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A LEGAL PERSPECTIVE

Article-A LEGAL PERSPECTIVE

Mind you, I know next to nothing about marketing. But as a lawyer in the industry, I look at your adsparticularly in the Yellow Pagesand I wonder if you mean to say what youre saying.

I know you face tremendous competition to place your ad ahead of others. You also need to use convincing terminology so prospects call your facility first. I also know you dont intend to deceive, but the wrong customer (or his attorney) could make a lot of hay out of the literal wording in your ads.

Lets start with the most obvious: Free truck with move-in. Tell me when to show up, and Ill be delighted to move into your facility. Make my truck a half-tonat least, please. Preferably in black.

Perhaps youd be better off saying, Free use of truck with move-in. Also, if the truck is not 100 percent free, some disclaimer language belongs in your ad. Every truck rental contains limitations: number of hours the truck can be used, mileage incurred, cost for gas and insurance. Go ahead and splurge on an asterisk in your ad, and at the bottom say, * Certain restrictions apply; see manager for details. Dont set yourself up for a state attorney generals claim.

Homebound Managers

Now consider the advertising statement, Full-time resident manager onsite. I hope youre ready to pay a lot of overtime. And somebody please explain to me how the manager never has to go to the grocery store, church, the doctor, or visit family and friends. I even have some difficulty with the term resident manager. Your managers leave the facility, so they are not on the premises 24 hours a day, seven days a week. What are you implying with such verbiage? The average consumer would probably infer you offer greater safety and security because somebody is watching the facility at all times.

Caught on Video

Video surveillance sounds harmless enough. Many of you have video systems, often with digital recordings that you can go back and revisit if something happens at the facility. However, the actual definition of surveillance is: To watch at all times as if a detective. This implies you arent just taping the happenings at your facility, but somebody is actually watching the camera feed 24/7.

The same is true of the word monitor. If you dont physically have someone watching the screens that can detect something irregular and deal with it in real time, you dont have video surveillance or video monitoring. You may have a video-recording system or closed circuit television system (CCTV), but that isnt what the ad says.

Not to pick on managers, but the term professional staff shows up in a lot of advertising. The American Heritage Dictionary College Edition includes the following definition of professional: Performed by persons as a source of livelihood. That definition doesnt bother me. However, another interpretation says, Having great skill or experience in a particular field or activity. If you change managers or office staff on a regular basis, you may be implying something to the public that sounds good on paper but isnt strictly accurate.

Security Risk

The term that probably drives me the craziest is security. Whether youre using it in reference to alarms, gates, walls or fences, you are implying something with this word you dont mean to imply. Security is defined as: Freedom from risk or danger; safety or freedom from doubt, anxiety, or fear; confidence or anything that gives or assures safety.

Be careful about implying your facility is safe or safer than the competition, because people may rely on that and sue you. When you say you have security alarms, a security fence, a security gate, security lighting and etc., you are saying (by definition) that because of these services the customer is safe, and free from danger and risk of loss.

Steamy Climate

Im not going to pick on ads touting climate control. There is no national definition of climate control. Just remember to carefully define the term in your lease. For example, if youre not controlling humidityor offer only heating and no coolingyou may be a different climate control than Brand X down the street. Make sure your customer understands that.

However, when you use the word dry in your advertising, I do get concerned. Unless you have three roofs or your facility is in an exceedingly arid region that never gets rain or snow, youre not dry. Dry is defined as Free from liquid or moisture; not wet, damp, or moistened, or Marked by the absence of natural or normal moisture.

Are you sure there is no way the roof is ever going to leak? Dry just isnt a great advertising word from a legal standpoint. If you were so bold as to build a facility that has outdoor walls, your facility is probably notby definitiondry.

Name Game

Finally, whats in a name? Many self-storage consultants recommend you pick a name with relevancy to a particular location. For example, if you are close to the airport, Airport Self-Storage might work, or if you are on Smith Road, perhaps Smith Road Storage. However, when you pick a name such as Fortress, Fortified, Fort Knox, Invincible, Security, Secured, Safe Way, or Perfect, youre implying to the consumer more than you probably intend.

Take a moment and do a reality check. Look at your ad, understand the definition of the words youre using. Imagine its being read by somebody who doesnt understand exactly what self-storage is (an uneducated consumer or perhaps your state attorney general). Make sure you can live up to the claims you make by the words you choose. 

Jeffrey Greenberger practices with the law firm of Katz, Greenberger & Norton LLP in Cincinnati. He primarily represents owners and operators of commercial real estate, including self-storage. This column is for the purpose of providing general legal insight into the self-storage field and should not be substituted for the advice of your own attorney. Mr. Greenberger is the legal counsel for the Ohio Self Storage Owners Society and the Kentucky Self Storage Association. His new website, www.selfstoragelegal.com, contains his legal opinions and insights into the self-storage industry, as well as an article archive. For more information, call 513.721.5151; e-mail [email protected]

ISS FLASH REPORT

Article-ISS FLASH REPORT

The Boise-Nampa, Idaho metropolitan statistical area (MSA) encompasses Ada, Boise, Canyon, Gem and Owyhee counties and has more than 18,000 businesses. Trade, utilities and transportation is the largest employment sector, followed in order by professional and business services, government, manufacturing, education and health services. Boise is the headquarters for the sectors largest employer Micron Technology, which retains 10,600 people.

Read more...

FACILITY SPOTLIGHT

Article-FACILITY SPOTLIGHT

Barry Switzer knows all about victory. He has one of the highest winning percentages of any college football coach in history. Now, the former head football coach for the national champion Oklahoma Sooners and Super Bowl champion Dallas Cowboys scores with the founding of Switzers Locker Room in Oklahoma City.

In 2002, Switzer, Hunter Miller, and Drs. Phillip Bird and Andrew Frost formed a partnership to provide self-storage with a difference. The company owns four properties in the Oklahoma City metro area and manages Centennial Storage Center in Frisco, Texas. Two more properties are in the works for spring development as well as the expansion of two existing properties.

The Franchise Concept

Switzers is also venturing into the franchising realm. We have created the proper relationships and built the perfect team to help others get into the self-storage industry, says Craig Bodenhamer, operations manager. The company has three franchises under way. The properties are in the early planning stage, and Switzers is working with the owners on development strategies for each site.

Switzers will create the proper unit mix based on the perceived market demand, and oversee facility construction, Bodenhamer explains. When the store is complete, Switzers will provide staffing and management. Well make sure each property provides the consumer with the same great service, security and efficient storage that marks all our properties, Bodenhamer says.

Its in the Name

To win against the competition, a storage company needs to provide a customer with more than just space for his belongingstrust is vital. Switzer is an icon in Oklahoma, thanks to the states love for college football and his coaching success. He honed his craft at the University of Oklahoma and directed the Oklahoma Sooners to three national titles and 12 conference titles. In 1996, he coached the Dallas Cowboys to win Super Bowl XXX, securing a place in the Football Hall of Fame in 2002. Customers feel they know him and his company, Bodenhamer says. They are comfortable with Switzers, as if theyre storing their possessions with a friend.

Switzers Locker Room owns 253,000 square feet (1,600 units) of storage space. Through construction and expansion, 111,000 square feet (700 units) will be added by the end of spring, and 150,000 square feet (930 units) within the 1½ years. Switzers also manages 66,500 square feet (530 units) in Frisco, Texas. Franchising is expected to add another 250,000 square feet (1,630 units) in the Oklahoma City market in the next two years.

The company selects sites in commercial areas with high visibility and traffic count. Stores benefit from local businesses needing storage room. Oklahoma Citys booming residential real estate market has led Switzers to establish properties near new developments, Bodenhamer says. Careful site selection helps Switzers facilities maintain an overall occupancy of 83 percent. Each facility offers climate-control units, moving supplies, locks, month-to-month leasing and online payments. Twenty-four-hour access is available to approved customers. Each store will accept and delivery freight packages, and the company expects to offer a free rental truck at move-in.

Security is provided by Sentinel Systems Corp.s WinSen management-operating system, and a gate-operating system from PTI Integrated Systems. Cameras and DVR systems also deter crime. As an added measure, gate access is limited to 6 a.m. to 10 p.m. However, the company considers its on-site resident manager to be the best security measure. Future properties will include an apartment for management, Bodenhamer says.

Sooner Traditions of Oklahoma is the construction manager for all Switzers properties and Cannon Storage Systems, based in Lawton, is the contractor. All facilities are single-story metal with steel piers and headers; they have metal-panel exterior sheeted walls with a baked-on enamel finish and a metal standing-seam roof.

Learning the Plays

A football connection led to Switzers interest in storage. Jerry Jones, owner of the Dallas Cowboys, also owns Blue Star Storage in Dallas. I decided if he thought it was a beneficial industry, it wouldnt be a bad idea to test the market in Oklahoma, says Switzer, who obtained plans for his first site from Jones.

In coaching, I have found if you surround yourself with the proper coaches and players, you will always be successful, Switzer says. Make sure you have the right managers; they are your quarterback and ultimately can dictate how your team functions and make all the difference in the world. The company selects personnel who are proficient in dealing with people and teaches them to efficiently administer the facilities. Rita Ingham, regional manager, is credited with doing an excellent job training all site managers.

The company has implemented an efficient warm calling program. It targets several businesses in the local area with letters describing Switzers services. The packages include nail files or emery boards captioned, Your Files Are No Problem for Us, and are followed by a phone call to verify the consumer received the letter. At a later date, facility reps visit with a small gift bag. Yellow Page ads and Internet exposure are also part of the companys promotion. But weve been very fortunate to build our business with customer referrals, word-of-mouth, and excellent locations, Bodenhamer says.

Switzer sees a bright future for the industry. As for American culture continues to put credit in processing more things, self-storage will grow.

I love this industry, he says. Its a good service to provide the people in the Oklahoma City area. 

For more information, call 405.217.8380; www.switzerslockerroom.com.


Switzer to Speak at ISS Las Vegas Expo

Renowned ex-football coach Barry Switzer will deliver the keynote address for the upcoming Inside Self-Storage Las Vegas Expo, the industrys largest trade event of the year, Feb, 20-23, at Mandalay Bay Resort & Casino, Feb. 20-23.

Switzer was the head coach for collegiate and professional football teams, the Oklahoma University Sooners and the Dallas Cowboys. He has one of the highest winning percentages of any college coach in history, and is one of only two head coaches to win both a national collegiate championship and a Super Bowl.

Since his football career, Switzer authored a best-selling autobiography, Bootleggers Boy, written with Bud Shrake with a forward by Joe Paterno. His presentation, Winning Strategies & Beyond, is slated for Feb. 21 at 9 a.m.

For show information and to register, visit www.insideselfstorage.com/expo

Marketing Must Dos

Article-Marketing Must Dos

Happy New Year! What a wonderful time to refresh, review and plan a winning marketing strategy for 2007. Were you thrilled with your facilitys performance in 2006? Did it make your heart sing all the way to the bank? If not, lets review marketing strategies that will make you dance for joy a year from today.

Your first resolution should always be continuous improvement in all areas of the operation. Look at past performance, the key indicators, and make plans to change any of the numbers you didnt like. Your marketing plans should specifically target each and every one. There are plenty of ways to achieve marketing success for 2007.

Makeover

Anything to enhance your street or curb appeal is money in the bank. At our facilities, drive-by traffic accounts for 40 percent to 80 percent of all annual leases.

Customers develop a perception of trust from a clean, well-manicured, beautifully landscaped and perfectly maintained site. Dont leave anything questionable in view of passersby: no weeds, broken or unlighted signs, broken gates or keypads, fading or streaked paint on unit doors. Dont give anyone reason to go elsewhere. Send a trusting message by looking professional.

Schedule repairs or replacements to keep things looking sharp. Winter is a great time for maintenance tasks before leasing season begins in March. Cleaning, painting, caulking and sealing are low-cost ways to improve the curb appeal.

If possible, consider adding a digital-display sign or time-and-temperature digital display to your existing signage for an attention-getting boost. Draw attention to your site regularly with balloons, weekend signs, directionals and outdoor displays proclaiming We sell boxes. Change reader boards at least weekly so people always anticipate and look for your latest message.

Budget

Marketing and advertising costs for stabilized stores are usually 3 percent to 6 percent of actual income. Allocate appropriate funds for every piece of your marketing puzzle. For example, if you want managers to call on local attorneys, doctors, insurance agents, etc., to promote your climate-controlled spaces for records storage, make sure you have adequate money in the budget for promotional items, brochures, and business and referral cards to pass out to professionals in your area.

Be passionate about getting more referrals and repeats from existing and former customers. These are the lowest-costs rentals you can get. On the other end of the spectrum are the highest-cost per lease tenantsthose garnered through Yellow Pages, newspaper and radio/TV ads.

Always measure and track the performance of each program or offering; evaluate if they are working, at what cost and if theyre worth the price. Each expense to run the store should be listed in your monthly budgetmiscellaneous and other should never be categories.

For new locations, plan approximately $25,000 to $50,000 for the first years marketing and advertising programs for promotional items, printing and onsite events. Before opening, schedule what programs and events youll run each month. And wait until youve been open for 45 days before mounting an event. This saves you from giving tours of an unfinished facility and spoiling first impressions.

Get Smart

Knowledge is power. Memorize unit sizes and what you have to sell. What is your message? Which groups will you target? Who will receive invitations for special events? What is your strategy for cold calls?

Tailor your efforts to the groups that are most likely to fill the type of units you have vacant; i.e., contractors for large drive-in units, and local retailers with excess inventory for the holidays wholl need your climate-controlled 10-by-10s.

You must also know why customers choose your facility, how far away they live, if theyre homeowners or renters, their ages, gender, typical stored items and average length of stay. Answers to all of the above empower you to create bulls-eye marketing messages for the right prospects.

High-Speed Thrills

Dont skimp on your Internet. Get plugged into high-speed DSL or cable so you can download in a click. This may be your most useful marketing tool. The Internet provides a wealth of information about your community, competition, mapping your closest target groups with names, addresses, phone numbers, e-mail and web addresses, and beyond the cost of the connection its free!

Go online to either AOL.com, Googleearth.com or Yellowpages.com and find where your competition is located, see aerial photos of the market in detail (in most cities), get complete lists of apartments, real estate businesses, professional offices and more. Sort them by distance, mark them on a map and plan to hit all of them as soon as possible.

Go to your local chamber of commerce or city or county website for information on growth, permits, new developments and demographics. If your area has limited info, try demographic companies, also found on the Internet.

For tenants, make it happen for them online as well. Offer them the ability to rent and pay online. Respond to their emails promptly; send e-mail campaigns to groups and member organizations. Collect your customers e-mail addresses for notices, invoices and announcementssaving you a bundle on mailing and postage costs.

Software Saves

Can you incur rent increases by evaluating one report? Can you review a management summary and determine exact priorities for your store? Can you customize the time period on this report to see yearly improvements? Do you collect marketing and demographic information at move-in and evaluate it regularly?

Software programs do this and more, saving you time, providing invaluable information and helping you maximize marketing dollars. Shop around for a reputable company that provides self-storage specific software and click your business into shape!

Be There

Web, live, on the phone or in person, you must be available for renters when they need you. Customers want instant answers. If they can rent and pay online at your web site 24/7, if they can reach you at least six days a week, theyll be satisfied and send more referrals.

Do you make it easy for tenants to make payment through automatic debit? Do you offer package-delivery acceptance? Are you there when they zip in during their lunch hour or right after work? Happy customers stay longer. Find out what they want and then provide it.

Visuals 

Colors, textures and motion are key to reaching todays consumers. Do you have a color-coded model showing different sizes? Do your ads and website picture your stores offerings?

Many buyers wont even consider products or stores without seeing photos first. Photos provide some type of proof and assurance that a company is reputable and proud to be seen. The general public is highly visual, but shoppers are savvy. They dont want old-fashioned clip art. From Yellow Pages ads to fliers and postcards, say it with photos and win.

Post a photo gallery on your website and update it often. Photograph different seasons at the store; take shots of customers moving in; snap a few images of people buying boxes in the office. Use these for brochures, fliers, on the web, on magnets, in press releases, anything.

This visual concept takes on many forms. If you offer tenants trucks for move-in, why not let the truck act as a moving billboard for your business with photos and contact info on the sides? When you hand out fliers or other printed materials, make sure an ad promotional, like a business-card magnet, or a piece of candy is attached. Its surprising what a Tootsie Roll can do to draw attention to your message.

Try this idea: We use an emery boardwith store name and numbertaped to a marketing letter that states, Your Files Are No Problem With Us as the headline. This small low-cost item gets our message across in a memorable way.

Attitude Is Everything 

You need customer-service focused, friendly professionals answering phones and helping customers. Find people with an open mind and great attitude. Previous experience is not always a plusespecially if you have to break bad habits and retrain.

Managers need versatile skills for maintenance, customer service, collections, reporting, web use, marketing and computer tasks. They need to be counselors, bookkeepers, sales experts, receptionists, package-delivery personnel and more. They can learn these skills but you can never train someone to have a sunny outlook on life.

Try any and all of these ideas and youll be on the path to a successful 2007. Happy Marketing New Year! 

M. Anne Ballard is president of Atlanta-based Universal Management Co. (UMC), which provides global consulting for evaluations, feasibility studies, training and development services. For information, visit www.universalmanagementcompany.com

News

Article-News

To submit a press release to this section, e-mail details to [email protected]


N.J. Storage Operators Feel the (Tax) Pain

Self-storage operators in New Jersey, who had to start charging a 7 percent sales tax on storage rentals on Oct. 1, are feeling the pain of lost business and dissatisfied customers. An article by PressOfAtlanticCity.com included an interview with Charles Sapienzo, owner of CNS Self Storage in Galloway Township, N.J., who said he lost 10 percent of his customers as a result of the new levy. He also had to get a second job to pay his property taxes. Customers tell him they cant afford their self-storage rent with the new tax. Others want to leave the state altogether.

Other businesses are also feeling the burn, including health clubs, private investigators, tattoo parlors and massage therapists. The tax change is part of a new state budget passed in July.

The New Jersey Self Storage Association is fighting the tax in court, asking facilities to donate to the NJSSA Legal Defense Fund and to share statistics on how many customers they are losing and what size units people are giving up.

The association argues the tax is unconstitutional because it singles out self-storage, the only sector of the commercial real property market affected, and violates clauses of the 14th Amendment. As of press time, a federal judge had declined jurisdiction of the challenge, and NJSSA attorneys planned to take their case to the state courts. Timely updates are posted at www.njssa.org


Real Estate Forum Offered on Free CD

An audio recording of the Fall 2006 Self-Storage Forum, a semiannual program in which industry leaders share insights about the real estate market, is now available on CD at no charge. The forum was hosted in Las Vegas by Beacon Realty Capital, LaSalle Bank, Self Storage Data Services (SSDS) and Storage Investment Advisors (SIA).

Session presenters were Beacon Principal Neal Gussis, LaSalle Vice President of Real Estate Capital Markets Ashish Parikh, SSDS President Ray Wilson and SIA Managing Partner Aaron Swerdlin. Moderated by Bruce Manley, chief executive officer of United Stor-All Centers, the interactive discussion covered topics including:

  • Lending and valuation differences in A-, B- and C-level property assets.
  • Whether the storage industry is on the verge of another development cycle.
  • Macroeconomic trends and their corresponding effects on the self-storage industry.
  • The growth of institutional investment in self-storage properties.

To obtain the free audio CD, contact SIA Associate Partner Jennifer Munoz at 713.376.2038; [email protected]. The next Self-Storage Forum will be at the ISS Expo in Las Vegas in February. Info: www.siallp.com


ISS Renews Legal Webinars for 2007: Try It, Its Easy

The Legal Learning Webinar Series, hosted by Inside Self-Storage and industry expert Jeff Greenberger, has been renewed for 2007 with a fresh slate of topics (see below) focusing on a wide range of self-storage legal issues. Webinars are hosted the first Tuesday of every month, 11:30 a.m. to 12:30 p.m. ET, moderated by Teri Lanza of ISS.

Havent tried a webinar yet? Its easy. To register, visit www.insideselfstorage.com/webinars. Reminders will be sent to you by e-mail, including one that arrives the morning of the seminar. Attendees are invited to click on the link, which takes them to the webinar website displaying slides and playing a live audio of Lanza and Greenberger. Those who prefer to listen to the broadcast over the telephone may call a toll-free phone number provided in the e-mail with a code.

Participants may type in legal questions on the webinar page, which are immediately submitted to Greenberger to answer during the latter part of the webinar.

  • Jan. 9Words to Abolish From Your Self-Storage Vocabulary 
  • Feb. 13Limitation on Value Clauses for the Self-Storage Lease
  • March 13Before the Self-Storage Lien Sale: The Big Gut Check
  • April 10Self-Storage Late Fees and Other Fees: Still Dangerous Waters
  • May 8The Self-Storage Bailment: Whats Wrong With Keeping Keys?
  • June 12Special Considerations for Vehicle Storage in a Self-Storage Environment

Greenberger practices with the law firm of Katz, Greenberger & Norton LLP in Cincinnati, which represents owners and operators of commercial real estate, including self-storage. He counsels several state storage associations. He is also the owner of an online resource for facility owners, www.selfstoragelegal.com. Info: 513.721.5151; e-mail [email protected]


ISS Welcomes Cartoonist in 2007

Adventures in Storage, a cartoon by self-storage manager John Roser, is a new monthly feature in Inside Self-Storage magazine. Roser and his wife, Barbara, entered the industry about two years ago as a resident management team and soon became regional managers. Today they operate and manage A-A-A Storage facilities in Corpus Christi, Texas.

We were first attracted to the concept of self-storage management by the opportunity to spend more time together, says Roser, who has degrees in theology and pastoral ministry. We soon discovered other benefits which included the chance to hone our entrepreneurial skills. Our future plans are to be on the investor side of a facility.

Readers are welcome to e-mail Roser with ideas and feedback at [email protected], or send their comments to ISS at storage [email protected]


Chicago Sale Spotlights Storage Market

Self-storage is appreciated as a popular commercial-property asset class, according to an Oct. 25 Chicago Tribune article reporting on the sale of seven Chicago-area self-storage facilities for $52.5 million.

The sale of 500,000 square feet of rentable space commanded a solid price although several of the facilities are new and still in lease-up. A co-owner of six of the facilities said long-term appreciation and cash flow make the numbers work.

The buyer of the facilities is OB Companies Inc., a Florida-based real estate company that develops and operates commercial properties. Marc Boorstein, principal of MJ Partners Real Estate, told the Tribune that selling such new properties is unusual for the industry.


Announces New Board, Officers

Texas Self Storage Association raised a record $41,000 for charity at its 2006 annual convention, Texas Store Em, Sept. 24-27 in Galveston. Attendees and exhibitors, numbering an estimated 800, contributed through live/silent auctions and a poker tournament at Moody Gardens hotel. Funds were donated to the Shriners Hospitals for Children-Galveston. Since 1999, TSSA has raised more than $100,000 for the burn hospital.

The TSSA 2007 convention is set for Oct 14-17 in Arlington. The association also recently announced new officers:

  • President: Lolita Bader, A Better Place Self Storage (Boerne) 
  • Vice President: Kathy Tautenhahn, Tautenhahn Holdings (Shenandoah) 
  • Treasurer: Rick Jones, Advantage Self storage (McKinney) 
  • Secretary: Dan Small, Diamond Self Storage Management (Pearland) 
  • Immediate Past President: Wayne Johnson, U.S. Advisors (Dallas) New and reelected directors of the TSSA board:
  • Clay Cullins, Janus International 
  • Mike Gately, Hendry Investments 
  • Joshua Parrott, AAA Mini Storage 
  • Kathy Tautenhahn, Amazing Spaces Self Storage. Info: www.txssa.org

Media Watchdog

Article-Media Watchdog

Self-storage receives increasing attention from mainstream media outletsand not always favorably. As industry professionals, we should be aware of how self-storage is presented to the public. Media Watchdog is devoted to policing and summarizing general news coverage.


Facilities Offer Stylish Space
Dayton Beach News-Journal, 9.6.06 

As self-storage centers continue to multiply in Volusia and Flagler counties in Florida, operators are building bigger, brighter and more elegant compounds to compete for business. Mid Florida Storage, a $3 million facility in South Daytona, presents the image of a law firm or a doctors office. Eagles Nest Storage in Flagler Beach draws sightseers with its old European-village style.


Ranch Buffered by Storage
The Aspen Times, 10.25.06 

A Basalt, Colo., storage facility is helping a cattle ranch survive. The store is so close to Basalt, it acts as a buffer for the ranch from the houses in a nearby subdivision. Ranch owner Billy Grange has fielded numerous calls in recent years from land developers who coveted the familys 246-acre spread outside town. The ranch has been owned by the Grange family for more than 100 years. Since the neighbors are all storage sheds, they make good neighbors, said Grange.


Mayor Breaks Tie on Storage Permit
The Daily Journal, 10.3.06 

A seemingly routine special-use request for a mini-storage warehouse split the Manteno Village, Ill., board and resulted in a rare tie-breaking vote by the mayor. General Development Corp. of Kankakee, Ill., plans a self-storage operation at the Diversatech West industrial area. The villages planning commission last month recommended approval for the special-use request, although trustees balked at what some considered an inappropriate use of land in a commercial park area.


Shreveport Storage Business Booming
The Shreveport Times, 10.24.06 

In Shreveport, La., junk rules, said Stacey Erickson, resident manager for Storage Trucking on the Shreveport-Barksdale Highway. The facility is one of many storage businesses locally that include 26 self-storages, 162 moving and storage companies, and 14 furniture-storage businesses. Americans obsession with things is driving a booming storage trend and locals are seeing its potential for profit. 


Carson, Calif., Conversion Complete
The Daily Transcript, 10.23.06 

San Diego-based Veralliance Properties has completed construction on Avalon Self-Storage, a 137,670- rentable-square-foot facility in Carson, Calif. The facility represents more than $15.5 million in conversion costs from an industrial warehouse space, according to Daniel J. Ryan, a principal. Veralliance is also constructing an approximately 144,000-rentable-squarefoot self-storage project in Bressi Ranch in Carlsbad, Calif.


Woman Begs for Return of Late Mothers Ashes
San Bernadino Sun, 10.31.06 

Thieves emptied a self-storage unit in Adelanto, Calif., taking everything Jamellah Sulcer owned including her late mothers ashes. You can have everything else. Just give me my mother back, the 26-year-old woman implored. The burglar stole her computer, furniture and clothes, and the bronze urn of ashes. Sulcer had stored her belongings at U-Haul Self-Storage facility on Foothill Boulevard in San Bernardino because shed planned to move. When she went to get clothes from the unit she found nothing but mousetraps. Photographs of her mother were also stolen, leaving Sulcer with three wallet-sized photos.


Crime Caught on Facility Video
WRCB, 10.25.06 

Chattanooga, Tenn., police are looking for a man wanted in connection with a burglary early October at a Mini- Max Self Storage facility. Storage surveillance video from that evening shows the model of the getaway vehicle, the crime in progress as well as two alleged criminals, a man and woman. The man used cutters to cut the locks on two storage units, and loaded the items in a Jeep.


FBI Uses Storage Units to Bust Bad Chicago Cops
Chicago Sun-Times, 10.26.06 

Units at two local self-storage facilities were recently used in sting operations conducted by the FBI and Internal Affairs Division to bust bad cops. After receiving complaints about officers who allegedly invade homes and steal valuables, the Chicago Police Dept. is making efforts to remove undesirables from its force.

In June, undercover agents rented a unit at Grand-Pulaski Self Storage and stored a black bag containing $20,000, according to an FBI affidavit. They then instructed an informant to share the information with two suspected officers as well as a civilian intermediary, who supposedly asked the informant for leads on good targets.

The officers allegedly went to the storage unit with a search warrant and two unidentified PD members. Surveillance agents claimed to see them enter and exit the unit with bolt-cutters. When they left, the money was purportedly missing. 

In August, the FBI put more than $18,000 of fake drug money in a storage unit and again told its informant leak the info. According to authorities, the suspects and four unidentified officers went to the unit with a search warrant and grabbed the cash. They proffered $7,000 as evidence and allegedly kept the rest. The suspects have been arrested and charged with conspiracy to commit theft.

Internet Yellow Pages

Article-Internet Yellow Pages

Isnt the Internet replacing Yellow Pages print usage? is the question were asked most often at industry tradeshows. The answer is a simple, no, but its not as simple as that.

Although people use the Internet more and more to research products and services, theyre still referring to print directories. According to CRM Associates 2006 research, 47 percent of those consulting Internet Yellow Pages in certain categories also use the hardcopy directory. In fact, the heaviest users of print directories are the biggest group of Internet users as well.

What does this mean for the self-storage industry? Well, facility owners and managers now have an additional source to attract customers. The Internet is the small-business owners best way to level the playing field against the big guys.

The Field

Nearly 3.5 million storage-related searches are conducted by consumers annually on the three most widely used Internet Yellow Pages (IYP) sites:

1. SuperPages.com: published by Verizon; partners with MSN 
2. Yellowpages.com: formed by a merger between AT&Ts smartpages.com and Bell Souths tealpages.com; partners with Yahoo and AOL 
3. Dexonline.com: formerly published by Dex Media, which was recently purchased by R.H. Donnelley; partners with Yahoo

The Lineup

Unbeknownst to many business owners, you cant advertise on the Internet without a website and a host company. Hire a professional company to design the website, making it as simple as possible for customers to navigate.

Think of your website as your introduction to prospective customers. Unlike Yellow Pages print ads, space is not restricted, so display as much facility information as possible:

  • Sizes 
  • Rates 
  • Access/office hours 
  • Availability of packing and moving supplies 
  • Truck rental 
  • Boat, RV and/or vehicle parking (indoor/outdoor) 
  • Climate control 
  • Office services (fax, phone, wireless, meeting space) 
  • Access control 
  • Door alarms 
  • Wine storage 
  • Introductory rental rates 

The site can also include a map and printed directions (or a link to Mapquest) for people to find you easily.

If youre located in an area largely populated by Hispanics, youll draw many to your facility if the website is also displayed in Spanish, reached through a hyperlink from your English-language page. Even if the population is largely bilingual, youll gain huge customer loyalty by advertising to customers in their native languages.

Drafting Key Players

The three IYP sites mentioned above usually duplicate the same geographic areas covered by their printed directories. For example, Yellowpages.com draws the most traffic from AT&T and BellSouth directory-delivery areas; SmartPages.com from Verizon; and Dexonline.com from the 14 (former) Dex states (this coverage will ultimately expand due to the Dex acquisition by Donnelley).

However, dont assume this to be always true. For example, I was speaking to a group of storage owners in Pittsburgh earlier this year, an area where Verizon has a stronghold. I discovered a majority of the seminars participants advertised with Yellowpages.com rather than SmartPages.comperhaps because the former had been running a $20 million advertising campaign. Dont be fooled by snappy ads. Do your research to determine which cities drew the most IYP storage-related traffic to the geographic area you are targeting. The best way to get information is from someone selling IYP: either a local salesperson representing a specific IYP publisher or a national advertising agency.

Positions

Since customers typically hail from a 3- to 5-mile radius of your facility, focus on a local buy if you own one or more facilities in a particular area. Measure the radius to incorporate city names from which customers will drive. If it only covers one or two cities, you may save money by just buying in those areas. If it covers more, a county buy may be more economical (perhaps even a two-county buy if you are drawing customers from more than one county).

The more targeted the area, the less competition youll encounter. To check out where your competition is, go to the IYP sites for your area. Under business type, type in storage. Under location, key in different cities and counties and note where your competitors pop up.

You may find the most effective IYP advertising requires you to buy listings on more than one site. Local-based listings are not terribly expensive, and can be well worth the investment.

If you own several facilities in different areas, you can target them through a local buy, or you can try a metro buy or state buy. You can hit multiple states, if necessary, depending on your facilities locations.

Avoid a national buy unless you have properties in numerous states. If you do have multi-state locations, youll want to research different IYPs. SmartPages.com, for example, may be the most effective for some sites, while another might better serve different geographic locations.

The Pitch

IYP placement works very much like Yellow Pages printthe more you spend, the closer youll be to the beginning of the category. Some IYP sites have tiers, referring to the proximity to the top of the first page, i.e., Tier One placements come first, then Tier Two, etc.

An advertisers location within the higher-tier placement is determined by seniority based on the date and time you register (commit to buy) the product. These products have a fixed price, which varies depending upon geographic coverage and ad placement.

For an additional fee, you can probably add enhancements such as color or icons (logo, link to website). They might draw more attention to your ad. Regardless of placement, if you cant be on the first page, you may not want to buy IYP at all. Just as in Yellow Pages print advertising, you must consider whether you are vying with direct competitors (within 3 to 5 miles) or against facilities that wouldnt be targeting your customer.

Some sites offer performance-based products, such as pay-per-click. The placement for these depends on whos the highest bidder for their buy (city, county, metro, state, etc.) within the category. Its like an auction: You decide how much you want to spend and bid.

Lets say you want to spend a maximum of $500 and no more than $1 bid per click. After 500 visitors click through the IYP site to visit your website, your ad will be taken off the site unless you commit to spending more. Advertisers will frequently buy a fixed-placement ad along with a pay-per-click product to ensure theyll still have an ad running once pay-per-click is removed. While an excellent way to monitor performance by tracking visitor numbers from IYP, its a demanding program to manage. Youll need a staff member to monitor the program daily, or youll have to hire a company to manage it for you.

Some IYP sites offer advertising under multiple categories for the same rate. If so, take advantage of categories most effective for your particular situation; i.e., boxes; packing and moving supplies; boat, RV or vehicle storage, etc.

The Ninth Inning

Do your research. Talk to representatives from IYP sites covering your area. Ask questions and make sure you understand answers before making a decision. Ask about coverage area and traffic reports specific to your area and category. Also, get pricing information. Contract agreements cover predetermined periods of time, generally a year, but they may have an automatic-renewal clause. Find out if youll have to sign a new contract after a year or have to contact your rep to cancel.

While its true that choosing Internet Yellow Pages advertising is a bit confusing, it promises a good return on investment as an addition to your Yellow Pages print exposure. Choose your players and game plan wisely to become a big hitter in the self-storage playing field. 

Sue Weinman, senior account executive, represents the Yellow Pages Division of The Michaels/Wilder Group, an advertising agency that specializes in Yellow Pages, Internet and recruitment advertising. Based in Phoenix, the award-winning firm works with hundreds of self-storage owners and managers. For more information, call 800.423.6468; visit www.michaelswilder.com

Marketing Fundamentals

Article-Marketing Fundamentals

Prior to the 2006 World Series, a Detroit Lions player interviewed about the upcoming match up with the Oakland As said winning in baseball was about executing the fundamentals better than your opponent. Despite all the hype about home-run records and steroid abuse, the game is still just about hitting the ball and getting across home plate.

The same is true for marketing your self-storage facility. Although youre not swinging at baseballs zooming toward you at 90 mph, your success in the business is about your ability to execute the fundamentals.

Sometimes its hard to keep your eye on the ball when flashy, new technology pokes its head in your door. But, after 30-plus years, marketing in this industry boils down to one thing: Effectively communicating your ability to solve a prospects need.

Thats why its vitally important to get inside your prospective customers heads when creating your marketing strategy and message. You may have heard the saying, If you want to know why John Smith buys what John Smith buys, youve got to see the world through John Smiths eyes.

After reviewing thousands of surveys, I think Ive a pretty good idea what the world looks like through John I Need Storage Smiths eyes. To help you do the same, Ive written a letter that represents a majority of your prospects:

Dear Storage Provider,

My name is John Smith. Im your prospective customer and worth a lot of money to you if you market to me properly. Although Ive driven by your facility a few times, I regret to inform you, I dont think much about how your business could make my life easier and more clutter freedespite the huge sign and an easy-to-remember phone number.

The funny thing is I cant park my car in the garage because its full of boxes and belongings too valuable to throw away. My basement and closets are the same way, jammed with junk.

I wish I could do something about all the mess, but Im a busy guy. I have a family and work full time. Thinking about storing my belongings elsewhere is not at the top of my priority list, but I sure could use more space.

I know Im not the only one. Im a property manager at a local apartment complex and spend most of my day dealing with tenant complaints about the lack of storage. I wish I had an easy way to deal with this.

Sometimes I get so stressed I just want to get away for the weekend with my family on our new boat. You should see this boat; its a beauty. Thats why I park it in the garage, right next to that stack of stuff I mentioned earlier.

Since theres no space for my car in there anymore, Im getting a little worried it will be vandalized or damaged by the weather. Even worse, I just received a notice from my auto-insurance company that my premium is going up since my car is parked outside.

I wish your signs or ads motivated me enough to spend a Saturday moving my stuff into your facility. Aside from being busy, Im not even sure my belongings would be safe there. Besides, I cant decide why Id pick your site over the other 24 self-storage facilities in town.

Your Yellow Pages ad looks just like the competitors. So even if Im motivated to use storage, I have no clue how to choose the right facility. My friends, who live 20 miles away, tell me they hear your ads on the radio. Why are you advertising to them instead of me?

Why are you hiding? Why dont you try to captivate my attention and motivate me to invest time moving in? Why should I choose you over your competition? Why is it when I search for storage on the Internet, youre nowhere to be found?

I want a clean, organized and clutter-free home and office I can be proud of. I want my car to be safe and retain value. I want my belongings safe and convenient to me. I want some place to store my wine collection and other valuable items.

Plus, I want my tenants to keep their apartments clean and quit whining about the lack of storage space.

Ive got money to fix these problems. Is there any chance you could help me? I wish I had the answers.

Sincerely, 
John Smith

P.S. Why hasnt my neighbor who stores his stuff with you told me about your facility? Don't you have a proactive referral program?

New Years Resolutions

With the knowledge youve just gained about your prospects, you can now create an ultra-persuasive marketing message and deliver it to the right audience. Its the beginning of the year; theres no better time to improve your marketing plans. Here are nine resolutions you need to makeand keepto meet that goal:

When creating marketing materials, dont focus on you. Focus on your customers needs, wants and how to meet them. Because emotion is the fuel of action, play on emotions such as the fear of loss, embarrassment about clutter, the relief of saving money and so on. These are great motivators for storage.

Precisely define your target market. Focus your advertising dollars only on people who can say yes to your offer and who have a good reason for doing so. The 1 percent rule works best for most facilities: If 1 percent of those who saw your marketing message responded, youd be 100 percent occupied. So, for a facility with 300 units, youd target the closest 30,000 households and businesses.

Use location to your advantage. Rather than focusing on your logo and phone number, catch the eyes of passersby with an intriguing and persuasive message. If city regulations allow a 7-by-4 banner, create a dozen and change them monthly.

Differentiate. Unless youre the only facility in town, you absolutely must separate yourself from the competition. Communicate the differences in all marketing materials. This is especially important in advertising mediums such as the Yellow Pages where youre placed right next to competitors. This strategy will increase rentals and cut back price shoppers so you can rent space at higher prices and increase economic occupancy.

Create a proactive referral program. Your customers are your biggest asset and should be raving fans of your service and facility. Make it easy for them to give you referrals through incentives. Customers wont remember your phone number or exact address. If you use referral cards, they can easily hand one to a friend in need of extra space.

If you dont have a clean, professional website, get one. People are becoming accustomed to searching for everything online. If you do have a website, make sure its optimized on all major search engines so prospects search for storage in your city find you quickly. Your fancy website is no good if nobody can find it.

Form alliances. Numerous local businesses in your area have credibility and relationships with your prospects: coffee shops, dry cleaners, salons, restaurants, RV and boat dealers, apartment complexes, etc. Forming mutually beneficial alliances is one of the least expensive and most effective ways to increase occupancy.

Be consistent. Your prospects life is changing daily. You never know when something will set them off to look for storage. Your consistent message and presence to the right crowd will make them choose you when the time is right.

You can always find more technical ways to market your self-storage business. Feel free to test any strategies that make senseas long as you dont overlook the fundamentals, the roots of any successful marketing program. Learn to see the world through your customers eyes, and 2007 could be your best year yet. 

Derek M. Naylor is the president of Storage Marketing Solutions, an advertising and marketing agency dedicated to the self-storage industry. For a complimentary marketing-strategy session and newsletter, call 800.941.4805; visit www.storagemarketingsolutions.com

RECORDS MANAGEMENT

Article-RECORDS MANAGEMENT

Self-storage companies offering records storage often forget to reach out to commercial-records customers. Its a common oversight, yet you can grow your records-storage business exponentially by communicating directly to the business sector. In fact, those who operate traditional storage in unison with records storage have many marketing advantages over facilities dedicated solely to records.

Records storage taps into three distinctly different markets. Review the following and decide which accounts youll be targeting.

Fortune 1,000 and large regional companies: These are industry giants. Accounts yield box-storage volumes ranging from tens of thousands to 100,000. This segment is global, national or regional, has high service requirements and is price driven.

Mid-sized companies: These are targeted by traditional records centers and include large local or small regional companies. Typically, the average account yields 700 to 1,500 boxes. Youll need a full-time outside salesperson and a sales management approach to land these contracts. Clients are hard to get but worth the effort; theyll turn into long-term accounts and grow in volume each year.

Small-business accounts: This group is by far the biggest. For every huge and mid-sized company, youll find 100 small-business prospects. There are more than 100 small-business accounts for each of the prospects in the first two categories.

Walk-In Prospects

Walk-in prospects are virtually unheard of in the commercial records-storage industry. But if youre operating a self-storage facility with records storage, youre in luck. Self-storage has a much higher walk-in rate. Every person walking in the door to inquire about renting a storage unit is a potential records-storage client. Many own a business; most work for one. Dont miss a great promotional opportunity.

This walk-in factor greatly enhances your records-storage marketing strategy. Commercial operators are always on the hunt for new blood, but youll draw a captive audience that virtually no commercial records-storage business can beata prospect who comes straight to you.

Twisting Dollars

Records-storage businesses have been flying under the radar for more than 50 years. Stand-alone facilities have a hard time raising awareness among business owners and educating them to the benefits of records storage. Consequently, theyre forced to hire salesmen to bring in accounts. The expense requires them to focus on larger contracts, but these also take longer to close. You, on the other hand, have sales opportunities approach your counter several times a day. Your clients may represent smaller companies but come from a much wider market.

How do they find you? Through good signage on a major highway, Yellow Pages advertising, your website, direct mail and telemarketing. You should also add to your marketing plans:

Small-business packages. Create three small-business packages: economy, small-business and professional. Each should carry a low price to clients and high yield for you. (Youll find a comprehensive discussion of the packages on the Inside Self-Storage website www.insideselfstorage.com as well as at www.fileman.com. Search for Small Business Packages in the article database.) 

Advertising specific to records storage. Within your existing self-storage marketing budget, allocate funds directly to records storage periodically; highlight records storage on your web page, in your Yellow Page ads and any other marketing resources.

Offer incentives to employees. Create an incentive program to entice sales with your staff. Maybe offer $25 for each closed account. Remember these accounts will stay with you for a long time, so its worth the effort.

Train your employees. All front-office personnel should understand the value of records storage to your client. They should know what it is, why its important and how to close a deal.

Training manual. Simple, to-the-point manuals are best. Guidelines should stress to salespeople it should take less than five minutes for them to make a presentation and close a new client.

Value to Clients

Your business client always has business records. The only difference between small and large companies is volume of boxes. All companies have exactly the same problems and needs for holding onto records: litigation avoidance, regulatory compliance and sound business practice. They could self-manage records, but your services provide great value and numerous benefits, the most important of which are listed here:

Separation of records from the enterprise. By separating the records from the client you place a physical and ethical wall between the records and any malice.

No labor required. Client never have to worry about who to send to storage and when.

Infinite space. Clients never run out of space or clutter up much-needed and expensive office/retail space with records.

Price by the unit of storage. Each new box is a simple unit price, which saves clients money.

Value to You

For self-storage owners, branching into records storage offers many paybacks: Renting cubes, not squares. Unlike self-storage, records storage relies on cubic footage, instead of square feet, which is sold in traditional self-storage. Records storage can bring greater returns on floor-to-ceiling space.

Permanent contracts. Self-storage relies on monthly agreements and higher turnover than records contracts, which typically have more permanency.

Higher yields. Packaging allows for higher yield than a simple price formula. For example, a 35 cent box-storage charge can yield 75 cents monthly. In self-storage, you certainly arent being paid by the box. But with records storage, the more the merrier!

Ancillary services. If you include additional services, youll attract and keep more clients. Providing the services also means youll be interacting with your tenants more often, allowing you to build long-lasting relationships. 

Cary F. 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, or to sign up for the FileMan Newsletter, call 877.FILEMAN; e-mail [email protected]; visit www.fileman.com

People

Article-People

If you have a staff-related announcement such as a promotion, new hire or award you would like to include in the magazine, send an e-mail to [email protected]. High-resolution, digital photos are appreciated.


Patel Promoted to Rib Roof Sales Force

Ketan Patel was promoted to mid- Atlantic sales for Rib Roof Metals Systems. He joined Rib Roof in 2004 as a project manager overseeing erection crews and coordinating material deliveries for the East Coast construction. Patel has extensive experience with customer relations from project start through completion. He began his storage career in 1995 with Storage USA as a project engineer for the construction department. As the director of site design, he supervised the design of new projects and expansions, prepared engineering plans and renderings for zoning hearings, and maintained company construction standards. Patel also has two years as a partner in a Memphis, Tenn.-based self-storage management firm managing third-party properties and new development.


Two Join Janus Sales Force

Chuck Hagmaier has joined the Janus International sales team as Midwest sales manager. He brings more than seven years experience in the door-manufacturing industry, including project management, inside sales, and outside sales of self-storage doors and building components to his position.

Ben Riehm recently joined Janus as the Northwest sales manager. He has several years experience as a project manager in the commercial and residential construction industry.


AAAA Appoints District Manager

AAAA Self Storage Management Group announced the appointment of Heather Summers as district manager. Summers has four years management experience from a variety of industries. AAAA assumed professional management of Mini Storage Ltd., in Lawrenceville, Ga. The facility is now trading as AAAA Self Storage. Bonnie Kreacic is the new store manager.