• Of the thousands of Yellow Pages headings, storage ranks No. 115 in terms of use.
• There were 20.7 million references under the storage heading in 2002.
• Of the Yellow Pages shoppers referencing the storage heading, 66 percent had no specific business in mind.
• Yellow Pages advertising exceeds the reach of other marketing used by self-storage owners.

A targeted, cost-effective Yellow Pages program should yield a maximum return on investment (ROI). Following is a step-by-step guide to maximizing your advertising dollars.

Choose Directories Carefully

The availability of 6,000 U.S. directories issued by 250 publishers makes the task of selecting the books that will deliver the best ROI a confusing and painstaking task. Do your research to determine directory use. Get tear pages to see what your competitors are buying. Know your service radius, and be sure the directory covers it adequately. Finally, allocate your ad spend per book accordingly.

Buy the Right Size

Is bigger always better? How important is placement? You first need to know how ad placement is determined by the publishers.

Display ads are typically placed in order of ad family (size), with the biggest ads always first. Placement within the ad family is determined by seniority. The first advertiser to buy an ad in a particular family will always remain in first position within that group, provided the ad is continually renewed. The occasional exception to the priority-placement rule is the case of some smaller publishers that put color ads in the front of an ad family, giving priority-placement to advertisers who spend more. Always check with your publisher on its placement policy.

In-column ads are listed alphabetically under the heading. Look at your competitors ads to see how they are buying. Consider a few different sizes and determine where each would place you; an ad smaller than your competitors might still place you on the same page, or it might put you several pages behind. Then its a matter of deciding on the right investment in that book/heading.

Are Enhancements Worthwhile?

At one time or another, almost every Yellow Pages advertiser has been advised to buy ads with color or white knockout (white background). The rationale is that studies have shown ads with these enhancements get a better response. We wont dispute those statistics, but be aware nothing is that black and white!

Enhancements can increase ad rates by as much as 40 percent above less costly black and yellow ads. We have tracked ads over the last 15 years to determine whether color or white knockout delivers enough of an increased income to warrant the additional expense. While a facilitys call counts may increase, they typically dont increase sufficiently to boost ROI. That doesnt mean enhancements should never be used, but they must be evaluated on a case-by-case basis.

Do you need color or white knockout to stand out on a page? Is there an occasion when revenue is more important than ROI? Know what you want your Yellow Pages advertising to deliver, and make your decision accordingly. But making the ad look prettier isnt a good enough reason to invest in high-cost enhancements.

Consider Multiple Headings

The storage heading is a crowded one, and everyone has to jockey for position. You can maximize your investment by also running ads under other headings. Do you sell boxes and packing supplies? This is a less popular heading, so a smaller ad at a much lower cost will pay for itself in sales while introducing new customers to your facility.

There are many more headings that provide a similar opportunity. Talk to your Yellow Pages sales rep to find out what possibilities exist. We are not suggesting you replace your ad in the storage heading with a complementary one, but that you use other headings to subsidize your larger storage ad. By doing so, you can rent 3 percent to 6 percent more units every month, at minimal expense, while getting exceptional return.

Get the Best Price

All of the Yellow Pages publishers have some kind of discount or special-opportunity programs. Some may have 15 to 20 different ones. Look at your options to determine the best type of program for yourelative to that directory and the specific headings. Each one must be considered on its own merits. Beware of bargains that can cost more down the road.

For example, a publisher may tempt you with an attractive rate for stepping up the size of your display ad. The following year, it may move to full rate. If you decide you dont see the value in paying the full rate and want to resume your original ad size, theres a catch: You lose any seniority position you may have gained in your original ad family and drop back to last place. So do your homework. Know when a deal is a dealand when its not.

Say the Right Things

Ad copy, design and layout are critical components in making the phone ring. Know what your customers are looking for and make sure your ad tells them you have it or can do it (depending on the nature of your business). Make a list of what differentiates you from competitors and feature those copy points in the ad. Design the ad so your customers eye is drawn first to the copy or graphic that is most important as a sales tool. Finally, remember that your customer wants the convenience of location, so make a map a prominent part of the ad.

Sharpen Your Image

Yellow Pages publishers have graphic-art departments that design ads at no charge, but their sheer volume of output usually results in a cookie cutter design. They provide that service to everyone. They get the job done because they must, not because you are their client and they are looking out for your best interests. If you want your ads to stand out, have them designed by a Yellow Pages professional. It does make a difference, and that difference is in the response to the ad, i.e., how many times the phone will ring.

Track Your Success

How do you know how many potential new customers a Yellow Pages ad is providing? You can drop a code into an ad saying mention code 1234 for a discount (free gift, etc.), if that type of advertising is appropriate for your business. Then you have to be sure employees keep a phone log in which they record all business the code generates. A word of caution: Dont use this code method if it doesnt translate to something special for the customerthen it becomes about your needs and not customer service.

You can train employees to ask callers how they found you. Again, this also requires employees to diligently keep call logs. If customers indicate they found you in the Yellow Pages and you advertise in more than one book, you still arent tracking the performance of a specific ad/directory.

The only way to accurately test the effectiveness of an ad is to buy a special phone number that forwards to your main line. Then every call is tracked by where it originates, time of day and length. Not only is this valuable to track the ad, it may help you improve customer service. If you discover a large number of calls come in before you open or after you close, you may want to adjust your hours to accommodate customer needs.

Internet Yellow Pages

Statistics show users of Internet Yellow Pages (IYP) are more likely than the average U.S. adult to have a computer in their homes and be online subscribers. The number of print shoppers outnumbers IYP shoppers by about 2 to 1, but the margin diminishes regularly. As of July 2004, there were more than 58 million references to IYP, including all of the major IYP sites, such as SuperPages, Smartpages.com and Yahoo Yellowpages.

Depending on the range of your storage locations, you may choose anything from a national campaign to one that is directory-specific. While IYP usage patterns are the same as those of print, IYP tends to bring in more new customers due to its out-of-region scope. For example, a potential customer is moving to a new city or state and knows he is going to need storage, but he doesnt have access to a Yellow Pages directory covering the relocation area. An IYP reference will give him what he needs to take the next step and make the call.

IYP is priced similarly to print Yellow Pages in that premium positions cost more but get more visitors. However, even a lower-tier position can be enhanced by the addition of a website icon or an icon that leads the shopper to your print ad; and this enhancement may only cost an additional $200 to $300 per year. When used correctly, IYP gets cost-effective results.

How do you know if you are using the best IYP publisher? Consult an expert who places advertising with all of the IYP providers. That way you get unbiased guidance leading to a decision that is right for you, not the publisher.

Address Diverse Markets

Dont rule out directories that address diverse markets, especially if they can give you an edge over competition. For example, the fast-growing, multibillion-dollar Hispanic market is one that should not be ignored by storage owners. In general, Spanish-speaking Yellow Pages users:

• Have no business name in mind before referencing a Yellow Pages heading.
• Are 11 percent more likely than their English-speaking counterparts to make a purchase using the Yellow Pages.
• Are 43 percent more likely to be new customers to the business where a purchase is made.
• Have a high level of consumer loyalty.

If a Hispanic Yellow Pages directory covers your service radius, it is in your best interest to consider placing an ad. Not only can it bring in new business, it may be a strategy competing facilities have yet to uncover.

Winning the Yellow Pages Game

You probably still think Yellow Pages advertising rates are too high. But bear in mind that no other medium has a one-year shelf life and is referenced only by people who have a buying decision to make. The Yellow Pages is not a source of entertainment or news; its a resource for new customers to find you and make a purchase.

Yellow Pages advertising is the best game in town for self-storage owners. You choose how you wish to play. You may elect to use the services of a specialist that knows the industry and understands how to maximize advertising dollars, or you can deal directly with publishers. As long as you buy the right ad in the right directory at the right price with the right copy, you will get the right ROI; and isnt that what its all about?

Curt Ogieglo, vice president, and Sue Weinman, senior account executive, represent the Yellow Pages Division of The Michaels/Wilder Group, a specialized advertising agency incorporating three divisions: Yellow Pages, Internet and Recruitment Advertising. Based in Phoenix, the award-winning firm is celebrating its 15th year of business thanks to a loyal client base that includes hundreds of self-storage owners and managers. For more information, call 800.423.6468; visit www.michaelswilder.com.

These are but a few of the questions to ask in determining the most cost-effective means of attracting and retaining storage customerswhether residential, commercial, military or student populations. For an existing store, these questions are easy to answer using current marketing and demographics reports. The data is compiled from the marketing questionnaire you should be giving to each and every customer.

As an industry, we sometimes lack answers and information because we arent using the tools available to us. If all you change about your operation is adoption of the following three actions, you will be well on your way to understanding and identifying your stores market:

1. Have your software vendor program your management software to force your marketing and demographics questionnaire so the manager has to complete it with the customer before he can accept payment or complete the move-in process.

2. Before investing in any marketing or advertising program, be sure you have a way to track its effectiveness. For example, if you participate in an industry tradeshow in which you spend $500 on an exhibit and $300 on materials, you should know what that expense earns you in business. This will help you decide if you should participate again in the future.

3. Use this valuable marketing information. Dont just glance over the facts or fail to even notice them. Once compiled on the summary marketing report, use the data to identify the programs that work for you as well as the ones that are overly expensive for the results they bring.

Weve Got Your Number

Here is a summary of my companys self-storage customer base: 80 percent is residential and 20 percent is commercial; 60 percent is male and 40 percent is female; 74 percent live within 5 miles of the facility; drive-bys account for an average of 40 percent of new business; the largest age group is 35 to 45 years old; and the average length of stay is 21 months. This does not, however, tell the whole story. Each of our 30-plus stores has a unique set of statistics.

For example, the store in Hilton Head, S.C., is filled with out-of-state clients who are older and more affluent. They want large climate-controlled spaces, auto-debit options and RV/boat parking. A store in Atlanta has close to 40 percent commercial clients, most of whom are in service businesses within 3 miles of the facility and are also very affluent. A store in Roswell, Ga., has been the nations largest independent U-Haul dealer for box sales five years in a row. It sells $10,000 worth of boxes each month and rents more than 50 units to one local moving company. A facility in Tulsa, Okla., has pre-leased 30 percent of its first phase to a hospital in the downtown area.

Every location, like its offerings, features and benefits, is unique. Knowing this will help you fine-tune your marketing programs for generating leads and new business. Tailor your marketing efforts to best suit the products and services each facility has to offer.

The Physical Area

Lets take a look at some generally accepted marketing guidelines for a new location. To begin, most of us look at the demographics of the immediate 1-, 3- and 5-mile radius, including competitors in the area, types of businesses, traffic counts, average household income, etc. The denser the population and the higher the average income and traffic count the better. However, you should also drive through the entire market area and personally survey existing storage operators.

We all need to take a lesson from the Roman armies who, before a battle, would walk the ground where the skirmish was going to take place. They discovered natural hiding places and vantage points and had the edge when the fight finally began. Your market is generally considered to be the area within a 10-minute drive time of the facility (not during rush hour). Keep in mind any natural or man-made barriers that could separate market segments. For example, in Atlanta, I-285 surrounds the city like a giant circle. Those who live inside the circle would likely not consider going outside for products or services. In other instances, prospects wont want to cross a river or enter a new county.

Demographics

Knowledge is power, but it is only useful when put into action. Join and visit your local chamber of commerce and the citys economic-development department. These are two valuable resources for understanding the local economy and the dynamics behind its growth and future development. Knowing the demographic characteristics of your target market is what you need to execute an effective marketing, leasing and customer-service campaign. Consider the following:

• You want to be in a growth or stabilized market where average incomes are above $75,000.
• Traffic count should be 30,000-plus cars per day that travel less than 45 miles per hour. Drive-by traffic for this type of location can represent as much as 60 percent of a stores business and brings in nonstorage customers who buy boxes and supplies. A showroom for retail along with other amenities will be necessary, and you want a full line of services designed to attract commercial customers, especially if you are on a freeway exit.
• Is your facilitys community filled with military or college students, or is it primarily multifamily with lots of apartment renters, condominiums and retirement housing? If so, youll need more small units. Also, the average length of stay will be shorter and the average income per square foot will be higher.
• What percent of households are owner-occupied and how old are the homes? Recently built homes in a high-growth area with booming subdivisions will typically have higher value and income per household than those built 50 years ago in declining market areas.
• What percentage of the homes is renter-occupied? What is the apartment vacancy rate? What is cost per square foot of the average two-bedroom/two-bath apartment? This number should equal your average rental rate per square foot.
• Is the retail and business trade area on the upswing or declining?

Stores with high visibility, easy access, strong curb appeal and a unique product offering and style enjoy the lowest cost per lease and the most rapid lease-up. Once you have identified the characteristics of the surrounding market, you can begin to understand and plan for what youll need to attract customers to your location vs. the competition.

In the Trenches

When examining the competition, consider all possible angles. What do competing facilities offer by way of products and services? What are their office and gate-access hours? Do they have security and access-control systems? What about advanced technology, such as individual door alarms or biometric keypads?

Do your competitors have retail showrooms? What about an e-commerce website where customers can lease or reserve units or make payments? Do they offer free move-in trucks, referral programs, package-acceptance programs, climate control, RV and boat storage, contractor spaces, incubator offices, specialty vault storage, wine storage, records storage? What outstanding products and services will best existing self-storage operators while creating a strong appeal to the local market and the unique niches you may have uncovered?

Once you have the answers to these questions and gathered all the facts, sit down with your management team to brainstorm and work toward a complete understanding of the local area and surrounding neighborhoods. What is the market asking for, what is it responding to, how has it changed recently, and what gaps in products and services can you fill? Taking advantage of this critical information and acting on it yields increased traffic to the store, improved income, lower advertising expenses and happier, more confident team members who know their unique market and its possibilities.

M. Anne Ballard is President of Atlanta-based Universal Management Co. (UMC), which provides global consulting for evaluations, feasibility studies, training and development services. The company also does full-service fee management in the United States, where it manages more than 35 locations. For more information, visit www.universalmanagementcompany.com.

Have you ever tried to ask for help at a store and the person you asked said, I dont handle that. Im not the salesperson? How did it make you feel? It probably didnt make you want to reach for your wallet.

How many of you have management teams on which only one person handles sales and the others definitely do not? Consider the effect this has on your business. Customers and prospects like to think everyone working for you is capable of answering their questions, qualifying their needs and taking care of them. If you were selling a technical product, it would make sense if some employees knew more about it than others. But self-storage is not a complicated service, which is one reason people like to use it. As a result, customers have reasonable expectations of your staff. The question is, how do you get staff, who typically dont see themselves as salespeople, to act as if they are sales wizards?

In many cases, employees who dont want to be salespeople have been victims of high-pressure or poorly handled sales in the past. So try a different approach. Encourage them to consider themselves customer-service pros. They simply know what a great service self-storage is and want to do what is best for customers. If an employee doesnt want to be a salesperson, he should concentrate on being a good customer-service representative and give tenants a great experience.

When talking to prospective renters, employees should believe their store is the best value for the money. This gives them the power to do customers a favor and rent them a unit. All they have to do is show concern for customers needs, ask a few qualifying questions and close the sale. The only other thing required to turn an anti-salesperson into an excellent customer-service rep is a great smile and can-do attitude.

One big advantage we have in self-storage is customers have fairly low expectations of our sales and service skills when they walk in the door. When we greet them with a smile and a sincere desire to help, they know we want their business. When employees can couple that with a sincere conviction about their offering, you have a dynamite combination.

Let your anti-salespeople know how important it is to give great service. Let them know what a difference it will make in your bottom line. After all, your staff should care if your numbers are solid. It should also be a matter of pride to know they are doing a good job. If you showed your staff ways to improve operations, wouldnt they adopt them? Good sales skills are no different than any other operational procedure.

It is not smart practice to tell tenants or prospects you cannot or will not help them. Everyone in your operation should be able to sell a space, resolve a customer complaint, move someone in and take a paymentall with a smile. Sure, I can help you with that, should be the standard response to all inquiries.

It takes training and adjustment to get everyone in an organization comfortable with selling, but you can make it fun and easy. Have a competition to see how many times a day staff can use a good qualifying or closing question. Do a smile check: If you catch an employee smiling, give him a prize; if you catch him frowning, tell him a joke. Emphasize service over sales, and you will see your numbers improve. Good luck and good selling.

Tron Jordheim is the director of PhoneSmart, which serves the self-storage industry as an off-site sales force that turns missed calls into rentals. This rollover-call service serves as a backup to store managers. Mr. Jordheim has started several successful businesses as well as assisted with acquisitions as general manager of the Mid-Missouri Culligan Bottled Water franchise. For more information call 866.639.1715; e-mail [email protected].

Step into my parlor, said the spider to the fly. Because, as any marketing-savvy spider knows, once a visitor checks out your friendly staff and impressive facility, hell be hooked. Special events lure foot traffic to your site and ensnare future customers. Find a way to creatively link the function to a good cause and youll also generate positive word-of-mouth that reaches beyond those who actually show.

I think community events are great for getting your name out and letting people know you are there, says Melissa Hermes, president of Manager On-Call, a provider of call-center services. Its not so much about branding as becoming a business leader in the community, so people come to you without having to go to the Yellow Pages.

Hermes frequently uses special events to promote her two Crown Storage facilities in Kentucky. Partnering with other businesses or community groups can magnify results while reducing costs, she says. At one grand-opening event, Hermes rounded up the usual suspects: a radio station hired to broadcast from the site, a blimp-like balloon soaring overhead, and inexpensive snacks. However, she also invited the high school drama club to hold a community yard sale in the parking lot. We had a really good turnoutprobably 250 people showed up throughout the day. All the kids from the school had been marketing it, she says.

Innovative marketers dont wait for a grand opening or a remodel to hold a special event, though such occasions do present golden opportunities. Bryan Feldpausch, marketing director for Michigan-based U.S. Storage Depot, organizes three or four events to launch each facility. We want to bring people in so they can see we have more to offer than the typical mom-and-pop show, he says. Well do a business open house, then one geared toward the general public, thenbased on the marketeither a Realtors open house or contractors barbecue.

Hermes likes to acknowledge a change in Crown management with an inexpensive meet-and-greet for tenants. Tenants are invited out on a Saturday to enjoy a free hot dog and drink, and to meet the new manager. The gesture of goodwill reassures customers they neednt expect any nasty surprises such as a rent hike.

Simply Irresistible

What if you threw a party and no one came? It happens. Crown staged a Family Safety Day that Hermes says really tanked, despite extensive flier distribution. The event featured police-led bicycle-safety training for kids and a coloring-book activity. Our manager worked his heart out on it, Hermes says. No one came. It was basically my kids and one of my friends kids. As it turned out, the venture wasnt a total bust because people saw the fliers and were talking about the event. They didnt come, but they still remember thinking good thoughts about us, Hermes says of feedback from customers.

Still, the lackluster response was a wakeup call for Crown. Every event should have a compelling aspect to attract visitors. As Hermes points out, spending a Saturday afternoon (widely acknowledged as the best time for an event) at a storage facility isnt exactly a trip to Disneyland. In the spirit of Walt, however, Feldpausch advises choosing a kid-friendly event to maximize attendance. Child ID Day (see Above & Beyond in this issue) is a proven draw in many markets. Parents perceive the fingerprinting service as an opportunity to prevent kidnapping disasters, spurring them to action, unlike a generic bicycle-safety day, Hermes theorizes.

Incorporating a holiday or seasonal theme may attract crowds to your event as well. Crown Storage recently teamed with fellow shopping-center tenants to present a Fall Festival. The police department provided a canine crew to perform demonstrations; Crown gave away 100 hot dogs and pops; and store owners held drawings and offered coupons. Crown also has had success with Halloween haunted houses and festive lighting displays. Feldpausch suggests sponsoring a pumpkin painting, straw-bale maze and Santa visits by helicopter.

But plan your holiday event carefully, he saysyou dont want to end up with a public-relations disaster such as the Turkey Drop from TVs WKRP in Cincinnati. Fans of the late-70s show will recall the station managers horror when live turkeys dropped from a helicopter didnt fly away in a dazzling display of Thanksgiving spirit as anticipated.

A springtime Easter egg hunt proved to be U.S. Storage Depots most successful function ever, melding the strong themes of family and holiday. Staged in April and publicized as the worlds largest spring egg hunt, it featured free hot dogs, a petting zoo, a 4-H Club display of barnyard animals, a giant rabbit from the Humane Society, and free instant photographs taken by a photographer who donated his services in exchange for exposure. About 4,000 plastic, candy-filled eggs were hidden throughout the indoor, climate-controlled facilitys empty units.

We had the buildings sectioned off in three different age groups, Feldpausch says. It was kind of a free-for-allthe kids would run into a unit and pick up the eggs. The challenge was they had a large surface area760 units, pretty much all empty. Vacancy rates are a factor for the egg hunt, which will likely become a permanent part of the agenda for launching a new facility, Feldpausch explains.

Chamber Made

Mel Holsinger, president of Professional Self Storage Management in Tucson, Ariz., firmly believes in involving the chamber of commerce and other business-referral groups in facility events. We recently sponsored a chamber breakfast up in Pinetop, Ariz., he says. We bought breakfast for 70 people, gave out some shirts and fliers about the property, and invited them to visit the store. We got to talk to 150 chamber members all at one time, and we ended up donating a unit to the Humane Society for an auction, which made us look like good guys.

Target chambers of commerce, and your facility can more easily reach the valued commercial client, says Brad North, president of Cincinnati, Ohio-based Advantage Business Consulting. Plus, the chamber will often handle publicity. I feel the industry needs to utilize chambers more often than they do, North says. Were planning on hosting a chamber mixer. Were going to have entertainment and food, and give tours of our entire facility. The chamber will coordinate everythingtheyll promote the event three months ahead, put it in their newsletter and send out broadcast e-mails.

Holsinger says hell offer to present projects to just about any community groupsRotary, Lions Club, even college business students. Anything you can do to get your name in front of a group of 30 to 50 people is worthwhile because you gain instant salespeople, Holsinger says. Thats really what they become. If they like it and they like you and your managers, theyll pass the word to someone who needs storage.

Publicity

If you are going to go to the trouble of holding an eventany eventmake sure you have a publicity plan or all your work will likely be for naught. Distribute the standard media release to publishers and radio stations, including the little freebie newspapers in the neighborhood since they are most likely to print it. When mailing invites to specific groups such as apartment managers, dont be shy about picking up the phone to follow up, advises North. That personal contact is really key, he says. It creates an energy for people to know you are now open for business and gets everything off to a great start.

Hermes enlists the help of schools and churches in distributing fliers. Churches will put it in their Sunday bulletin or make an announcement, she says. But they dont like it when you want something from them and dont want to give anything. We make sure we have an ongoing relationship with nearby churches, asking if we can advertise any of their events or be a drop-off place for fundraisers like Toys for Tots.

Crown Storage also visits businesses directly to spread news of its events. In one day, for example, the assistant manager dropped off 600 fliers at 61 different business locations, informing readers of the Fall Festival. Even if people dont come, they still go, Oh, thats neat, and we get our name out there, Hermes says.

Worth the Investment?

Unlike some other kinds of advertising, it isnt easy to track the results of a special event. Thomas Berlin, vice president of operations for Pogoda Management Co., based in Farmington Hills, Mich., says roughly 90 percent of customers will come from the Yellow Pages, but special events can help build brand awareness.

So when they see your ad, they either consciously or subconsciously remember you, he says. In planning the scope and budget of an event, Berlin recommends a basic criterion: Consider the fact the industry standard rental is worth $400.

So if you are doing a function that costs $10,000, how many tenants is that going to have to generate? he asks. The name of the game is how many rentals do you have to get out of this particular thing.

One of Berlins pet peeves is staff who forget to ask a caller how he found out about the facility. Sometimes a prospective customer will mention he saw a special-events flier or attended a function. Usually, though, he needs to be asked. Leads from events can take months to materialize. Go ahead and poll callers, and youll have a better idea if special events are leading to higher storage profits in your community. Its an inexact science, acknowledges Holsinger.

What you are looking for here is maybe not direct sales, but exposureso when people do need storage they think of you first, says Holsinger. On a grand opening, if I rent three units, I think of it as a bonus. But if you can get 200 to 350 people through your store, you may be amazed at the business you generate. It certainly has a long-term positive effect.

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Giving Away the Store: Premium Tips

Many self-storage promoters use giveaways emblazoned with the company name as part of their marketing mix. Without a clever distribution plan, however, even the most prized promotional product is nothing more than an expensive dust-catcher. Industry professionals share their top tips on getting maximum impact from premiums:

• Melissa Hermes of Crown Storage says high-quality mugs are the best promotional product in which her company has invested. People dont throw them away, and they use them all the time, she says. To distribute the mugs, Crown rents a wheel of fortune game for about $40 for its booth at festivals and community gatherings. Visitors spin the wheel and have a chance to win a pen, magnet or mug.
• When holding a special event, try to register visitors to your facility. Offer a free keychain or T-shirt as an incentive for prospects to give you their name, address, e-mail and even phone number, advises Brad North of Advantage Business Consulting. Use the information to build a database for future mailings or prepare a legal call list.
• Around patriotic holidays, Thomas Berlin of Pogoda Management Co. likes to give away American flags at self-storage sites. The offer is publicized on signs in facility windows. We can get flags inexpensively; its patriotic, its no-obligation, and it increases peoples awareness of your store, he says. A facility business card is attached to the flag pole. Roughly 90 percent of customers will come from the Yellow Pages, but special events can help build brand awareness.

Cost self-storage owners use retailing to increase revenue, improve their business image, and better serve customers in a professional manner. They want to minimize overhead and maximize profits. In other words, they need a system of inventory control.

Now before you yawn and turn the page, hear me out: Inventory control isnt as complex or boring as it may sound. All it means is having just enough of the products customers want without tying up too many dollars. Its that simple. Big-time retailers have elaborate and expensive systemseven whole departmentsjust to keep a handle on what to stock and how much of it to buy. Im going to offer a way to do the same thing at your self-storage operation without all the fuss and expense.

The secret lies in two things: displays and plan-o-grams. A well-designed display lets you exhibit everything you carry in a neat, space-saving manner. It makes you look as professional as you are. And it keeps your retail area from crowding your office space. But a display without organization wont be as effective or profitable as one that is well-planned. You need to make sure there is a permanent home for every item and nothing goes into a slot except the item for which it is labeled. In this way, you can quickly see whats selling, restock and reorder inventory, all without complicated, pricey programs.

But how do I know what to stock and where it should go on the display? you ask.

Well, that brings us to plan-o-grams, which are like blueprints for retailers. Supermarkets get them from their suppliers, who can tell them where the bestsellers should go on the shelves and how many facings to give them. For example, soup and cereal companies are famous for their plan-o-grams.

In the self-storage industry, decent suppliers of retail products offer plan-o-grams with their displays and merchandise. After all, its in their best interest to sell you only those items that do well and tell you how to make them even more marketable. The more you sell, the more they sell. Its a win-win situation.

Making it all Work

So youve got a display, a plan-o-gram and retail products from a supplier that knows merchandising. How do you use them to control inventory and your investment? First, keep every retail slot filled. No one ever wants to buy that last can of baked beans on the shelf! Second, dont run out of stock because, as they say, You cant sell a hole. Finally, at least once a day, have an employee go over your display, restock slots and pegs, and see to the back-room inventory. Also have him remove any opened or shop-worn items and put them in the clearance bin.

How do you know how much stock to keep on hand? The best retail suppliers provide 24-hour processing of orders. If you add one day of processing to the standard transit time, youll know how many days worth of supply you need to maintain a minimum-cost inventory. How much is too much? Your supplier should be able to provide you with recommended minimum/maximum levels for each item based on the experience of other self-storage operators.

Stock your displays with the best name-brand products while you control your inventory and youll be on your way to selling (and buying) like a retailer. If you have questions, ask a reputable supplier for help.

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, Mail Boxes Etc. and The UPS Stores. For more information, visit www.suplyside.com.

Self-storage operators are constantly bombarded by businesses trying to get them to spend money on marketing. Whether its for a newfangled security system or an ad in the local Penny Saver, it seems everyone is trying to get you to part with your hard-earned dollars. While some of these offers are worthwhile and produce tangible results, the vast majority are worthless. The problem is figuring out which are which.

Different marketing methods reach diverse audiences at varying levels of cost. Youll get renters from the Yellow Pages, but the cost per customer is pretty steep. Other methods may be more cost-effective but attract fewer prospects. You want to put your marketing dollars into schemes that generate more money than they cost to execute. Following is a list of tried marketing methods and the pros and cons of each. Ive also included the most important element for success in each area.

Repeat Business

Most operators look at storage as a one-time sale. Although the majority of customers may only rent from you once, a small percentage will come back. If you take good care of them the first time, its almost guaranteed theyll rent with you again if the need arises.

This means of marketing is by far the least expensive. All you have to do is provide great service at a fair price. The problem is only 1 percent to 2 percent of your renters fall into this repeat-business category. Although the method is extremely cost-effective, the business it generates isnt enough to fill your facility. Thats why you need a variety of other techniques to get people to rent from you.

The secret to winning repeat business is simple: Do a great job servicing customers the first time around, and youll almost always get them back. And it will help you with the next method on the list.

Referral Business

The second most cost-efficient means of marketing is referrals. This is where you get customers to tell their friends, families, co-workers, etc., about you. It doesnt cost a whole lotmost people will give you referrals because they like you or youve given them great service. But its also a good idea to provide an incentive, like $20 off next months rent if somebody sends a new customer your way. Some operators have been successful by slipping fliers under unit doors to remind tenants of this benefit. You can also hang a sign or flier in the office asking existing customers for help in this area. Satisfied renters will be happy to do so.

The key to success is to simply ask. Many managers feel foolish or uncomfortable asking for referrals. I suspect the main reason is fear of looking pushy or too aggressive. Get over it. This is one of the best and least expensive ways to generate business. Dont be shy, or it will have a negative impact on your business.

Storage Hotline

A storage hotline is also cost-effective. You simply install a separate phone lineeven if its only a residential line in Aunt Tillies basementand attach a digital answering machine with a reasonably long outgoing message. On the message, youll include useful information about self-storage that subtly promotes your facility. After a person listens to the message, yours should be the first (and only) facility he wants to contact.

Promote your hotline with an intriguing title included in all of your marketing materials. The title is significant, as simply throwing out a number will have little effect. Use a seductive heading that will make people interested enough to call. Consider something like Seven Things You Should Know Before You Store Your Goods.

Clearly identify the hotline as a 24-hour, free recorded message. This makes it non-threatening, and people now know one thing for certain: No one will try and sell them storage over the phone when they call. This makes them comfortable and encourages participation.

The hotline script is essential to this methods success. A quick hint: Make sure the message highlights any and all of your facilitys USPs (unique selling positions). Let customers know what sets you apart from competition.

Centers of Influence

In every market, there are key players who can send you a ton of prospects if you get them to give you referrals. I refer to them as centers of influence, or COIs. These include but are not limited to real estate agents, chambers of commerce, apartment-complex managers, RV-park managers, colleges and even local churches. Relationships with these folks are worth their weight in gold. All you need is to be the storage facility of choice for these COIs, and youll have a flood of inexpensive leads.

The secret to making this work is consistency of contact. Out of sight, out of mind holds true here. Keep in touch with these key individuals on a regular basis and theyll be more apt to recommend you and your facility. Also make sure you reinforce their behavior by sending them a gift of gratitude once in a while. It doesnt have to be big, but it should be immediate to get the best results.

Yellow Pages Ads

Advertising in the Yellow Pages is expensive. This is true whether youre in Orange County, Calif., or Kenosha, Wis. Prices are relative, but Yellow Pages advertising is more costly than any other means of marketing. Most storage operators advertise in these directories because they think its necessary. This is not true. If you diligently work at all the other marketing methods, you could buy just a small ad, if you buy one at all.

Unfortunately, many storage operators are lazy when it comes to marketing. Even though every dollar spent may only generate $1.50 or $2 in revenue, Yellow Pages advertising is easy. You meet with a rep once a year; he sells you an ad that gives him the largest commission possible, and everyone goes on their merry ways until next time.

If you do advertise in the Yellow Pages, concentrate on constructing a great headline. After all, it is the ad for your ad. Do not use the name of your facility. Frankly, your customers dont care about it, and it only gratifies the facility owner. Youll get better results if you create your headline by combining your facilitys biggest benefit with customers greatest need. In a very cost-conscious market, for example, it might be, Units starting as low as $14.95! (Keep in mind that if you promote this, youll have to offer small lockers you can actually rent at this rate, but it will give you the right to advertise it.)

Other Marketing Methods

These are just a few of the top ways to generate more customers. Whenever you explore a new marketing technique, such as direct mail or Internet advertising, test it before rolling it out on a large scale. The only way to know if something will work is to give it a try. Just be cautious of overspending at this stage. If you want to attempt something new, do so on a limited budget and track your results like a hawk.

Every method of marketing has a cost. The key is to make the most of those that cost the least. Unfortunately, those methods often entail the most effort, so if you have a manager who doesnt like to work, get ready for resistance. All of us like things to come easy, but if you have the will to pursue marketing techniques that are cost-efficient, youll be much more profitable than your competition.

Fred Gleeck is a profit-maximization consultant who helps self-storage owners/operators during all phases of the business, from the feasibility study to the creation of an ongoing marketing plan. He is the author of Secrets of Self Storage Marketing SuccessRevealed!, available for purchase at www.selfstoragesuccess.com. He is also the producer of professional training videos on self-storage marketing. To receive his regular insights via e-mail, send a blank message to [email protected]. For more information, call 800.FGLEECK; e-mail [email protected];

Keeping kids safe is a task the whole community should embrace, not just parents and police. U.S. Storage Depot, based in Saline-Mich., found a way to contribute by hosting a Child ID Day, during which parents could bring their children to be fingerprinted.

More than 2,100 American children are reported missing every day, according to the U.S. Department of Justice. If families can quickly furnish fingerprints, descriptive information and a current photograph to law enforcement, the chances of safe recovery are greatly increased. The National Center for Missing and Exploited Children (NCMEC) reports the recovery rate has increased from 66 percent in 1990 to 94 percent in 2004.

We like to keep with a charitable theme and give back to the community when launching a new facility [with a special event], says Bryan Feldpausch, marketing director. A Child ID Day seemed like an idea with great potential, but the overwhelming response from parents caught the company off guardabout 400 people turned out for the first program. Now U.S. Storage Depot regularly features the event as part of its marketing mix.

To reach prospective attendees, it enlists the help of schools. Generally, well put an ad in the paper, and print a bunch of fliers and take them directly to the school system, Feldpausch explains. Sometimes they cant do anything for a for-profit business, so we keep the flier free of logos and explain that its not-for-profit.

U.S. Storage Depots Child ID Days are coordinated by a local woman who specialized in organizing the same event for schools. Originally, she didnt think wed be able to draw as many people, and now she works with us at all our grand openings, Feldpausch says. It turned out attendance at schools was limited to no more than three classes, with teachers not able to send every pupil. At our facility, we bring in kids from five different districts. We also offer it on Saturdays when kids arent in school, so families can more easily attend.

The police department provides experts who fingerprint the children. A roll of each childs prints and a tip sheet are sent home with parents, who are encouraged to staple a current photograph to the packet. According to the NCMEC, one of six missing children is recovered because someone recognized his picture. In some cases, police coordinate the entire child-ID program and include digital photos on floppy disk or offer copies of dental records. Interested self-storage owners should check with local police departments to learn what programs are available.

Sweetening the Pot

In its promotional fliers and press releases, U.S. Storage Depot touts incentives such as food, games or visits by fi re trucks. A recent event featured the Candy Sheriff, a costumed figure who passed out candy. Also on the agenda was Dan-Dan the Choo-Choo Man, the engineer of a mini train that gave rides throughout the facility. Sometimes the day even includes an RV show coordinated by a local dealer, an added treat for adults.

We might talk to a pizza parlor and get it to donate or split the cost of 30 or 40 pizzas so we can offer free lunch, Feldpausch says. Sometimes the local police or fire department brings a vehicle, which can keep kids occupied for hours. U.S. Storage Depot has also offered a petting zoo or other animal exhibits through groups like the Humane Society or 4-H Club.

Good Business

Once the serious fingerprinting business is complete, kids are free to have fun while parents explore the facility. Each event lasts about four hours and, without fail, three or four families stay for the duration. Feldpausch believes the positive connection potential customers make between the event and its host is invaluable.

When you bond with the community, you relate to people and give them the impression you are giving something back to them. It gives them a feeling of warmth. I can still remember when Bell Tire used to give out free hotdogs when I was a kid, and that was years and years ago I dont see why every other kid and his parents wouldnt feel the same way I did.

U.S. Storage Depot is always looking for opportunities to do community organizations a good turn. Every time, the company scores its own reward in good will. For example, last year, a minister needed a place to hold donations for his churchs annual clothing drive. The company furnished a free unit for a couple of weeks, inviting people to come by and deposit gifts. We did a little bit of publicity, and the church itself did a pretty good job of publicizing the drive, Feldpausch says. A lot of people came by our site to drop off clothing. It gave them a chance to see what we have, that its a state-of-the-art facility. As a result of helping the church, we increased foot traffic and made people more aware of our site.

Similarly, this fall, the company made a unit available to the Cub Scouts to store boxes of popcorn for a fund-raiser. One of the facilitys lobbies was used as a drop spot, and about 150 people came by to look around. All that just by giving one storage space to Cub Scoutswe are branding our name by doing something charitable, Feldpausch observes.

U.S. Storage Depot has more than 22 years experience in the self-storage industry, designing and building award-winning facilities. For more information, call 734.944.1803.

When clients deal with Anthony and Gerry DiMarco, they realize they are working with two people committed to the self-storage industry for the long term. The brothers are the principals of Security Mortgage Group, founded in 1989. Headquartered in Rochester, N.Y., the company offers financial services to clients nationwide from its home office.

Anthony, a Villanova graduate, has been active in the real estate industry since 1996. In 1997, he energized Security Mortgage Groups push into the self-storage industry and, since then, has closed loans on more than 125 institutional-grade properties. Gerry DiMarco Jr. joined the company in 1992. He received an MBA from the William E. Simon Graduate School at the University of Rochester, with a major in finance, and an undergraduate degree from Holy Cross, with a degree in economics and history. He has financed more than 250 multifamily and manufactured-home communities.

Gerry is proud of the growth the company has accomplished in just over a decade. Our lender relationships have grown deeper as our trust with our clients has grown stronger, he says. We have closed more than $2 billion in dealsnot bad for two guys.

Security Mortgage is a family-owned business. This is our livelihood, Gerry says. We take it very seriously and are always available. The companys mission is to work harder than anyone to make sure clients are treated properly. The brothers dedication to the company and its clients means they fight hard for customers, not big lending institutions. You will not be working with a back-office functionary to get your deal closed when you work with us. This distinguishes Security Mortgage Group from the competition, Gerry says proudly.

Meeting Industry Needs

The needs of small businesses are understood by Security Mortgage because it is also a small business, says Gerry. Although the company has only five employees, all are committed to providing self-storage owners with the best mortgage financing.

We realized many years ago that this was a very misunderstood property type, Gerry says. Self-storage has been ignored by many local banks and national life-insurance companies. We are tapping into nonrecourse, fixed-rate financing. This allows our clients to focus on managing their properties, not on interest-rate fluctuations. The company finds out a clients requirements, and then works to tailor a loan to meet those needs. Certain factors are pinpointed, including a no personal guarantee, low costs, fixed rates and amortizations.

Gerry assesses the storage industry as strong and vibrant. Though money should continue to flow into the business, there will always be consolidations and shakeouts for some who cannot make it. We believe locking in long-term rates at todays levels will ensure the lasting profit and competitiveness of our clients, he says.

The companys key business plan is to make sure customers know they are dealing with people who keep their word, who understand and act quickly on clients requirements. We do not want to be tarnished by the sub par culture of other companies, Gerry says. We advertise and attend many conferences. Most of our deals come from referrals and repeat customers. This is our proudest accomplishment. Our philosophy is to always be available, over-deliver on promises and make sure we understand the needs of our clients. For more information, call 585.423.0230.

In this day and age, the phrase doubtless sounds too good to be true. But Artistic Builders Inc. is genuinely at your service when it comes to development assistance and construction of self-storage. Its service thats led Artistic Builders to establish a rock-solid national reputation for integrity and expertise in its decade of existence. One of the things that sets us apart as a company is we dont consider ourselves to be just a contractor that builds self-storage facilities, says Charles Plunkett, owner and president. Artistic Builders is a development-service company.

Plunkett, founder and CEO of sister-company Capco Steel since 1984, realized he could use his broad experience in steel building and self-storage construction to fulfill another industry need. He introduced Artistic Builders as a turnkey contactor in 1994. Company growth has been exceptional, with numerous projects garnering award recognition. Like reports of an honest mechanic, news of a trustworthy self-storage contractor spread quickly, and Plunketts business snowballed. The numbers speak for themselves: Between 2002 and 2004, the companys gross revenue increased 50 percent.

How It Works

Artistic Builders winning theory is to get involved with a project as early as possible. One of the first things we ask an owner is his objectives, Plunkett says. We dont go in with any preconceived notions or try to push any particular product. The company forms a team with owners, offering suggestions in the preplanning stage to help them meet their goals in the most cost-effective manner.

Part of our job is to help the owner figure out what is important and what is not, Plunkett explains. He adds that communication is a guiding principle for staff members; for example, theyll identify obstacles to an owners vision and specify why it is important things be done a certain way to achieve optimal results.

A full-time staff of 13 employees manages nationwide projects from a central location. Artistic Builders maintains a drafting department to do preliminary designs and refers owners to architectural and engineering firms best suited to their needs. During the pre-design stages, the company often acts as client representative at meetings with municipalities, zoning boards, architectural/engineering firms and other agencies.

Plunkett is proud of the collaborative efforts of his staff members. Glenda Jacoby, senior project manager, oversees operations as the companys project director. She has 12 years of experience in self-storage development, design and construction. Alfred Rosa, development coordinator, acts as an informational conduit between owners, municipalities, architects and engineers. A nine-year veteran of design and drafting, he has a background pivotal in linking structural drawings with initial project concepts.

Jacoby directs the work of company project managers and superintendents who run day-to-day operations. Artist Builders superintendents are routinely sent from the home office to job-site locations. Occasionally, we will hire superintendents in the city in which we are working, but it is more common to send one of our own staff superintendents to oversee the project, Plunkett says.

Project managers in the home office communicate daily with jobsite superintendents equipped with laptops and digital cameras. Team duties include reviewing status reports, and discussing and resolving issues. Project managers also make regular field visits to see project progress firsthand. All of these team efforts help reduce instances of change ordersa frequent cause of budgetary woes with some developers. We dont look at change orders as a way to make extra money, Plunkett assures. Change orders may be necessary, but they need to be the exception rather than the rule.

Many prospective owners believe the more a project costs, the more a contractor makes. That scenario isnt the case for Artistic Builders, which devotes substantial time to predevelopment in an effort to control costs. Most projects undertaken by the company are done on the basis of costs, plus a percentage fee with a guaranteed maximum price. Artistic Builders solicits bids from reliable subcontractors, and clients recommend their preferred service providers. Plunketts staff then evaluates each bid and make recommendations to the owner, who ultimately makes the decision. This helps the owner remain in control of project costs.

Throughout each project, owners receive a monthly report that includes copies of every transaction. The procedure creates a transparent relationship of trust in which they can audit the books at any time, Plunkett says.

The Highest Standard

Plunketts standards for each project are a throwback to the good old days of pure integrity. Artistic Builders tells you what its going to do, how much its going to cost and, quite simply, does as promised. The companys objective is such that when the project is completed, the owner has exactly what he expected as a minimum, and we have delivered a little bit more than what was expected from us, Plunkett says.

Artistic Builders clients often come back. The company has won several major facility awards in three of the last eight years. We have been very fortunate to have built some really nice projects, Plunkett says. Owners seek us out through reputation. They see the type of work we do and want the company to be part of their team. For more information, call 210.479.3450; visit www.artisticbuilders.com.

When you need a self-storage expert to consult on Yellow Pages advertising, who you gonna call? For the past 15 years, the answer has often been Peoria, Ariz.-based Michaels/Wilder Group. Though not exclusive to the self-storage industry, the consulting agency arrived on the scene storage-savvy, its principle players having spun off from MiniCo Inc. Over the years, the groups expertise has grown to include online Yellow Pages, Internet advertising, and other marketing and promotion strategies.

We know the industry as well as a lot of people who own storage, says Curt Ogieglo, vice president of operations. We bring that intangible, value-added quality. For instance, we know to talk to you about your unit mix and cap rate. We know what matters: service radius, occupancy, signage and frontage. If you dont have a good location, youll need more Yellow Pages advertising than if youre on a major thoroughfare. We put all that stuff into consideration when were telling you how to buy ads.

Yellow Pages

Michaels/Wilders pledge to clients is increased response and superior advertising programs. Yellow Pages know-how is an integral component of its self-storage services, due to the mediums paramount importance in the industry. A new facility can expect 60 to 80 percent of its revenue to be generated by the printed Yellow Pages; that number rarely drops below 50 percent for established facilities. Calculating the best bang-for-the-buck advertisement involves variables that differ from market to market.

Most self-storage owners recognize the confusion, complexity and expense of Yellow Pages advertising and seek assistance when coordinating their plans, Ogieglo says. Though purchasing ads through Michaels/Wilder is no more expensivein fact, the company offers discounted rates with more than 250 publishers of 8,000 directoriesthat isnt the reason to retain the agency. Owners want someone sitting on their side of the desk when negotiating with publishers, Ogieglo explains. If you need a bigger or smaller ad, Ill tell you that, and Ill tell you why. Our mission is not to sell Yellow Pages but to bring information to storage owners so they can make an informed decision.

The quagmire of ad buying includes design, placement and knowing which directory to use. Companies often purchase ads in multiple directories because they dont want to miss a call, yet a single publication may dominate the area. We know which books pull the most response, so the clients Yellow Pages budget will go down, or hell get more calls because he is making better use of his funds, Ogieglo says. In some cases, there is simply no prime space left in a regions key directory. Owners would be wise to investigate the situation before buying a facility.

One-quarter of all Michaels/Wilders customers are from the selfstorage industry. To qualify as one of the agencys Yellow Pages clients, an owner must operate in multiple states due to directory-publisher restrictions. The more stores you have, the more valuable our service becomes. If you have 50 stores, imagine trying to coordinate that with 100 different reps and trying to keep track of it all, Ogieglo says.

Online Results

The Internet has emerged as another key factor in self-storage marketing. Michaels/Wilder developed its Interactive division about four years ago in response to the industrys needs, including consulting for online Yellow Pages. Websites used to comprise 2 percent to 3 percent of self-storage revenue generation. Theyre anywhere from 10 percent to 12 percent now. Our interactive business was born because of our big storage business. We had to start supporting the industry that way, says Ogieglo.

Online Yellow Pages has proven to be a boon for self-storage, according to Ralph Knight of the Interactive division. Numerous sites offer online-directory services, which is where Michaels/Wilders intelligence becomes invaluable. The agency performs analysis of regional providers so clients listings reach their target audience. The same goes for pay-per-click campaigns. Clients have the option of guaranteed programs in which certain results are assured for various keyword programs.

Most of our storage clients say their clientele comes from within a certain radius of their facility, Knight says. On Google and Overture, for example, you can target your ads to only show up to people in those specific areas. For an extra fee, staff will also provide tracking, so operators know just how effective their campaign is with hard return-on-investment numbers.

Through website optimization, Michaels/ Wilder boosts a facilitys Internet presence. We make a website easier for the search engines to crawl through, Knight says. This means more search engines list the site in their top results; and being on the first page of search results increases the likelihood of being discovered by prospective customers.

Michaels/Wilders key to success over the years comes down to results. The agency talks plain sense to clients about how to maximize their marketing dollars. This sounds corny, but they trust us, Ogieglo says. We tell them what they should or shouldnt do, they believe us, and it works. Its that simple. Whether its good or bad, were going to tell them the truth.

Michaels/Wilder also has a group that specializes in the Hispanic market, offering translation services, search-engine registrations, direct-mail campaigns, and keyword use to maximize Yellow Pages and Internet search results for the Spanish speaking. The agencys Recruitment division focuses on helping employers advertise and promote opportunities to choice employees. For more information, call 800.423.6468; visit www.michaelswilder.com.