When faced with increased competition, most storage owners become reactive instead of proactive. For example, when a facility opens down the street, most operators decrease rates and offer promotions out of fear of losing market share. Instead of anticipating and preparing for increased competition, theyre caught by surprise.
Is it possible to hold rates steady or even improve income per square foot in times like this, or is it too risky? Yes, it can work, but only if done properly. In fact, if rates are increased it might entice the new competitor to hoist rates as well, making it a win-win for both parties.
To combat competition and enhance profitability, develop proper systems and create accountability within a self-storage operation. This will hold your team accountable to achieve goals and objectives set forth by management.
Track Record
Most operators need better systems to hold their teams accountable for achieving better results. For instance, its imperative to track and measure key operational performance areas to improve. How can you gauge improvements if you dont know where you stand?
One measurable subset is how many callers are converted to renters? How many walk-in customers are you converting? If you track this number and keep records, youll be able to compare numbers side by side and see how well youre meeting goals for improvement.
Let your sales team know what is expected in terms of results. This gives each person a measurable scoreboard of where they stand in relationship to what is considered poor, average, good and great performance. Setting a standard of performance inspires them to become accountable for their efforts and motivates them to achieve long-term success.
For example, you might set a monthly goal for unit rentals that is realistic but challenging. This gives managers a goal to work toward and helps define the differences between acceptable and exceptional performances. Managers like monthly goals: Theyre more immediate and easier to track. If the team is having a challenging month, members can wipe the slate clean for the current month and look forward to refocusing on the next four weeks.
By providing a monthly storage goal, you measure results and pinpoint areas for improvement within the sales program. Once weaknesses are recognized, additional training can be administered to strengthen the sales process. The new discipline within your organization can help polish up your entire sales act!
Reviews
Most operators have a subjective review process for evaluating employee performance. This takes away from creating an atmosphere of discipline and often leads to staff becoming complacent in job responsibilities. For example, if a manager doesnt clearly understand his job description, hell likely fail to meet expectations.
But what if the manager had control over his own destiny and outcome of his performance review? Can this be accomplished? Again, if administered and communicated properly, yes!
Objective appraisals enable employee accountability at a higher level. Perhaps consider a monthly audit part of annual performance reviews. Below are few of the areas you should evaluate:
- Achieving monthly storage goals
- Telephone mystery-shopping scores
- Sales-conversion ratios
- Customer referrals
- Key influencer referrals
Include only measurable categories impacted by the performance of employee, who now has more control over the outcome of his review. He knows what to do, what he needs to score well, and shouldnt be surprised by the outcome of his appraisal. Dont forget to review administrative functions and other key areas of the business.
Mindset
As markets experience over saturation, the average operator must find ways of improving efficiencies and motivating managers. It doesnt mean giving away the store when competition busts into the marketplace.
Your mindset will determine the outcome. If your teams attitude is to focus on proactive ways to improve operations, youll weather the storm. Facing adversity will either strengthen or weaken the success of a self-storage operation. If handled properly, increased competition can take your operational performance to an entirely new level.
Competition will continue. You cant change that. But you can equip yourself to handle the situation with optimism. Doing everything consistently well over the long-haul should be an ongoing goal. Unfortunately, many operators feel theyve arrived and reached their highest level of success. Dont become complacent; dont let the competition drag you down. Theres no destination point to success its a continuous effort.
Brad North is founder of Advantage Business Consulting, which specializes in onsite sales, marketing, feasibility and operational training for the self-storage industry. He has produced two live videos and a workbook titled Maximizing Your Sales and Marketing Program, designed to help managers improve their sales and marketing efforts. He most recently launched A TelePro, a mystery shopping service for educating, evaluating and improving the phone-sales performance of self-storage professionals. For more information, call 513.229.0400; visit www.advantagebusinessconsulting.com.