Issue link: https://read.dmtmag.com/i/140471
MARKETING CONSULTANT "Affordable Housing": You Own It! BY SCOTT STROUD A few weeks ago I received my daily email from my friend Elliot Eisenberg, an economist that spent several years with NAHB. (You can and should subscribe to the program at graphsandlaughs.net.) Here's what he said: "With house prices soaring by double digits and investors buying large numbers of homes, there is suddenly talk of another housing bubble. I doubt it. Affordability is still remarkably high, credit is being extended to only the best borrowers, and housing inventory, which is exceptionally low, has probably hit bottom and will now rise and in the process slow price increases. The problem will be a lack of developable lots." Elliot says, "Affordability is still remarkably high." And, of course, he's right. New home prices are still very competitive in relation to household earnings. So it's a great time to buy. However, if people still can't get financed, the price is still too much; the home is not affordable. Our industry has it's own financing issues that are distinctly different from mortgaged homes. But when it comes to affordability we have a lock on that! And by 'affordable', I don't refer just to cost, but value and accessibility. Cost I work with a number of clients that are homebuilders. They talk about affordability, but when it comes to cost nobody can touch what you can offer. The minimum cost to build a new site-built home is considerably more than you can deliver a brand new manufactured home of the same size and quality. They can't even come close. However, I never like to lead with price, and you shouldn't either. You might know that you have a price advantage, but the lower priced product can also be perceived as the 'cheaper' choice. Your challenge, then, is to focus on the other two aspects of affordability – value and accessibility. JULY 2013 22 THE JOURNAL Value 'Value' represents what your buyer will get for their money with your product versus another. It's how their dollar buys them more space, comfort, style, safety, security, etc. when they purchase from you. Value should be expressed in terms of benefits that are relevant to the buyer, both physical and emotional. I see us talking a lot about price, but not so much about value. That's a mistake. People who buy on price without appreciating the value tend to feel like they've 'settled' for our home rather than making a good value choice, so they're never quite satisfied with their purchase – or with themselves. They'll feel diminished rather than proud of their home. Likely you have people like that in your communities now. What kind of neighbors do they make? When we sell on value, on the other hand, buyers feel elevated and appreciative. They'll show pride in ownership and take better care of their homes and yard. They make the best neighbors and residents. They are the people you want in your communities. So, what are you doing to build value in the manufactured home lifestyle? After all, it is a lifestyle that people are buying, and you (we) have a lot to do with how that lifestyle is perceived. And that brings me to the third point: accessibility. Accessible It can be argued that people buy our homes and live in our communities because that's all they can afford. While I'm sure that is sometimes the case, it's not always true. That line of thought implies that as soon as they get 'back on their feet' or can afford 'better' home, they'll move on. But many of you have folks that have been in your home or community for 20+ years; people that can afford to move to a conventional neighborhood, but choose not to. Why? It comes back to lifestyle. You have residents that could afford to make a higher house payment to live in a 'stick and brick' neighborhood, but who choose to stay in your home or community because it affords them more comfort, less stress and more options. Perhaps they enjoy vacations or travel. Or maybe they are saving to put their kids through college. Either way, it's a lifestyle choice: living in your community allows them more discretionary income. 'Keeping up with the Jones' was the mantra of yesterday. Today, more people – many of whom were burned by living close to the edge in the past – are choosing to live well within their means in a more modest manner. The point is this: Focusing our marketing and sales messaging towards value and accessibility attracts a different caliber of residents and it raises the entire perception of our industry. Presenting the many benefits of manufactured homes (as opposed to selling on price) – and making sure our communities are in sync with those benefits – will attract more buyers who have a choice to choose to live with us. Your challenge now is to present the benefits of your home and/or community in a way that will resonate with more buyers. Do that, and everybody wins. T J Scott Stroud helps manufacturers, retailers and communities drive revenue and increase sales through marketing strategy and automation. Scott is an accomplished marketing strategist and Infusionsoft Certified Consultant and advises small businesses on sales, marketing automation & technology, nurturing programs and social media. Contact Scott at sstroud@builderradio.com, or call 606-677-0447.