Tuesday, February 12, 2019

Clayton's Newest Commercial is a Winner for the Entire Modular Home Industry

While most other modular and manufactured home companies are busy putting pictures of their latest homes being delivered and set on Facebook, Clayton Homes uses video commercials to get its message out to the home buyers showing that having a home built in a factory is the best way to go.



When I saw this commercial for the first time I was so impressed that I asked my wife and two neighbors to watch it to get their thoughts but first I showed them what our industry uses to entice new home buyers to buy a modular home.

When I showed them pictures that many factories and builders put on Facebook of modular homes being delivered, hooked to a crane and put into place with few if any pictures of interiors I noticed they couldn't understand what they saw and I had to explain each picture to them.



Then I showed them the Clayton TV commercial and when it finished I asked what they thought of it. They immediately understood it was built in a factory and they said they could live in that home. One of the neighbors said she really liked the decor.

No cranes, no houses wrapped in plastic and no 'ship loose' material to be seen. 

Hats off to Clayton for their great "prefabulous" marketing campaign.

3 comments:

Anonymous said...

I find their business model sends mixed messages. Let me explain, Kevin Clayton and company have bought themselves into site built home companies and from what I read they don't intend to introduce modular into those companies.

In addition, I just heard that one of their local retail units had stopped marketing or displaying modular homes. I understand every market is different and that business must diversify however you cant advertise on one hand how great a modular home is over site built in one market and say in another how great site built is over other methods especially since you are a national company advertising as A Brand.

I know manufactured homes are seeing a resurgence right now and your article on Skyline Champion is evidence of that however in many places today zoning prohibits both home parks and manufactured homes. This may be due to the fact that some communities recognize that affordable homes are needed or that homes purchased in the seventies and eighties need replacement.

I know someone smarter than me knows the answers to the hows and whys of the trends however I am just writing to present a differing side of the same story. Great video and presentation regardless.

Anonymous said...

Clayton has made a push into acquiring site builders for the land development, not to site build - they are testing out the concept of being like a tract builder. They have just successfully launched with Fannie Mae the MH Advantage program (https://www.fanniemae.com/singlefamily/manufactured-homes). The program takes a manufactured home, puts on a few residential features (higher pitch roof, exterior accents - gables/dormers, garage/carport), and sell for much less money. Here is the big kicker - They can use site built homes as appraisal comps!

Why? Money. Sell more manufactured homes. Think about it - It is much easier to manage a common federal building code for manufactured homes than the multitude of state/local codes for modular. Easier to mass produce.

If you want even more product confusion on manufactured versus modular, this is it. If you ask me, it could be a major nightmare for modular. However, if program becomes successful, I know we will look at picking this type of home up to capture a low end market and sell more homes. Much simpler.

As homes get more and more out of reach to the average buyer, this program becomes more and more enticing. It potentially fills a huge void in the marketplace. Clayton will be able to develop entire communities/subdivisions of these homes - not the trailer parks of long ago.

I strongly recommend residential modular builders pay attention to this. It won't be big right away, but in 5 to 10 years - it really could change the marketplace. Clayton has the pocketbook to make it successful.

Thomas Rusing said...

What a great job they did to keep it light-lively and fun. This is good for the industry, great job Clayton!