The Masthead

An Exclusive Interview with Doug Gorman

1. (Question from www.MHMSM.com by Tony Kovach for Doug Gorman). First, Doug, thanks for taking the time to do this interview. While you are widely known in the industry, please give us a brief background on your many roles and history in this industry, for those who may be new and don’t know you as well as they should yet.

My experience with the industry began in 1971 in the role of a consumer. My wife and I purchased a 12×60 three bedroom front living room which at the time seemed to have plenty of room for us as newlyweds. Shortly after that I went to work for the retailer who sold us our home and have been in the industry continuously since then. My industry work experience has included retail sales, sales center management, multi-location retail management in the Southeast and the Southwest. Field sales for manufacturing covering five sates in the Southeast, multi-outlet retail modular sales management and 22 years of owning a retail sales center in Tulsa, Oklahoma. I have served as the president of our state association in Oklahoma, chairman of MHI’s Federated States Division, chairman of MHEI, the sole retail representative to NFPA for five years prior to the creation of the Manufactured Housing Consensus Committee and for close to ten years now as a member of the Manufactured Housing Consensus Committee.

2. There is a lot of discussion going on in the Industry these days, and we’d like to get your take on some of those timely topics. For example, there is a new initiative out there to launch what is dubbed the MHIDEA, the MH Independent Dealers Association. What are your thoughts on the matter? What can you tell us about R E Crawford, George Allen, Ken Rishel and some of those backing or supporting that initiative?

I believe MHIDEA is a worthy endeavor and its creation is being undertaken by some of the most credible people in the industry. Retailers have numerous issues that can get lost in the broader efforts that are undertaken by MHI. I had hoped for years that the National Retailers Council (NRC) would serve that purpose, but I have not seen it materialize. I don’t fault MHI for that failure. The decline in retailer population has certainly been a factor and for that same reason could limit the success of the efforts around MHIDEA. The total retailer focus of MHIDEA may give it some strengths that are not inherent in NRC.

As a preface to the question that follow, Doug, let me remind our readers that personally and editorially, www.MHMSM.com believes in the strong potential of our industry’s future. I could point to virtually every article, almost every blog post that underscores that fact. But At the same time, we have to look at real world challenges and address them. Many today are scared. So the following are not meant to be ‘doom and gloom questions, but rather to get a feel for how your take on such industry issues as matters currently stand, and to understand what we face in order to address it properly.

3. George Allen is one of those gents that most people in the industry know, especially in the LLC world. Allen has written about what he calls a ‘perfect storm’ or a ‘conspiracy’ to kill HUD Code housing by choking off finance initiatives in Washington, such as implementation of the FHA Title 1 and the “Duty to Serve” passed by Congress in 2008, and what amounts to concerns over leadership from national associations on such issues. How would you respond to that type of concern from a respected and informed industry leader?

I do not have any specific knowledge of a conspiracy to destroy our industry. At the same time I find many of the actions taken in Washington are in fact resulting in driving up costs for our industry’s clients while reducing the financing options available. If it is a conspiracy, those responsible are being remarkably successful as we look at a 90% drop in industry shipments. I don’t read a lot of news coverage of any other industry taking a hit of that magnitude.

4. It seems obvious that manufacturers and retailers – and these days, retailers often means land lease communities (LLCs) operators – have a natural need for each other. What concerns do you feel as a respected retailer who has years of manufacturing experience over the steady decline in new home shipments? What do you see as the needs to turn that 12 year decline in shipments around?

Clients want what we build. They are denied the ability to purchase our homes in many cases because of zoning issues and because of the inability to obtain financing. The zoning concern has to be addressed at the state level to achieve significant success. Improvement of financing will most likely only be achieved through increased pressure from our representatives in Congress to improve the application of existing programs.

5. Some have speculated that we are looking at the end of the HUD Code industry by 2020, others have said 2016. I spoke with a senior executive in the manufacturing world very recently who told me there is maybe 24 months to turn the industry around or many/most of the factories will be gone. What are your thoughts on the time line, and why don’t we see more being done to impact ‘saving our industry’ now?

I would not dispute either of the forecasts mentioned. Our program is the only Federal building code for and is administered by HUD. As an industry we certainly have a very real danger of national shipments continuing to be so low that we become irrelevant in the scheme of the Federal budget. If that were to happen manufacturers would lose the preemptive benefit of the federal code. They could possibly continue production meeting various individual state codes that might exist, but the federal umbrella would be lost.

6. You have expressed in the past your viewpoint on Danny Ghorbani’s importance at MHARR, saying “The industry needs Danny.” Can you elaborate on that, please?

For many of the same reasons that retailers may feel a need for a dedicated retailer trade association, many manufacturers feel a need for MHARR. I have no problem with MHARR’s position that their exclusive objective is to monitor regulatory events as they may affect our industry’s manufacturers and ultimately the cost of the home to our clients. Danny Ghorbani has worked tirelessly in this regard for many years. I do not always support or agree with a particular tact or undertaking by Danny, but the industry does not have anyone else who so fervently monitors the effects of proposed undertakings by our federal government.

As retailers, we do not understand to any significant degree the possible impact for instance of the current efforts by HUD to increase monitoring costs through an effort intended to improve quality control. While I believe the effort by HUD is well intended, I am also aware from conversations with manufacturers that many unintended consequences will drive up costs with no corresponding benefit to our client. MHARR will seek to route these efforts through the Consensus Committee. In HUD’s defense, a proposal on this subject was worked on by the MHCC, but was not moved forward due to lack of information regarding costs.

7. We did an exclusive interview posted on my blog with Eddie Hick’s recently about his initiative to promote product placement as an image building tool. During that interview, Hick’s said, and I’m quoting: “Well, I don’t think we need to wait and get a group like MHI involved. In some ways, they’ve failed to move this sort of thinking ahead on the image building issue.” As someone active with MHI and on the national scene, how would you respond to that comment and concern?

I would support any effort that Eddie can take in that regard. His idea makes sense and he sounds like he knows people that can help him accomplish his proposal. I don’t fault MHI and I don’t think Eddie does either. It is a statement of fact that MHI has not gotten involved in the RV type image building campaign. MHI was confronted by an industry made up of companies facing enormous cash demands in the face of the previously mentioned 90% decline in shipments. Major industry players such as Fleetwood, Patriot, Wick and Champion would ultimately face bankruptcy. That scenario is a difficult setting for raising millions in cash for a national image campaign.

8. Doug, any other thoughts you’d like to share about needs and issues facing the HUD Code and factory built housing industry today? What are your reasons for being optimistic about the industry potential and future?

As an industry we face many challenges. The SAFE Act will drive up costs for our clients while reducing the number of lending options. New FHA guidelines will also increase the costs of financing and increase the amount of cash needed to purchase a home. The new appraisal guidelines that went in to effect on February 16th will make appraisals more difficult especially with those appraisers that do not understand our product or do not understand the difference between an entry level home and a high specification home.

The Duty to Serve issue needs to be pursued as it holds huge potential for our industry. The government needs to move forward to fully implement the FHA Title I program and in light of 3285 retire the current permanent foundation requirements of the FHA Title II program.

Many of the concerns noted affect all housing while others are specific to our industry. I remain optimistic because the consumers want what we are offering. No other housing segment can touch what we offer. I can sell a three bedroom, two bath home for less than $30,000 and I can offer a two story modular for under $200,000. Isn’t life grand? Now if we could just have a good drought.

Well, the early reviews are in!  By cell, land line and email, words like “Excellent!” “Unbelievable!”  “Good content.” “Awesome!” “Great Ideas.”  “Impressive!” and those helpful words to a publisher, “How can I advertise?” too.  The spotlight on that “good content” deserves to be shined on those who provided it.

On behalf of all on the masthead of www.MHMarketingSalesManagement.com , let me say, thank you, because this publication is by and for professionals like you, pros who care deeply about the Manufactured Housing Industry!

A few brief words about our contributing writers.

Beyond what was shared in the Editor’s Introduction, my mind flashes back years ago to the first time I picked up Tim Connor’s best selling book ‘Soft Sell.’ Reading it once was not enough.  Later hearing Tim live brought out the kid in me, and I had to take that photo op with him.  I confess I walked away with stacks of his other fine books and informative CDs. It is no surprise when I recommend him to others, he does the leg work that makes selling and management in the real world perform. We are all fortunate to have Tim’s blog and feature articles on our ionic pages.

Linda Beem has become a personal friend as well as a professional colleague.  The best way for me to impress upon you why her accomplishments in this challenging time in our industry are impressive is to ask you to go to – http://sunsetglenview.com/page3.htm – seeing is believing! What’s on the left side of the page is how her location looked when she walked in the door at Sunset Village some 6 years ago.  What’s on the right is what has taken place since through her personal sales and of course with the logistical support her company, vendors and team mates provided.  One reason to provide “A Capital Idea!” on our pages was to give readers a better idea of what she accomplished solo by selling! Missing her current or future articles are an invitation to miss out on more sales.

I’d further note that much of what Linda does dove-tails nicely with “Soft Sell.” If Linda can do over 360 closed sales in 6 years in what was once a ‘war zone’ community, selling a vision of a future good lifestyle to good people, then the obstacles you face can be over come too!

Which brings us to the subjects of attitude and enthusiasm - captured brilliantly by the Rocker Man - Mike DuPure!  Mike is more electric than his guitar.  You can feel his juice on the phone when you talk and most certainly in person.  He is genuine, thoughtful, goal oriented and hard working too!  Mike has done land home sales as well as community based sales.  He and two team mates produced 75 closings in 90 days at a property in transition where we were doing some – unique! – marketing.  It was at a team meeting when one of his comrades boldly pointed to him and said to the company’s president, “Mike is the best sales person we have!”

To better underscore both Mike’s and Linda’s accomplishments, keep in mind that they were selling at the highest end of the manufactured housing spectrum.  Higher prices, higher site fees, etc…and they still set records that blew others away. Please read, and re-read columns like theirs – download, print them and take them with you – because until you ‘get it,’ once may not be enough.

The good folks at Manufactured Home Source are part of my own tool chest in day to day marketing work.  They don’t just talk about good SEO (okay, Search Engine Optimization) and the like, they provide it for you!  Even better, they deliver what I call – results based marketing.  Unlike days of yore, where you paid for an ad and hoped it delivered, with Manufactured Home Source, you don’t pay until you have the results in hand.  If you haven’t already, do contact them, I did and it works for me and their clients!

Speaking of Manufactured Home, the words don’t hardly slip onto a page without adding the word Merchandiser.  It is such a pleasure to give Chris Olvera an opportunity to share with us verbal snapshots from inside the Merchandiser’s proud history!  Personally, I owe the Merchandiser a debt of gratitude, because it was the first industry trade journal I picked up and one that I’d be picking up today if I could.  Further, we all owe the Manufactured Home Merchandiser a word of thanks – and yes Chris – a raising of the glass because they provided news and views we could use.  Well done!

I’d tarry a bit on the Merchandiser and trade journal topic, because I believe that leaders are readers.  I don’t just mean the casual picking up of a newspaper or browsing stuff on-line, I mean focused reading that is more like an MD or attorney doing vital research.  If your doctor read an important topic just once, he’d likely end up guilty of malpractice later on, right? I personally read publications like Automated Builder and the Journal. One reason we include their links as well as one to the Allen Letter is because reading industry publications is a key to understanding and thus leading.  The Manufactured Home Industry needs and deserves to lead housing in the days ahead.

Reading – more like studying and applying what we learn – is vital for success.

Which brings me to the topic of Around the Campfire.  Every firm and organization needs to find ways to form and inform their people.  Greg McClanahan and company have incredibly low cost, enhanced results via their ground breaking training system in the bag for you to open and benefit.  For a mom and pop operation to the big national firms, you owe it to yourself to not just read his article to learn more, but to call him and see how doing this sort of training for your team is a total no brainer.  Greg is himself an active industry veteran with dozens of MH firms he’s worked with over the years to improve their business. Greg in a few words can say so much that it will challenge and keep you moving you ahead.  Isn’t that what you want from your team?  To improve and move ahead?  Enough said! J

Call Source’s Sherrie Franklin delivers too!  The legal land minds that are out there are astonishing.  I read just yesterday about a 6 figure settlement in a fair housing dispute.  I believe the exact number was $161,000.  Okay, let’s do the math.  A few dollars in training my team on what NOT to do wrong and HOW to do it RIGHT, invested in a firm with thousands of clients from coast to coast, including some of the MHC world’s biggest REITS.  A few dollars to keep you out of the headache, heart ache and time lost in fighting a fair housing claim.  It’s like an oil change, invest a little now to save a ton of money later!  Besides, as you’ll see in next month’s feature from Call Source, these folks to a whole lot more than just help you avoid the legal land mines.  They help you sell more too!  I personally use Call Source in my marketing efforts daily, and if you do, you’ll love ‘em too.  We are proud to have Sherrie on our Masthead and look forward to more from her and her Call Source colleagues in issues ahead!

When I saw Jim Talerico, Jr. being interviewed on MSNBC, my mind pondered how this talented gent I met years ago quietly finds ways to improve bottom line business performance.  “Congenial” Jim has appeared in places like the Wall Street Journal and the New York Times.  Just as factories today are doing lean production to improve their bottom lines, Jim has an eye opening process that helps your business do more of what you want it to do!  Remember, the doctor who examines himself is not objective and thus often misses things he’d find in a patient.  Jim brings new eyes, years of experience and real world solutions to the problems that plague business large and small alike.  The reason Congenial – and Jim is that! – has received coast to coast media coverage is because he’s worked for clients large and small from coast to coast; and he delivers.

Having news items from Danny Ghorbani’s MHARR, MHI and other Associations and sources is priceless.  Personally, I love talking to Danny – as busy as he is – Mr. Ghorbani was one of the first to personally pick up the phone and express his good wishes for this project.  Yesterday, he also called to praise the launch of www.MHMarketingSalesManagement.com and encourage us to press ahead sharing insights and information for the sake of industry builders and all in this business. Passion and Purpose for the Industry come to mind when I think about Danny, and others, who work tirelessly to promote our industry’s well being in D.C, or in state capitals, or at your local district.  Sure, there are differences in view points between some of these leader’s minds!  Good! It is in the clash of ideas – it is in testing – that a person’s or thought’s true metal is forged!  Bring on the association’s news and view, we welcome them all!  To me, it was one of the many benefits of the Merchandiser, to be able to read such news stories.  We hope those news items and sources grow over time here on our web pages.

Speaking of different being good, I’d love to take a moment to invite those with their field of expertise to share them on these pages in upcoming issues!  In feature articles or on blogs, in forum posts or replies to other’s columns, bring it on! One of the great advantages that an ezine has is that we aren’t limited by space constraints.  We also have the ability to interact rapidly with readers via replies, forums and blogs.

Finally, I want to raise the glass to Bob Stovall.  The greatest content in the world means nothing if it is improperly shared.  It isn’t until you get into a project like doing a magazine – print or online – that you realize how much time and effort go into it.  The ‘behind the scenes’ stuff are what make something go. Let me preface my remarks about Bob by saying that I personally do html and have done dozens of websites for various firm’s and enterprises in recent months alone.  But what I do is basic – for years now, any time I need something special done online, Bob is the first call and the last call that I have to make.  Before Al Gore claimed to invent the Internet, Bob was there. When something goes wrong (and doesn’t it always?), I can turn to Bob, and he either fixes it for me or when I’m using my beaner, I call Bob and he does it right for me the first time around.  In the 3 days before the launch of www.MHMarketingSalesManagement.com , I estimated Bob put 51 hours personally into the project.  My point is that Bob knows what to do and he does what it takes.  When I asked him to change something, voila! It was done!  If you like what the others have shared, please, let’s thank God for Bob Stovall for making the webmaster side of this ezine possible.

More important for you and your business, if you haven’t reviewed Bob’s Socialnomics yet, you’d better.  Again, as background for my comments, I’d say, I still do many traditional – as well as novel – forms of marketing, depending on a client’s needs.  It is all about the bottom line results, so you do what works in a given situation.  If we as an industry want to attract a new generation of customers, we’d better be where they are.  Bob…is…there.   This issue is just the start – follow Bob’s column and blog, for your sake and for the sake of the MH industry!

Did I say finally?  Last but not least is YOU.  Thank you for being here. Thanks for caring about our industry!  Thanks for wanting to improve performance, because that is what this is about:  Innovation – Information and Inspiration for Industry Professionals!

Meetings are great, I love to attend them.  I learn from them and appreciate the efforts and information presented.

Here, at www.MHMarketingSalesManagement.com industry pros can meet virtually, and as often as you wish, for free!  No need for a big budget, no need for tons of time or money invested.  Here we seek to provide you with a forum that permits the showcasing of tried and true ways to improve performance.  Here you can Discover new ways to protect and enhance your profits.  Sometimes it may be ‘in the basics.’  Some may read a column and say, “I knew that…” – but what about that new sales person in the office down the hall…did they know that?  Or sometimes it may be the cutting edge.  What about the firm or marketing department that hasn’t successfully used YouTube or Facebook to grow their business?

A new day is dawning.  Our industry produces the BEST products we ever have!  We can absolutely rival ‘site built’ features and quality – often out performing them – and at a fraction of the price.  What we need to learn – or re-learn – is how to articulate our message to the home buying public.  If a big budget national image campaign isn’t in the card, we need to reveal the low cost ways of getting big budget results!

Come and see…from job postings – to news – to the photo gallery – to videos – to great feature writers – you’ll find it here, you’ll share it at www.MHMarketingSalesManagement.com.  Welcome aboard, sign up for e-alerts and to access back issues.  Keep on coming because you will see…This is a resource and platform you won’t want to be without!###