The Masthead

What follows may seem counter-intuitive at first. Pain is natural, necessary and can be good. Pain is a signal in the body or mind that something is awry. That something needs 'fixing' or attention.

We tend to avoid pain and run from it. But in fact, the solution almost always involves embracing the pain. One must discover what is the cause of pain and how it can be dealt with.

In recent conversations with industry pros from various parts of the country, one of the common points made by the callers included the following. It was said in different ways, but let me drill it down to this:

“Manufactured housing doesn't have a product problem it has a perception problem. When people see the home without the blinders, they often fall in love with the quality and value of factory built homes.”

Some company reps see lots of retailers and communities face to face, at their locations. These reps see it all: the good, the bad, the ugly. Perhaps a result, the subject came up in another recent conversation about training.

“How do you get businesses owners or executives to realize that their employees need more training? If you say that to them, they may get insulted. At the same time, they could be making more money if they just had good people doing the right things more often.”

Here is my short answer to these topics. Imagine you were not feeling well, not doing as well as you'd like to be. You go to your doctor, you get tests run. The doctor gets the results. Do you want the MD to tell you the truth, or a bunch of fluff? Do you want the doctor to map out a cure or program for what ails you, or do you want a placebo, and to be told that all is well?

When professionals speak, they ideally ought to give each other permission to be candid, and then do so.

If I were visiting a sales, leasing or management office, and saw things in my client's operation that needed attention, isn't it best for all concerned to know what that is? We point out the good things, right? Why not the problematic ones? It is easier said than done because one doesn't want to offend a client, still, that second set of eyes or outside perspective can make all the difference in the world to that business owner or supervisor.

That in turn can come back with more sales and more business for the rep who shares the insight.

It is my sincere belief that manufactured housing could double or triple its sales in fairly short order. That is based on evidence from real-life companies that grew their sales rapidly, once basic adjustments were made.

That growth doesn't happen by accident, it comes through positive changes. How that looks for the Industry at large can be seen at the download at the end of the article on this link. What that looks like for an individual or collective number of business locations is another topic for another time. When pain comes, heed the warnings. Don't just mask it, seek and fix the cause. ##

Post by
L. A. 'Tony' Kovach
www.MHProNews.com
www.MHMarketingSalesManagement.com or www.MHMSM.com
Innovation – Information – Inspiration for Industry Professionals

Office – 815-270-0500
latonyk@gmail.com or tony@mhmsm.com

http://LATonyKovach.com
http://www.linkedin.com/in/latonykovach
http://pinterest.com/latonyk/manufactured-home-lifestyle

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Whether you think you can or whether you think you can't, you're right. – Henry Ford

As full disclosure, I've not (yet) read the book that the World Over Live discussion I am about to share introduced me to recently. But the interview plus the Washington Times book review of the new volume by Arthur Brooks, Road to Freedom, How to Win the Fight for Free Enterprise, certainly piqued my interest.

Brooks said in his World Over Live interview that free market supporters – including political figures – have to make the moral case for free enterprise, not just the financial case. He pointed to the fact that 70% of the world's poor has been lifted from poverty in a generation – not by government transfer programs – but through increased business generated through free markets.

Brooks has a background in social science and economics. As president of the American Enterprise Institute think tank, Brooks taps into experience and study in saying that it isn't enough to make the financial argument for free enterprise, one must make the moral one to fire up people's imaginations.

Redistribution, argues Brooks, may seem fair but is actually the opposite:

“A fair system in an opportunity society rewards merit … an unfair system
redistributes resources simply to derive greater income equality.”

Brooks sees merit in the social safety net, but doesn't think the net should ensnare the middle class, so as to keep them from economic progress. Brooks points to the American Declaration's "pursuit of happiness" as suggesting a moral motivation, not just a political or economic one.

Making the Case for Manufactured Housing

Brooks suggested that politicians in the Republican party must make the moral case for free enterprise. This created a mental segue for me to a discussion last week with an industry business owner and successful leader who thinks our Industry has failed to make the case for manufactured housing with public policy makers and Americans in general.

For those of you who email or call me, as usual, I invited the gent to pen an Industry Voices guest column on the topic he presented. Because we have a policy of being discussions or emails being “off the record” unless we mutually agree to be on the record, I will only lightly tap the passionate and persuasive picture this successful caller made to me.

Manufactured housing, he argued, is so beyond the experience of most people, that it is not easy to grasp all of its positive implications. He said, we need to climb on our desks and the roof tops and shout out that manufactured housing is a phenomena, and that we need more than a casual look to be understood!

This reminded me of another successful community owner who has made similar arguments in discussions on the unique value to the public and policy makers alike, if, If, IF we do a good job of communicating the facts to them.

While this may cut against the grain of those who think we want to see manufactured homes treated the same as other forms of housing, what these gents see is that we are not similar, we are different and BETTER.

Another Segue…to finance.

Chase's Jaime Dimon, was in the news this week on a topic that may have set the reform of Dodd-Frank back, even though the incident and its impact relative to the 2008 financial crisis are not apples and oranges.

The industry gent I referenced above told me about a meeting he was in with Dimon. So for more than one reason when Dimon was on Meet the Press this weekend, I tuned in. Dimon told NBC's David Gregory in part that he is now “barely a Democrat.” He feels there has been an over-reach on Dodd-Frank, while saying that perhaps 70% of Dodd-Frank is OK, but that changes in the law are needed for the market to work properly.

Dimon and Chase's 2 billion (plus?) blunder was a topic on the radio this weekend too. Larry Kudlow

from CNBC pointed out that the 2 billion loss – as bad as that is – was less than half of the current quarter's projected profits. Kudlow also pointed out that the market punished Chase by its stock taking a sizable hit – larger than what the loss was. Kudlow's points included the fact that the markets work, when they are allowed to do so.

Then, Politics!

Kudlow routinely mixes politics with economic discussion. Clinton compromised with Republicans, Reagan worked with Democrats. Both enjoyed robust, rebounding economic times.

By contrast, a caller pointed out that President Obama side tracked his own Simpson-Bowles commission. One comment was, “I'm still struck by a comment the president made pre-2010 mid-term election about how Republicans had to ride in the "back of the bus," a startlingly partisan comment for someone who is clearly the beneficiary of the Civil Rights movement.”

Jaime Dimon's comment is one that some other MH pros and owners who were or had Democratic leanings shared with me in the last two years. Whether or not there is a sea change in the fall, we should hope that the word 'compromise' is not forgotten and buried in DC.

And back to Free Enterprise..

Arthur Brooks, Larry Kudlow and others have been pointing to the meltdown in Greece, Spain and other parts of Europe as a warning sign to America. For those who compartmentalize their lives, and never think about how X impacts our work in manufactured housing, we are obviously a part of a nation's political and economic landscape.

I would suggest that many factors are starting to line up that could – if we are wise – benefit factory built housing tremendously. Lower incomes, constrained or pressured local, state and federal budgets are among many factors that could point to the inherent value of manufactured housing.

As the one caller told me, we need to 'shout the glories' – meaning, effectively communicate – about manufactured housing from the roof tops. We need to get and stay involved politically and work to improve our climate. One way that can keep us from getting “horse throat” to shout manufactured housing's glories is to use the internet to communicate for us. Check out this article on using Pinterest linked here.

Thanks for stopping by so we could dive into the case for free enterprise and manufactured housing. I hope surf into MHProNews.com and this blog this weekend for what promises to be an important topic, one that can boost your business. ##

Post by
L. A. 'Tony' Kovach
www.MHProNews.com
www.MHMarketingSalesManagement.com or www.MHMSM.com
Innovation – Information – Inspiration for Industry Professionals

Office – 815-270-0500
latonyk@gmail.com or tony@mhmsm.com

http://LATonyKovach.com
http://www.linkedin.com/in/latonykovach
http://pinterest.com/latonyk/manufactured-home-lifestyle

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Whether you think you can or whether you think you can't, you're right. – Henry Ford

I was speaking with a very successful manufactured home community owner and MH Retailer. We spent about an hour discussing a plan to advance home sales and profits. Near the end of the conversation, the owner said, “Tony, this means a change in the way that we do business.” I agreed, but asked, do you see how this would increase sales and profits? Without hesitation came the answer, “Absolutely.”

On to the next step.

The way the Louisville Manufactured Home Show has always been promoted changed two years ago. By keeping what they had done in the past, but feathering in some new concepts and internet marketing efforts, the show is not only back, but growing in attendance and in the number of exhibitors. Changing the way business was always done was necessary, and hats off to those at MMHF and Show Ways who had the wisdom and courage to try something new. It has paid off for all involved with the Louisville Show.

Change can be forced upon us – as in the case of government regulations forcing changes – or change can simply be embraced when an opportunity to do things in new and better ways presents itself. It is a simple decision to accept, reject or consider change. The battle (if there is one) starts in the mind, and the attitude towards change.

We could boil down the following realities about change.

• Change always has and always will happen. How it comes may vary, but change is a constant.
• How we deal with change can determine if we are surviving, thriving or sinking.

We have an amazing product in manufactured homes! I know, I know, some people love MODs, others love pre-fab (panelized, etc.) homes. I see the need and use for all of factory home building. But manufactured housing outsells modulars for a reason. The reasons that panelized homes outsell manufactured homes has more to do with the perception and regulatory issues than the home products themselves.

Factors such as a

• down economy,
• lower earnings,
• growing population,
• less skilled labor to do conventional home construction

and more are reasons why manufactured homes COULD be the next big wave in housing. This is not to marginalize other forms of factory building, certainly they can and should benefit from the above factors too.

What are the elements keeping us from advancing farther and faster?

• Perception issues from the public, the media and public officials (each tends to feed the others);
• Regulatory issues, such as zoning, and issues revolving around financing (SAFE, Dodd-Frank, etc.);
• Communications issues – too many never consider us, and they are often the 'better credit customers.'

These and other factors slow individual businesses in our Industry. Industries are made up of companies, so when companies within an industry get slowed – or advanced – then the same happens in that Industry.

What are the Solutions?

• A clearer vision on the part of business owners, executives and industry leaders as to what is possible, and a willingness to embrace positive change.
• A willingness to invest in positive changes, which includes training of employees, managers and owners.
• Get and keep manufactured home owners, businesses and associations in a more positive working alignment.

What would happen if we were swamped with dozens of more customers every day at many locations?

As nice as this 'what if' may sound, I'd say that many or most locations would not be prepared today. I'm positive minded, but also realistic, so let me explain.

A story was told to me by more than one savvy state executive director. The tale – a true one – goes like this. Art Linkletter was hired to do an image and marketing campaign for the retailers of a given state. The program turned out large numbers of customers, thousands whom never came to see manufactured homes before! Some of these customers drove up in their Lincolns or Cadillacs. They walked up to a 'double wide,' they walked up a rickety set of worn out wooden steps. They entered a home that the marriage line was not trimmed out. The carpeting was pulled back at the marriage line; it was not seamed. Since 90% of the public can't visualize what the home would look like finished, these 'ideal' prospects were lost. They prospect who could buy what they wanted to buy left as fast as they could. Many never returned to a manufactured home retail center again.

What that tale should teach us is the following. We could talk about a three step process:

1) Prepare the Select Professionals.

• We need to prepare a core group of businesses for the potential new wave of manufactured home prospects and clientele.
• Locations need to have curb appeal and homes need to be ready to show.
• That new wave needs to be met by professionals who have appropriate training. The sales pros need to know how to successfully engage good customers.
• All this and more is a matter of preparation, training and motivation.

2) True Alignment with our Customer Base.

We also need to reach out and engage the current manufactured home owner. We need to be aligned with their interests. In the RV business world, successful retailers know that you don't over promise, you don't under deliver, that you want a satisfied customer. They know that the happy customer will tell others, and they also know that the unhappy ones tell even more people. It pays to be honest, it pays to set the right expectations, it pays to get and keep our home buyers happy.

While surveys show that perhaps 76% of manufactured home owners are happy and satisfied, etc. that means that 24% could be happier and more satisfied. We need satisfaction in the 90 percent plus levels to be successful. There are some people you can never satisfy, but most can be. We need to make that the new reality.

So we have work to do.

For these and other reasons, we've launched an online publication focused on the MH Home Owner, called MHLivingNews.com. Please check it out and pass the word, especially to your MH owners and residents. The site will remind owners why they have a good value proposition. Over time, using this home owner focused website will pay off for all involved.

3) By getting more Professionals and Home Owners on the same page, we can prepare the way for that brighter future for manufactured housing.

The way to achieve that next step is with a proper image, marketing and sales campaign. These three steps can take place sequentially but also they could be done concurrently. This doesn't require generations, it requires the will and the effort.

Individual businesses could do this 3 step process internally I short order. I know first hand, because I've worked on projects that prove it. But if you think about it, you know yourself that this is true and works because you can see how companies like Car Max have changed for their business the negative perceptions that went into the automotive car buying experience. Car Max has been amazingly successful, but doing internally what they need to do to to align their interests with those of their customers.

So you don't have to have every business, every state, or every professional to buy into a new business model. You can start with one at a time.

Positive Industry Change will come. Will you be leading, following, retreating or someone that was on the center line as the traffic went speeding by each way? ##

Post by
L. A. 'Tony' Kovach
www.MHProNews.com
www.MHMarketingSalesManagement.com or www.MHMSM.com
Innovation – Information – Inspiration for Industry Professionals

Office – 815-270-0500
latonyk@gmail.com or tony@mhmsm.com

http://LATonyKovach.com
http://www.linkedin.com/in/latonykovach

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Whether you think you can or whether you think you can't, you're right. – Henry Ford

For anyone who has been in a delivery room, you already know what the final stage of the birthing process is like. Birth involves pain. New birth is also excitement, joy, fear and a host of other emotions. When one speaks of a re-birth, Nicodemus' famous question "How can a man be born again?" could be paraphrased and echoed, "How can an Industry be born again?"

The answer is no surprise. As with a natural human birth, an industry rebirth takes place through pain, joy, fear, hope and a host of other dynamics.

Birth is amazing, but it is not necessarily “pretty.” So should we be surprised if an Industry rebirth is less than a pretty picture?

Before the birth, there is the gestation period. For we humans, that lasts about 9 months. I wish we could say that an Industry re-birth would only take 9 months! You can't press any analogy too far, at some point analogies all limp. No exception with this one. This industry rebirth will take time, it already has taken some years.

Imagine a moment in time before Thomas Edison invented the light bulb. After hundreds of failed efforts, after some tests with very limited success towards making the incandescent bulb, some observers may have thought Edison mad.

But Edison persisted, holding fast to his vision, persisting in his efforts. Edison not only invented the light bulb, but also the phonograph (for you really young folks, that came way before iPods, CDs and cassettes) and over 1000 other patented items. Success at the new or visionary always comes with a price, but it also comes with a reward for those who stay the course and make it work.

We had light before Edison's electric bulb. But what came as a result of his light was arguably better. I believe the same will be true for our Industry.

So for those involved in various aspects of the re-birth of manufactured housing, take heart! Plan and share your vision. Enjoy the successes along the way. Accept the periodic slings and arrows of outrageous fortune. But know that the re-birth is coming. Being a part of it will have its rewards. ##

Post by
L. A. 'Tony' Kovach
www.MHProNews.com
www.MHMarketingSalesManagement.com or www.MHMSM.com
Innovation – Information – Inspiration for Industry Professionals

Office – 815-270-0500
latonyk@gmail.com or tony@mhmsm.com

http://LATonyKovach.com
http://www.linkedin.com/in/latonykovach

+++

Whether you think you can or whether you think you can't, you're right. – Henry Ford

"Now is the winter of our discontent,

made glorious summer by this sun of York."

- William Shakespeare, in Richard III

The meaning of this phrase, the winter of our discontent, is "The time of unhappiness is past." http://www.phrases.org.uk/meanings/261500.html Shakespeare knew how to create a character that spoke to his audience, and how to fashion a phrase as well. We as professionals and as an Industry need to tap into the discontent that is all around us, for the benefit of all involved.

We need to jujutsu discontent as "Inspirational dissatisfaction."

In the Republican primaries Tuesday night, the most under-funded of the four remaining 'major' candidates has won again. Former U.S. Senator Rick Santorum has taken an economic and political reform message, wrapping it in the flag, faith and family. Still a long shot, still lacking the support of most of 'the establishment' of his party, Rick has taken a no quit approach, and kept on preaching past the spin others would place upon his campaign.

Doesn't this example give us all a lesson or two? Aren't many of you 'no quit' types too?

The fact is that each of the candidates has a lesson to share with us. Let's ignore the negatives or the baggage that each has for a few moments, and before returning to our own manufactured housing Industry's needs, focus on the strengths each candidate reveals and what insights they offer us:

• President Barack Obama – whose community organizer roots show. He is an effective speaker, knows how to use social media, knows how to use technology, orchestrate an event, use the media and to get donations small and large. Obama taps into various groups – who may have little in common with each other – to maximize his base of support. Barack looks "presidential." He knows how to use surrogates effectively, and how to 'never let a good crisis go to waste' as his former chief of staff, Rahm Emanuel, said.

• Mitt Romney – his roots as an entrepreneur and investor show. The former governor of Massachusetts, also led the Olympics. Romney clearly is the candidate with the most personal business experience and success. He too has organization, those boots on the ground. He knows how to line up his supporters and understands the importance of staying on topic, staying focused, being disciplined, not letting a failure or set back stop him. About 6 years on the campaign trail, Mitt is still the man to beat among Republicans.

• Rick Santorum – this former Senator from Pennsylvania taps into economic messages, that touch the blue collar voter. Rick taps foreign policy experience into expressed concerns with respect to Iran and beyond. He pushes back against the media – even conservative media – who he calls out for what he sees are pro-Romney or pro-Obama biases. His pro-manufacturing, tax code simplification, budget cutting ala the Contract with America during the Clinton years, ability to work across the aisle with Democrats are among his strengths. Likability, social and religious conservatism and 'you can trust me' connection with the people keep his campaign moving ahead.

• Newt Gingrich – the former Speaker of the House is the master of sound bites and bumper sticker phrases. He likes to paint pictures of bold contrasts to make a point and cut through media filters. He pushes back against the media, often calling them out as a group, while connecting with them privately and is seen as the most media accessible by reporters. His plans range from $2.50 gallon gas – which taps into the hot button of rising gas price weary voters – to tax code simplification, entitlement reform, putting a U.S. base on the moon, Newt uses the Reagan line and his experience in Congress that created the only modern American balanced budget era, along with welfare reform with an economy that roared, creating millions of jobs.

• Ron Paul – former Congressman and retired MD, this man can claim the mantle of voting against every thing he didn't believe in consistently, of being the oldest candidate who amazingly connects with young voters. He believes in a libertarian style message, of slashing debt, sticking to the letter of the U,S. Constitution, including a George Washington style foreign policy. He is apparently campaigning in part to pass the torch to his son, who is seen as a rising star in conservative Republican circles.

One can point out additional policy points listed above for each of the candidates. For examples noteworthy to manufactured housing business owners; each of the Republicans favor repealing Dodd-Frank and Obamacare, increasing domestic production of oil, the Keystone pipeline and tax code simplification, with the promise of regulatory reforms all of which should create jobs and a more trustworthy business climate.

So each candidate has some quality or experience that when pondered, can positively challenge us. Now let's set the stage by saying that all parties and people have to be able to effectively frame a message that either resonates with or gets past the modern media. You have to invest thought, time, money and energy in an intelligent and passionate fashion.

If $2.50 a gallon gas makes for a good bumper sticker slogan, then how about

quality engineered homes that are

stronger, smarter, safer, stylish and offer major savings

as a slogan that rallies potentially millions seeking affordable housing?

If candidates can dance past baggage, why can't we address or cut through the perceptions that hold us back?

If candidates can call for reforms in their party, then can we see and realize that all people and all organizations need reform and improvement? Can we see that organizations – such as manufactured housing associations – are critical, but could use our help to move into ever better and more effective directions?

I mentioned inspirational dissatisfaction at the beginning, and the winter of our discontent. Ron Thomas lead into the introduction of Joe Stegmayer at the Louisville Show hit an important point. As manufactured housing professionals, we have to think in terms of our new base line of around 50,000 shipments. We are now growing for 6 months, and thus we are advancing from that new base line.

This renewed growth is the time to martial our resources, hone and position our messages, and to prepare for a future that could be bright for those who seize the opportunities.

"The time of unhappiness is past." Let us learn from our weaknesses and missteps, turning dissatisfaction into inspiration that makes our failures stepping stones to success.

We need a plan that addresses re-marketing our homes for lenders coping with repossessions and owners seeking to exit.

We need a plan that lines up potentially 19 million owners of mobile and HUD Code manufactured homes to help us lobby legislatures and regulators for fairness in reforms needed on their and our behalf.

We need a positive message that cuts thought the noise and helps us connect with the future boom in housing which is looming beyond the end of the foreclosure debacle.

We have all that now and more in outline form, ready, today.

Scroll past the comments linked on this page, and download the free power point found at the end. Dozens of Industry pros from coast to coast have contributed insights to

an image, re-marketing plan that can turn our Industry into the David of the housing market that conquers the Goliath we've faced.

By teaming up with forward thinkers seeking a more profitable future, we too can bid goodbye to the winter of our discontent. ##

The vast majority of manufactured housing industry pros have never seen the set up of homes and exhibits at a Trade Show. You can get an exclusive, behind the scenes look.  Check in for more at show series of videos here on The Masthead blog, entitled "Live from Tulsa: the 2012 Great Southwest Home Show." 

Behind the Scenes videos, before the Start of the Great Southwest Home Show 2012

and after the show start date of 3/01/2012.

 Great Southwest Home Show 2012

Photo Gallery

Danny and Tracie Daugherty from

Fred Munden

SBA wholesale floor plan financing program

MH Retailers, Communities and other Industry Pros

Soheyla Kovach and

Ray Hardin – Edgewood Homes, Midwest City, OK

First Guarantee

Triple section home

Sherrie Clevenger, NADA appraisal seminar

Matt Childers 21st Mortgage

21st did $465 Million in loans in 2011

Jim Crenshaw and Kelly Edwards, PhD Elwood KS

Deanna Fields from OMHA,

Howard Broughton from Palm Harbor and

DJ Pendleton TMHA

Prize winner at Tulsa Show

Prize winners at Tulsa Show

Financing Forum at

Great Southwest Home Show in Tulsa OK

Public Days Saturday morning

Great Southwest Home Show 2012, Tulsa OK

Great Southwest Home Show 2012, Tulsa OK

First Guarantee Mortgage Corp

Shopping for a new home

Great Southwest Home Show 2012, Tulsa OK

Great Southwest Home Show 2012, Tulsa OK

Great Southwest Home Show 2012, Tulsa OK

Quick Trip Center at Expo Square

Ray McKay, Legacy Home

The 'tear down' of the homes on display

The first home just got pulled out at 7:20 (PM)!

Last house to move out

“We made it with an hour and a half to spare!!!

post by

L. A. “Tony” Kovach, MHM

www.MHProNews.com
www.MHMarketingSalesManagement.com or www.MHMSM.com
Innovation – Information – Inspiration for Industry Professionals

Office – 815-270-0500

latonyk@gmail.com or tony@mhmsm.com
http://www.linkedin.com/in/latonykovach