For several years, self-storage owners and operators have asked the questions: How can I simplify records storage? and Can I do it myself without a lot of front-end cost? Today, because of technology and technique innovations, it is not only possible but quite practical. This article discusses these innovations and the implementation process of a records-storage product that diversifies your business and improves square-foot yield.

First lets take a moment to recount the benefits of record storage within self-storage:

• Improved yield by renting cubic rather than square feet
• Increased contract term from 30 days to essentially permanent
• Long-term revenue growth that always increases each month
• Compound storage growth rate of between 7 percent and 25 percent annually from existing accounts
• Product diversification and differentiation from competition
• An opportune cross-sell item
• A catalyst for additional box sales
• A platform to launch a full-service records-management business

The first of our questions is, How do I make this simple? We have a tendency, in our fast-paced world, to overly complicate things. This is easily done with computers and technology that never seem to slow down the pace of our life. So, in this instance, what we need to do is get back to the basics. Records storage at its base is quite simpleit is inventory control.

Businesses all need to keep their records, whether they like it or not. No one likes to keep these things, but they must; and they generally do not know what to keep and what to throw out. You may have a simple, inexpensive and easy solution for them right in the palm of your hand.

Lets define a simple records-storage system. It is made up of seven components:

1. Box storageStorage of boxes can be facilitated by creating only three box-size categories. Box size No. 1 is anything up to and including 1.2 cubic feet; box size No. 2 is any box that measures greater than 1.2 and up to 2 cubic feet; box size No. 3 is any box that measures between 2 and 3 cubic feet. Charges are assessed at the rate based on the box size.
2. Box retrievalThe issue of inventory control requires that someone carefully manage the account. It necessitates a simple check-in and check-out system using barcodes. You create a work order, pull the box, scan the barcode, and move the box to a shipping area.
3. Box deliveryOutsourcing this step to an independent courier is a key to simplicity. Of course, selecting the courier, training him on the process, and managing the process is very important.
4. Box re-filingRe-filing boxes into storage is done as a batch process. As boxes come into inventory, you stage and barcode scan them into a temporary receiving area. They are returned to shelf storage only when you have the time. Batching the work process makes labor cost inexpensive and increases work-unit profitability.
5. Box indexingAlthough more indexing is always best, many records centers require a client index the box so they maintain only a box number as a reference. Box numbers can be the barcode number, which is scanned by a reader, and no keying is required.
6. Creating client reportsFrom time to time, clients require reports. The inventory-control system can easily generate them. This service can be quite profitable.
7. BillingMonthly billing is done in advance for storage and in arrears for services. The major records-management software products all have a billing module with exports to standard accounting packages such as QuickBooks.

Do It Yourself

Our second question is, Can I do it myself without a lot of front-end cost? Of course, there will be some cost involved with this business decision. What we want to achieve is low front-end cost and 90 days to profitability. Lets look at the cost components and see how we can recover them quickly. They include software, racking, setup process tools, training and support.

1. SoftwareDo not think you can store records without software. That is a certain invitation for failure. Software is available in a low entry-cost, small-business version.
2. RackingThe cost of racking in self-storage generally equals about four to six months of records-storage revenue. It is purchased only as you need it, one storage unit at a time.
3. Set-up process toolsThese are available from vendors and include business processes, strict control and management oversight.
4. TrainingThis is essential, but it must be repeatable so that, as personnel changes, there are no glitches in the turnover.
5. SupportTo ensure success, you will need ongoing support. It is available on a contract or as-needed basis from several industry sources.

The answer to both questions we posed in this article is yes. The implementation of a records-storage business within the walls of an existing self-storage facility can be a painless process that takes less than 90 days.

Regular columnist Cary McGovern, CRM, is the principal of FileMan Records Management, which offers full-service records-management assistance for commercial records storage startups, marketing assistance, and sales training in commercial records-management operations. For assistance in feasibility determination, operational implementation or marketing support, call 877.FILEMAN; e-mail [email protected]; www.fileman.com.

This spring, we’ll all be running round like mad March hares. For those of us in self-storage, our fill rates should be only going one way—upward. So cheer up and think about new marketing initiatives to make the most of the seasonal uplift in the home moving sector. March through September is the time to make hay while the sun shines.

There is no doubt self-storage is a seasonal business, especially when it comes to the monthly fill rate for an immature facility. The more domestic customers you have, the more seasonal your fill rate will probably be.

The bottom line is, if you’re going to make your annual target, you need 12 months worth of fill in the nine months of spring, summer and autumn. I’d say more than half of all facilities in the United Kingdom suffer from winter blight. There are also those who manage to not only limit the damage, but to find or create opportunity in the late autumn and early spring, which carries them through the bleak winter.

Opportunity is one of my favorite words, and life is full of it. To find an opportunity for the cold winter and holiday season, think of what this time brings. The big autumn push should be completely focused on Christmas. Why? Because everybody buys loads of stuff during the holidays. From whom do they buy it? Retailers. What’s a retailer’s most expensive overhead? Space.

Let’s face it, if a retailer has a stock room in his expensive retail square footage, it isn’t going to be large. So while it may be full 10 months of the year, for two months, it isn’t big enough. That’s where your winter-blight marketing strategy comes in.

Early to mid-autumn is domestic move-out season. Tenants leave in droves, and this retail-focused strategy is designed to combat that domestic fallout. An effective, focused marketing strategy delivered to local holiday-driven retailers is an investment in time worth making. It’s a cheap marketing tool and easy to implement. Just get out of your cozy office and knock on the door of every retailer in your local vicinity and tell him how he can make more money—by buying in bulk and meeting demand, thanks to a local, short-term storage unit. Hey, I believe it and can sell it, why can’t you?

Believe me, it works. This no-cost promotion can more than offset your domestic fallout and keep your fill-rate moving upward through October and November, and carry you through December—but only if you’re clever. If you suffered from negative fill late last year, you’ve got no excuse not to try my suggestion. If it works and our paths ever cross, you can buy me a beer!

It is time to take stock of last year and implement plans for the new. Every year, and every season, is a new chance to market self-storage. All you have to see is the bigger picture and turn it into an opportunity. We will all soon be Mad March Hares, so make the most of the available market while the sun shines and your facility fills.

Andrew Donaldson is the founder and chief executive of Active Supply & Design (CMD) Ltd. of Cheshire, England. He is also the founder of the Self Storage Sentinel newsletter, Rent-A-Space Limited (now a multi-site operator) and selfstorage.uk.net. For more information, e-mail [email protected]; visit www.askactive.com.

Internet-based technology can give a storage facility a dramatic advantage over its competition. Tucson, Ariz.-based Online Self Storage Inc. is an Internet-development and marketing company focused on providing e-commerce solutions to the self-storage industry. It launched its first self-storage Internet transaction-processing application in 2000 and now has more than 400 facilities using its products.

This year, Online unveils another exciting aid to the industry a self-service kiosk designed to allow customers almost unlimited access and convenience. Known as SAM (Simplified Automated Manager), the kiosk allows customers to assist themselves through the self-storage process and makes a managers job more productive. Online partnered with CTS (Consolidated Technology & Solutions) Group and Hi-Tech Smart Systems Inc. to develop the kiosk software.

SAM allows customers to walk up to a storage facility after hours and access its services just as they would use an ATM. Placed outside a facility, the walk-up kiosk lets tenants process transactions and view their account information. A customer can even pay a past-due account and regain access to the facility. The system accepts credit cards, e-checks and direct debit for payment. SAM will even help prospects conduct a new rental. When the transaction is complete, the kiosk provides the customer a rental agreement, gate-access code and receipt. His information is automatically saved to the property-management database, and the whole rental process takes about five minutes.

The kiosks can assist owners in managing a remote facility with data tied to a larger one or manage a small, standalone facility without a manager. They can be used to expand a facilitys hours of operation, or help reduce personnel costs. With the addition of SAM to a facilitys property management database, managers can be more productive. They have more time to focus on marketing the facility to local businesses and customers, or focus on improving overall operations.

Each kiosk comes complete with property-management software and Internet integration to a facilitys e-commerce database. It has an attractive, easy-to-use interface with either a vandal-resistant, built-in keyboard and trackball or optional touch screen. Powered by an Intel Pentium computer, the kiosk is equipped with a magnetic card reader, laser printer, 15-inch LCD screen and a battery backup.

SAM is 60.1 inches tall by 22.6 inches wide by 20 inches deep, and weighs 165 pounds, allowing it to be easily installed in a small space. The units are internally air-conditioned and heated, and are delivered with all cables and wires. A service door at the rear of the unit allows easy access for the manager. A maintenance and support agreement is included.

CTS Group will be introducing a new version of the kiosk that is weatherproof and requires minimal facility construction at this months Inside Self-Storage Expo in Las Vegas, says Onlines president, Rick McGee. McGee has 18 years of experience in starting and growing companies in the software-development field. His specialty involves strategic set-up, sales and marketing. Online Self Storage is McGees latest development and, in three years, the companys annual revenue has grown 100 percent.

The companys Internet transaction-processing applications allow a self-storage owner to link his website with Onlines server and engage in e-commerce without having to write or purchase his own software. Online processes nearly 10,000 transactions monthly, 80 percent of which are payments and 20 percent new rentals, according to McGee. Other services offered include a website design, hosting and maintenance service, and Call MAXimizer, a call-center service designed to answer overflow and after-hours calls and extend a facilitys customer service capabilities.

Online is very excited to be working with CTS Group to provide an additional source of customer service and extend the transaction processing capabilities of a facility to 24 hours a day, 365 days a year, in a secure, user-friendly environment, McGee says. Owners of selfstorage facilities can now improve their bottom lines while providing more customer service by leveraging the capabilities of SAM. For more information, call 877.301.4635; visit www.onlineselfstorage.com.

As winter snow melts and spring months deliver frequent rain, floods become one of the most common natural disasters experienced by residences and businesses. In addition to excess waterfall created by seasonal changes and weather, drainage-system failure, inadequate dams and other plumbing mishaps are also causes of flooding.

The worst floods occur where land is flat and low-lying. These areas are known as flood plains. Mud, earth and a plethora of man-made objects can be carried long distances by flood water, uprooting and destroying anything not firmly attached to the ground. You dont have to be in a flood plain to be at risk for damage. Floods can happen anywhere at any time. Even typically dry states such as New Mexico and Arizona can be prone to flash floods, which happen quickly with very little or no warning.

Flood Coverage

Did you know self-storage insurance policies, like most commercial policies, do not include flood insurance? Many facility owners do not realize their standard business policy does not protect them until its too late. As a matter of fact, only a small portion of businesses exposed to the risk of flood damage are insured.

Fortunately, its easy and inexpensive to protect yourself against flood through the National Flood Insurance Program (NFIP), which is backed 100 percent by the federal government. The NFIP divides risk areas into three basic groups: low, medium and high. Less than one-third of all reported flood claims come from high-risk areas, and more than one-quarter come from low-risk areas. Thats why most business-insurance experts strongly recommend you have flood insurance, even if you are at low risk.

Before the NFIP program, people only had their community and charity organizations on which to depend. The problem with that was government assistance in each area was limited and inconsistent. Flood insurance was sparse because the people who bought it were only those living in flood-prone areas, making insurance rates expensive. In the late 1960s, Congress took notice of these problems and passed the NFIP. It was designed to assist with costs of loss; inform and educate people to build up and away from flood-prone areas; and set forth requirements on building construction to prevent and deter flood damage.

You can get good and affordable coverage even if your facility is in the boundaries of a flood plain. Flood insurance costs an average of just a few hundred dollars per year for businesses; and a special, low-cost, preferred-risk policy is available for businesses in less-hazardous areas.

The NFIP and its write-your-own (WYO) servicing companies guarantee coverage for anyone in a high-risk area. Depending where you are located, it may not be necessary to purchase flood insurance at maximum amounts. If you are outside a designated high-risk area, you can purchase partial coverage and receive an ACV (actual cash value) payout for damages up to the purchase amount. However, if you have a lot of equity in your buildings and property, you may want to consider purchasing excess flood protection, which is available up to twice the regular limit. This extra protection may be very prudent given inflation and construction costs.

Plan Ahead

You can purchase flood insurance at any time but, there is a 30-day waiting period from the date of your application before coverage goes into effect. It is essential to plan ahead and get coverage from your agent before flooding occurs to ensure you will be covered if disaster strikes. Some emergency considerations to make would be to establish an action plan for monitoring storm activity, preparing for flood conditions, and implementing emergency-salvage operations. It is important to know the history of your area to better anticipate flooding potential. Another precautionary measure would be to document the interior and exterior of your facility and valuables with video or photographs to aid in the event of a claim.

Monitor weather reports through National Weather Service advisories. Every so often, see that all outside doors and windows are tightly secured, and check the conditions of flood doors, gates, walls, dikes, etc. Test all sump pumps for proper operation. Back up all important computer files and records and store them in a secure location. If you suspect flood conditions, shut off gas and electrical service and relocate valuable possessions to safe elevations. Stay calm if disaster threatens. Be prepared to evacuate the area immediately.

If a flood has occurred, begin salvage activities immediately, giving priority to your most valuable property and possessions. Remove flood debris, and drain all standing water as soon as possible. Dehumidify damp areas as thoroughly as conditions allow, and return fire-protection systems to full operation as soon as possible. Carry valid identification, along with proof of residency and your business license. Drive carefully through debris-strewn areas and areas with standing water. Last but not least, contact your insurance-claims representative immediately for adjusting and related services.

Universal Insurance Facilities Ltd. offers a comprehensive package of coverages specifically designed to meet the needs of the self-storage industry. For more information, or to get a quick, no-obligation quote, write P.O. Box 40079, Phoenix, AZ 85067-0079; call 800.844.2101; fax 480.970.6240; e-mail [email protected]; visit www.vpico.com/universal.

A loaf of bread in every arm. OK, so it is not your usual corporate mission, but it has been the passion and focus of Panera Bread since 1981. The chain has grown to 558 corporate and franchise locations.

Why is it a restaurant chain that sells breads, pastries, bagels, sandwiches and soup can be making such a name for itself? According to research conducted by TNS Intersearch, the company scored the highest level of customer loyalty among quick-casual restaurants. It also earned an esteemed Choice in Chains award, sponsored by Restaurants and Institutions magazine. Nations Restaurant News cited Panera Bread as being No. 1 out of 118 competitors in a national customer satisfaction survey of more than 71,000 consumers. According to a company press release, Panera has won best of awards in nearly every market across 35 states.

How is this possible when the company works in a very competitive environment? It has competition across the street and down the block, as well as new rival stores being built all around it. Is this starting to sound like another industry you know?

If you have never visited a Panera Bread store, let me give you the answer in five words: consistent product and service execution. I have enjoyed a coffee and a bagel or a bread bowl of soup in Panera locations across the country. Its products are always fresh, and the customer service is always superior. Its stores are always clean (including the bathrooms), and the counter people actually seem interested in getting you what you ordered.

Panera Bread is winning in a competitive marketplace because it has distinguished itself with its products, as well as its management teams approach to customer service and satisfaction. Its success is not because it provides the cheapest cup of coffee in town or gives away its products with discounts. It is successful because of consistent product and service execution.

I have been in hundreds of self-storage facilities during my 19 years in this industry. I have seen first-class facilities with secondclass employees floundering to meet their budgets and the financial goals of the owners. My comments are directed not only to fulltime managers but, in many cases, relief managers and part-time employees. The old adage that a chain is only as strong as its weakest link is equally true for our industry.

Do you have consistent execution of your management systems and customer-service programs in your stores? Does every customer look at a clean rental unit when the door is lifted? Is the phone dialog centered on convincing the prospect to make an appointment to come to the store? Is every customer who walks through your office door treated with a smile and a warm handshake? If not, I recommend you look for a Panera Bread location near you and go have a cup of coffee. Look for lessons that can be applied to your own store.

Are You Looking for the Curve?

It is no secret to the people who have met me that Im a plus-size guy. And being on the road about 75 percent of the time means a lot of nights in hotel rooms. My recent experience taking a shower at the Hyatt in Minneapolis showed me the value of a curve.

For me, taking a shower in a standard tub is a constant game of shower-curtain magnetism. It seems every movement increases the magnetic power of the curtain. Hyatt has a better ideano, not the expense of a larger tub. The company has simply changed the straight shower-curtain bar for a curved oneand an additional 6 inches of shower curtain. The result is a luxurious feeling of being in a huge shower. The other outcome is Hyatt will have me as a customer more often.

It is a simple and relatively inexpensive change, but it produces a major difference in the experience for the user. I wonder what curved curtain-bar ideas might be in the self-storage future. It could be outfitting units with shelving as a permanent fixture for business customers (with a corresponding increase in rental rates). Have you found a new curve at your store? If so, please drop me a note and I will feature it in an upcoming column.

Speak Effectively in Front of a Group

Speaking in front of a group is one of the average Americans biggest fears. All of us are speaking to people every day as a part of our jobs. While it is not always possible to send your staff to lengthy speaking seminars in faraway cities, it may be possible to have them go to the local coffee shop or hotel on Tuesday mornings to participate in a Toastmasters International group meeting.

Toastmasters groups bring together people from all walks of life, with a common goal of self-improvement. The following outline, taken directly from the Toastmasters International website, www.toastmasters.org, will explain how the program works.

• The Toastmasters program exposes each participant to a wide range of communication experiences.
• Each new Toastmaster receives a New Member Kit, which features a copy of the basic communication and leadership manual, general orientation materials, and information regarding skill-improvement in areas such as speech evaluation and the use of gestures.
• The initial prepared speeches, as outlined in the basic communication and leadership program manual, are designed with the new Toastmaster in mind.
• A variety of assigned speeches help the participant develop competency in areas such as organization, voice inflection and persuasiveness.
• During the meetings Table Topics session, members learn to think on their feet by delivering short impromptu speeches, lasting one to two minutes.
• After giving a prepared speech, each Toastmaster receives a constructive speech evaluation. This process recognizes speakers for their strengths and provides valuable insight into problem areas.
• Upon completion of the basic communication and leadership program, Toastmasters may participate in the advanced program. Participants may choose from specific business-oriented topics, such as speeches by management and technical presentations.
• Workshop-style success/leadership programs are also available, offering opportunities for further skill development in areas such as leadership, public speaking and conducting business meetings. These programs are especially effective as in-house training and can be tailored to meet the needs of your company.

You can find a group near you by visiting the website and clicking on the Find a Club button at the top of the homepage. Oh yes, Mr. or Ms. Owner, there is another reason to consider encouraging your managers and other key employees to join Toastmasters: Each club is made up of local residents and business people who could turn into future customers as they network with members of your team.

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. In addition to being a member of the Inside Self-Storage Editorial Advisory Board, he contributes regularly to the magazine and is a frequent speaker at ISS Expos and various national and state association meetings. He recently introduced the new LockCheckTM inventory data-collection system to the self-storage industry (www.lockcheck.com). He can be reached at 434.589.4446; visit www.selfstorageconsulting.com.

Several months ago, I was in the local mall looking for a new pair of sunglasses. When I entered one specialty store, my initial reaction was disappointment. I was unimpressed with the displays and personnel, and the absence of images associated with the product. Displays were old and desperately needed to be cleaned. None of the employees welcomed me or asked if I needed assistance.

After looking at various pairs of sunglasses, I did find a pair I liked. However, when I removed them from the case, I noticed a thin layer of dust covering them. I wanted to learn more about these particular glasses before making my purchase. Unfortunately, the only information I could gather was they were manufactured by a well-known designer, they cost $100, and my hands were getting very dirty from holding them. I left the store.

The second store I visited was significantly smaller than the first; but immediately on entering the store, I was greeted by a salesperson who asked if I needed assistance. He showed me a pair of glasses just like the one I had tried in the other store. He gave me information about them such as the warranty, the amount of protection against UV light and the material of which the glasses were made.

As I looked around the store, I saw it was professionally merchandisedit was obvious the owners understood what they were selling. I could see my reflection in the glass of the displays, and the manager did a great job keeping the store spotless. There were colorful advertisements displayed of attractive men and women wearing sunglasses. The only difference was these sunglasses cost $130 instead of $100. Everything about this store made my decision easy. I spent the extra $30.

What does this have to do with self-storage? First, it demonstrates how easy it is to win or lose customers. Remember, your facility is like any retail business. First impressions count! Customers buy where they feel comfortable.

Store personnel, displays and environment are important factors. If customers enter your office areaexcuse me, your retail areaand see poorly packaged products or carelessly merchandised displays, you are silently communicating many things to them. Having a clean store, nicely merchandised displays and informative personnel all give customers important clues about the way you do business. The wrong first impression makes a potential customer not only uncomfortable about purchasing supplies but possibly about renting storage space.

A professional image is one way to help rent units, and good merchandising is part of that image. It doesnt only increase retail-supply sales, it gives customers confidence in doing business with your organization. Once self-storage operators understand merchandising is an important piece of the marketing puzzle, theyll understand its not just about selling moving supplies.

The truth is, customers are always judging you when making their buying decisions. Saving a penny here and there on supplies is important; but what good is it to save pennies if you throw away dollars by not effectively merchandising your store? Youve already spent a significant amount of time and money building or buying a facility. Dont stop there! The sales office/retail area is one of the first things a potential customer will see when visiting your facility. If he is unimpressed, you might not get a chance to talk about the benefits of storing at your property.

Roy Katz is president of Supply Side, which distributes packaging as well as moving and storage supplies. The company has developed merchandising programs for many leading companies including Storage USA, the U.S. Postal Service, Kinkos and Mail Boxes Etc. For more information, call 800.284.7357 or 216.738.1200.

Renters of Caughlin Ranch mini warehouse and RV sin Reno, NEV., often ask co-owner and onsite manager Bob Ryan if they can have his job. From the cascading waterfall surrounded by verdant landscaping to the posh three-story managers home, the entrance to the 7-acre facility looks more like a luxurious hotel than self-storage. The opulence doesnt end there. Theres also a 120-foot-deep-by-30- foot-wide underground cave for wine storage and ample boat and RV covered parking.

The $5 million facility, which opened Sept. 1 and was 20 percent leased in three weeks, garnered prestige from the self-storage industry, as well. Mini-Storage Messenger magazine named it Facility of the Year for 2003.

Caughlin also has the honor of being the only self-storage facility in its area. The Caughlin Ranch area is sort of the Beverly Hills of Reno, Ryan says. The master-planned community has very strict CC&Rs that forbid driveway RV and boat storage. But unlike many facilities forced to fight neighbors and planning boards, this storage center was welcomed with open arms. The master plan, written some 20 years ago, even called for a self-storage center. We really fill a need for this particular community, Ryan says.

The Caughlin Ranch Mini Warehouse is the creation of Ryan and business partner Gary Sabatini, a partner at Sierra Management, which also serves as the property-management company for another Reno facility. Two years ago, Sabatini, a longtime friend, approached Ryan and his wife, Lonae, about the business venture. Although the couple had no experience in the self-storage industry, they took a leap of faith, selling their house and Ryans business, and moved to Reno.

Were both in our sixties, and its sort of a retirement-type of job, Ryan says. With Garys background in investing, we felt fairly competent. Mike Crom, the general contractor as well as an investor, also joined the team.

Construction began in June 2002 but was met with some delays while obtaining proper permits from the city. The partners broke ground in December 2002 and completed construction in just under a year. The facility encompasses 360 storage units of various sizes, including 10 15-by- 60 units, 77 indoor RV/boat units and 50 canopy-covered units. The managers living quarters totals 1,880 square feet with a 1,280- square-foot garage. The 680-square-foot office is detached from the house. The home even has an impressive view of Reno.

The 35-foot waterfall greets customers as they drive up. Next to it is the entrance to the wine storage cave. Landscaping totaled a whopping $100,000. The care and expense in detail can be greatly attributed to the community. Homes range from $200,000 to $3 million. The facilitys façade needed to blend with the surrounding neighborhood.

Being that it is such an affluent community, building a high-end wine storage facility seemed a no-brainer. The first 80 feet of the cave is designated for valuables such as furs, fine art or furniture. The remaining area is for wine. There are 275 wine lockers of various sizes, holding as little as nine cases or as many as 70. Ryan is also taking orders for custom lockers. The wine cave, which opened in October, has been well received. Were getting a lot of calls. And Ive already rented out one of our large units to the International Wine and Food Society of Lake Tahoe. They have about 100 local members, and well get involved in their wine-tastings, Ryan says.

Security is also a top priority. In addition to having on-site managers, 24 hours a day, seven days a week, the facility has video surveillance and control gates with limited access. We feel this is without doubt the premier facility in Reno, and one of the premier facilities in the United States, Ryan says.

For more information, call 775.826.8777.

In 2001, several key people from City Self-Storage and I visited Poland and the Czech Republic to scout for possible places to open more facilities. The owners of the company had been evaluating Warsaw, Poland, as a potential market. One owner, The Selvaag Group, had already opened an office there to observe the market closer, and so we visited.

Warsaw seemed like a world of concrete buildings, and since the weather was bad, we had an unusually poor first impression of the city. There were lots of buildings for sale, but the prices were sky high after several years of boom in the real estate market.

The day after, we visited Prague, the capital of the Czech Republic. This city is a little bit smaller than Warsaw, and we received a very different impression from it. It was sunny when we arrived—about 90 degrees—and our hotel was in the middle of the old town. We wanted to move there immediately. When we met with brokers the following day, they told us the type of real estate we were looking for was plentiful and cheap. We thought we were in self-storage heaven.

Four months later, after more studies on the disposable income of the local residents, and after looking closer at the large group of Americans and Germans living in Prague, we decided to open several self-storage facilities in the city. But because we had no connections there, I wasn’t sure where to begin. I had heard horror stories about Western companies being robbed by the mafia or their own employees. One company told me that when it visited its local office in Prague, everything was gone—the people, furniture and cash in the bank. They lost more than $100,000. We were going to transfer nearly $2 million to cover expenses. What if it all disappeared?

The solution was close to home. I called my brother, Christian, who had successfully turned around another of our small companies in Oslo, Norway, in the totally unrelated field of gas stations and quick car lubes. I asked him to oversee the operations in Prague. After some negotiations, he was on his way.

In the former communist countries, everything is difficult. Just to rent an office takes forever, and getting phones and other equipment is a hassle. I suggest using a hotel-office provider, such as Regus, a worldwide operator of business centers. It is much more expensive, but it will probably be cheaper in the end.

We quickly found a property to buy, an old factory just five minutes from the city center with fantastic frontage off the street. It was 75,000 square feet, ready to be converted into the first self-storage site in Eastern Europe. We figured the purchase transaction would be quick. Four weeks later, we still had not met with the seller. When we finally reached him, nailing down a selling price was difficult. Rather than giving us an asking price, he wanted to know how much we were willing to pay. We were told this is how it works in the Czech Republic. The maximum price a buyer can pay is the starting point for negotiations. Clearly, it was not the way we do things at home in Scandinavia.

Unfortunately, the day we were supposed to meet with the seller was Sept. 11, 2001. When we walked into the meeting room, everyone was pale. We were told of the terrorist attacks in New York and Washington, D.C. Our problems seemed very small, indeed. It was strange to negotiate while wondering if World War III had begun. But we were able to complete the transaction.

The next phase of the project was to get the needed permits to convert and operate the facility. It was much harder than we ever imagined. I participated in a meeting with one of the technical departments of the city, and I could not believe my eyes. The meeting room was full of beer bottles, and there was even a canary in a cage! The people were friendly enough, but I understood why things took time. After seven months and many, many meetings, we finally got the permits to open.

One positive experience we had was the hiring process. Young professionals in this city speak English well and are interested in working for foreign companies. The work morale is high, and it was easy to find a dynamic, friendly and driven staff.

We finally opened the facility in May 2002. We had a high number of calls to our office, so we thought the site would fill up in record time. That did not happen. Our marketing plan had been successful in reaching the middle class, but they could not afford self-storage, even if the demand was huge. We turned to businesses and more affluent populations, and the site filled at an increase of 15 units per month.

Then came the flood. It was reportedly the worst flooding in Europe in more than 100 years. Our property was just 30 yards from the Vltava River. All the tenants’ possessions were destroyed, and we had to rebuild the site. It was a major setback.

Several months after the flooding, we reopened. The rent-up is going well, and we just recently opened another site in Prague on the D1 motorway just south of the city. Well armed with the knowledge from our first selfstorage opening, this one took just three months to open. If you ever visit Prague, look for City Self-Storage in the Yellow Pages.

Carl August Svensen is the founder of City Self- Storage, one of the biggest self-storage operators in Europe, with 25 sites in five countries. Svensen is the chairman and majority owner of Cron Industries, an investment company based in Oslo, Norway, which also owns City Self-Storage with the Selvaag Group. For more information, visit www.cron.no; e-mail [email protected].

Large operators spend countless hours planning their advertising activities, hence their (generally) more impressive incomes and sales numbers. Every facility, regardless of size, can effectively plan and execute basic marketing strategies. This article discusses the steps needed for successful marketing of todays self-storage operations:

Step 1: Understand the program goal

Step 2: Cover the basics

Step 3: Establish a budget

Step 4: Understand the unique cost per lease and set targets

Step 5: Assess the situation

Step 6: Learn to meet and greet

Step 7: Take action

Step 8: Measure results

Step 9: Compare performance

Step 10: Create awareness

Understand the Program Goal

The primary goal is to create marketing programs that accomplish the following:

• Create total service-area awareness. This means defining on a map, based on traffic flows and boundaries, the stores service or market area. This is sometimes not a 3- or 5-mile ring, but an egg-shaped area due to major thoroughfares or natural boundaries. (Remember the customer perceives convenience as a 10-minute travel time.)
• You will want to know as much as possible about this target area: businesses, residences, single- or multifamily complexes, major employers, universities, military bases, etc. The goal is to target this area for your marketing messages and actions. This allows you to focus specifically on consumers most likely to use your service, and denotes the area of focus for advertising and marketing expenses. Note where competitors are on the same map.
• Increase traffic and sales by targeting the above area. When the need for storage arises, you will be the one prospects choose to visit.
• Create more accurate sourcing and demographic information by gathering specific data and accurately accounting for customers buying patterns, sources, location, preferences, etc. Use the data to frequently update your marketing programs. This way, youll be able to create programs and services that have maximum effectiveness.

Cover the Basics

When handled correctly, these basic functions and features are responsible for the bulk of our rentals:

• The attributes and location of the store
• The salesmanship of the team or manager
• Customer service and conveniences
• Advertising and promotions
• Friendly and motivated managers
• A complete set of knowledge

The first thing you must realize is marketing is a normal manager function and should be discussed in the hiring process. A facility manager or team should understand basic customer- service dynamics and how important the development of awareness and community participation is to the success of the store.

Advertising and marketing expenses are normally 3 percent to 6 percent of income for stabilized stores of average size, and will be needed pre-opening as a cost of start-up. Lack of planning has caused hardships for many managers and owners. Plan adequately for marketing in your annual budget, which should address 16 key areas. These allocations are unique to each store location and market area:

• Membership in your local chamber of commerce. Attend as many functions as possible on a regular basis, and use the membership list to send fliers, broadcast faxes or e-mails.
• Membership in the national Self Storage Association. This is the voice of the industry and an important connection to industry activities and actions.
• Membership in your state association. This is important for the obvious reasons of local involvement, legislative support and peer networking.
• Subscriptions to industry publications.
• Printed materials, such as brochures, fliers, invitations, postcards, business cards, referral cards, mailers or any other items needed to complete your plan.
• Yellow Pages ad(s). Identify how many books you will want to be in for your market area and how large an ad is needed, along with the cost for color, etc., necessary to compete or gain attention.
• Internet ads and/or website. There are several industry-specific providers of website design and online reservations and payments.
• Uniforms/nametags. These are a must so you and your team members can always be identified. Rentals come from contacts made everywhere!
• Promotional items. This could include anything from coffee mugs to nail files to candy jars or key chains with your facility name, phone number and website printed on them.
• Postage. Include adequate postage to complete monthly and mass mailings.
• Local events/sponsorships. Owners sometimes sponsor local school sports teams as part of their ongoing community participation and goodwill, or participate in community flea markets, carwashes, wine-tastings, etc.
• Referral programs. Referrals are the most sought after of all rentalstheir cost is the lowest, they are presold before arriving, and they can account for a significant percentage of each months rentals.
• Curb appeal. Your curbside view needs to change weekly, as drive-by traffic ceases to notice the same old message. Consider balloons, street-side signs, curb paint, landscape changes, pennants, banners, etc.
• On-site signage. Make sure your facility is easy and convenient to navigate. Consider keypad signs that welcome and instruct, gate signs with office and access hours, building numbers/letters, rules and regulations, marketing messages in models and restrooms, thank-you signs at the exit, etc.
• Ongoing training and education of employees. This is often neglected, but it is critical. Hire for attitude, train for skill. Budget accordingly.
• Miscellaneous. A well-thought plan, properly funded and staffed with motivated, know edgeable employees is the goal. Miscellaneous items will, from time to time, be necessary. Keep these to a minimum and include any reoccurring items in next years plan.

Establish a Budget

Usually, two six-month plans are easier than an annual plan and allow for updates from the prior periods results. Remember to include a six-month supply of promotional items, printing and postage in each plan. Allow for a nominal amount of extras in the budget and then stick to it. In addition, be sure you understand all the costs associated with each action or item, e.g., labor, cost for renting mailing list, etc. I suggest tracking not only what percentage of income is used for advertising and marketing, but also the cost-per-foot expenses. Involve managers in this process and provide them expense feedback.

Understand the Unique Cost Per Lease and Set Targets

This leads us to another of our goals: to have a lower cost per lease (CPL). I have frequently witnessed experienced operators who have no idea what they are paying for each lease. In many cases, they are unknowingly spending several hundred dollars for each rental. The CPL is found by dividing all leases into all advertising and promotions costs. An effective CPL in the Southeast, for example, would be $50 or less. At this rate, expenses would remain within normal parameters.

Compare your store with others and weigh the unique attributes of your location, drive-by traffic, percentage of repeats and referrals, etc. Set a goal, track the number and work to improve with continued lower costs each year. Technology is a great assistance in this goal.

Assess the Situation

Summarize your current situation. What are your best traffic sources? Which programs are most effective? Drive-bys and the Yellow Pages are the two most common sources of prospect traffic. Ask yourself what percentage of your total traffic each source represents. What does each cost, in total and per lease?

Understand your teams effectiveness at converting callers to visits and visits to leases. Know who your best customers are and why, how they found you, and what products or services they like best. Gauge the effectiveness of each marketing program and team member, and define what skills and actions are needed to meet targets youve set for traffic, callers and leases. The resulting conversion numbers may indicate more training or traffic is needed.

Learn to Meet and Greet

Your facilitys success starts with you. Know the difference between marketing and sales. Marketing is creating awareness, while sales is the actual production of or taking of an order.

Below are the steps for a successful marketing visit, one that allows you to leave customers feeling good about having met and interacted with you. This is the goal of any cold call. If youve made a good impression, you can begin developing a rapport and start to get referrals or direct business. You can accomplish 15 to 20 of these calls in an hour or two. If you are a single store manager without other team members, stop to make one call each day on the way to or from the bank or post officeby the end of the month, you will have visited 20 to 25 new prospects.

• Prepare for successhave all materials planned and ready ahead of time. The goal is to have a well-groomed person with great attitude visiting a targeted group and distributing a clear message.
• Before your hand touches the door, put a smile on your face.
• Take the lead on each call. Go directly to the first person with whom you make eye contact.
• State your business in specific terms: who you are, the company you represent, why you stopped by and what materials you brought with you.
• Timing is everything, so plan who youll visit (apartment managers, real estate agents, retailers, etc.) and when (time of day and day of week).
• Make a favorable impression and leave. You should be in and out within a few minutes.
• Follow up as agreed, then call, mail, visit and repeat on a consistent basis.

Take Action

Set specific goals and take action. I suggest using a personal marketing-goals form on which results can be reported each month. Managers set their goals for a six-month period, indicating what actions are needed during each month. These include target numbers for personal visits, follow-up phone calls, marketing faxes, marketing e-mails, letters or fliers mailed, or any other type of marketing messages. The actual number achieved is measured against the goal number, and the percentage achieved is shown as the marketing-goal score for each month.

Some stores may not be able to e-mail or fax, but each store can and should take some action each month to assist in achieving a consistent marketing message at all times. Great, creative ideas and plans are nothing without action.

Measure Results

You can measure the traffic sources for all your rentals using a software program. Keep in mind, however, the information gained is only as accurate as the person providing the input. Be sure all marketing and advertising programs are listed as choices in the software; for example, if you are using ValPak mailers or a broadcast-fax program, make sure these choices are available. Set a goal number for each category and measure results. Inform all team members of each program and how you want to track the activity. Adjust each years budget based on this information.

Compare Performance

Track the results and changes of your traffic sources. I suggest tracking six major areas: drivebys, Yellow Pages, referrals, repeats, direct marketing and other, which includes billboards, the Internet, hotlines, ValPak, etc. If you have multiple locations, youll want to compare results within your group. Youll also want to compare with other industry data. The results will bear out the true effectiveness of each program and the changes made over time.

Create Awareness

Creating awareness is what marketing is all about. Make contact frequently and consistently to ensure your impact and success within your targeted market area. Managers need to be adept at meeting and greeting, and getting the word out about their unique stores and the services they offer. Follow these easy steps, create and implement a simple and effective plan, measure your success and have fun.

Anne Ballard is the founder and president of Universal Management Co. as well as the president and executive director of the Georgia Storage Owners Society. Universal manages more than 30 facilities in Georgia, North Carolina, South Carolina and Virginia. For more information, call 770.801.1888; visit www.universalmgmntco.com.

I have never been a big fan of New Years resolutions. My viewpoint is probably colored by the fact I have never been able to keep resolutions beyond the first week of January. In retrospect, my failures were mostly due to trying to immediately give up bad habits I had spent a lifetime cultivating, or solving complicated problems over which I really had no control. I suppose it didnt help that I frequently made these resolutions after a half-dozen martinis. In any event, this year may be different.

As I write this, it is just before Halloween and it appears to have snowed. That would not be unusual for many of you, except here in Southern California it is 85 degrees and hasnt actually snowed in the last hundred years. What looks, at first glance, to be off-colored snow is actually ashes, one-quarter-inch deep in places. Of course, I already know it is ashes because I watched for several hours as flames approached to within 150 feet of my house. I know somewhere in these ashes are what remains of several hundred homes and all the worldly possessions of thousands of people. I also know that in these ashes are, in part, the remains of 13 of my fellow human beings.

This year may be different because my resolutions will be simpler. This year, I resolve to truly appreciate what I have in this life and how fortunate I am to have it. If just one of you joins me in this resolution, all the work I put into getting this months article written will have been well worth it.

Anyway... When the fire broke out, I was putting the finishing touches on what surely would have been a Pulitzer Prize winning piece on how to eradicate the world of all vermin and pestilence using only water and sawdust. Unfortunately, an ill-timed power failure fried all my unsaved documents, so it will have to wait for another issue.

In the meantime, I am resorting to the old fallback we know as answering readers questions. Usually, those of us who write dont resort to doing this unless we have completely run out of ideas or have waited until an hour before the deadline to begin writing. You never want to use this journalistic mulligan this early in your run. Ideally, you would save it for when you spent your last week of deadline at the Craps table and main lounge at the MGM Grand. Fortunately, I have received a number of e-mails with some questions that bear being answered here.

Are those plastic owls I see at the garden shop effective in keeping pigeons away? If not, do you have any ideas?
FROM B.C. IN NASHUA, N.H.

Its interesting that three of the questions I received were about pigeon control. As a rule, visual devices like plastic birds of prey, foil streamers and such offer brief relief at best. It doesnt take pigeons long to figure out whatever you are trying to scare them off with wont actually eat them. Sometimes, just to show us who really runs this planet, they will cake the fake owl with poop and leave the surrounding area spotless. OK, maybe its a stretch to assume they are doing it to mock us, but after a day or so, the plastic bird is just another thing to sit on.

The same holds true for just about any device you might use to chase pigeons off. A number of large airports spent a pile of money on noise cannons, literally large gun-like devices that emit a loud boom-type noise to scare away pigeons and seagulls. After a few days, the birds would merely jump a few feet at the sound of the cannon firing. Soon, birds that frequented the area learned to ignore the sound. Worse yet are those so-called ultrasonic devices. The only chance of gaining any control using ultrasonic bird repellants is if the pigeon laughs itself to death.

As with many pests, the best way to keep pigeons away is to eliminate nesting places and roosting spots. Eaves and gables can be relatively easily covered with some sort of netting. Anti-roosting devices come in several forms, the most popular being a spike strip that can be attached to any surface a bird might sit on. Spike strips can be easily installed by the property owner and cost roughly 45 cents per linear foot.

Finally, controlling birds with chemicals or poison should be done only as a last resort and is best left to someone who is licensed. In many places, it is illegal for an unlicensed person to use poison in the control of nuisance birds.

A few years ago, there was a lot of stir about the impending killer bee invasion. Was it much ado about nothing or are we still doomed?
S.M.C. IN BREMERTON, WASH.

Africanized honey bees were first reported in the United States in 1990 and, by the beginning of 2003, had spread to most southwestern states. There have been a few fatalities due to attack by killer bees and a few dozen other incidents resulting in injury to humans. The big concern was Africanized bees would mate with the native honey bees and genetically infect them with whatever evil genes make the African bees so nasty. It would appear the opposite has happenedgood winning out over evil, so to speak.

Make no mistake about it, Africanized bees are dangerous creatures, and if you I live in an area where they have been reported, dont mess with anything that looks like a swarm of bees. (Good idea, Captain Obvious!) Chances are, if you live in a warm southern state, they are on their way. Are you doomed? Yes, we all are. But even if you live in an area with a known Africanized bee population, your chances of being stung to death are pretty slim.

I dont know if this is a pest-control question, but I have several stray cats that prowl around my facility. They do occasionally catch rats and mice, but some of my tenants have complained about smelling cat urine and feces. My local animal-control office hasnt been much help. Is there anything I can do to humanely rid my property of this problem?
FROM C.G. IN HENDERSON, NEV.

Feral cats are very much a pest-control problem. While they may have some minor value as a method of rodent control, they will introduce more pests than they will consume. In addition to carrying diseases that can be transmitted to domestic pets, they carry parasites, like ticks and fleas, which can transmit disease to humans. In addition, there is undoubtedly a percentage of your customer base that is allergic to cats.

Your best bet is to use live-catch traps. These devices are cage-like traps baited with cat food, with a spring loaded door that closes behind the animal when it enters to take the bait. While you can purchase them, many animal- rescue organizations will let you borrow them at little or no cost, and take the cats off your hands for a small fee. With a little luck and a lot of patience, you should be able to handle this situation without shelling out a pile of money. In the interim, make sure they dont have any alternative food sources like open dumpsters or trash cans.

Thank you all for the questions and comments. Your feedback goes a long way in determining what I discuss here. If you have any ideas on subjects for future columns, Id like to hear from you.

Ken Berquist is a field representative at R&D Pest Services in San Diego. For more information, e-mail [email protected].