There is a hunger for information among many manufactured home community owner/operators (CO/Os). In numerous states, land lease communities make up the majority of their state association's membership. Certainly when you look at MHI, the number of land lease communities members far outnumbers those who are involved in "street retailing."
The community owner/operator (CO/O) hunger for insights and answers differs somewhat according to the type of operation they have.
Some 15% of the MH Communities in the U.S. are owned by portfolio operators, who usually focus on the 200+ home-site sized property. This means that the other 85% of the communities are – what is lovingly referred to – as "mom and pop" owned properties. Professionals in each of these groups may face similar challenges. But their approaches to the issues faced are often quite different.
Regardless of property size, the degree of resources available or the sophistication of the respective among Community Owner/Operators (CO/Os) and their managers, there is that shared hunger for information that can help each operate and fill sites profitably. Within those needs lies the opportunities to serve them.
Nature abhors a vacuum. Where a vacuum is found, there is in nature pressure to fill it. Something similar happens in a free enterprise world, whenever a need is undeserved. So pressure exists to fill the need among communities.
Last year in Indiana, a Power Symposium was held specifically for CO/Os. Mark Bowersox and the Indiana Manufactured Housing Association team attracted 60+ members into a meeting focused exclusively on land lease community issues. The National Communities Council (NCC) attracts hundreds to Las Vegas as part of MHI's Congress and Expo. Somewhere in between in attendance is the retiring George F. Allen Roundtable.
Certainly each of the above can feel good about their attendance. But aren't we just scratching the proverbial surface with such events? This is not a criticism of anyone. This is a statement of fact and a call to action to fill the needs that exist. Let's look deeper.
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We have an estimated 50,000 communities, many with high levels of vacancies.
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There are an estimated 250,000+ total vacant sites nationally.
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So it seems clear we have plenty of upside potential in attracting more communities to association and related community focused events.
At the 2012 Louisville Show last January, we specifically put on a number of seminars, panel discussions and informational topics that would attract communities, without in any way neglecting retailers or developers. Even with snow on day two of the 2012 event, we easily broke the show attendance totals from 2011. In fact, attendance at Louisville from non-exhibitors was only marginally less than Tunica, which has become the largest manufactured housing professional trade days event in the country.
All told, 1500+ arrived at the Louisville Manufactured Housing Show in 2012. Great! This is about 7 times the total attendance for a Roundtable. That strong support is why the Louisville Show in 2013 will have even more to offer than 2012.
But candidly, this is still just scratching the surface when you consider the fact that perhaps 15,000 communities are within a day's drive of Louisville.
This year in Texas, their latest event registration totals suggest they will exceed their attendance from 2011, even though they moved their date up a month and thus have had less time to promote it. Caitlin at the TexasMHA has done a fine job of putting together a fine website just for their annual eventand has classy collateral that goes along with it. Topics to feed the needs of retailers, communities and others are all on the TexasMHA agenda.
The point in part is that there are efforts underway to feed the needs among communities. These are efforts that are worth building upon and expanding.
Marketing, sales, big name Industry leaders, regulatory, fair housing, management issues, financing on homes and commercial real estate loans for the properties are just some of the items that drew professionals in the door at the Louisville Show in 2012. The Midwest Manufactured Housing Federation (MMHF) and the Louisville Show Management plans to build upon that for 2013.
I've met on occasion an attendee at an event that is less than thrilled (you can't please everyone all the time). But the vast majority that come to an event like the Power Symposium in IN, the annual Texas' convention or the Louisville Show walk away feeling that they clearly benefited from the time, travel and meeting related costs.
I tell people who ask that one good idea alone will more than pay those attendance costs!
For those attending and engaging at such events, networking with your peers, friendships and practical business information are available all around. For those who haven't gone lately or ever, they have to ask themselves: aren't there obviously many good reasons why hundreds of my peers go to such events?
You can answer that, 'yes' or 'yes.'
At Louisville in 2012, my presentation began began near the end of the day's program and before it started, a 'mom and pop' couple near the front row said, "We've attended every single presentation." When you have had two days of presentations in a row, that is quite revealing. That CO/O couple were not alone. Others who heard their comment chimed in and agreed. When you have standing room only at so many presenations, it tells you there is a need, a hunger, among CO/Os and other attendees.
Those needs were being met in Louisville by the various presentations and panels and I expect them to be met at the upcoming TexasMHA's event too.
Clearly, more such events are needed. Far more CO/O and other attendees need to be attracted.
Certainly factories looking to increase their shipment numbers need to be focusing on ways to attract and connect with more communities. When you have an estimated 250,000 +/- nationally in communities, that is a lot of home sites that could be filled.
That statement should be echoed to lenders, insurers and other suppliers/vendors who could benefit from every new home sale that goes to fill a previously vacant site in a community.
Among the comments I've heard at meetings from Community Owner/Operators (CO/Os) include, but are not limited to:
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Fewer Good Used Bargains. The number of good late model used homes has dwindled.
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Costs have risen. The cost of acquisition of used homes has risen.
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Refurbishing costs mount. Manufactured homes dating from the start of the HUD Code to those built into the 1980s has taken place many times for CO/Os who have been doing owner-or-captive finance and for those
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Used manufactured home monthly payments are not as appealing as before. Because third party lenders often have a higher interest rate and shorter loan term on those 80s and early homes – if they lend at all – it can now be smarter for CO/Os to invest in new entry level HUD Code home inventory and market those to the public instead of used homes.
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New homes improve the community. New homes – duh! – look new! They thus spruce up the community and make it more appealing that a pre-owned home that has been refused for the 3rd, 4th or 5th time.
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New homes help attract better qualified clientele. New homes are one of many proven strategies explored by my presentation for the upcoming TexasMHA event attendees, Attracting More Customers with Cash or Good Credit. (Note, we will cover many other proven strategies in my seminar useful for street retailers as well as for MHCommunities, so don't miss it!).
The take aways from all this?
Many are possible. Among them where applicable, not necessarily in order of importance, are the following:
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Event and meeting planners need to consider topics that will attract more communities that are hungering for information. Naturally, this ought to be balanced with the needs of other professional groups – such as street retailers, developers and installers – in mind.
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Active and passive Invitations needed. There needs to be a realization that just because there is a need, those with the need often still require specific invitations or outreaches. Direct and indirect engagement of CO/Os are necessary. There are many CO/Os looking for information, but others who are more or less lamenting. We need strategies that get in front of both the “woe is me” group and those pros actively seeking solutions.
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Factories, lenders, insurers and other Business to Business (B2B) vendor/suppliers ought to team up with state, regional (such as Louisville or Tunica) or national association event planners. This is certainly taking place in different parts of the country. But where it is not, that teaming up ought to look something like this: the B2B firms will help subsidize the promotion of the event for an association in exchange for some time during breaks to talk to your attendees and to get their contact information.
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Hit the Hot Buttons. Attendees should be surveyed for their particular hot button topics. Those surveys can help craft the next round of information and education. Those surveys also ought to be shared with event co-sponsors.
For those interested in more specifics on attracting more communities to events, please feel free to call or email me, my contact info is below.
Naturally, every once vacant home occupied with a good paying resident is the goal for a CO/O. Every vacant site that becomes economically occupied is also a parallel goal.
Everyone Wins.
There are reals needs and a hunger among communities. Problems are always opportunities in disguise. Solutions and answers are available to fill those needs. So there are ways to bridge the gap where all involved can benefit.
Serving manufactured home communities needs could drive more revenues for factories (imagine what 250,000 home sites being filled is worth: $8-12+ billion!).
Serving those needs will drive more revenue for state associations from floor fees.
Problems are opportunities in disguise. Hungry people want restaurants and grocery stores. Hungry business professionals want solutions that make sense, delivered in a ways that makes sense. Done properly, everyone in the mix benefits.
Mid week, unless some hot news or a juicy topic breaks, let's try to take a peek at what ought to happen for boosting results for retailers – both boulevard retailers and those in communities.
Olympians spend hours daily being coached, in training and
self improvement. Why not invest a minimum of 15 minutes a day?
Winners invest time in their career.
In the mean time, If you hunger for more information and answers, please sign up for our twice weekly emails, dive into our excluisve Daily Business News, Featured Articles, Words of Wisdom, Cutting Edge, Inspirationblogs, and check out all the associations news. Take 10-15 minutes on our MHProNews home page daily. Scroll all the way down. Click on the menus at the top. You won't find more Industry news, tips and views you can use than right here at MHProNews.
I hope to see many of you in Texas, Iowa and Louisville among other events that coming up in the days ahead. Working together, we can feed the hungry and fuel this rise in shipments that began 11 months ago. ##
L. A. "Tony" Kovach
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