If You Know Grace, Dont Tell Everyone!

The issue of grace periods for rental payments has recently come up with several clients. Many managers seem to believe one of the first things they need to point out to a new customer is, Dont forget, even though your rent is due on such-and-such date, you have a five-day grace period.

Why, oh why, do managers and assistant managers feel this is a feature to be highlighted? Tenants dont need to be told about the grace period unless they ask. Its sufficient to clarify your policy of imposing a late fee at the close of business five days after rent is due. A long explanation simply isnt necessary.

Customers pay the most attention to the terms of the rental agreement when they sign on the dotted line. From the beginning of this relationship, you need to reinforce the fact that rent is due by the first or on the move-in date. And like any other financial obligation, there are consequences for not paying on time.

I urge you to eliminate grace-period comments from new-customer dialogue unless specifically asked. I think this will help tenants remember when their rent is due and not how long they can wait before they pay it.

Remember, customers who pay by automatic credit card, debit-card and automatic checking-account payments will never have to worry about your grace period. And they stay longer. Explaining the benefits of auto-pay is a far better practice than introducing Grace.

FedEx Joins the Storage Community

In a June 14 press release, FedEx announced a plan to use its Kinkos stores as storage places for the short-notice deployment of emergency-replacement parts, including biomedical supplies. Customers will be able to locate cities in the FedEx network closest to an emergency and have inventory ready for pickup or courier. The plan focuses on high-tech industries such as telecommunications and semiconductor manufacturers.

OK, FedEx clearly isnt getting into self-storage and none of us have to worry about Kinkos competing for residential customers. But its plan did get me wondering if there are other local organizations like the Red Cross or emergency management offices who may have never thought about using self-storage for advance deployment of non-perishable supplies such as cots and blankets.

A phone call or letter might get someone to realize your store is perfect as a distribution center. Also, FedEx/Kinkos marketing could help other companies and retailers better understand that outsource warehouses can actually save them money in freight costs and inventory control.

A Panera Bread Experience

As I write this months column, I am sitting in a Panera Bread location in Nashua, N.H. Its 7:15 a.m. and my flight isnt until noon. As Im enjoying my second cup of coffee (OK, a pecan roll somehow found its way onto my table, too), I spot the store supervisor, Carolyn, as she slowly walks through the store.

In her hand is a large binder, on which she dutifully works as she conducts what turns out to be her morning inspection. I see her make a note of a burned-out light to be replaced. She stops to straighten a couple of chairs and talks briefly to one of the early-morning crew.

This is what is making Panera Bread one of the top restaurants of its type in the nationattention to detail. The spot excels not only in product consistency but store operations. As I engaged Carolyn in brief conversation, it was evident she wasnt going through the motions but truly cares about the condition of her store. The checklist helps direct her actions and areas of attention, but its her attitude that makes the difference in how her staff acts with customers. We all know its hard to put a smile on your face at 7 a.m., but each of the counter people is doing just that as they greet customers.

It makes me wonder how much attention to detail we are putting into our facilities throughout the day. Do your employees have a checklist to serve as a reminder of things that should be reviewed? Even if a specific checklist has not been prepared, have you as the owner sat down with your staff to let them know what you expect? And when was the last time you were in your store straightening chairs, picking up trash or sweeping out a couple of units?

As I walk over for my third cup of Joe, I watch as the manager and one of her employees open up a ladder to replace the bulb. Less than five minutes from noting the problem, it was resolved. How long does it take for you and your team to react to something as simple as a burned-out light or a break in your fence? Returning to my chair, third cup in hand, I realize that employees at Panera Bread have once again given me an example of exceptional customer service we all can learn from.

Plan Now to Be in Las Vegas for Expo 2007

Its not too early to start planning your participation in the ISS Expo in Las Vegas, Feb. 20-23, next year. We are returning again to Mandalay Bay, which was just great this year. I am honored to once again be one of the presenters for the show. It already sounds like the 2007 attendance could break this years record. Details on the Expo are always available on the ISS website, www.insideselfstorage.com. See you in Vegas! 

Jim Chiswell is the owner of Chiswell & Associates LLC. Since 1990, his firm has provided feasibility studies, acquisition due diligence and customized manager training for the self-storage industry. He has served for a number of years as a member of the Inside Self- Storage Editorial Advisory Board. He is a co-founder of the new Self Storage Education Network (www.selfstorageeducation.net), providing online-based manager and owner education. For more information, call 434.589.4446; visit www.selfstorageconsulting.com.