Technology previously available to other industries can now be applied in self-storage operations. Lets take a look at three tools that are assisting the marketing and financial success of self-storage: the Internet, call centers and kiosks.

The Internet

The Internet is a revolutionary communication pipeline that has transformed the world and the way business is conducted. A person can get on the Internet and complete in a short period what might have taken weeks or months to accomplish just 20 years ago. In fact, use of the Internet, e-mail and e-commerce has become so commonplace that it is almost taken for granted as the public at large has become accustomed to its benefits.

The beauty of the Internet for businesses is it allows them to reach their client base and potential customers from the comfort of the home or office. In regard to self-storage, it even allows customers to tour a facility without having to physically visit the space, a powerful advantage when someone is attempting to make a buying decision from out of state.

The Internet allows smaller operators to compete with larger ones on a relatively equal playing field because it helps create the perception they are professional and keeping up with the times. Self-storage websites can be elaborate, with the ability to take reservations and payments, or simple, with only pictures and general information. Whatever your budget, it is important to get the most out of your website. Think of it as an extension of your business that works to promote your products and services 24 hours a day, every day.

There are many ways to promote your website. Some are costly while others have little or no expense. One rule of thumb is to treat your web address (also known as your domain name or URL, i.e., www.ABCstorage.com) as you would your phone number. After all, the key to a successful website is getting people to visit it. This means any printed materialsletterhead, envelopes, business cards, brochures, invoices, handouts, etc.should include your web address.

Prominently display your web address in your Yellow Pages advertising. It is interesting to find that people actually look at the Yellow Pages, and then visit your website to get all the information they can before calling or visiting you. This phenomenon increases as high-speed Internet access becomes available in more areas.

Another way to promote your website is to invest in search-engine rankings and concept sites. Treat this type of promotion as paid advertising because there will be an investment on your part. If you are not familiar with search engines, think of them as a giant Rolodex. You type in keywords related to your subject or topic, and the search engine does all the work, providing a list of websites related to your search. Yahoo and Google are two popular examples of search engines.

What is important about search-engine rankings is the position in which your website falls on any given list. For instance, the engine may return five pages of websites, but the best position is on the first page, as far to the top as possible. There are services to assist you in registering the right keywords to rank higher on these lists. Shop around and educate yourself on how rankings work before investing in this kind of assistance.

Concept sites are a different way of Internet marketing. They are hosted by companies that target specific niche markets, for example, moving and storage. Concept sites take care of search-engine rankings, banner-ad placements and website organizationyou simply pay to be a member. The site host handles all the promotion and trafficking of the site, and you benefit by exposure to visiting customers. Sites like these give browsers an abundance of choices in one place. Examples include Monster Moving and Online Self Storage.

If you have the ability to take rentals and payments through your website, you may want to consider these opportunities. Stopping a customer from shopping around by making him a customer before he even moves into town is a competitive advantage. You also want to promote your online payment feature to all current tenants. This is a wonderful alternative for those who dont want to leave a credit card on file at your office.

Call Centers

Call-center technology has been employed by huge corporations for many years and is fast becoming a staple technology for self-storage operators. The biggest advantage to employing a call center is availability to your customer base. Have you ever thought about how many phone calls you miss when your office is closed? Most people shopping for storage will not leave a message. Theyll simply call the next business in the phone book.

When a person answers the phone, customers should immediately get the information they need to make a buying decision. Call centers have the ability to take reservations and payments and stop customers from shopping around. Most can handle calls 24 hours a day, and many are cheaper than the cost to hire additional employees. You can even advertise a special hotline number to the center in your Yellow Pages ad and on your website. Call centers are another way of extending contact to your customer base, making it convenient for prospects to do business with you.

Automated Kiosks

Kiosks are popping up at self-storage facilities all over the country. This technology is the newest to find its way into the industry. Many of you may be familiar with automated checkout stations at your local grocery store, post office or bank. Kiosks can offer similar benefits to self-storage operators and customers.

In addition to renting units, accepting payments, dispensing locks, taking digital photos of customers and printing leases, kiosks can be programmed with a multimedia tour of the property that can be viewed 24 hours a day. They can incorporate biometric scanners, offer tenant insurance, and accept all forms of payment, even cash. Kiosks, which interface directly with your management software, make your business accessible even when you are closed and, therefore, serve as a phenomenal marketing tool.

The Future Is Here

The future is now. The tools examined here are only a few that will change the way people handle their self-storage business. Modern technology allows you to offer greater convenience while communicating with and serving more customers. The day will come when renting units 24 hours a day will be the standard for the industry. As the Internet, call centers and automated kiosks take hold, we will meet with success throughout the 21st century.

Raymond E. McRae is the vice president/director of operations for Mesa, Ariz.-based Storage Solutions, which conducts feasibility studies, third-party management, market surveys, consulting, auditing, acquisitions and development for the self-storage industry. For more information, call 480.844.3900; visit www.storage-solutions.org.

 

I want to thank Inside Self-Storage for inviting me back as a columnist for 2005. I am honored to be able to share my Thoughts From the Road with you. Since beginning this column several years ago, it has been my goal to share ideas, concepts and the occasional off-beat thought with self-storage owners and managers. It is my hope that I might contribute in some small way to making your bottom line healthier in the year ahead and even provide personal motivation. I also appreciate the feedback I get from readers across the country.

Managers Schlepping Carts?

I want to share a family members experience to get facility owners to ask themselves: Are my managers assigned the right tasks? Several years ago, my sister-in-law took a position at a Wal-Mart in upstate New York. She quickly established herself within the store and, before long, became manager of several departments. Her areas started achieving record performance, and she earned store and regional recognition.

She admits the pay wasnt the greatest, but she had a great group of associates and a satisfactory working environment. Then things began to change. Schedules were cut and overtime became a four letter word. She found herself trying to do the same amount of work with fewer and fewer employee hours. Then the final straw was added to the camels back: The store manager called a meeting to discuss two new important tasks in which all department managers would be required to participate.

The first was line pushing, which involves using a portable barcode reader to scan a customers purchases in his cart while he waits in the checkout line. The customer then simply hands the printout to the cashier. This, of course, was caused by the stores refusal to hire more help. The second change was managers would be called on a newly distributed walkie-talkie system to go outside and gather carts from the parking lot. Remember, this was in upstate New York in February!

The message from Wal-Marts senior management was this was the level of importance at which they deemed their department heads. The sole focus was on the artificial bottom-line impact of a smaller payroll. Any thoughts of customer service and employee morale never seemed to enter the bean counter decision-making process.

I see self-storage owners across the country doing the very same thing with their most valuable resource: their employees. With a lack of a minimum-wage staff to handle facilities routine maintenance, I see managers devoting a significant part of their time to repairs and upkeep. Sure, everyone needs to pick up trash blowing around the site, but I would much rather have my senior manager making sales calls or dealing with delinquent tenants than running a leaf blower.

Take an objective look at your management operations and employee responsibilities. Could the addition of a part-time maintenance person improve morale and the bottom-line performance of your store? I believe the answer is yes.

Journey to Relaxation

Ill admit, years ago, I was an Atari Pong player, a traveler in the game Myst and even a Doom warrior. Those of us who have grown up with computer games have watched as they moved from very basic motion to full 3D animation. These days, the most popular titles seem to be oriented to some type of violence, unless youre a Sims Family addict.

I was recently introduced to a computer game that is a radical departure from anything I have seen in the past. My sister, Judy, has a neuro-biofeedback medical practice in our hometown of Buffalo, N.Y. Working with state-of-the-art software and hardware, she has achieved miraculous results in getting the brain to think in new patterns. She has even trained a number of professional golfers to achieve peak performance using her techniques.

Judy introduced me to The Journey to Wild Divine. Using a basic biofeedback system that attaches directly to your computer, the game measures your SCL (skin conductance level) and heart rate. Chapters in the journey introduce you to a number of relaxation events. By controlling your breathing and simply relaxing, you accomplish various tasks.

At first, I had a great deal of difficulty because I was trying to force things. As I learned to simply let go and concentrate on calming my thoughts, the tasks got easier. I am amazed by the activities the games programmers built into this innovative platform. It may not be for everyone, but if you are genuinely interested in finding a way to be more relaxed, this game may be worth the trip. You can visit the website at www.wilddivine.com.

The Year of the Handshake

I would like to make 2005 the Year of the Handshake for the entire self-storage industry. No, I wasnt able to get some type of proclamation or official government decree. But I know from my travels across the country and discussions with countless managers that we are not shaking peoples hands, even though greeting every prospect and customer with a sincere handshake as they enter and leave our offices will produce improved results, increased retention and higher closing ratios.

How can I make such a claim? While there are plenty of references and recommendations related to the etiquette of shaking hands, there is very little scientific research. Probably the most definitive study was led in 2001 by William Chaplin, a University of Alabama associate professor of psychology. He was assisted in research and authorship by Jeffrey Phillips, Jonathan Brown, Nancy Clanton and Jennifer Stein.

The study indicates that people with firm handshakes are generally more extroverted than are those with limp ones. Firm handshakes also make a better first impression. And its not just a guy thing. We found men had firmer handshakes than women, on average, but we also found women who had firm handshakes tended to be evaluated as positively as men, said Chaplin. We thought this finding was interesting because often when women have characteristics that are more similar to men, they tend to elicit a somewhat more negative evaluation, simply because its counter to the usual stereotypes.

Unless you regularly attend church services, there are very few social or business situations that provide opportunity to extend this most personal of gestures. You feel special when you walk into an office or store and the person you are about to talk to gets up out of his chair and extends his hand in greeting. Making personal contact in this manner adds significantly to the salutation, How can I help you today? It becomes a bridge, a personal link that subconsciously puts a customer at ease and gives him a sense that the person he just met really wants to help him.

Just like monitoring and tracking phone calls, appointments and leases, consider examining your handshake practices. See what a difference it makes. You may be pleasantly surprised that an activity that costs you nothing can produce such positive results. I look forward to shaking many hands at the ISS Vegas Expo in February.

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 introduced LockCheck, an inventory data-collection system, to the self-storage industry. He can be reached at 434.589.4446; visit www.selfstorageconsulting.com or www.lockcheck.com.

What is the current fascination with carwashing, a business that isnt glamorous or high-tech, but is capital intensive and requires a lot of effort to be successful? I think its the perception of ease: The industry seems easy to get into, easy to finance, easy to build and pretty simple to operate. But as with most perceptions, this one includes a real disconnect between what is real and what isnt. Car-washing is a very tough business, not suited for the faint of heart.

The physical real estate is one of the primary considerations when locating and choosing which type of car wash in which to invest, and it is particularly important in terms of total financial impact. Yes, carwashing is a vehicle of choice to pay for the real estate investment itself, but dont lose sight of the long-term objective: improving your asset base and net worth, the keys to which are real estate appreciation and sale of the business.

So what is the role of real estate, and how do you know your investment matches and fulfills its highest and best use? This old real estate adage insists that whatever you place on a site should return enough revenue, when capitalized, to support the value of the investment. The question is, how do you know when the revenue stream is correct?

Measuring Car-Wash Value

Each type of car wash has a relatively predictable revenue stream and expenses. You can therefore roughly determine if a particular site and facility type will be the highest and best use. Following is an example.

Lets say you found an ideal site candidate for a car wash. Youve determined a self-serve (wand or coin-operated self-wash) best fits your lifestyle and business modelminimal labor, all cash, nominal customer involvement, and you can keep your existing job until such time the investment takes priority. The site meets generally accepted rules of thumb (good ingress and egress, as well as demographics), and you know the community can support an additional six car-wash bays. You meet with the realtor and find out the site it is a permitted use and the planning board will support the business.

So far, youre doing great. You gather your information and put together a rough but telling set of numbers:

• Your land cost for half an acre at $10 per square foot is $220,000.
• Your estimated equipment cost for six bays at $30,000 a piece is $180,000.
• The cost for your estimated building and other site improvements is $200,000.
• Your total investment is approximately $600,000.

What about revenue? Youve discovered, through your research, that average car-wash revenue for your area is about $1,800 per bay per month, or $129,600 annually. You have also learned that a conservative number for variable expenses (heat, electricity, sewer, water, supplies and labor) is around 30 percent, or $38,880. Now youre down to $90,720.

After talking with your banker, you find out you need 20 percent down ($120,000) for the project, and it will be financed over 15 years. At a 7 percent interest rate, your annual loan payment is roughly $51,772, leaving you a net $38,948 to cover fixed expenses (debt insurance, real estate taxes, accounting, legal and advertising). Assuming your insurance costs about $10,000 and real estate taxes are about $12,000, youre left with $17,000 in profit. Considering you invested $120,000 in cash, the return is 14 percent.

Annual income (six bays @ $1,800/month)	$129,600
Subtract variable expenses @ 30%	-$38,880
Net before debt and fixed expenses	$90,720
Subtract debt ($600,000 - 20% down = $480,000)
@ 7% for 15 years	-$51,772
Balance for fixed expenses	$38,948
Subtract estimated costs for insurance and real estate taxes	-$22,000
Profit	$16,948
Estimated return on cash	14%

Thats not bad, but if you were looking for a minimum of 20 percent, youve missed the mark. Whats more important, if you were to capitalize revenue at 20 percent before fixed expenses and debt, it would only support an investment of $453,600, not the $600,000 it cost to develop the site.

In the example, it is obvious one or several of the numbers are off. The most apparent are land and revenue. To make the project more profitable, you either have to reduce the land cost, find a different site or change the revenue opportunity. The other thing you have to take into consideration is your exit plan, which is of major importance. You want to be sure the revenue stream will support your asking price with a reasonable amount for good will at time of sale.

Consider what would happen if the land cost were only $5 per square foot instead of $10. Your new loan payment would be $42,280 a year. With all other expenses staying the same, your new return on cash (with a reduction in real estate taxes and insurance to $16,000) is 33 percent. If you use the same capitalization formula as above, the cap rate is 18.5 percent, pretty close to a target of 20 percent.

The bottom line is you must match your real estate site and improvements with your revenue stream. Over or under invest, and you fail to recover your investment or get the correct value for your business. The key is working with knowledgeable vendors and being realistic in your expectations. You want to be happy, and your bankers want to know youre building an asset that will bring a realistic return for you and is well-covered for them. Remember, real estate is King and, therefore, the focus of real wealth creation.

Fred Grauer is the vice president, distributor network, for MarkVII Equipment LLC, a car-wash equipment manufacturer in Arvada, Colo. He has made a life-long career of designing, selling, building and operating car washes. He can be reached at [email protected].

Construction Corner is a Q&A column committed to answering reader-submitted questions regarding construction and development. Inquiries may be sent to [email protected] .

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Q: I am thinking about adding keypads at our facilitys gate. My concern is the amount of rain and wind we get. Are keypads safe to use in areas that experience bad weather, and what should we consider?

Cathy in Weymouth, Mass.

A: As rain doesnt always fall straight down and wind can force water through any opening, keypads need to be sealed to protect the circuitry inside. Outdoor keypads should have watertight keys, backs and hinges. Another thing to consider is the keypad stand and the wiring that runs through it. The conduit should slide through the center of the stand at least 6 inches to resist water. In some areas, ice can break conduit and short out wires. To avoid rust on the keypad housing, aluminum is a good choice. Finally, keep in mind that water is not the only reason to keep keypads well-sealed. I have seen hornet nests inside keypad housings, and while hornets and customers dont mix, insects are also not good for keypad workings.

Q: What are the potential problems involved with adding a music system to our facility?

Tom in Amarillo, Texas

A: Music is a great addition to any facility, as the speakers installed for this system can also be used for paging. The system can be set up in zones, which will allow you to control the volume or page in a specific area. Check the amperage requirements to determine how many speakers can be in each zone. Place speakers as high as possible to provide the best acoustics, but keep in mind metal buildings provide good bounce for sound travel.

The wiring for each zone can be daisy-chained to individual speakers, but as each speaker pulls power to operate, it will require wiring back to the receiver in the office. This means having a wiring path to upper floors and outdoor buildings. The wiring should be shielded to protect against interference, and outdoor speakers should be weatherproof. After the system is in place, your staff can fight over what kind of music to play!

Rod Davis is the installation manager for QuikStor, a provider of self-storage security and software since 1987. For more information, visit www.quikstor.com.

How do you do that? One of the best ways to help your facility get high occupancy and sustain it is to properly market your business. To do this, you first need to do your homework.

Know Where Customers Are

A feasibility study is important for many reasons, but it is particularly critical to your marketing effort. If you have already done a feasibility study and know your location is good, you probably also know the majority of your customer base comes from within a 5- to 6-mile radius of your facility, or a 10-minute drive. There are exceptions, particularly if your facility is in a small town or rural area, in which case, the market might be larger. But generally, you can count on these distances as a good rule of thumb.

Know Your Market

Knowing your market is critical to success. Your feasibility study reveals the nitty-gritty details of your customer base. It tells you the makeup of your neighborhood, for example, whether it consists of housing developments, schools, colleges, apartments, military bases or commercial businesses. This kind of information is important because its a clue as to the kind of storage your customers will need (unit size, climate-control or standard, etc.) and how long they are likely to lease the space. It will also give you population counts and demographic information, such as average age, income and gender of your tenants.

Know What Customers Want

Marketing studies reveal that when selecting a self-storage facility, customers primarily desire convenience. They want to be close to their stored valuables and they want their goods to be safe. They expect a facility to be well-lighted and fenced, with security cameras and keypads to control access to the grounds. Customers also want their valuables to be dry and, in some cases, they may want climate control for items sensitive to humidity and temperature.

Statistics reveal that 60 percent of self-storage customers are women. Female customers in particular dont want their valuables stored in a dingy, unattractive, uninviting place, so curb appeal and landscaping become important. There was a time when self-storage facilities were relegated to the wrong side of the tracks, but not today. Many are now in the midst of suburban neighborhoods or attractive business parks.

Know How to Reach Customers

You already know where your customers are located, who they are, and what they want. So how do you communicate with them? Conventional wisdom tells us the best way to reach prospects is through the Yellow Pages. After all, leasing a self-storage unit is an impulsive decision, and prospects dont want to spend a lot of time deciding where to rent. This is true most of the time, so the Yellow Pages are an important method of advertising. But there are other proactive ways to lure customers to your store:

• Direct mail is an efficient way to reach your customers and prospects. Its easy to identify your neighborhood ZIP codes and avoid mailing to addresses outside your market area.
• You may want to consider advertising in local radio spots, newspapers and magazines. These can range from reasonable to expensive, so choose wisely. The right venue will help build public awareness of your business.
• Billboards in your market area will help direct prospects to your location.
• Sponsoring the activities and events of schools and neighborhood organizations is smart public relations for your facility. Chamber of commerce programs, such as Business After Hours, can also be beneficial.
• By no means underestimate the importance of referrals from satisfied customers. Their unsolicited comments are a critical connection to new business for you. When your customers are happy, they will tell their friends.

Encourage your facility manager to set aside at least one day a week to personally visit prospects in the market area. Arm him with refrigerator magnets, pens or other collaterals printed with the facility phone number and logo to give away as a free gift. The shelf life of free items like these is amazingly long.

Know Your Products, Services and Competition

If you dont have competition in your market, youre extremely lucky. More than likely, you have a competitor or two. Thats why it is important to be aware of how you stack up against other facilities in your area.

Find out about their strengths and weaknesses, because they will quickly reveal your facilitys own. By making comparisons, you can eliminate your sites shortcomings and translate strengths into customer benefits. If your competition has longer office hours or offers RV and boat storage but your facility does not, consider making adjustments. You need to meet or exceed your competitors products and services.

Know How to Catch Every Call

You want prospects and customers to call your facility, and you want to make the most of every call. When your facility is closed or your manager is busy, you run the risk of losing potential business. Plus you may upset a customer who needs to talk with a person but gets voicemail instead. Statistics show only about 29 percent of callers will leave a message on an answering machine. This means 71 percent will simply call other facilities until they get a person the phone. Not only are you in the self-storage business, youre in the people business. When someone calls your store, he wants immediate response.

One way to avoid this problem is to hire a call center that will take all calls from prospects and customers, day or night. This service not only provides a live response to all callers and frees managers to do other things, it increases your chance to make the sale. Lost calls mean lost revenue. Some of the better call-center services guarantee hot leads and additional rentals every month for a fee based on the numbers they can actually deliver.

Properly marketing your facility is a sure-fire way of maintaining occupancy rates. More important, it sends a message to the customers in your area that youre not just a business but a part of the neighborhood and their lives.

Susan Head is vice president of sales and marketing for S&W Property Management LLC, which provides management and consulting services to self-storage owners. Ms. Head holds the same title for Phone Advantage, a division that offers an off-site rental source for facility owners. She can be reached at 888.817.9422; e-mail [email protected].

All of us have had the experience of shopping for a car. It is one of the most frustrating, annoying and irritating buying experiences you can have. It also provides a great analogy for understanding important dos and donts in customer service, marketing and promotions.

Comparable models of premium car brands, like car-wash or self-storage facilities, may have a slightly different look and feel, but their amenities are essentially the same. So lets assume you have narrowed your vehicle search to Lexus, BMW and Mercedes. You visit each showroom and are greeted professionally in all cases. But when it comes to service, one of the dealerships goes beyond the norm.

Not only does the sales rep listen and ask insightful, probing questions, he introduces you to all the key people with whom you would come in contact during a sale. How refreshing! He really wants you to know the dealership desires your business and it would be easy to have a relationship with the company. In addition, he realizes the significance of the purchase and that its important for you to understand the mechanical side of service. He takes you to see the service department, introduces you to the manager and shows you how your vehicle would be received and delivered back to you: running well and clean as a whistle.

So, you visited all the dealerships, drove the cars, and were approached several times to make a purchase. Now youre ready to choose. All three vehicles will meet your needs and are in the right price range. How do you decide?

When Tom Peters wrote In Pursuit of Excellence, he told the story about how one automobile dealership outshined all its competition. It exceeded customers expectations from the moment they stepped foot on the property. Since youve just had a similar experience, you make your final decision based on service. The dealership gets the sale, and you get a great experience. Everybody wins.

Glossary of Terms

Now that we have an example in mind, lets define some important terms:

Customer service. Most of us associate the word service with a mechanical activity, something that occurs after the sale. Service actually begins the moment a prospect comes through the door, buys your product and becomes a customer. The relationship ends when the customer no longer uses your product. Do a great job, and there is no reason to lose. Customer service is truly a cradle-to-grave relationship.

Marketing. By definition, marketing covers all activities involved in the evolution of a product, from inception and design, to manufacturing, sales and service. Think of marketing like farming: It starts with a vision, then moves to planning, preparation of the soil, planting, harvesting, packaging, transporting to market, sales and, finally, service. Its pretty straightforward. The role of the marketer is to manage the product path and influence buyers through strategies that promote profitable sales to the company.

Promotions. Promotions are any activities you use that result in someone using your product or service. They run the gamut from low-cost, fun items to sophisticated allowances, discounts and expensive prizes. Promotions can be very beneficial as long as you understand three things:

1. Promotions bring someone to your door only once. To create a lasting relationship, you have to meet or exceed customer expectations time after time. Customers have very short memory spans.
2. Any strategy will work. There are few poor promotions, only ones that are poorly executed.
3. For a promotion to be successful, you must weigh cost against increased revenue. If you cant see the bottom-line impact, it probably wont be very successful.

Tying It Together

If we are striving to reach Tom Peters ideal of that very successful auto dealer, there are several things we can do in our existing car-wash or storage business that will enable us to deliver superior customer service. Here are a few:

• There must be a company vision based on service and an understanding of the customer-value equation that differentiates you from competition.
• All employees must embrace, understand and practice excellent customer-service habits.
• It must be understood that service is not synonymous with wrench-pulling. It begins with the first interaction between your company and anyone who inquires about you.
• You must constantly audit your companys performance and be committed to correcting any deficiencies.
• Employees must be held responsible and accountable for their actions.

Excellent customer service is self-promoting and grows sales, just as poor service decreases sales. One good experience will be shared with a few; one bad experience will be shared with many. Service reigns supreme. Think how those losing dealerships reacted when they didnt get your sale. Have fun creating an awesome service program!

Fred Grauer is the vice president, distributor network, for MarkVII Equipment LLC, a car-wash equipment manufacturer in Arvada, Colo. He has made a life-long career of designing, selling, building and operating car washes. He can be reached at [email protected].

Even though your employees may change over the years, you can satisfy and retain your customer base by consistently maintaining a staff with a positive attitude. You want employees to provide that keep them coming back service at your facilities. The first step toward achieving this goal is to hire managers that have good dispositions, outgoing personalities and, if possible, a work history that includes service- based experience, such as in the hotel or apartment industries. Remember: Hire for attitude and train for skills.

After youve hired a great team with a positive attitude and winning smiles, empower them with the ability and the tools to use their talents to close the sale. Set guidelines for making deals, matching competitor pricing, giving free locks or boxes at move-in, etc., to enhance their natural customer-service skills. Even a positive outlook can use a little help to close a tough sale.

Once a sale has been closed, the quest to increase the longevity of your customer base begins. Think about what is important to you and what keeps you going back to a particular store or service. For me, a good attitude along with customer appreciation and recognition are the keys to keeping my business.

In self-storage, customers generally do not visit our facilities on a daily basis, so it is important to be in constant contact through other means. Developing a marketing/customer-service plan for preferred customers is a great way to follow up and maintain communication. Below are suggestions and ideas to try, or be creative and come up with something unique to your location or customer needs.

• Have a neat and clean facility. Even though you may not think of this as a customer-service skill, a presentable facility and restroom plays a large part in closing the sale and keeping customers.
• Within two days of a rental, send your new tenant a handwritten thank-you card. This will also confirm the addresses given to you at lease-up.
• Within 30 days of a new rental, call the customer to make sure he is happy with his space. Again, this will help confirm the tenants contact information.
• Mark each customers birth month on your reminders calendar and send him a birthday card.
• At their six-month anniversary, send customers a postcard or letter with the heading Dear Preferred Customer. Thank them for doing business with you and offer them a choice of preferred-customer specials. For example: rent a second unit and waive the administration fee or deposit; pay three months in advance and receive half off the fourth month; or get a double referral fee for any customer sent in the next 30 days, etc. Repeat the appreciation letter at 12 months and other regular intervals.
• Send holiday-greeting cards. Remember to keep them casual in respect of different religious beliefs.
• Have a monthly appreciation drawing for customers. Everyone who pays his monthly rent before the late-fee cutoff can be entered. For a low impact on your budget, give away a free month or a discount on next months rent. Other gifts to consider are holiday-related prizes, like gift certificates for hams or turkeys, food baskets, passes to local theme parks, etc.
• Host a monthly customer-appreciation day. Hang a banner on your entry gate promoting one day during the month when customers can come in to claim a free gift. Keep it simple. For example, pass out small American flags or pins during the month of July, ice-cream bars in August, apples in September, etc.
• Keep coffee, soft drinks, water and cookies on hand every day for customers.
• Set up a marketing table with fliers and business cards for local apartment complexes, movers, doctors and other businesses. Many of your customers are new to the area and may be looking for a particular item or service. This is also a great way to build relationships with other businesses and earn referrals.
• Participate in charitable events, such as hosting a drop-off point for Toys for Tots or a local food drive. If you have a reader board, offer one side as free advertisement for non-profit organizations.

Customer service is contagious. Spread it around and see what happens!

Sharon Pallas is executive assistant to M. Anne Ballard and an area manager at Universal Management Co. in Smyrna, Ga. Universal manages 30-plus facilities in Georgia, Louisiana, Massachusetts, North Carolina, South Carolina, Oklahoma and Virginia. For more information, visit www.universalmanagementcompany.com.

 

Because of its appeal to businesses, self-storage attracts potential records-management customers. That being the case, having multiple storefronts in a single community has distinct advantages to those self-storage operators who offer records-storage services. Though having two or more facilities brings the greatest value, it is possible to generate multiple storefronts within a single facility through creative marketing, i.e., appealing to residential and corporate clients or different types of businesses.

Business Potential

Lets look at a self-storage business with five facilities in a 25-mile radius. Each has 500 units, for a total of 2,500. The average turn rate (the period of time it takes for a unit to turn over) varies, but well assume an average of nine months. Well also assume business clients represent 30 percent of the customer base. Using these numbers, the business has 3,125 sales opportunities annually, at least 938 of which are with businessesgood prospects for records storage.

A single account of only 50 to 250 boxes can be worth a great deal in storage revenue. Remember, records-storage revenue is considered permanent, and rental by the cubic foot has a much higher yield than square footage. Consider these factors:

1. Assuming a 30 percent close rate, our example produces nearly 300 new records-storage accounts each year. At an average of just 50 boxes each (a low estimate), that means 15,000 new boxes.

2. Commercial records centers in a self-storage environment tend to claim higher prices than traditional operations: an average of 35 cents per cubic foot. Based on a typical box size of 1.2 cubic feet, those 15,000 boxes produce $75,600 in annual storage revenue.

3. Using a model that incorporates records storage lite and small-business packages (for more information on these topics, refer to my last four columns, which can be read in the online article archive at www.insideselfstorage.com), the yield per cubic foot could be 50 cents or more, depending on several factors. If our assumptions are correct, the gross yield would be $115,600 after the first year.

4. In the nontraditional records-storage model often used for self-storage, expenses are limited by intelligent service offerings with little or no additional overhead, which also results in higher storage revenue.

Now lets consider other factors that add to your revenue over time. While the above example looks at only one year of sales, lets take a look at what can happen over five years of operation. First, lets assume you and your staff get better at selling records-storage services over time and, after year one, your closing rate increases to 33 percent. That means the number of new accounts grows to 330 per year. Using the numbers cited above, these accounts yield annual gross revenue of $169,873. Add this to income from existing accounts and, after five years, the annual gross yield is $436,816 (see the accompanying chart). This does not even include the 7 percent average growth of existing accounts, referred to as creep.

Assumptions: There are five storefronts in a single market. There are 500 units per storefront for a total of 2,500 units. There is a nine-month turn rate. Business clients make up 30 percent of the business. Average box size is 1.2 cubic feet. Average price per cubic foot is 35 cents per month. Average yield is 50 cents per cubic foot. The creep rate is 7 percent, compounded annually.

At the end of five years, our example results in 1,620 storage accounts, with an anticipated volume of 104,004 cubic feet. Gross yield on these accounts after creep is $624,024. Can a self-storage operation with only one storefront still use this model? Absolutely. However, the results will depend on the operations number of units, turn rate, operating model, selling strategy, training and incentive for employees, and other issues.

You can model the example to fit your specific set of circumstances. It is not magic. The numbers work because of the records storage lite strategy and a business plan that optimizes revenue.

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

Everything in life requires maintenance. Without it, things become worn out, stale and lifeless. Your facility image is no exception. In a competitive environment, an appealing look will deliver increased occupancy by attracting new customers. It also helps maintain current business by keeping existing customers happy and content in the knowledge that they made the right choice by renting with you.

According to Websters, image refers to a popular conception projected especially through the mass media. A storage facilitys image is not only created by advertising and marketing activities but by other means, such as the quality and condition of your facility and staff and how well you deliver what you promise to customers.

Typical Self-Storage Prospective Customer Type

Your facility image will be one of the first things customers encounter about your business. Generally, there are different types of prospects, and they respond to and interact with your facility in various ways. Characteristics of these customer types may overlap, but to keep things simple, we have separated them into three basic categories: call-in prospects, drive-by prospects and walk-in prospects.

Call-In Prospects

These are people who will generally call you before coming to your facility. They respond to all of your printed materials, such as advertisements, fliers, brochures and postcards, but often are looking in the phone book at your Yellow Pages ad when they call. If they have a positive experience with you on the phone, they will rent from you, even though they have never seen your facility.

These prospects are often shoppers. They will call at least one other facility that has a similar or better image than yours. They will generally call you three to four days ahead of the date they need storage and call at least twice before showing up to rent space. They represent the largest group of prospective customers, so it is imperative your image is projected to them in a positive and convincing way. Your facility is seen by them through every means you choose.

Drive-By Prospects

These people regularly drive by your facility in their normal day-to-day routines. Because of the high rate of visual impressions they have of your facility, you are high in their top of mind awareness regarding storage. They come to you because youre the most familiar to them. They are your second largest group of prospects and possibly higher if you have high traffic counts (above 40,000 cars per day). Your facility image is projected to them predominately by the physical condition of your site and signage.

Walk-In Prospects

These people generally live or work very close to your facility (within 1 mile). Convenience is high on their storage shopping list. They usually arrive without calling ahead with an immediate storage need, and they rarely leave without renting space. They are often repeat customers who have had a positive rental experience with you in the past. They are the most desirable prospects because they are already sold when they arrive. Unfortunately, they are the smallest group of prospects you encounter. Your facility image is projected to them predominately through the physical condition, appearance and location of your facility.

How Do You Look?

One of the best ways to gauge the present condition of your facility image is to simply ask current customers how youre doing. This can easily be done by giving them a report card form to fill out and mail back to you. If you send invoices to your customers, consider including this form as a business-reply card in each billing envelope. To do this, youll need to get a business-reply permit from your local post office, which costs $150 annually. Each reply card you receive costs 83 cents.

Since the responses come directly from your customers, youll get a very accurate reflection of how they see you. Send the postcard regularly, and it will keep you in touch with the pulse of your facilitys image. The following is a good example of what this card might include.

Image-Building Tools

A strong facility image is maintained by having nine irons in the fire at all times; in other words, you need to have as many image-building tools as you can implement and afford. The old industry theme of build it and they will come is a dangerous approach in todays competitive environment. By relying solely on your facilitys location and physical condition to project your image to prospects, you miss a variety of opportunities to capture occupancy.

Review the following list of image-building tools and the accompanying questions. Consider adding some new tools to your repertoire. Also ask yourself if the ones you currently employ are functioning as efficiently as possible. Do they need to be updated? Do they convey a solid image? Are they attracting a continuous flow of prospects? If your answer is yes, congratulations! Youve got a winning image-builder. If the answer is no, maybe its time to freshen things up.

• BannerIn good condition? Brightly colored? Easy to read from the street? Needs replacing?
• BillboardMounted nicely on building or fence? Has wind slits to minimize wear? Bringing in customers? Professionally designed? Nice graphics and photos? Grabs readers attention? Includes logo, phone number, address and website?
• BrochureProfessionally designed? Nice graphics, photos and layout? Includes phone number, address, testimonial, office hours, website and maps? Readily available to take and/or hand out? Well-displayed?
• Business CardAll information current? Professionally designed? Nice graphics, photos and layout? Includes phone number, address, testimonial, office hours, website and maps? Readily available to take and/or hand out? Well-displayed?
• Door HangerProfessionally designed? Nice graphics and photos? Includes logo, phone number, address, website and maps? Grabs readers attention?
• E-mail AdProfessionally designed? Nice graphics and photos? Provides an opt-out link? Available in text and HTML formats? Collects e-mail addresses from customers?
• EmployeesProfessional appearance? Wearing uniforms? Good with customers? Accurate? Neat? Organized? Self-motivated? Punctual?
• FacilityLawn is healthy, trimmed and mowed? Trees and shrubs are trimmed? Trash and cigarette butts removed? Weeds removed? Flower beds manicured? Facility entrance clean? Parking-stall stripes freshly painted? Paving in good condition? Entrance gate in excellent condition? No visible deferred maintenance on buildings? Office entrance and door immaculate?
• FormsAccurate? In need of modification or updating? Easy to read? Include logo, address, fax and phone numbers?
• FliersProfessionally designed? Nice graphics and photos? Include logo, phone number, address, website and maps? Readily available to take and/or hand out?
• LetterheadProfessionally designed? Information correct? Has matching envelopes? Looks consistent with business cards? Includes logo, phone number, address, website, e-mail address and maps?
• LogoLooks professional? Needs updating?
• Newspaper AdProfessionally designed? Nice graphics and photos? Includes logo, phone number, address, website and maps? Grabs readers attention?
• PostcardProfessionally designed? Nice graphics, photos and layout? Includes phone number, address, testimonial, office hours, website and maps? Too small or large?
• Radio AdProfessionally produced? Memorable? Consider secondary radio stations? Consider a live remote?
• SignageIn good condition? Lights all in working order? All information current? Easily seen? Too short or tall? Too small? Need another pole or building-mounted sign? Consider adding a reader board or digital message board?
• PhoneMicrophone is directional? Caller doesnt hear excessive background noise? Consider a second line or hold music? Have an answering machine or voicemail? Voice messages sound professional? Use the same line for fax machine? Have the right equipment to ensure all callers get through?
• TV AdProfessionally produced? Too long or short? Consider late-night or cable TV? Mention discounts? Airing when people are moving or making plans to move?
• Website/Internet Listing Professionally designed? Nice graphics and photos? Includes logo, phone number, address and maps? Consider budget for Google Ad-words? Site is resubmitted to all major search engines monthly? Web host maintains 99.9 percent uptime and provides activity statistics? Web address appears on all printed materials?
• Yellow Pages AdProfessionally designed? Nice graphics and photographs? Includes logo, phone number, address, at least three unique features, website and maps? Stands out on page? Right size? Include listings under other categories such as boat and RV storage or warehousing?

More Than Price

What price level best describes your facility: upscale, moderate, discount or bargain? Dont get caught up in the misconception that prospects are shopping only on price. On average, 17 percent of consumers are regular discount shoppers with price as a primary motivation. These are the most disloyal customers because as soon as they can buy a product cheaper somewhere else, they do. In self-storage, they are the first tenants to leave when you raise rates.

Use your facility image to reach out to price shoppers, but understand the vast majority of your prospects are simply price-sensitive, not price-determinate. They equally seek other features, such as convenience and security.

Consider the following list of adjectives to incorporate into marketing materials, especially when using a new image-building tool. If you can effectively convey and offer all of these qualities, you will position yourself at the top of most prospects lists. If you can convince them of your value better than your competitors, they will rent space from you. Its that simple.

• Affordable
• Attractive
• Clean
• Convenient
• Easy-to-use
• Friendly
• Modern
• Preferred
• Private
• Professional
• Safe
• Secure
• Unique
• Value-added
• Well-designed

You have a facility image whether you want one or not. How much you care about your image shows in your level of service and the presentation of marketing materials. And prospective customers want you to care. From their perspective, care for your image translates into care for their needs and welfare. Thats attractive to customers, and they will rent from you when its obvious.

Consider, for example, the following Yellow Pages ads. Both cost about the same, but which conveys a better image? Which do you think will attract a prospective customer? The ad on the right says I care about you and my facility far more than the one on the left.

Designing and implementing image-building tools takes time, thought and focus. Be willing to make minor and wholesale changes to the facility image you project to customers. Play with ideas, and have fun. Not every concept will work, but as long as you maintain your image, it will always be new, fresh and attractive to prospects.

Bill Jinks is the president of MarketingPower CD, which provides industry-specific marketing software and an accompanying CD of royalty-free images, clip art and templates that self-storage owners can use in ads and other promotional materials. The Windows-based program makes it easy to produce ads, fliers, brochures, websites, postcards, e-mail blasts, business cards, letterhead, displays and more. For more information, e-mail [email protected]; visit www.marketingpowercd.com.

Having an edge in todays self-storage environment is paramount. One way to set your facility apart from competition is to offer the retail products and services your marketplace demands. How do you know what your market desires? You must undergo a due-diligence process, just as you did before building your self-storage location.

First, how competitive is the market in terms of ancillary products and services, and how will this affect your retail sales? Do you want to offer conveniences solely as a benefit to customers, or do you wish to create a viable profit center? What are the demographics in your market in terms of population, average household income, housing growth, disposable income, etc.? These will have an impact on the profitability of retail sales.

Find out what your competition offers in the way of ancillary products and services. Is there anything you can provide that other facilities in your area do not? If you can light upon an unfulfilled need in the market, you can create a key selling point for your facility. Often, a storage location will provide retail products and services but fail to promote them to customers. If this is true of your competition, you have yet another advantage. A simple mystery shopping trip will easily determine if this is the case.

Adding Value

Retail products and services allow customers to take care of all their moving and storage needs in one place. Tenants can rent a unit and moving truck, as well as purchase boxes, locks and other supplies. This one-stop-shop philosophy appeals to our culture, and most customers will pay more for such convenience. In fact, the No. 1 reason someone chooses a specific self-storage location is ease of access and use. For this reason, retail products add tremendous value to a facility.

Once you decide on the products and services you want to offer, how do you market them? First, incorporate these benefits into every single sales presentation. This will add great value in the eyes of the customer and allow you to differentiate your business from others in the market. Prospects can now perceive you as a full-service operation that specializes in storage while also addressing the task of moving. Generally, if you can meet all of their needs and make them feel comfortable, customers will look no further.

Promote your retail products and services in all of your advertising, including Yellow Pages, brochures, direct mailings, press releases and any other forms of marketing you use. This will reinforce the advantages you offer and keep your features and benefits in front of the customer. It may be a prospect is drawn to your store by an advertisement that mentions the sale of boxes. His initial interest may turn into additional retail sales or possibly a storage rental. If a rental is not achieved immediately, it may be earned in the future. In addition, you can give the customer a great sales experience that can turn into valuable referrals.

The Extent of Sales

There is a full array of products and services that can be offered in a self-storage environment. The most common include rental trucks, boxes, locks, packing supplies, moving dollies, shelving units, etc. In more densely populated areas, you can offer additional services, such as shipping and packing, fax, e-mail, photocopies, mailbox rentals and records storage. Find your niche and focus only on what works in your particular market.

It is not uncommon to see a self-storage operation neglect its primary business because employees are strung-out offering too many ancillaries. For instance, there are operators who spend 60 percent of their time selling retail products and services, when they contribute just 3 percent to overall income. This can be detrimental to the long-term success of the facility. The time would be better spent on marketing and follow-through with potential customers.

Keep in mind that storage rentals are what keep food on the table and ultimately determine a facilitys profitability. If the average unit is worth $80 per month and the average length of stay is seven months, each rental is worth $560. Streamline your retail offerings and focus on those items that provide the greatest return and benefit to your operation; but never lose focus of your fundamental business.

The self-storage industry has become increasingly competitive. To succeed, you must find creative ways to differentiate your operation. Retail products and services can achieve this goal. Promote your offerings to every customer and in all your marketing materials. Youll find convenience and added value will please prospects and pad your bottom line.

Brad North is founder of Advantage Business Consulting, which specializes in on-site sales, marketing, feasibility and operational training for the self-storage industry. He has produced two live videos and a workbook titled Maximizing Your Sales and Marketing Program, which can help managers improve their sales and marketing efforts. He most recently launched A TelePro, a mystery-shopping service that assists in educating, evaluating and improving the phone-sales performance of self-storage professionals. For more information, call 513.229.0400; visit www.advantagebusinessconsulting.com.