TIPS FOR SUCCESS

Over the years I've found a lot of things that helped make me successful both in my work and my life.  Here are just a few dozen of them.

1. Persistence pays
2. Read a book
3. Always carry a business card
4. Take a new class
5. Make ten cold calls a day
6. Don't overexert yourself
7. Attend church
8. Buy at least one whimsical Christmas present
9. Know what your competition is doing
10. Join LinkedIn
11. Keep in touch with relatives
12. Always be selling
13. Always be prospecting
14. Always be marketing
15. Take notes at sales meetings
16. Write Thank You notes to customers
17. Write down you personal goals
18. Visit an historic site at least once a month
19. Don't forget customer service
20. Smile
21. Have empathy
22. Learn when to move on
23. Go to Home Shows
24. Dress for success
25. Learn from the best
26. Ask for the order
27. Make a good first impression
28. Be a mentor
29. Have a great attitude
30. Be better than your competitors
31. Know your product inside-out
32. Check your email at least 6 times a day
33. Make sure your cell phone is charged and turned on
34. Love your spouse or best friend
35. Forgive people
36. Know how to handle customer complaints
37. Work for companies with organized sales training
38. Be a cold calling pro
39. Be a marketing pro
40. Have a business coach
41. Eat dinner with the family
42. Stay organized
43. Find the decision maker
44. Hang out with successful people
45. Help the poor
46. Learn to listen
47. Don't be afraid of change
48. Enjoy your job or quit
49. Respect the gatekeeper
50. Know when no means no

and lastly, learn to live with stress!

SOLVE THEIR PROBLEM, CLOSE THE SALE

EVERY SALE STARTS WITH A PROBLEM!  Someone has to have a problem.  You are in sales simply because someone has a problem that you can solve.

The #1 job of marketing is to clarify the problems that you solve for your target market.  Your prospects and customers are not as concerned about your credentials and procedures as they are in you solving their problem!  Sales reps and builders focus too much on themselves instead of the customer.

After you have the prospect's problem identified, you must HAVE the solution.  If you can convince them that you can solve their problem, you are well on the way to gaining a new client.  Now you have to let them KNOW you have the solution to their problem.   This is called MARKETING!  You can never stop marketing.

Once you've identified their problem and you've let them know you have the solution, you have to gain their trust.  It is going to be next to impossible to get someone to trust you when you are a stranger to them, because trust is built upon knowledge. Your marketing must include every element possible that generates trust.

Now they trust you, but do they like you?  It might seem totally unfair, but people buy from people they like.  Are you likeable?  Do what it takes to develop a real interest in
them that goes beyond your business. Be a friend and learn to love your clients
and prospects.

Now you know the solution to their problem, they trust you and they like you.  What's next?  You must present a urgent reason for them to act now!  This is called TIMING!  If you haven't created a need for them to buy now, there is no legitimate reason that they should.

I CAN SAVE CITIGROUP $24,000,000!

According to the AFL-CIO's calculations, Charles O. Prince, CEO of Citigroup, Inc. raked in $25,520,621 last year.

His salary could support 818 people earning $15 an hour.  This means that an employee would have to work for almost a millennium to earn his wages!

 So how can I save Citigroup $24,000,000?  Just hire me for $1,520,621 and it would save them $24,000,000!  And I couldn't possibly do a worse job.  Citigroup is on the verge of total collapse.

And good ol' Charles made $25 million.  How much more will he make this year when it looks like Citigroup may disappear from the picture?  Let's just say he won't be hurting.

INSIDE THE MIND OF A SUCCESSFUL FACTORY SALES REP

Every factory has one or two reps that are head and shoulders above the rest.  Are they given only great accounts?  NO!  Are they lucky and just seem to be at the right place at the right time?  Maybe!  Are they natural born salespeople?  NO!

So what separates them from the other reps in the factory?  What makes them a perennial top sales rep?  It all boils down to 10 things.  None of them are easy.  The steps take patience and persistence and a personal belief that they will work.

Top sales reps:

1.  Set measurable objectives.  Before they make that phone call, send that email or make a personal visit to a builder or prospect, they set a clear objective.  They avoid making calls just to "follow up" or as a "routine".   If they can't set a measurable objective, they don't make the call!

2. Use a Voice Mail Script.  I've talked about how to to do this in "Leaving the Perfect Voicemail".  Follow the ideas in this article and you will be on your way to being a top sales rep.

3. Invest time in cultivating more than one contact in an organization.  They may have a champion that really likes the product but unless others in the builder's company likes it, they find that sales could suffer.  If the Builder is a one man show, then take the builder and their spouse out for dinner with the objective of getting  on the good side of both people.  They leave no stone unturned.

4.  Build Trust.  Successful, long term relationships are built on trust.  Although the primary goal may be to get an order, they focus on becoming a ‘trusted advisor’.  They gain more ground, and in turn better sales, by becoming a member of a decision maker’s advisory team.

5.  Are great time managers.  They keep track of everything they do in the course of the day. They make notes of appointments, tasks and activities, meetings, phone calls, and ideas, review these daily and correct any areas that represent non-productive time or effort.

6.  Use a Sales Funnel.  They manage the spout, not the basket and focus most of their time on those opportunities that are near the bottom of the funnel.  They communicate with prospects and customers that do not require their  ‘personal touch’ to move the sales opportunity along. They use Marketing materials effectively as a "staged campaign" (by regular mail, or email) in place of repetitive phone calls and email.

7.  Don't wing it.  They prepare for every call in the same way they would study for an exam with careful planning of what they will say and what materials to take along with them.  They know a good sales call is a well scripted event.

8.  Goal Oriented.  Successful sales reps work toward their goals.  They determine the desired outcome for the sales call, or the pending
sale, then work backwards across the steps, actions, and activities that will be required to reach that outcome (goal). Then, they manage the steps individually to ensure that they reach their goals in an orderly and skilled approach.

9.  Know the difference between FAD and FAB.  These sales reps sell by knowing the FAB ( Features, Advantages & Benefits ) of everything they offer.  Any sales rep can sell using the FAD (Features, Advantages & Deal ) method.  They know it  is not important to their customer what your product/service can do, or how it stacks up against the competition. They know the customer wants to know how they will benefit from its use.

10.  Don't take rejection personally!   Rejection comes with the job!  They know they will by turned down and when it happens they look closely at their sales presentation, the quality of the information they provided, the competitive threat from others, or the degree of qualification(appropriateness) they performed for this customer (or prospect). They learn from this to try again.

FLEETWOOD ENTERPRISES CLOSES FIVE FACTORIES

Fleetwood Enterprises, parent company of Fleetwood homes is closing five factories that produce manufactured homes within the next 60 days.

Two plants that produce recreational vehicles will also be closed.

“In the current economic climate, it is essential that we match our production to our demand,” Elden L. Smith, the company’s president and chief executive officer, said in a release.

In the first six months of this year, the company lost $75.1 million, according to income figures posted by the company. For that same period, manufactured home sales dropped 24 percent and travel trailer sales were down 57 percent.

NAHB GIVES MODULAR HOMES A GREEN CERTIFICATION

NAHBGreen verification is now available for modular homes!  With modular homes taking a larger share of the new housing market every year, this green building certification process is welcome news.

“This is a very important step for the industry as more and more builders rely on systems-built construction methods,” said NAHB President Sandy Dunn, a home builder in Point Pleasant, W. Va. “Modular construction helps builders reduce their overhead and go green with ease by assembling a significant portion of the home in the factory.”

Modular Green as it's called is offered by the NAHB Research Center, the same entity that administers the National Green Building Certification program for stick built homes.

Research Center President Mike Luzier said thanks are due to the modular home manufacturers who piloted the certification process in preparation for the BSC’s SHOWCASE event in Memphis last week, where members eagerly awaited news of the new program. “This shows not only their commitment to quality, but also their dedication to serving the growing list of consumers who are moving towards purchasing green homes,” he said.

This is going to a valuable tool when talking to prospects that are looking for green homes. Until now you could offer Energy Star and LEEDS (which people need to have a translator ready to explain it).  Now the NAHB is giving an easy to understand and valuable certification to all modular home manufacturers that follow the steps needed to have their houses certified.

A THANKSGIVING STORY

A young man named John received a parrot as a gift. The parrot had a bad attitude and an even worse vocabulary. Every word out of the bird's mouth was rude, obnoxious and laced with profanity. John tried and tried to change the bird's attitude by consistently saying only polite words, playing soft music and anything else he could think of to "clean up" the bird's vocabulary.

Finally, John was fed up and he yelled at the parrot.The parrot yelled back. John shook the parrot and the parrot got angrier and even ruder. John, in desperation, threw up his hand, grabbed the bird and put him in the freezer. For a few minutes the parrot squawked and kicked and screamed. Then suddenly there was total quiet. Not a peep was heard for over a minute.

Fearing that he'd hurt the parrot, John quickly opened the door to the freezer. The parrot calmly stepped out onto John's outstretched arms and said, "I believe I may have offended you with my rude language and actions. I'm sincerely remorseful for my inappropriate transgressions and I fully intend to do everything I can to correct my rude and unforgivable behavior."

John was stunned at the change in the bird's attitude. As he was about to ask the parrot what had made such a dramatic change in his behavior, the bird continued, "May I ask what the turkey did?"

CLAYTON HOMES LAYS OFF 90 AT THEIR HEADQUARTERS

Clayton Homes, headquartered in Tennessee, has laid off 90 people out of the 1,500 employed there.  They were offered severance packages.

Jobs were cut at all levels of the privately held company following a year-long effort to trim costs and streamline operations.

The layoffs follow the closing of two Clayton manufacturing plants in Hodgenville, Ky., and Milton, Pa., last month. The company continues to operate 41 plants employing 15,000 workers.

TEAR DOWN/REBUILDS NEXT NICHE?

We all talk about building green but have you taken the time to look around your town to see how many homes were built before 1970?  Let me tell you....there's are a lot!

What does that have to do with building green?  Everything!

This homes were built with minimal wall cavity insulation and what is there has probably disintegrated in R value.  Single pane windows were installed and attic insulation was very poor.  No house wrap was used and furnaces which were brand new then with a 75% efficiency are more than likely still in the house and working at about 60%.

Air quality is poor inside these homes.  One of my neighbors had a house built in the late 70's and the builder did what was in fashion at the time...he sealed the house against air infiltration.  Now 25 years later, they've had to replace all their windows because the wood rotted.  Vented soffits were installed and proper air flow was restored to the attic area.  The cost was over $45,000 just 3 years ago.

In order to make green a viable thing for our future we must look to our past.  As these older homes become less and less energy efficient and the quality of the air and water deteriorates, they must be replaced.  Older homes are finding new life with immigrants and people needing affordable housing, but at what cost?  These homes are costing these people more in maintenance and utilities than they can afford and bringing them up to current building standards is out of their budget.  These homes will continue to go down hill.

Builders need to look at these homes as an opportunity to build not only green homes but affordable houses for these same people.  Local government agencies are feeling the pinch of budget restraints but there is still money for tearing down and rebuilding these homes and modular housing makes perfect sense! 

At the rate we are replacing existing homes the average lifespan of a home will be 1,300 years!

We are the leaders in Energy Star.  We are the leaders in fast turnaround.  We are the leaders in state of the art building techniques.

So why aren't we, as an industry, fighting to get these older homes replaced with new and affordable houses?

A 2005 White Paper called the 40% House written in England illustrates what is needed to get their country energy efficient by 2050.  It is 130 pages of graphs and charts but tucked inside are major concerns and solutions to the earth's future. 

40% HOUSE

FIRE SPRINKLERS MAY BECOME MANDATORY IN NEW HOMES

Firefighters have been trying for years to get fire sprinklers installed in all new homes and this movement has been catching on with the building code people.

Unfortunately not everyone agrees.  I received an email from a modular home builder in the Baltimore area today asking why government officials are so anxious to pass regulations forcing new home builders to install sprinklers?

I personally agree that sprinklers should be used in all commercial and institutional buildings but I do you draw the line on one's personal home.  Properly operating smoke alarms have proven to save lives and the only thing that a malfunctioning alarm causes is your rapid departure from your home.  A malfunctioning sprinkler head can cause thousands of dollars in damage and 7% of them do go off accidentally every year.

If they become mandatory, the price of new homes will rise too the point that either people will not be able to afford their dream home or the builders will take shortcuts and/or lower their building standards to offset the sprinkler cost.

Here is a video that gives both sides.  Let me know what you think about this.   modularcoach@yahoo.com

ELKAY MANUFACTURING CLOSE QUAD CITY FACTORY

Medallion Cabinets located in Lanark, part of the Quad Cities area of Iowa and Illinois is closing putting about 20% of the town's workforce out of work.  Lanark, a town of 1,500 people lost 130 jobs when the announcement was made.

The slow housing market is said to be the reason.  Elkay is relocating one of their plumbing fixture factories to Lanark but this will only bring 30 jobs to the town.

Medallion is a wholly owned subsidiary of Elkay Manufacturing Co. And the Oak Brook, Ill., company’s plumbing products division will move its faucet business into Lanark facility, according to Phyllis Roth, vice president of human resources for Elkay Cabinetry Division. Elkay is closing down plumbing operations in St. Charles, Ill., and in California
“They will be starting the transition as soon as we have completed the production of cabinets,” Roth said. That move is expected to create about 30 jobs.

Medallion Cabinets is NOT going out of business, only one of their factories is closing.

Visit their website to see their kitchens. 

Medallion Kitchens

THE FIRST THANKSGIVING

Our national holiday really stems from the feast held in the autumn of 1621 by the Pilgrims and the Wampanoag to celebrate the colony's first successful harvest.

In honor of that first Thanksgiving, here are some pictures I found in an old trunk in my attic of what life was like back then....my grandson thinks I was part of that first event and who am I to tell him different.

For all of us in the home building business, we have to wonder if our industry has really come a long way?

NEW HOME CONSTRUCTION HITS 50 YEAR LOW

Construction of new homes plunged last month to the lowest level on records going back nearly 50 years as U.S. builders slashed production.  New building permits, a barometer of future activity, also plummeted to the lowest pace on record.

Construction sank to an annual rate of 791,000 units.  Previously, the slowest pace had been in January 1991, when the country was in recession and going through a similar housing correction.  Wachovia Corp. economist Adam York forecasts that construction will fall to around 650,000 units by next summer.

Applications for building permits, considered a good sign of future activity, fell by 12 percent in October to an annual rate of 708,000 units, the weakest on records dating to early 1960. New permits for single-family houses fell 14.5 percent to 460,000, the lowest level since February 1982.

The National Association of Home Builders/Wells Fargo housing market index, started in January 1985, tumbled five points to nine in November. The index stood at 14 in October after slipping three points from September.

Index readings higher than 50 indicate positive sentiment about the market. But the index has drifted below 50 since May 2006 and below 20 since April.   The housing downturn has already cost America three million jobs in construction and related industries.

Builders are leaving more of these homes on the landscape every day.

REPLACED BY A BROCHURE

There have been a lot of reasons why sales people are let go by their employers but being replaced by a brochure has never been one of them.

Your company prints brochures about how great modular homes are and how they are better than stick built and still people don't read them. They will however listen to what a sales person is telling them and what they see and touch.  Reading paragraph after paragraph about something that you have no real interest in other than this might be the next house you build is BORING!

McDonald's taught us to stand in line, order by number with corresponding pictures, eat with our fingers and throw our own trash away all in less than 10 minutes...and you want me to slow down and read some lame brochure?   Does it have pictures?

But take that same brochure, put it in the hands of a good sales person and the prospect's eyes will get big and bright.  A sales person armed with several brochures, an index finger, a good sense of humor and knowledge of their product will never be replaced by the brochure.

So why do you continue to bundle up a couple of brochures and send them to your prospects?  Get in front of them, face to face and things  will start going your way. 

But if all you do is send out brochures and never follow up with face to face time, maybe you are already being replaced with a brochure!

10 TIPS FOR SPOTTING A "WANNABE BOSS"

As a sales rep and a small business owner, I've found myself on many occasions courting and chasing someone that didn't have the authority to make the final decision.  I call them Wannabe Bosses.

By the time you find out you've wasted a lot of time and energy and company resources on a Wannabe, you've also found that no matter how you try to repair the damage, it never seems to work out right.

Here are the 10 signs you may have a Wannabe Boss on your list:

1. They say no often without understanding what your solution is about. Remember they cannot say yes.

2. They love talking with sales reps and acting as though they have power.

3. They ask for a lot of busy work, quotes, drawings, special products, etc.

4. They ask lots of questions; most of them are really good questions and most require additional legwork on your part.

5. They really like your homes and see the benefit. They know how it fits in and how they would implement it.

6. They insist that sales reps only speak with them and discourage any contact with their boss.

7. They usually don’t like to give their boss’s name and assure you they are your main contact.

8. They complain about not having any houses for you right now.

9. They stall and ask you to call back next quarter.

10. They schedule meetings that get rescheduled at the last minute because something more important took priority.

Now that you know what a WANNABE BOSS looks like, you'll never run after another again.  Yeah, like this list will stop you from doing that...who knows, he may really have the authority to say yes, some day in the far off future.  If pig's could fly!

LEAVING THE PERFECT VOICEMAIL

You've all had the voice message on your phone that went something like this...."Hi, this is Jonathon YO*dpp+ with Acme ld***ds, please call me at 215-55.....6!"

WHAT DID THEY SAY? 

I hope you don't speak so fast that nobody can write down your phone number or understand you name.  No, you wouldn't do that.

In the age of email, there are still times when you need to let your voice do the talking. You may be initiating contact with a prospective client, calling back on a service matter, or trying to reach a builder to get an answer.

In these cases and many others, your initial outreach will inevitably require you to leave a voicemail. What you say and how you say it will, in large measure, lead the listener to decide in a split second whether or not to return your call.

Here are some tips to keep in mind when leaving voicemail:

• Be clear about the goal of the message.

Don't try to do it all -- close a sale or get the job. The objective of the message should be to get your call returned.

• Be authoritative yet upbeat in your tone.

Your communication sends a clear signal about who you are and how important you are. You need to portray a sense of confidence, authority, and respect.  People also respond better to an energetic, positive-sounding person than to a bore. But at all costs, avoid being overly flattering -- there's nothing more annoying.

• Find a bridge to the person you're calling.

People feel comfortable if there's a familiar connection from them to you. This can be someone who suggested you call, a mutual acquaintance, a shared affiliation with an organization (such as your alma mater), a hometown, or any number of things. Do your homework and be creative in finding a link.

• Be brief.

Everyone's busy, so keep your message short.  Enough said!

• Be specific in your request.

People are much more likely to get back to you when they know that the conversation will be confined to a clear topic. Avoid saying things like "I want to talk to you about modular home construction and how we can save you a lot of money".  Be very specific.  Request an answer to a specific question with the promise of a well-defined timeframe, rather than introducing an open-ended issue that the caller may fear will turn into a black-hole conversation.

• Leave your contact information SLOWLY and CLEARLY.

This sounds painfully obvious, but you'd be surprised by how many people rush through their phone number and email address so fast that you have to replay the message three times before you can understand them.  Since many people check their voicemail when driving, the easier the number is to hear and remember, the greater the likelihood that you'll get the return call immediately. Also, leave your email address and invite your caller to start the dialogue via email. This can be less threatening given its more detached nature.

'TIS THE SEASON....FOR GIVING THANKS

With the holiday season almost here, the time is now to give thanks to all of your “categories” of contacts. Of course, you need to thank the clients who buy from you. However, it’s just as important to express appreciation for your prospects, networking contacts, and vendors. In this particularly challenging economic climate, if you’re not remembering your entire list of contacts this holiday season, you’re running the risk of losing them to competition that does make the extra effort to give thanks.

So, what’s the most effective way to show your appreciation this holiday season? Here are a few tips to help you thank those who have been instrumental in your success.

Be the First to Give Thanks

Don’t wait until December 24^th to send out your cards, make it your goal to be the first to say thank you. Express your appreciation before your competitors’ holiday cards, 2009 calendars, gift baskets, and miscellaneous other tokens of appreciation start flooding in. You’ll be sending a message loud and clear that you are not just thoughtful and appreciative, but that you’re also organized.

Personalize the Cards

Preprinted holiday cards can certainly save time, but they don’t really send a personal message that you’re thankful. Yes, it may take longer to write a hand-written message on each card, but your contacts will appreciate and remember the extra effort.

Give a Donation

Wondering what to give a contact who has been particularly helpful to you throughout the year? Instead of a box of calorie-laden chocolates or a wilting winter floral arrangement, make a donation in their name to one of their favorite charities. It’s a tasteful gift that truly shows you care about them and what they value.

It’s a fact that up to two-thirds of clients will leave a business if they feel that their patronage isn’t appreciated.

The holiday season is a prime opportunity to say thanks and create ongoing bonds with all of your contacts. Times are certainly challenging, but it’s still necessary to recognize and say thank you for all of the business and help that you’ve received throughout the year.

contributed by Adrian Miller

Adrian Miller Sales Training

516-767-9288

www.adrianmiller.com

MOBILE HOMES AREN'T HOMES IN LOS ANGELES

Along with the rest of the country, I've been watching the fires hitting Los Angeles County in California over the weekend.

I cannot imagine the devastation caused by the wildfires.  As I watched, reporter after reporter gave live broadcasts from the front lines and at one point a reporter was standing in front of a mobile home park reporting that 500 of the 600 homes were destroyed in a matter of hours.  The firefighters she interviewed said that there wasn't much they could do because they so closely packed together.

Now here is the interesting thing.  The reporter, who was standing directly in front of the park, said that 150 homes were destroyed in the county and the count will rise higher.  Now if she is standing there, doesn't she realize that 500 HOMES are burned down directly behind her?  As you all know by now, I have nothing against mobile homes, only that reporters and others confuse modular homes with mobile homes.

But for someone to dismiss 500 homes as not being real homes is unforgivable.  There were families living there and to say to them that their mobile homes are not real homes is just another example of arrogance and stupidity.

I know some of you will say that this was never said, but I saw it not only once but twice from two different reporters!  I was so angry that I had to write this!

Today their homes are finally being counted among the casualties, but in the heat of the moment, people's true feelings emerge.  Too bad. 

Fires in Los Angeles County, to the east in Riverside and Orange counties, and to the northwest in Santa Barbara County had blackened nearly 29 square miles and destroyed more than 800 mobile homes, houses and apartments since Thursday night. Gov. Arnold Schwarzenegger has declared states of emergency in all three counties.

WHAT'S YOUR ROI?

This doesn't mean "Return On Investment" any more.  So what is ROI?

Running Out of Income!

In the housing market, a lot of you are wondering how you are going to make it through to the next rising tide.  If you think you have some fears about your future, just look at George Bush.  He has no idea what to do either!

So what do you do until the tide rises again?  Plenty!

Stop spending your time panicking and replace it with working smarter.  Working longer hours and spiraling into panic is not the answer.  That never works for very long.

Be efficient in everything you do.  Be efficient in your meetings, your writing, your prospecting efforts and even your friendships.  Planning to be efficient is a great brain exercise and implementing it is great for your morale.

Come up with a Plan B. Don't get caught blind-sided by a layoff or no sales.  What's next? And what's next after that?

Your prospects are very risk-adverse now so put together a reason for them to buy and make them a hero for their sound investment in your solution.  If they are talking with you about their future plans, they're probably not talking to your competitors.

Now is the time to start changing your ROI to what it really means:

Return on Investment

8 WAYS TO SUCCEED ON THE PHONE

OH NO!  Your sales manager has instructed every salesperson to cut down on travel and make more phone calls to builders and developers!  He just doesn't understand that every other rep in the business is calling on these people and times are tough and it's the end of the year and on and on and on.

Guess what?  He knows that.  But here is what he also knows.  Everybody hates making telephone cold calls!  He knows all your excuses but it stills boils down that you are just afraid that they will not like you and tell you to go pound sand.  We all hate rejection.

Some organizations have telemarketers making those calls but they know very little about the product or services you offer.  They are the crutch provided to salespeople that are afraid to cold call!

So here are my 8 ways to make those dreaded telephone calls work for you.

Call the highest level person.  Research the company on the web and try to find their upper level people.  Ask others if they know someone at the company and use that to get up the decision ladder on the first try.

Ask the tough question.  Once you connect with someone, ask the question that sets the tone for and determines the fate of the entire call.  Too many of you want to ask them if they have ever considered modular homes but it usually comes out like "Would you like me to send some info?" That fulfilled your sales manager's wishes and got you off the hook.  Whew! Dodged that bullet again.

Squeeze in one more question.  Asking one more question can lead to interest on the other side of the conversation.  If you haven't struck a chord with them yet, maybe just one more question will earn you more time.  Go for it.

Give compelling reasons to buy from you.  If you don't know any reasons, ask your sales manager for help or go into the factory and watch how things are done or go to your competitor's websites and look for anything that you can do better.  Knowledge is power!

Ask for appointments.  This would seem like a "no brainer" but you'd be surprised how many of you only want to send literature and never actually meet them.  When you get in front of them you can present your product, ask for something to quote, explain the benefits and do trial closings. 

Open both ears to what they say.  You need listen and attempt to paraphrase what we heard and gain cooperation.  Building trust over phone is easier if you know what their pain is and how you can help.

Can you repeat that, please?  A lot of times we talk to people that know what they are saying but it makes no sense to you.  HUH?  What the heck did they say?  Asking them to repeat it will always make them expand on the subject so you can really know what they said.  It's human nature.  Use it as another weapon in your arsenal.

Listen to our intuition.   Ask questions beyond the information we’ve received and use this to gain insight into what they are doing and how they are solving problems.  If they open a door, explore it.

The whole point of the telephone call is to make an appointment to present your company in the best light.  So the next time your sales manager says you have to start cold calling by phone,  just look at it as way meet new people and hopefully increase your sales!

5 WAYS TO MOTIVATE YOURSELF AND MAKE MORE SALES

This article is written with the factory rep in mind but it could also apply to new home salespeople and builders. 

At this time of year things start to slow down.  Many factors are at play including the holidays and the terrible economy.

But let's be honest, most sales people blame factors outside their control and use that excuse to justify slower sales!  Stop that!  It never works.

Here are 5 things  that should help you restart your sales engine.

External focus- Whether you are blaming your territory, your sales manager, the economy or the time of year, it’s easy to look outside of yourself for what isn’t working instead of doing more introspective work about your values and your goals.  Open your eyes and ears about what is going on in the housing industry and within your company to help you focus.

Comfort zone- Many of you hang out out with the familiar regardless if it’s the right for us. It’s what you know how to do best and what you default to. Shake things up, take a new turn and you’ll get different results.  Find something you can be passionate about.  If GREEN is important to you, get to know more about it and share that knowledge with others.

The quick fix- Stop looking for low-hanging fruit and make something happen. This economy and the holidays can create  laziness, our work days may feel shorter because we have other commitments so we tend to focus on where we can get the fastest results. Take that step back and design a strategy, road map and plan.

Happy ears- Any prospect who wants to talk about our product, service and solution is welcome to do so but when you ask them to pull the trigger and make a purchase, they bolt. Spend more time finding the decision-makers who can make something happen and listening for pain and compelling events.

What are you waiting for? - Decide on your top 3 priorities and make them happen now.  Rethink how you started in the business with no builders or developers, no idea how to cold call and absolutely no thought was given to solving your prospects problems; and your only goal was to make a sale.  Look back to those hungry days and take some calculated risks. 

DO "GATEKEEPERS" HAVE MORE POWER THAN THEY DESERVE

Yesterday I received a call from a building supply sales rep that is just about ready to "Go Postal" on the ever present gatekeepers who guard reps from getting to the decision makers.

Having been a sales rep for several modular home factories, I completely understand his frustrations.  But he goes on to tell me that in all the years of selling he has never seen such arrogance and downright ignorance as he's seen recently.

He told me of one incident at a large company that he has been calling on for several years, selling them materials once in a while but mostly just introducing new products to them.  The owner of the company had always had an open door policy for everybody but it seems that there was a new sheriff in town when he made his latest stop at their offices.

He encountered a new "GATEKEEPER"!  She said she was in charge of who got in to see the boss and since she didn't know him, he was told to leave his business card and she would "see that he got it".  As he was walking out of the office he glanced back and saw her throwing his card under her desk into what was obviously the trash can.

He told me he stopped, walked back in and asked her if she was the new boss.  When she said no, he wanted to know if her boss had given her the power to make executive decisions?  Again she answered no.  He took another business card out, handed it to her and said that he would be calling her boss to make sure he knew he had stopped by.  He told her he had the owner's email address and would also follow up with an email as soon as he got back to his office.

Thinking she would do the same thing again, he started walking out of the office when she asked him to stay a moment.  She got up from her desk and disappeared into an office.  Within a minute the owner asked him to step in and he was able to introduce a new product and leave samples. 

Did he get an order?  NOT YET!  But at least he got a chance to present his case.

How many of you simply stop at a builder's office and let the gatekeeper control your opportunity to bring in a new builder?  All I can say is STOP LETTING SOMEONE ELSE CONTROL YOUR SALES! Work on getting past the gatekeeper and at least you'll get an audience with the next person on the ladder.

DELMARVA REGION HIT HARD

For the uninformed, Delmarva is an area comprising the eastern shores of Maryland and Virginia and  the state of Delaware.  It is home to thousands that work in the Washington, DC - Philadelphia, PA corridor and a second home haven for many others.  Vacation homes on the shore can run as high as $10,000,000!

This area is home to some of the largest corporations in the nation including DuPont!  What is happening here is reflective of the country in general.

In the counties and smaller towns, building permits are down 75% to 90% FROM LAST YEAR!  Layoffs are running at all time highs and the only areas with at least some strength are the ocean side towns of Ocean City, MD up to and including Rehoboth Beach, DE.  Entire communities have been abandoned by major national and regional home builders.  Developers are seeing no buyers for their land. 

Manufactured housing (mobile homes) in Worcester County is down from 28  permits in 2007 to only three this year which is a good indication that even they are not exempt from the downturn.

Berlin, MD, a town about 6 miles from the resort town of Ocean City, MD  has seen a tremendous decline in building permits over the last year. In 2007, Berlin issued 256 residential building permits, but in 2008, as of October, Berlin has handed out 15 residential building permits, a 94-percent decline.

The bottom line is that even if building permits doubled or tripled in 2009 it would still not bring back the housing market here.  So if you're looking for a second home near one of the largest resort areas on the east coast, visit Delmarva!  You won't find better bargains than there are today.

NEW HOME BUILDERS CHANGING DIRECTION

As the economy continues to tank, a lot of new home builders, both stick and modular, are facing a double edged sword.  Falling house prices and rising material costs.  Add to that a lot of buyers are now under water on their existing homes and it spells more tough times.

Nationally, new home prices are down about 15% from last year while material costs have risen 10%.  You don't need a computer to figure out this is not good!  So what are builders doing to fight back?

Most custom builders are working with their clients designing and building smaller homes, eliminating luxury options and substituting lower priced materials such as vinyl siding in place of brick.

Sub Zero is being traded down to General Electric appliances, custom hand built cabinets and bookcases are being substituted with factory built units.

Large 4,000 sq ft houses and being pared down to 3,000 sq ft.  Second floor family rooms are disappearing as are dens and home theatre rooms.   Custom trim is being replaced with standard ranch and colonial trim.  Those Hurd windows are now vinyl windows from the local lumber yard.

If you are still trying to build what you did 5 years ago and not having any success, maybe it's time to look at something that will help make you competitive. 

Go with modular!

Not only do you get a great house, you get name brand products for cabinets, flooring, appliances and plumbing fixtures.  Add in a fixed price and a factory service department and you've got something you can sell.

If you are one of the holdouts that still thinks modular houses are trailers, you've got to take another look.  Click any link on the left side column of Modular Home Builder to visit modular home manufacturers.

Revisiting "TEN STEPS TO SELLING YOUR BUSINESS"

I seldom run an article a second time, but I think this is one that needs to be brought back since a lot of you are thinking that this might be what you'll be doing within the next 12 months.

If you've been thinking that maybe it's time to sell your business, here are some major steps to follow for a successful sale.

1.  The very first is to determine why you want out of the business.  This may sound like it's easy, but you have to ask yourself some tough questions.  Is your business slow right now because of the recession and you can't afford to keep it going?  If you can't, why do you think someone else could?  Did you get hurt on the job and need to find safer work or maybe your son or daughter are ready to take over.  The worst reason to sell your business is because you woke up one morning and said "This business sucks and I want out of it now!"

2.  What will you do after the sale?  If you are a builder that does not have any developments to either sell or retain after your sale, what are you planning to do?  I've heard lots of builders say they are just going to do small jobs around town and go fishing whenever they want to.  This rarely works out.  You may be too young to make a living this way or too old to get affordable health insurance.  Unless you've got something else to replace the income from your business, you may not be able to sale.

3.  How much are you going to ask for your business?  After you've decided to sell, you need to decide how much to ask for it and there are several ways to determine the price.  You could use the cost of assets plus profit of homes under construction plus good will. Or maybe average the profit you reported last three years and use a multiplier.  I'm sure there will be the builder that determines the price by throwing a dart at a bunch of prices.  One of the best ways is to ask your accountant.

4.  What are the tax consequences of selling your business?  Your accountant will help you figure out your tax burden and this is determined by how your business was legally set up...sole proprietor, LLC or whatever.  Be prepared for a surprise, taxes always seem to throw a monkey wrench into the stew.

5.  Spruce up your business!  Before you take prospective buyers on a tour of your homes under construction and a look at your books, make sure everything is ship shape.  Your office and work areas need to cleaned up and ready for inspection.  Things that you might overlook are your P & L statements, L & A statements and your past tax returns.  Talk with your accountant to make sure your business is presented in the best "legal" light.

6.  Promoting your sale!  This is a tough one.  First you may want to talk to people that you already know and make a deal.  If that doesn't work, try networking with industry vendors and associates.  And if all that doesn't lead to a sale, you may have to turn to a business broker but be prepared for a stiff commission.  The one thing you have to be cautious about is word getting out that you are selling and prospective buyers turn away.

7.  Wheeling and dealing.  Here is where the rubber meets the road.  You've found a buyer.  Do they want to pay you a lump sum or installments after a down payment?  Do you want to negotiate keeping an asset such as some assorted power tools to use when you subcontract to others?  Be prepared to spend quite a bit of time in this part to the sale.

8.  Signing over your business.  My only advise here is to use a business attorney.   The lawyer will make sure that your wishes are put in writing and all the legal stuff is correct.

9.  Transferring your business.  If you have work in process, you'll have to get mortgage banks to agree to the transfer and vendors may want paid in full before they let you off the hook for your company debts.  Again, this is best done through your attorney and accountants.

10. Completing all the legal paperwork.  You have forms to file with the IRS, your state and local agencies and transfers of assets.  These must be completed!

Now that you've successfully sold your business, enjoy the fishing!

DOES BEING ETHICAL PAY?

You've all heard about somebody that had a business and nobody could trust him.  Don't let that be you!

"If you have integrity, nothing else matters. If you don't have integrity, nothing else matters." -- Alan K. Simpson

It is more important than ever to stay on the straight and narrow.  People are looking for a good price when building their new home but they also want someone that has integrity and is very ethical in their business practices.

Take a look at yourself and see if you can answer yes to these questions:

Are you trustworthy? Is trust something that you want your customers to have in you?  Of course it is.  You earn their trust with every word you speak and every action you take.

Do you meet your obligations?  Are you on top of your customer's home building process or are you only interested in it when they call and ask how things are going?  If something needs your attention, do it as quickly and accurately and truthfully as possible.  Prospects and customers will soon learn you take their needs and questions seriously.

Are you respectful?  Treating everyone equally and with their best interests at heart will earn you their respect.  If you don't, they will look at you as if they are an inconvenience in their lives. 

Are you involved in your community?  Expecting your community to support you without you doing anything for the community is a deal breaker.  But when you do get involved with community projects, take pictures that can be displayed on your office walls, send out press releases and make sure that the people running the project acknowledge your help.  This is not self centered on your part, it's called marketing!

Do you keep an Open Mind?  For continuous improvement of a company, the leader of an organization must be open to new ideas. Ask for opinions and feedback from both customers and team members and your company will continue to grow.

Being ethical in your business practices will be noticed by your prospects and customers.  Instilling the same in your employees is a natural reflection of your ethics. 

FINISH WERKS IN THE NEWS

I have talked about Finish Werks in Savage, MD before and Harris Woodward, the owner, has even contributed some articles to this site, but now lets see what he does to create interest in his business.

Instead of just setting a modular home with only the homeowners and neighbors knowing about it, he did what any good marketing person would do....he called the local TV station and told them about the house he was going to set.  And guess what?  They showed up and gave him a ton of free publicity.

I'm still surprised that setting a modular home is something exciting for them to cover.  I'm telling all of you, get to your local newspaper, TV station or local magazine, tell them what you do and that you're going to be setting a new home and hopefully they will send someone out to cover your story.

Here is the news video that Finish Werks uses in promoting their modular homes.

EFFECTIVE REFERRALS

There are a lot of builders and dealers out there that do little or no advertising or marketing because their referral business is so good.  When money is tight like it is today, people want to make sure that they are getting not only a good price but a good product.  They are more concerned than ever whether the builder will be in business after this "recession".

I'm sure that even builders that rely on referrals are feeling the crunch but maybe not by as much as you.  Here are some effective ways to boost your referrals.

First, talk with your existing customers.  Find the top 25% of them in terms of satisfaction of their new home and ask them if they would refer you to their friends and family.  Do not ask them for referrals when you had them the keys to their new house.  This could make you look too pushy.

Instead, wait a few weeks until you've fixed any problems they have.  Make sure your latest home owners get your priority.  Prompt service and attention to their needs will win them over.

Set a target.  If you haven't been active in pursuing referrals, start with an achievable goal.  See if you can get 3 referrals over the next 10 weeks. 

Reward your home owners when a referral turns into a sale.  One builder offers a check for $500.  Another makes a monthly mortgage payment for them and another gives them a home theatre outfit.  Whatever you pay them is far less than it would cost to advertise in a single local magazine or newspaper for a month.

And don't forget to send Thank You notes for the referrals.  Even if the referral didn't buy a home, they deserve to know that followed up on their lead.

This downturn in the housing industry will not last and if you have built a good referral network, you will be running towards the goal line when the better days arrive.

5 KEY THINGS TO KNOW ABOUT EMAIL

By now just about everybody under the age of 100 has sent or received an email or two.  I have 5 email accounts and just about every day I spend 10 to 15 minutes reading, replying or deleting incoming email.  Then you have your archives and files you want to save and/or print.  Gimme a break!

So how do you keep in contact with your prospects and customers?  Some of you call them, some write them letters or notes, some just plain forget to do anything to keep in touch and then there is email.

Here are 5 things I have learned about email over the years.  Let me know if you have any others.

MAKE IT EASY FOR SOMEONE TO EMAIL YOU.  I have been preaching that having your email address on your website is critical.  Put yourself in your prospects shoes and take a look at your site.  A lot of you don't even offer an email address, you make people fill out a mind numbing form and hit "submit" to get in contact with you.  I immediately cross these sites off my list and so do a lot of visitors to your site.  Having an email address with info@joe's homes.biz is just as bad.  Who is this person and why did their parents name them "Info"? 

RESPOND QUICKLY.  If you get an email that needs a reply, do it!  You might want to think about it and respond late and that's OK if you do within a day however the chances of you remembering to do it diminish in direct correlation to lapsed time.  After 24 hours you'll probably never reply to it.  Then you have to make the universal excuse to the sender when they call you..."My Internet was down!"  Yeah, that's what happened.

KEEP IT SIMPLE.  I receive email from people that think that every email they write is a literary masterpiece.  After 10-20 seconds if they don't get to the point, it gets deleted.  Sorry, but I also tune out people that just go on and on without saying anything.

AVOID SENSITIVE ISSUES.  If there is something that needs a decision immediately,  call them!  Leaving time sensitive and personal things to email can be disastrous.  Email is not the cure for direct communications.  I have heard of people being told a family member had just died and others were told they were fired by email.  Really, that's a low blow.

STOP SENDING FORWARDED MESSAGES.  This is a real pet peeve of mine.  I don't open them.  They probably contain a virus or something.  What would happen if your prospect or customer got one of these from you, opened it and it uploaded spam and viruses into their computer?  Guess who won't be buying a house from you? 

PERSONALIZE THE SUBJECT LINE. You only have one shot at getting someone's attention in an email.  Make your subject short and pertinent to the subject.  Your prospects and customers are different than your friends.  Unless they ask you to send them junk email, keep the emails on a professional level.

Just in case you forgot my email.   modularcoach@yahoo.com

PA MODULAR COMPANIES LAY OFF WORKERS

With the housing market slumping and showing no signs of a quick recovery, Crest Modular Homes is permanently closing their plant on December 15.  Crest, located in Milton, PA is not the only local plant to see a downturn in business.

Apex Homes earlier this year laid off about 100 of it's workers but has called a few back.  They normally build between 650 - 700 homes a year but this past year will built only 350-375.  That's almost a 50% drop in business for one of the oldest names in the industry.

The Susquehanna Valley of PA located above Harrisburg has one of the highest concentrations of modular home factories in the nation including Penn Lyon, Avis America, MSI, Pro Built, Excel Homes, Integrity Building and many more.  Between them they employ thousands of workers and a continued slowdown in the housing market may start bringing major layoffs.

EVER WONDER WHAT TO DO AFTER THE APPOINTMENT IS OVER?

It seems simple enough. You, the manufacturer’s rep, say to a prospect “Let’s meet and talk some business.” But without a plan of action on how to follow up after you’ve met, you might end up with a prospect who falls off the grid.

A meeting is a great development tool, but it should be only one step in your sales process. Most clients are not going to be won over with one meeting. Expect to be in it for the long haul. It may take months, if not years to cultivate and win a client.

Once you’ve had the opportunity to plant the seeds of a relationship with the initial meeting, it’s crucial to nurture them to make them grow. Consider the following:

Stay in regular contact with your prospect by using a contact management system.

Find ways to stay on their radar that may be slightly “out of the box” such as sending invitations to events (plant tours, house sets, sporting events).

Demonstrate that you’re thinking of them by emailing articles and links that might be of interest.

Be a conduit to other people that might be of interest to your prospect. Facilitate introductions, so that you are viewed as a valuable resource.

Be patient and understand that persistent and intelligent outreach that is value-driven and not merely “touching base” will ultimately help you to convert a prospect into a client.

contributed by Adrian Miller

Adrian Miller Sales Training

516-767-9288

www.adrianmiller.com

INSURANCE FOR YOUR BUSINESS

It's hard enough to make a profit today let alone keep your business from being hit from everything from fraud to fire to employee problems.  How much insurance protection do you need to keep you and your business relatively safe and secure from these problems?

I asked one of my neighbors who is an insurance broker for advice on what a builder should have in his insurance toolbox.  He told me the basic required ones and a couple of others that some builders may want to consider.

General Liability Insurance - This is also known as Casualty insurance.  It covers injuries and damages that your company may cause other people or property.  If you have an office, warehouse, showroom or model home you need this type of insurance.  You will also need it if your workmanship causes damages to a home that you built.  If you buy from a modular factory, read their liability limits and also ask what they do in the event a home is damaged from something they built or caused to be built into the home.

Property Insurance - Here is a tricky one!  If you buy only the most basic property insurance because of the low price, you may find that employee theft, break-ins and the related damages are not covered without adding a rider.  Water damage, furnace failures usually have to be covered by riders as does replacing stolen inventory.  This is one type of insurance where the broker or agent needs to help you design an insurance tailored to your type of construction.

Worker's Compensation - This is required just about everywhere and in every industry.  It will vary slightly from state to state but this one is a must!  If a worker is hurt on the job, it covers medical expenses, lost income and rehabilitation costs.  In case of death on the job, it pays death benefits to the heirs.  Modular home builders who use subcontractors extensively need to keep copies of their current policies on file.  This is one of the most important things you can do to protect your business.  If they don't have a current WC policy, guess who will be held liable for the injury or death of one of their workers?

Business Vehicle Insurance - This is one of the most overlooked aspects of insurance.  Even if you only have one truck and you are the only one to drive, if you are in an accident while the truck is being driven to or from a job or supplier, your insurance company may only defend you as the car owner and not your business.  Attorneys will come after your successful business if you haven't added a business rider to your personal auto insurance that you've been driving on.  If you have business auto insurance in place already, make sure you are covered when driving the vehicle for non-business events like shopping, etc.

Key Man Insurance - This is one that a lot of business people tend to overlook completely.  If you have someone that is so important to your business that his or her death will cripple it, you need key man insurance.  Partners that are active in the business should all have key man with the premium paid by the company and the business as the beneficiary.  This will make it easier to keep the business operating while recruiting another top gun.

There are other types of insurance but this are some of the basics.  If you have just been buying insurance based on the lowest price and have not sat down and talked with a broker about your needs, you may find that it is one of the biggest mistakes you've ever made.

WORKING WITH OBAMA

When I went to bed last night it was evident that Barack Obama was our next President.  I was part of the process yesterday and I won't say how I voted, only that I did.

I think a lot of people would like to see him stumble and fall during his his first 100 days in office....BUT NOT ME!  He must be the best damn President that the United States has ever had.  If he falters, our economic future will also.

Obama has to pick the right people to get our economy moving in the right direction.  My biggest fear is that every group that helped elect him will push for their agenda to be his highest priority.  He ran his campaign on the promise of change and now he has to learn to juggle more balls than any President before him.

As one of the leading indicators of how well our economy is doing, housing is at the forefront of the recovery.  My hope is that housing is one of the first major areas to be addressed in his presidency.  War, poverty and taxes are also major problems that need his attention.  How glad I am that I never had any ambition for political office!

Yesterday I received a comment about about the article I wrote saying that modular home builders could be sitting pretty when the recession is over.  I usually publish comments but this one had me stumped.  It was very short and to the point, but I'm not sure what the point was.  His comment was:

"The recession has not started!"

Do you think he meant that a recession has not hit us and never will or does he mean that we haven't got there yet but it's inevitable!  This is one of those glass half full statements.  I personally hope he means that it will never come.   But whichever way he meant it, even he has acknowledged that a recession is on the minds of everybody.

Let's hope that Obama sticks to his guns and makes changes we can all live with.

WHEN THE GOING GETS TOUGH, THE TOUGH START SELLING

With a slowing economy comes a fiercer, more competitive market that will require you to set yourself and your products apart from your competitors. It’s easy to make excuses for poor sales performance in an economic downturn, but a successful salesperson will find opportunities to increase revenue. Here are a few ideas to help you reach your goals:

Set Goals and Plan Accordingly

When the economy turns sour don’t put yourself in a position of scrambling for business. Take a look at your target market to reevaluate how you’ve done business in the past and determine how your customers’ needs have changed as a result of the economic climate. Once you have an understanding of these fundamentals, you can set realistic business goals and charge forward until they have been met.

Invest in Training

In a down market, you will be competing against the best and the brightest. It’s imperative to have cutting edge knowledge and experience to take the lead in the sales force. Play it smart and invest in ongoing training even though it may seem counterintuitive to be spending money during a bad economy. You’ll find the return to be well worth the investment. Don’t hesitate to inform your clients of any up to date information you may have learned. They will be impressed that you are taking the initiative.

Networking Strategies

Networking can be a powerful tool for developing new business relationships. However, not every gathering has the potential for making quality contacts. Selectivity may be in your best interest when it comes to attending networking events. This will ensure that you have a target audience filled with potential customers. Remember that your ultimate goal for the event is to make contacts. Successful salespeople are assertive and are able to introduce themselves without being forceful. By the end of the event you should have a list of contacts. Whatever you do, don’t make the ultimate mistake of forgetting to follow-up.

Don’t Wait for Your Clients to Call You

Existing clients are your best resource. Customers are all too often lost because their salesperson never took the time to follow-up after the initial sale. Staying in close contact with them builds trust and long-term relationships. It’s important to keep the client up-to-date on new products and marketing materials. However, it’s also vital that you keep yourself current on the ever-changing needs of your clients. The doors to new sales and cross-selling opportunities will open by just listening.

Ask for Referrals

A referral is commonly thought of as the highest form of compliment you can give a sales professional. However, customers rarely provide a referral without being asked. Most often, it’s up to you to take the initiative to ask for additional contacts. All too frequently, sales professionals are afraid to ask, don’t feel they have a good rapport with the client, or simply forget. The proper timing of asking for a referral can depend on the situation. Most often, it is appropriate to wait until you build a relationship with the client, although, it might be acceptable to ask if you know the client is excited about a recent purchase. Don’t be discouraged if a referral doesn’t have a need for your product or service. It is possible they will in the future or know someone who does.

Most importantly, keep a positive attitude and don’t let a slump get you down.

contributed by Adrian Miller

Adrian Miller Sales Training

516-767-9288

www.adrianmiller.com

EXCEL BREATHES NEW LIFE INTO OLD CHELSEA PLANT

By Michael Levensohn

Times Herald-Record

November 03, 2008

MARLBOROUGH — The boxes began rolling into town two weeks ago. There are 24 in this batch, enough to erect an eight-unit building at Marlboro on Hudson, a new town-house complex a short drive from Route 9W.

Each box is hoisted into position by an 85-ton crane in what might pass for the world's biggest arcade game. Once they're stacked, the boxes are fastened together and the roof raised. Siding and finishing work will take a few weeks, shaving time and expense off a normal construction schedule and sparing the 1,800-square-foot town houses from exposure to the elements.

"It's a great value for the builder," said Steve Scharnhorst, CEO of Excel Homes, which built the boxes at its plant in Avis, Pa. "We more than cut the time in half from stick-building it."

Marlboro on Hudson originally contracted with Chelsea Modular Homes, which is located just a couple of miles away on Route 9W.  When Chelsea went out of business this summer, Excel Homes agreed to finish the job.  Future Marlboro on Hudson buildings will be assembled at the former Chelsea plant, which Excel is leasing.

"It'll be a nice short drive for the boxes," Scharnhorst said.

ARE BANKS SHUTING OUT THE SMALL BUILDER?

Large national and regional are regrouping and starting to get stronger as smaller homebuilders are folding at a rapid pace as they are unable to compete with foreclosures, lack of demand and tightwad banks. The larger public builders (that survive) are gaining market share in the void.  Small homebuilders must obviously scale down operations and focus on their preferred market niches.

So what happens when the pubic builders open a new development or push to complete an existing one?  It seems that the banks are actively seeking these builders and are not really dealing with the smaller guys, so you're going to see a lot more of the smaller private guys gone… It's highly competitive. All the builders are doing the same thing. We're all fighting for a smaller market.  This includes the public builders.

The public builders already have strong working relationships with their banks and loan processing has become very streamlined for them.  Small homebuilders on the other hand are at the mercy of their customer's bank and that is getting more restrictive every day.  PNC is acquiring National City which will double it's size.  PNC has a reputation of being tougher to work with than National City and their policies and programs will now become National's.

One of the ways to combat this is for Modular Manufacturers to start putting together mortgage programs that will help their builders find the money to build a house.  Every factory pays lip service to this but if there is one out there that actually has a mortgage specialist, I haven't heard of them.

So if you want to stay a part of the business when the upturn begins, NOW IS THE TIME to find a mortgage lender and forge a relationship that will help turn your prospects into buyers. 

LOSING FOCUS

When a builder hasn't had much activity and things are looking like it will be a tough Winter, one of the things that must be controlled is business focus.

Too often we tend to rush things so that we can close a sale quickly or get that initial deposit or get a contract signed before the next round of monthly debt obligations hits.  But beware.  In the rush to get these things a lot of builders focus only on the end result and forget the process of selling and building.

Over the years I have talked with builders that have tried to shorten the distance between getting a prospect and getting a buildable contract that can actually be taken to completion.  With the poor financial shape some of your businesses are in today, the need to get an influx of cash makes us work toward any kind of contract and some of these are just not going to happen.

You already know the basics of the sales process but following them can mean delays in getting that contract.  If you only focus on the signature at the bottom of the contract and the deposit, you've got a problem that will come up and bite you in the worst possible place at the worst possible time.

Here are some basic things that need completed when going for a buildable contract.  Any of these items that are overlooked can cause you to lose not only the contract but any future business from them.  If you can't get them into a new home because you short changed them, they will become your worst nightmare.

Do you have the:

1. Zoning permit completed and approved
2. Architectural review completed and approved
3. Storm water management approved
4. All necessary building permits
5. Sprinkler design and approvals if required
6. Seismic and wind calculations completed
7. Construction and Final mortgage secured
8. Property surveyed and staked
9. Property access
10. All the approved building plans

These are just some of the details that should be covered with the customer and not getting them in a timely, organized fashion will delay even smallest project.  So don't just focus on the sale and how much money you can get and how fast; instead go back to the process and fill in all the blanks before taking the next step.  Success is in your hands, not your customers.

CLAYTON HOMES JUMPS ON GREEN BANDWAGON

As you drive around doing your shopping or going on vacation, I'm sure you've seen a Clayton Homes sign along the way.  Here is the ultimate Street Dealer trying to put a Green face on their homes!

They have introduced the "I-Home, green from the inside out".  Included in this home is a solar panel array on the roof providing low energy costs. Company officials say they are powered by the sun!  Go figure...I always thought they were moon powered myself!

According to Kevin Clayton, CEO of Clayton Homes, a Warren Buffet company, the I-Home was 9 months from concept to creation.  "Wheter it is the metal or the concrete, everything in this is practically recyclable."

Bringing in Architects and designing this house from bottom up gave Clayton Homes a very unique product.  This home is not your grandma's double wide.

The I-House is built with an exterior of cement board and metal siding and has a roof over the main living area that’s shaped like a flattened V. That rectangular living space has a kitchen, bathroom and bedroom, and a deck connects it to a separate square-shaped living area that has a roof-top patio. Inside, the prototype is stocked with Ikea furniture, dual-flush toilets and bamboo flooring and the decking is made of recycled materials.

The company is targeting the 25 - 40 year old market for sales of this home.  Well guess what, I'd give it a look!

CUSTOM MODULAR HOME BUILDERS SITTING PRETTY AFTER RECESSION

OK, time for one of my wild theories!  When this recession bottoms out and people start wanting new houses built, who will they turn to?

Certainly not those custom home builders that used to be in the Yellow Pages....they're gone!  Maybe they'll turn to the national and regional builders with developments that have been idle for quite some time.  Maybe, but if they want to build on a lot they already own or one they have their eye on one outside the development, who do they turn to?

YOU!

Modular housing's time is coming.  A lot of the old time custom home stick builders have left the scene leaving quite a opening for modular builders.  Building custom modular homes is not the desired business for the "Street Dealer".  They tend to want homes that can be shipped from the factory with little to do besides adding a deck, concrete steps to the front and rear doors and maybe building a garage.

You on the other hand are now the "Custom Home Builder" of choice for the truly custom home buyer.  The bigger factories can build just about anything that is put on paper.  Totally custom kitchens, exquisite baths and beautiful foyers are readily available for the builder.

If you are a custom modular builder, now is the time to start a small marketing campaign announcing custom homes from your company.  Change your website to include pictures of some large homes your manufacturer has built.  These don't have to be your homes!  They should be your supplier's homes however....because what they built once, they can build again ......for YOU!

CHAMPION CLOSES ANOTHER PLANT

Even the Amish are feeling the pinch now that Champion Homes in Topeka, Indiana is closing one of their plants in the town.

120 people were told that the plant was closing and a lot of those were Amish from the surrounding area.  As farm land becomes scarce and the Amish population in the area grows, a lot of young men go to seek their living as production workers in many of the local industries.