We have been talking to retailers across the country. Some tell us that they are selling more homes this year then ever before. Many are seeing a decline in the number of prospects and the number of closings.
I am in Florida, where the boost that winter always gives to our sales is just starting to simmer. Most of the local retailers have had a slow summer and fall and are looking forward to the annual "snow bird" traffic.
There are some in sales that point at the new trend toward factory owned "stores" as their greatest concern. An old friend and long time retailer here has told me that the new factory owned outlet directly across the street from his business seems to have stimulated sales.
Can we learn from each others victories and problems ? Click on the "Reply To This Message" link below and share with us what's happening in MH retail in your part of the country. Tell us what's working and what's not working out there on the industry's front lines theses days...
Whats Happening In Your Market ?
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Becky
RE: Whats Happening In Your Market ?
I am not directly related to the industry, however manufactured housing is my hobby. I talk to several people from Alabama to Kentucky. It seems to be slower in the areas that you have several dealers. Pinnacle Homes, has several dealers that are sold on the product therefore they are selling the product. I visited a dealer in Alabama only last week and found that they are selling homes. I have other friends that are selling lines and it seems to be a little slow. I have always felt regardless of the odds if you believe in your product you can sell it. I am also for the Independent Dealer. What brand of homes do you sell?
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Toby Hise
RE: Whats Happening In Your Market ?
The market is down 30% from this time last year.
Retailers are going out of business, and Manufactures are closing plants.
This down turn is not due to a sagging economy, but rather it is internal due
to finance companies loose, er I mean "aggressive buying" for the last seven years. Repossessions continue to flood the market and this will continue for at least two more years. As a result, the finance companies have no choice but to slow the industry down.
Hold on to your lug nuts folks, cause there is gonna be an overhall.
Retailers are going out of business, and Manufactures are closing plants.
This down turn is not due to a sagging economy, but rather it is internal due
to finance companies loose, er I mean "aggressive buying" for the last seven years. Repossessions continue to flood the market and this will continue for at least two more years. As a result, the finance companies have no choice but to slow the industry down.
Hold on to your lug nuts folks, cause there is gonna be an overhall.
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David Oxhandler
RE: Whats Happening In Your Market ?
Hey there Toby !
While we all hear that there is a shake up in progress in MH finance this is not the first time a major operator in that field has pulled back.... Each time we have seen this before a new champion arises from the ashes. If there is a demand for financing manufactured homes, considering the high interest rates our industry has always tolerated, there is little doubt that the law of supply and demand will be upheld, and some other player(s) will run meet that highly profitable need.
Our industry is not alone... the entire economy has "slipped". Its not just manufactured housing...Unemployment is rising across the country in almost all types of business. MH factories are not the only ones plants that are sitting idle. The problems of our finance sector leader are not the cause of the falling stock markets or surging oil prices.
Dick Cheney, the vice president elect, said Sunday on NBC's "Meet the Press.": "We may well be on the front edge of a recession here,"
Cheney raised the possibility in the process of making the case for tax cuts under the Bush administration. Senior Clinton aides called Cheney's remarks as a pre-emptive move to reduce economic expectations for a Bush-Cheney administration.
The reason your finance sources are not accepting as many prospects is probably directly attributable to the fact that interest rates have jumped. This finds us in the business of selling higher monthly payments at the entry level to the American Dream. Effectively raising the bar to homeownership and retailer efforts to move those homes off floor planning.
While we all hear that there is a shake up in progress in MH finance this is not the first time a major operator in that field has pulled back.... Each time we have seen this before a new champion arises from the ashes. If there is a demand for financing manufactured homes, considering the high interest rates our industry has always tolerated, there is little doubt that the law of supply and demand will be upheld, and some other player(s) will run meet that highly profitable need.
Our industry is not alone... the entire economy has "slipped". Its not just manufactured housing...Unemployment is rising across the country in almost all types of business. MH factories are not the only ones plants that are sitting idle. The problems of our finance sector leader are not the cause of the falling stock markets or surging oil prices.
Dick Cheney, the vice president elect, said Sunday on NBC's "Meet the Press.": "We may well be on the front edge of a recession here,"
Cheney raised the possibility in the process of making the case for tax cuts under the Bush administration. Senior Clinton aides called Cheney's remarks as a pre-emptive move to reduce economic expectations for a Bush-Cheney administration.
The reason your finance sources are not accepting as many prospects is probably directly attributable to the fact that interest rates have jumped. This finds us in the business of selling higher monthly payments at the entry level to the American Dream. Effectively raising the bar to homeownership and retailer efforts to move those homes off floor planning.
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Toby Hise
RE: Whats Happening In Your Market ?
Hey David,
Greenspan has slowed the economy. Now there is fear that the economy may be slowing to quickly.
The Clinton aides are probable right. I could not beleive Cheney made that statement, but then, it is called CYA.
Yes, we have been through this before. As you know, the last time was a period from 1988 to 1992. The manufactured housing industry has always done well when interest rates were high; as long as the rates were high for site builders, also. That is not the case now. No, the six percent loans are no longer available for the site built loans, but an eight percent loan is still attractive.
During the last downturn, the finance companies were financing "home only".
The "home only" market has taken a back seat since the introduction of land/home financing with our major lenders.
Financing a $25,000 doublewide in 1990 with a 12.50% rate is a far cry from todays $80,000 to $100,000 land/home packages at 14.25%. Well, with the 2% origination fee, it is 12.25%.
The avalability of money is tight on Wall Steet for the manufactured housing lenders.
While other factors may contributed to the industry's problems, the industry is finance controled, and most of the problems that this industry is facing today has been caused by the finance companies. Again, the downturn is more internal that external, at least for the time being.
Let us all hope that the economy does not slide into a real recession. That would only compound the problem.
Most of the manufactures and finance companies that I talk with are all singing the same tune. We are looking at two years before we start to rebound.
There is a considerable amount of cleaning up on the back end of the finance companies.
We will see the other side again, as we always have. It makes strong dealers stronger, while purging the weaker dealers.
By the way, the oil companies have us all beleiving that to buy gas for $1.39 per gallon is a great deal. Talk about phycological warfare.
Greenspan has slowed the economy. Now there is fear that the economy may be slowing to quickly.
The Clinton aides are probable right. I could not beleive Cheney made that statement, but then, it is called CYA.
Yes, we have been through this before. As you know, the last time was a period from 1988 to 1992. The manufactured housing industry has always done well when interest rates were high; as long as the rates were high for site builders, also. That is not the case now. No, the six percent loans are no longer available for the site built loans, but an eight percent loan is still attractive.
During the last downturn, the finance companies were financing "home only".
The "home only" market has taken a back seat since the introduction of land/home financing with our major lenders.
Financing a $25,000 doublewide in 1990 with a 12.50% rate is a far cry from todays $80,000 to $100,000 land/home packages at 14.25%. Well, with the 2% origination fee, it is 12.25%.
The avalability of money is tight on Wall Steet for the manufactured housing lenders.
While other factors may contributed to the industry's problems, the industry is finance controled, and most of the problems that this industry is facing today has been caused by the finance companies. Again, the downturn is more internal that external, at least for the time being.
Let us all hope that the economy does not slide into a real recession. That would only compound the problem.
Most of the manufactures and finance companies that I talk with are all singing the same tune. We are looking at two years before we start to rebound.
There is a considerable amount of cleaning up on the back end of the finance companies.
We will see the other side again, as we always have. It makes strong dealers stronger, while purging the weaker dealers.
By the way, the oil companies have us all beleiving that to buy gas for $1.39 per gallon is a great deal. Talk about phycological warfare.
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David Oxhandler
RE: Whats Happening In Your Market ?
A great deal is in the eye of the (qualified) buyer.
Why do you suppose that the finance guys are getting those double digit rates on manufactured housing ? Is our product that much more risky to back then conventional housing?
Regardless of the current economic downturn's origin we agree that times are tight, in some markets verging on dismal. We all know of operators both in retail and in finance that thrive in tight times as others evaporate.
What moves are retailers making at this point to, not just survive, but prosper in today's market ?
Why do you suppose that the finance guys are getting those double digit rates on manufactured housing ? Is our product that much more risky to back then conventional housing?
Regardless of the current economic downturn's origin we agree that times are tight, in some markets verging on dismal. We all know of operators both in retail and in finance that thrive in tight times as others evaporate.
What moves are retailers making at this point to, not just survive, but prosper in today's market ?
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Toby Hise
RE: Whats Happening In Your Market ?
There are several areas that dealers have to concentrate on to survive this downturn.
With customer traffic declining, it is of utmost importance that dealers maintain a strong marketing program. Strong marketing should include:
1. Curb appeal-a must.
2. Merchandising-First impression rule really applies now.
3. Consider reducing inventory of new homes to only the best sellers.
4. Budget for additional advertising. Additional advertising cost can be off set by using money saved on reducing floor plan interest. Customers will shop an average of four dealers-be one of the four.
5. Seek out lenders who offer single digit interest rates on land/home financing for credit worthy buyers.
6. Increase gross net profits as much as possible on each sale. The number of sales are declining. The VIP money will not be there to off set low grosses.
7. Stock some repossessions-use the finance company's money.
8. Above all, dealers should make sure their sales personnel are professional, highly trained, motivated, and remain focused. Otherwise, it is like sustaining a 99 yard drive, only to fumble on the 1 yard line. 1 thru 7 become mute points.
With customer traffic declining, it is of utmost importance that dealers maintain a strong marketing program. Strong marketing should include:
1. Curb appeal-a must.
2. Merchandising-First impression rule really applies now.
3. Consider reducing inventory of new homes to only the best sellers.
4. Budget for additional advertising. Additional advertising cost can be off set by using money saved on reducing floor plan interest. Customers will shop an average of four dealers-be one of the four.
5. Seek out lenders who offer single digit interest rates on land/home financing for credit worthy buyers.
6. Increase gross net profits as much as possible on each sale. The number of sales are declining. The VIP money will not be there to off set low grosses.
7. Stock some repossessions-use the finance company's money.
8. Above all, dealers should make sure their sales personnel are professional, highly trained, motivated, and remain focused. Otherwise, it is like sustaining a 99 yard drive, only to fumble on the 1 yard line. 1 thru 7 become mute points.
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Becky
RE: Whats Happening In Your Market ?
Very good..
I think that you are 100% right. Your advise is realistic and obtainable. What do you think the Sales Reps from the Manufactured Housing Industry shoud be doing to meet the needs of the dealers and still get a pay check?? Some of these guys you don't sell...you don't eat?
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Kelley
RE: Whats Happening In Your Market ?
I just accepted a position as Sales Manager for a dealer I used to sell for. I've been away from the industry for two years and I'm a little nervous jumping back in the saddle. Three new dealers have opened up on the same road. Sales are down for everyone, and repos are a dime a dozen. I was the top seller for two years, sold 50 homes a year, most land/home. I'm looking for ideas to "sell out of the box", non-traditional approaches to motivating the buyer. I'm planning a huge web presence with virtual walk-thrus of all homes on the lot. None of the other dozen dealers in the area has such a web site. The area is upstate NY, the season is limited, after the frost, March to November basically. I need to hit the ground running. Ideas anyone?
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David Oxhandler
RE: Whats Happening In Your Market ?
Hello
The Manufactured Housing Global Network consists of approximately fifty web sites. The flagship site, also named "The Manufactured Housing Global Network" is the most visited manufactured housing web site in the entire world. The "Associate Sites" belong to and promote a wide range of manufactured housing industry businesses located from coat to coast.
The Flagship Site can be called up over the World Wide Web at three different addresses:
www.mobilehome.com
www.mfdhousing.com or
www.manufactured-housing.net
You can see a linked listing of the "associate" (client) web sites at http://mfdhousing.com/associates.shtml
Our exclusive combination of being on line longer than any other industry wide site, real content and timely information, mixed with some subtle and some not so subtle promotions, attached to the world's three most requested manufactured housing domain names, has become a powerhouse for attracting individuals that are specifically searching for information about our target industry. We hit a new record last month (January 2001). It was our first month that we exceeded 2 MILLION web page visits !!
Our Domain Service Plan is a total solution for Manufactured Housing company web promotions. It includes:
1-Your Own Internet Address (example:YourMHomes.com) On our server.
2-Adding your web site to The Manufactured Housing Global Network, the most visited MH web sites in the world
3-FTP Account if you want to edit your own web pages.
4-Unlimited number of forwarded E-Mail Accounts @YourMHomes.com
5-Ten Megabytes Of Storage On Our Active Web Server
7-Promotions and links to your web site on The MH Global Network Home Page (http://mobilehome.com)
8-Promotions for your web site in Our Newsletter, Manufactured Housing Update, (Subscriber Base=8300)
9-Registrations 4 times a year for your web site with 300 Search Engines News Groups And Link Pages.
10- We work with our clients to develop other promotions. We urge them to promote their "electronic branch office" in the much the same way they would promote any new branch. Much of this can be done very economically usually after a basic analysis of your current paper and/or broadcast promotions.
The Internet Name Registry and they charges $35 per year for you to reserve a unique domain name (Example YourMHomes.com). We handle the application process at no charge to new website owners. The registry requires pre-payment for the first year when a name is initially registered. After the first year they will bill you directly at the rate of $35 per year.
Our Domain Service is be billed at $70/mo and is payable either by monthly credit card charge or by advance payment for the first year. There is a $150 one time set up fee, which covers the initial set up of your domain on our server. We will be pleased to offer a flat rate proposal to design, layout and develop web pages for you.
Visit our home page at http://mobilehome.com to gain a full appreciation of the scope and depth of our online efforts. I can be reached daily between the hours of 10AM and 10PM Eastern Time at 352-288-2328.
Sincerely,
David
Thank you for your interest.
David Oxhandler
E mailto:[email protected]
THE MANUFACTURED HOUSING GLOBAL NETWORK
www.mobilehome.com
www.mfdhousing.com
www.manufactured-housing.net
The Manufactured Housing Global Network consists of approximately fifty web sites. The flagship site, also named "The Manufactured Housing Global Network" is the most visited manufactured housing web site in the entire world. The "Associate Sites" belong to and promote a wide range of manufactured housing industry businesses located from coat to coast.
The Flagship Site can be called up over the World Wide Web at three different addresses:
www.mobilehome.com
www.mfdhousing.com or
www.manufactured-housing.net
You can see a linked listing of the "associate" (client) web sites at http://mfdhousing.com/associates.shtml
Our exclusive combination of being on line longer than any other industry wide site, real content and timely information, mixed with some subtle and some not so subtle promotions, attached to the world's three most requested manufactured housing domain names, has become a powerhouse for attracting individuals that are specifically searching for information about our target industry. We hit a new record last month (January 2001). It was our first month that we exceeded 2 MILLION web page visits !!
Our Domain Service Plan is a total solution for Manufactured Housing company web promotions. It includes:
1-Your Own Internet Address (example:YourMHomes.com) On our server.
2-Adding your web site to The Manufactured Housing Global Network, the most visited MH web sites in the world
3-FTP Account if you want to edit your own web pages.
4-Unlimited number of forwarded E-Mail Accounts @YourMHomes.com
5-Ten Megabytes Of Storage On Our Active Web Server
7-Promotions and links to your web site on The MH Global Network Home Page (http://mobilehome.com)
8-Promotions for your web site in Our Newsletter, Manufactured Housing Update, (Subscriber Base=8300)
9-Registrations 4 times a year for your web site with 300 Search Engines News Groups And Link Pages.
10- We work with our clients to develop other promotions. We urge them to promote their "electronic branch office" in the much the same way they would promote any new branch. Much of this can be done very economically usually after a basic analysis of your current paper and/or broadcast promotions.
The Internet Name Registry and they charges $35 per year for you to reserve a unique domain name (Example YourMHomes.com). We handle the application process at no charge to new website owners. The registry requires pre-payment for the first year when a name is initially registered. After the first year they will bill you directly at the rate of $35 per year.
Our Domain Service is be billed at $70/mo and is payable either by monthly credit card charge or by advance payment for the first year. There is a $150 one time set up fee, which covers the initial set up of your domain on our server. We will be pleased to offer a flat rate proposal to design, layout and develop web pages for you.
Visit our home page at http://mobilehome.com to gain a full appreciation of the scope and depth of our online efforts. I can be reached daily between the hours of 10AM and 10PM Eastern Time at 352-288-2328.
Sincerely,
David
Thank you for your interest.
David Oxhandler
E mailto:[email protected]
THE MANUFACTURED HOUSING GLOBAL NETWORK
www.mobilehome.com
www.mfdhousing.com
www.manufactured-housing.net
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