." For additional information on Modular Home Verification and/or Green Rating details please contact TRA Certification for all details or checkout their website at: http://tra-cd.com/green-program.htm.

Photo: Left to right, Dennis Jacobs, Engineering Manager, New England Homes, Dan Donahue, Founder and Chairman of the Board of New England Homes, Mike Younus, Vice President and General Manager of New England Homes and Tom Arnold of TRA Certification

CREST HOMES CLOSES PA PLANT

The employees of Crest Homes in Milton, PA were notified Thursday that the plant is closing because of the "worsening economic condition and declining home orders."

A letter from Bob Baker, general manager, obtained by The Daily Item said, "It is with much regret and deliberation that we are unable to continue production."

He said most workers will be asked to continue to work for at least the next few weeks as the company completes production. All employees will continue to receive their base pay and benefits for a period of 60 days ending on Dec. 15.

In March of 2007, the company had around 160 employees.

"We appreciate your service to the company and are very sorry that this decision has become necessary," Baker wrote.

REALTORS AND BANKERS ARE WAKING UP

When will the housing market hit bottom and start climbing back up that slippery slope?  I wish I knew.

But it seems that Realtors and Bankers are beginning to be the answer to this question instead of the reason for it.  What started in California as a small foreclosure problem has quickly taken over the entire US and now that the Fed has voted to give itself $700 billion to play with, what will happen next?  They didn't even have a plan when they passed that legislation.

Realtors sold houses to people that weren't qualified but in their defense, they were encouraged to do so by the banks who were told to do it by the Federal Government.  This didn't start in the Bush administration but found it's roots way back in the Carter presidency when the American dream was for everyone to own a home.  Too bad for George that he didn't head it off sooner but that's history.  Back to Realtors.  With banks lowering their borrowing standards and in some cases just plain ignoring them, Realtors sold everything they could get their hands on and who could blame them....it was easy money.

Bankers encouraged borrowing and mortgage originators were even promoted by their banks if they put more and more loans on the books.  What did the banks care, they just sold the paper to Fannie and Freddie Mac.  What glorious days they were!

Everyone knows what this irresponsibility is now doing our retirement and home values.  One out of six people in the US have either been foreclosed or are about to be.

Now there is some hope that Realtors may be part of the solution.  Some sellers slashed an additional 10 percent off their homes' listing prices Friday as part of 10-day national sale launched by Coldwell Banker Real Estate. 

Property prices and incomes will also be closely scrutinized by mortgage lenders to make sure that the people getting loans are buying homes they can afford.  And at rates that make sense.

Will these two things turn the tide of this downward spiral?  I sure hope it starts a ripple effect that will be felt all the way to my retirement fund!

TWO WRONGS AND A RIGHT

I had stopped trying to point out the difference between "manufactured" and "modular" but this week I am renewing my campaign.  I cull through news articles looking for reporters that continue to write their stories with little regard for accuracy.  Now don't get me wrong, there is nothing wrong with living in a single wide or double wide "manufactured" home, but Ms Reporter, please don't confuse them with "modular" homes.

Last night as I was looking through articles from all over the US I found that two reporters got it wrong and one got it right.  Here are the headlines and a brief recap of each.

WRONG #1

Extremely obese man rescued from Calverton home.

It was reported that 600 pound David Schock, 57, had to be cut out of his MODULAR home. 

Sure looks like a manufactured home to me!

WRONG #2

Modular home goes up in flames

Here again a manufactured home is confused with a modular home but what is really interesting is the comment posted about the story.  Maybe we are making some headway!

Click here for the story and comment:  http://www.statesmanjournal.com/apps/pbcs.dll/article?AID=/20081012/NEWS/810120342/1001/NEWS

GOT IT RIGHT #1

Family prepares to move into new home

Not only does this reporter get it right, it's really a nice story.

Click here for the story: http://www.fremonttribune.com/articles/2008/10/13/news/local/doc48f35d99e08b7072381931.txt

WHAT WOULD BILLY DO?

If you haven't heard of Billy Mays,  well you're just going to have to start watching infomercials.  He is famous for "pitching" OxiClean, OrangeGlo and about 50 other products over the years.  He is a Pennsylvania boy with many years of selling home products.

He is now the spokesman for iCan Benefit Group, LLC, a health insurance company that sells directly to TV watchers.  His loud voice and constant banter keep you watching and in my case, I actually bought OrangeGlo and found it no better than what I could get at any supermarket.  But, buy it I did!

Why should you get his attitude?  Because it's one that every builder needs today more than ever.  

His mantra is ABS!  ALWAYS BE SELLING!

How many of you go through your day, stopping at gas stations, grocery stores, banks and other places both to and from your office or home.  And how many people did you tell what you did for a living?   NONE!

Ask yourself, "What would Billy do?" 

He would probably smack you up the side your head.  Do you think people will  remember  your name when they are getting ready to build a new house?  Probably not.  But if you have your name on the side of your truck, constantly remind them what you do and give out your business cards like popcorn, then you will at least you'll be in the running and Billy would be proud. 

ALWAYS BE SELLING!

NEW HOME BUILDERS TRY HAND AT REMODELING

The economic crisis has forced a lot of new home builders into the remodeling business.  They are finding that new construction and remodeling are two entirely different things.  Here are some examples of new home builders doing remodeling projects:

BUILDER WEBSITES NEED HELP

OK, I know I sound like broken record (for anyone under 30, that's a round plastic disk used for playing music) but haven't you listened to anything I've said about builders needing good websites?

I visited about 100 builder websites on Saturday while watching my favorite team, Penn State, beat up Wisconsin.  Sorry if I offended anyone in Wisconsin, but you deserved it!

But back to the websites.  I went to a ton of manufacturer's websites and clicked through to their authorized builders.  Some factories don't list their builders and that's fine but for the ones that did, you might want to visit them once in a while.

Exactly 12 were good to very good.  They had up to date information, contact information along with a nice design and plenty of substance.  If I were a potential buyer, these would have had me contacting them to build my next house.

The vast majority of sites were poor to fair.  They advertised special deals that expired in 2007, had bad links and some didn't have where they were located. 

I placed 20 sites in the bottom category which I can only call stupid and lame attempts at a web presence. Most of these looked like they were designed by someone that didn't know anything about content or marketing.  They all had a phone number.  One had a post office box but no town or state.  What a waste of $15 a month in hosting fees!

If you have a website, take a look at it as your prospect would.  Is it up to date, relevant with good information about Green Building, etc.  Is your contact information correct?  Are your special offers a year out of date?   Change them now!

If I were visiting your site looking for a builder, I would wonder how much attention you would give my house if you can't even change your website that is announcing a great special that ended two years ago.

ONE OF MY CONTRIBUTORS IS CLOSING HIS DOORS

Nic Stover, owner of Rubicon Development in Boise, Idaho sent me an email over the weekend telling me that because of the current economic conditions, he is closing his doors.

Nic was a contributor to MODULAR HOME BUILDER and a Green Modular builder and developer.

He was a national speaker for Building Green.  I'm including this page from his website explaining what he did for the Green movement:

BUILDING GREEN

Rubicon has made the commitment to build and operate as company using sustainable practices.

While the technology continues to advance and the costs continue to decrease Rubicon's STANDARDS will continue to grow.

STANDARD Features in ALL Rubicon Products :

• E-Star rated windows and mastic on ducts
• Energy star appliances
• Sealing of heating of heating and cooling vents during construction
• Caulking or foaming all penetrations
• Formaldehyde free insulation
• Use of recycled materials (OSB, Cementitious (Hardi-Plank) siding, composite doors)
• Construction paper is installed to prevent contaminants from entering the subfloor
• Properly flashed & sealed doors and windows

What does this mean on my project or my home?

• Percentage of construction waste compared to a normal project: 35% less
• Percentage of waste that was recyclable: 68%
  • 68%. That is a big number and one that we are confident we can get even higher.
• How about duct leakage?
  • Code doesn't have a standard. E-Star is .06cfm leakage. My homes were just tested and came back at .01cfm leakage. 6 times better than Energy Star.
  • But what about cost?
    • Typical projects are between 2-3% to achieve LEED AND Energy Star. That is typically an average of $2.50 SF. Slightly below the normal cost of achieving E-Star much less LEED.

Environment benefits

• Improve air and water quality
• Reduce waste
• Conserve and restore natural resources

Economic Benefits

• Reduce operating costs
• Optimize life-cycle economic performance

Social Benefits

• Enhance occupant comfort and health
• Minimize strain on local infrastructure
• Improve overall quality of life

SEVEN TRAITS OF SUCCESSFUL SALES PEOPLE

It doesn't matter if you sell modular homes or stick built homes to new home owners, there are traits that every successful salesperson must have in their toolbox to continue having that success.  Without these, you will find yourself picking only the low hanging fruit and that is getting harder and more difficult to find.

To be a success in this industry, you must master these traits:

1.  BE PASSIONATE.  Average sales people will leave a business card and some literature and expect the prospect to be in awe of what they see and call for an appointment.  Like that will ever happen!  The passionate sales person will find ways to infect the prospect with curiosity about the product and want to make the appointment.  You can't fake it, the customer can spot that in a New York minute.  If you don't have passion for your product.....don't bother reading any further.  You'll always be looking for the low hanging fruit and that has been picked already.

2.  BE CREATIVE.  In order to get past the benchmark left by ordinary sales people, you've got to create something that is uniquely yours.  Strive to answer questions before they're asked, give your prospect a reason to stop and look, really look at you and your product and lastly find creative ways to handle objections.  Everyone can be creative, you just have to put some effort into it.

3.  BE EDUCATED.  In today's terrible economic climate, being educated on financing and mortgages, planning and zoning and anything Green is a requirement.  Sales people who continue to due business like it's 2002 are going to be left in the dust of the educated.

4.  BE COMMITTED.  As you all know, it takes a long time to get a house under contract and built.  You must stay committed to the project no matter what stage it's in.

5. BE TENACIOUS.  Get up EVERY morning wanting to go to work.  Practice that "go get'em" attitude at all times. Don't let outside distractions keep you from working hard for your customer.

6.  BE TRUTHFUL.  If there is one thing that can turn off a prospect quickly, it's not being truthful when talking with them.  It is much easier to remember truthful statements than fabricated stories and answers. Have integrity during the sales process is like the biggest plus you can offer your prospects.  Customers will feel good when dealing with a truthful sales person.

7.   BE PROMPT.  If you tell a prospect that you will get back to them by tomorrow morning, get back with them.  If they ask a question, answer it.  If they know that you will be getting them the answers they need as quickly as possible, it will head off a lot of problems both during the sales process and the construction process.

Happy, satisfied customers will give you 3 referrals but an unhappy one will never give you any!

BUSINESS SLOW? READ SOMETHING

I know it sounds dumb but that's what you should do.  One of the worst things that happens when business is slow or even dead is sitting around trying to come up with some way to get new business and slowly going deeper and deeper into boredom.  We watch TV and wander from one thing to another without any plan.

Some builders seem to be able to just keep running like the Energizer bunny and get new customers with almost no effort.   They tend to live on a very small planet and the gaining admission to it is tough.  But it can be done.

One of their secrets is READING.  I'm talking about magazines, books, articles, ezines and anything else they can get their hands on.  Why is this one of their success keys?  Glad you asked. It keeps their minds active and expands their knowledge of the construction business and the world at large.

Here are some ways to increase your reading skills:

1. Always have a book close by.  It can also be a magazine or newspaper.  Keep magazines in the bathroom.
2. Set a reading goal for yourself.  Read an article a day or maybe a book a month.
3. Keep a reading log.  Just like 4th graders, keep a list of what you've read.
4. Have a list of future reading.  Check off the ones you've read and add what looks interesting.
5. Turn off the Television!  Enough said on this subject.
6. Listen when you can't read.  Books on CD are a great traveling companion.
7. Visit Barnes and Noble and look at anything new about our industry or whatever interests you.

Here's the bottom line:  When you read, try to find ways to put you and your business into the story.  Try to find something that relates what you're reading with how to improve you and your home building company.  Reading is essential to get you out of a down spiral. 

Reading just one book a month will put you at the top of the mountain.  The most successful business people are reading everything they can get their hands on.

So don't just run around looking busy, sit down, grab a book and get busy.

CALIFORNIA GOVERNMENT WEBSITE IS A LITTLE GEM

I was told about this site a while back back didn't visit it until early this morning.  Who would have thought that a site devoted to waste management and run by a state government could be so fascinating.

If you have been thinking of jumping into Green Building and want some great information in a very easy to follow format, you have to visit the California Integrated Waste Management Board website.

You could literally spend days looking through the site and links. 

LET ME KNOW ABOUT YOUR FAVORITE GREEN WEBSITE.  I'LL BE STARTING A LIST OF GREEN BUILDING WEBSITES ON THE LEFT COLUMN SOON!

MYTH BUSTERS FOR FACTORY SALES REPS

Having been on both sides of the house building desk as a new home builder and as a factory rep for the modular housing industry, there are urban legends and myths out there about all sorts of things facing the sales rep.

Here are just some of the most popular myths:

1. PROSPECTING IS SELLING.  I'm sure that ever sales rep just starting out thought that prospecting for that great builder was what you were hired to do.  No way Joe!  Prospecting is just a way to separate the gold from the dirt.  Finding the gold is what prospecting is all about. 

2. PROSPECTING TAKES A LOT OF TIME.  Wrong again Joe.  It only takes a few minutes on the phone or in person to tell whether a prospect is really a gold or simply more dirt to plow through on your way to the next nugget. 

3. COLD CALLING IN PERSON IS UNSUCCESSFUL. Ask any successful sales rep and they'll tell you stories about walking into a builder's office and finding they were at the right place at the right time.  More than likely you will stake a claim that you can fuss over until it turns into a gold nugget.  The proper way to cold call in person is to make stops both on the way to and back from appointments.  You'll find the story about "right place, right time" happens quite often during this type of cold calling.

4. SCRIPTS ARE FOR THE OTHER GUY.  Every sales book and every sales manager worth their weight will tell you that having an opening script is the only way to go.  You better believe it Sally.  However, you have to have several "opening scripts" in your tool box.  One size does not fit all.  And your opening script shouldn't be more than 15 - 90 seconds.  After that, it should become more of a fact finding mission, different for every circumstance.

5. PROSPECTING IS A NUMBERS GAME.  Your sales manager has probably said you need to call 30-50 builders a week and try to set at least 2 appointments.  Let's look at the numbers!  In any given metro area, there are probably 100-200 builders and another 100 developers, but there are probably 500 "wannabe" builders.  Every sales rep has called and recalled all the regular guys and gals and calling them with the same old tired game will probably not get you in the door.  You have to have something they want. 

However every young gun with a pickup and saw will be more than anxious to set an appointment, eat lunch on you and waste about 2 hours of your time. 

My advice here....go to a builder's website and learn what they do and look for an opportunity you can offer them.  Quality over Quantity!

ARCHITECT LOOKS TO BOOMERS FOR NEXT PROJECT

Here is something I predicted many years.  Instead of putting Mom and Dad in a retirement home or seeing them go off to a 55+ community in the outskirts of East Nowhere, let's put them up in a 400 sq ft box in our back yard, next to Rover.

Now Sidekick Homes is doing just that.  Homes in the 400 to 1,160 sq ft range are being designed and built by longtime Denver, CO architect, Michael Kephart.  These homes can be used as additions to existing homes or free standing.  They can be used to house your parents or get that noisy teenager out of the house or as a guest cottage.

I don't think they will be a big thing outside his local area, but you never know what people will do with PopPop and Grammy.

Click here to visit his website....SIDEKICK HOMES

PANASONIC ENTERING THE MODULAR HOME ARENA

We knew it would only be a matter of time before a company like Panasonic would enter our industry. 

And enter it they are!  They have assembled a strategic plan to start marketing a "green" home in 3-5 years.  I guess this proves that the Japanese have a different way of looking at short and long term planning.  An American company would look at our market, buy a factory, prepare a marketing plan and have the whole thing off the ground and running in 3 months.

It looks like the US market will finally find out what modular housing is all about when you see their ads on TV and in every magazine and on their websites.  Oh, I forgot to mention, they are not the only major Japanese company doing modular housing.

The real scary part about this is two-fold.  First, when and if they enter the US, they will have a name recognition that no other US modular company can match along with the advertising to go with it.  Secondly, they will look at the current factories and either start by purchasing some or worse yet, they could scrap everything we know about modular and bring in top notch engineers and design am automated factory!

I am amazed that not one of the modular companies in the US does any major regional or national marketing and advertising.  And our idea of progressive is to put an LCD and fireplace in the bathroom.....YIPEE!

Now along comes Panasonic and with their knowledge of everything futuristic, they will kill us with their first shot and not look back.  The future of modular housing is happening in Japan.  And if you think it won't happen, remember back just 5 years years ago when you heard that LG appliances, phones and electronics were being sold here and you said "What's an LG?"

A couple of interesting features being shown in their model home in Japan are their unique Beam Steering and opera lighting.  Beam Steering can determine who is in the house and turn lights on and off as required and can even crank up the heat if grandpa is in the room!  And automatic opera lighting in the bedroom that slowly dims as you go to sleep with music coming from inside the walls.  Now that's really COOL!

So, if you've got a factory to sell, you've got a couple of years to spruce it up and wait for Panasonic to come calling.  They will be looking for factories and the management that knows the US market to sell them.