Issue link: https://read.dmtmag.com/i/76207
MARKETING CONSULTANT Selling To – or Against – Buyer Perceptions -- Part 1 BY SCOTT STROUD A few weeks ago I began following a rather lively discussion unfold (on the LinkedInMan- ufactured Housing Professionals group) about whether or not the manufactured housing in- dustry is going to survive in the recoveringmar- ket. Or, as one writer put it, Is theMHindustry extinct? The question itself is purposefully absurd.Of course the industry is nowhere near 'extinct'. The author that asked that question was merely pointing to the reality that times and markets change, and that we, like every other industry, need to change how we do business in order to meet new challenges. And we do have a problem that needs to be addressed. It's one of perceptions. The facts are that the homes that manufacturers are turning out today are stun- ningly beautiful, efficient and of superior quality to most site-built homes. But, the perception in the market is lagging far behind that reality. Cry all you want, to most po- tential buyers, we're still the mobile home industry. But, that perception can be fixed. In fact, break within a week. Today though Sony, Lexus and Yamaha are among the highest qual- ity products in their respective markets. Toyota is the #1 automobilemanufacturer in The manufactures are delivering the quality and the value; it's up to the retailers and the communities to followsuite and continue elevating our image accordingly. it can be turned completely around. Not overnight, but it can be done. It's been done before. 50 years ago if something had the label 'Made in Japan', it meant that the item was about a cheap as it could be. It was horribly inferior in quality and was either a toy or would probably AUGUST 2012 20 THE JOURNAL the world right now and has one of the highest quality ratings. They got their start building boxy little cars that sold because they were ba- sically reliable and cost less than any other al- ternative. In fact, the first Toyota was imported into the U.S. in 1957 – the Toyota Crown. It sold for $2,749. But look how they've changed their image – and market perceptions. A Toy- ota Land Cruiser sells for over $70,000, and a Lexus LS Hy- brid starts at $112,750! How did 'Made in Japan' turn fromtrash to treasure? Japanese manufacturers started by seeing the 'silver lining' in how their products were per- ceived. They were less expensive than other alternatives, and that attracted buyer's attention. But buy- ers also knew not to expect much in the way of quality. So, all the Japanese manufactures had to do to start with was slightly exceedmarket expecta- tions. That created more satisfied customers, and word began to spread that these products weren't so bad after all, at least not for their cost. The next level of buyers expected a little more, and the producers continued to deliver slightly higher than expected…And so on until they achieved market dominance across several diverse industries. It's happening again with the Korean auto and electronics markets. Even in the rural grassroots area of Kentucky where I live, my tiny town is crammed with Kias and Hyundais. Why? Because their value proposition is through the roof – a lot more car for a lot less money! Then, they back that with incredible warranties and value assurance programs that take all the risk off they buyer. And it's work- ing. So, how does that apply to themanufactured home industry today? Look at your value proposition. It is truly unbeatable – a whole lot more house for a lot less money than stick-built; better warranties; faster delivery times; lower cost of entry… The manufactures are delivering the quality and the value; it's up to the retailers and the communities to follow suite and continue ele- vating our image accordingly. And I see that happening already. And here's the important thing to remember: Buyers may not understand all the advantages of manufactured homes, and they may be bur- dened with prejudices and misperception… but they want to believe that the lowest cost option is their best option. In short, they want what you've got! Understanding Buyer andMarket Perceptions The Japanese and Korean companies – and dozens of other turn-around companies here at