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Warren Buffett, Sam Zell and Legendary Quotes from Manufactured Housing Leaders

Let's let each of these leader's voices speak on the subject of manufactured housing, then we'll share some implementation commentary.

"Kevin, it seems to me that the problem with your industry is resale." – Warren Buffett, Berkshire Hathaway, parent to Clayton Homes, 21st Mortgage, etc..

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"Pencil Head, it's not a trailer park." – Sam Zell, Equity Lifestyle Properties (ELS) Chairman.

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"Learn, Earn, Return."

"A servant-leader focuses primarily on the growth and well-being of people and the communities to which they belong." – Jim Clayton, Clayton Bank and Clayton Homes founder.

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"Only the economic distortions caused by well intended but out of control government programs could have made our industry such a loser for the last decade." – Sam Landy, CEO UMH Properties.

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"In prior years and I continue to be today, a staunch supporter of a MH industry generic advertising campaign.

Unfortunately we were unable to gather the various segments within the MH industry to agree upon a method of funding the campaign and what the campaign should be about.

Even today only a small segment of the population can tell you much about the MH industry and the wonderful homes the industry builds. The rest of the population doesn’t have a clue about our industry, except for the image of the down trodden trailer park.

This must be changed and can only be done through advertising.

The example of AFLAC is interesting. Prior to the AFLAC advertising campaign featuring the duck, their name recognition was 5%. Since the campaign, their name recognition today is 95%. Consumer’s perceptions can be changed." – Leigh Abrams, prior Chairman, Drew Industries.

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"The biggest challenge I see is the continued onslaught of intrusive government regulation of all facets of our business, especially in financing. We offer by far the best answer to this country’s affordable housing dilemma, but government continues to saddle us with regulations that stifle us.

The frustrating part is that none of these so called “consumer protection” rules help protect anyone. The only thing they prevent is buyers getting an affordable home without a hassle. I mean how is preventing a MH salesperson from taking a credit application doing anything to protect the consumer? All it is doing is making access to an affordable home ridiculously difficult." – Don Glisson, Jr., Triad Financial Services.

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We could share much more industry commentary from each of these leader's voices. There are scores of other thoughtful, successful professionals – a number of whom are linked here – that we have "on the record" at MHProNews. These leaders, professionals, legends and others continue to hold or increase their stake in our industry, which should speak volumes.

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For the purpose of showing what's needed for a robust MH Industry advancement in a trillion dollar annual U.S. housing market, the selected comments are sufficient.

  1. The Jim Clayton quotes point to the need and value of a can-do attitude, servant-leadership and training.
  2. Quotes from Sam Zell essentially and Leigh Abrams directly are addressing the MH image issue.
  3. Warren Buffett's quote identifies a key need – a more effective resale system – that would boost financing, image and sales of pre-owned – and thus new – manufactured homes. We need MH lenders and home owners to be able to exit their homes in an easier and more rapid way that protects home values, more akin to what Realtors (r) do for conventional housing. We have a good start with some internet platforms, but more needs to be done until that resale 'exit' becomes easy and cost-effective.
  4. Sam Landy and Don Glisson, Jr. each point to how over-regulation has harmed us and the value of our homes. Glisson, MHI's prior chairman, says a lack of cohesion between the industry's national associations – he worked to bridge that gap – has hampered the cause for our great product.

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In the late 1990s, your Masthead  scribe invested 3 years in the RV industry; at 2 retail centers and at a resort/getaway campground operation. The records show that all three grew significantly during my marketing and sales training work with those operations. What I gained from those experiences was fantastic, so while an award, leaps up in Statistical Surveys, kudos, thank you letters, etc. are nice, I'm grateful.

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We're doing marketing, sales, management consulting and training in MH. I share the photo, awards, mention kudos and recognition earned in manufactured housing, RVs, etc. to say this isn't a nice-sounding theory, this is proven, practical, profitable experience.

Reality Check

Unlike RVs, Automotive, Real Estate, Apartments, Tech or a host of industries we could name, you can't just say "manufactured homes" and expect a proper recognition of the product for what it truly is.

Reality check:

> That's an opportunity in disguise for those willing and able to adapt!

> For those stuck in the mud, it's a slick spot.

We don't need just 1 thing to breakout beyond currently modest new home shipment levels. We need a number of things that when implemented consistently are proven to raise results. Those are summarized above by pros with millions or billions successfully invested in our MHIndustry.

Greater MH Success routinely comes when:

  • Professionals
  • Businesses
  • Associations
  • Home owners
  • Digital publishers (MHProNews.com and MHLivingNews.com) and
  • Other pro-industry and interested groups (not-for profits, educators, media, public officials)

…get ever more on the same page in order to tap the incredible power of manufactured housing for the good of the U.S. (and other lands) in an 'everyone wins' fashion.

That's not just feel good, that's lucrative for businesses and investors, it's this good for associations and most importantly, it's good for MH home owners! When we make the value proposition for MH home owners and MHC residents ever better, our businesses and investments will be enhanced too.

In two previous columns, we

> laid out why we can be doing better, see the facts and graphics in the link below:

http://MHProNews.com/blogs/tonykovach/manufactured-housings-declaration-of-independence/

> A simple way to fuel that advancement.

http://MHProNews.com/blogs/tonykovach/americas-secrets-revealed-and-mh/

It should go without saying that an industry (or a nation) needs to produce ever more product to achieve growth. Every other industry gets that, and so they invest in their people and marketing.

In fact, studies show the vast majority of our owners ARE happy! Yet collectively, MH doesn't do a good job of letting most Americans know that reality.

Cohesion and The Digital Age offers the Solutions

As an industry, we have the talent, tools and experiences needed to solve the challenges that would maximize our multi-billion dollar opportunities. We should take a "Partners in Progress" approach.

The training and the messaging needed can be done online for modest sums, and the ROI would be significant for those who step up and lead. Would you invest a dollar to get a $1000? Apply that principle to a regional/national campaign. Its a no-brainer.

> Every organization that supports the Partners in Progress could be given access to levels of training equal to their contributions. This is necessary, because the big cash and good credit customers are sold differently than the desperate 'we have no other option' home seeker.

> Imagine enough minor-mid-major players coming together to pool some marketing dollars and content on – a hub for B2C communications, which in turn sends customers back to the industry's members. As more of the public 'gets it,' more will buy.

> Imagine using that hub plus live encounters with Realtors  ®, home builders, investors, public officials and others keen on housing to showcase what modern factory home building really means to a nation crying out for quality affordable homes. We can thus engage them in the resale and related process.

> Having more DIY, how to, decor, landscaping and other feel good columns on MHLivingNews that would cause MH owners to say, "Yes, that's me! This is a good life, come and Join Us!"

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Over 90,000 views on this video, as of 7.16.2014

> Picture the site as dealing with negative news items. Like our basic tornado video, linked here, which sales pros have told me they've successfully used with customers 'on the fence.' Continually building and using a pro-industry platform will cause a growing number of media, public officials, investors, pros and buyers to "get it."

A reasonably supported two year campaign would end up attracting the Home Depot/Lowes/Menard's and droves of others outside of our industry to advertise for our cause. Why? Because furniture makers, household goods, computer and tech gear sellers, travel industry, investors, educators and others will see that money saved on housing could be used in other ways to improve the lives of those in our manufactured homes.

Not theory, proven realities!

Picture those who in their own ways have or are breaking past the old mold, here and there, from coast to coast.

On the consulting side of our operations, I've personally worked with select pros who stepped beyond their respective pasts to achieve levels of results they never experienced before. Client work is confidential, so we've redacted the specific name and location in the retailing results collage below.

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Closing analogies

A pilot in training isn't placed in the cockpit of an advanced military jet fighter. You first teach them the basics of the single engine prop! Or if you take a pilot who has only flown a single engine propeller aircraft and ask them to fly a helicopter or jet, first, they have to be trained for that new experience. Until the training is embraced and becomes a part of their skills, the trainer doesn't let them fly solo in the chopper or jet!

"Low hanging fruit" might be on the ground and have a worm. The athlete knows that new effort brings stress and pain. But no pain, no gain.

A brighter future awaits YOU in YOUR market. It requires changes that may seem painful at first. The rewards for leaving a comfort zone are more sales, more happy customer, more profits. That's what Steve Jobs at Apple did, listen to his associate Ken Segall. That's what we do, you can do that in your market(s) too.

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When MH Industry's legends – as quoted above – and so many others point the way, we ought to believe that we can do it.

To learn more, support or get involved in “Partners for Progress,” please email or call at the contact below. Working Together, we can do it. There's a bigger slice of a trillion dollar annual U.S. housing pie waiting for those ready to step up. ##

L. A. "Tony" KovachL. A. 'Tony' Kovach ManufacturedHomeLivingNews.com | MHProNews.com | Business and Public Marketing & Ads: B2B | B2C Websites, Contract Marketing & Sales Training, Consulting, Speaking: MHC-MD.com | LATonyKovach.com | Office 863-213-4090 Connect on LinkedIN: http://www.linkedin.com/in/latonykovach 

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