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U-Haul Offers Free Storage to Missouri Tornado Victims

Article-U-Haul Offers Free Storage to Missouri Tornado Victims

U-Haul Co. of Missouri is offering 30 days of free storage to Missouri families who were affected by recent tornadoes. Participating facilities include U-Haul South Campbell and U-Haul North Glenstone of Springfield, Mo.
 
"These tornadoes have caused tremendous damage and inflicted extreme hardship on the communities we serve," said Marketing Company President Tony Rost. "I hope this effort will provide assistance to families that truly need a helping hand. We will continue to help our friends and neighbors in this time of need."
 
U-Haul has provided moving services to consumers since 1945. The company offers more than 384,000 units and 33.8 million square feet of storage space at more than 1,055 facilities throughout North America. For more information, visit www.uhaul.com.

ISS Blog

Life's Phases

Article-Life's Phases

[A guest blog spot by ISS Editor Drew Whitney.]  


 
How do your tenants find storage? As a consumer, my first storage experience was with a small facility in Tempe, Ariz., near the campus of Arizona State University. I was heading back to New England for summer break and needed a place to store my junk for a couple months.
 
It would be the first of many times Id rely on storage space. It suited my wayward lifestyle. I now had a trusting friend that kept my stuff secure while I traipsed all over the place.

Storage became an even better friend after I settled down. The cute little bungalow that was a perfect fit for a couple became the enemy after our firstborn. Storage was our savior. Thats where we put all our adult toys (bikes and camping gear, hang glider and skis), while baby swings and porta-cribs/playpens squeezed into the premises. 
 
Later, with another bun in the oven, we knew we needed still more room. We built a house, spread our stuff all over the place and stacked boxes in a three-car garage. We filled up the family with still more kids, and the house and garage with more crud. The cars never made it into the garage, especially after we adorned it strollers, bikes, scooters, a river raft and camper.

Within a few years, we needed an addition: a larger kitchen, more bedrooms and definitely more closets! And, once again, we needed self-storage to protect our stuff while the roof and sides of the house were ripped off to hammer on the new space.
 
A few years go by we decide to move closer to extended family. This time, we tuck boxes and clunky toys/furniture into self-storage to give home shoppers the impression that our dwelling is open, airy and pleasantly roomy. It works.
 
We sell and move to an old house, really old, one that needs remodeling. We need to finish off the attic to make way for a Red Sox playroom. But now that were storing holiday decorations and raising chickens in the barn, our storage space has been nearly all consumed and we have nowhere to put all these Rubbermaid containers of blocks, trains, dolls and video games. Here we go again.
 
While reading through the articles submitted for our January issue of Inside Self-Storage, I realized my life story as a consumer of goods and storage is far from original. On the other side of the desk, I'm reminded that self-storage marketing becomes much more understandable once operators are aware they have something to offer people in nearly every stage of life. Tap into their lives, and theyll be tapping into your business, filling units with all the stuff that life is made of.
 
Need more ideas? Slip into the current ISS issue. Have ideas of your own? Share them with us and other operators by leaving your comment via the link to the right. Unlike the rooms of my house, this website has plenty of space to share!

ISS Blog

Year Closes With Small Victory

Article-Year Closes With Small Victory

In 2007, the issue of self-storage service tax became particularly looming, with more than one state scrambling to avert the nasty fate. At the end of December, we eked by with a small victory in this area, as a Sisseton, S.D., facility walked away from trial with a favorable ruling. A local judge decided that the site's owners would NOT have to pay sales tax on its units. Now the state Department of Revenue must decide whether to appeal to the state Supreme Court.

For now, at least, self-storage in that state is safe; we'll see how the year unfolds. I predict a sharp increase in this threat during 2008, as states salivate over potential revenue and witness the battles taking place in other areas.

I hope you all had a fantastic set of holidays. Personally, I'm relieved to see them over and done. Life can now return to the same bat time, same bat channelstill frenzied, but hopefully less expensive and emotionally draining.

Have a New Year's Prediction for the industry? I invite you to share it here in the blog! Let's see if we can divine what the future holds in store for storage ...

SMARTBOX Partners With Red Cross to Aid in Disaster Relief

Article-SMARTBOX Partners With Red Cross to Aid in Disaster Relief

SMARTBOX, a provider of portable storage, has formed a partnership with the American Red Cross to enhance the organizations disaster-relief services and assist its chapters in the 34 markets SMARTBOX serves. During times of natural disaster, SMARTBOX has promised to provide assistance by storing supplies and transporting them to Red Cross distribution points. It will also offer a discount to all Red Cross employees, volunteers and retirees who have moving and storage needs.

For example, in the event of an emergency such as a hurricane, the Red Cross will contact SMARTBOX, which will deliver its portable-storage containers to affected areas. The containers will be loaded with pallets of shrink-wrapped supplies and distributed to shelters in need, greatly expediting the process the Red Cross currently uses.

SMARTBOX also will provide services and assistance to Red Cross chapters in the areas it serves, such as Atlanta, Boston, Chicago, Denver, New Orleans, San Antonio and Los Angeles. 

Named one of the best franchises in the country by the Franchise Business Review in 2007, SMARTBOX helped deliver more than 50,000 items to victims of Hurricane Katrina. Founded in 2003 and based in Richmond, Va., the company serves more than 60 million customers nationwide. For more information, visit www.smartboxusa.com

The American Red Cross helps people prevent, prepare for and respond to emergencies. Last year, almost a million volunteers and 35,000 employees helped victims of almost 75,000 disasters. The Red Cross is not a government agency; it relies on donations of time, money and blood to do its work. Visit www.redcross.org for details.

Marketing Mistakes You Cant Afford to Make

Article-Marketing Mistakes You Cant Afford to Make

We love to read about things we should and shouldnt do. In recent years, The New York Times best-seller list has touted such books as Your Best Life Now and The 7 Habits of Highly Effective People, which give us the secrets to becoming better and more successful.

But how often do we put into practice the things we read? Many of us know we should do a lot of things differently in our work and personal lives, whether it be eating right, exercising, giving to charity or improving at our jobs. But do we?

One of the things many self-storage operators need to do more effectively is facility marketing. Its one of their biggest annual expenses, yet many cannot determine with certainty the return on their marketing investments.

This article will discuss two major marketing mistakes many operators make. I challenge you to not only read about these errors, but to actively avoid them. It will not only increase your occupancy; it may save you thousands in potentially wasted marketing dollars.

Mistake #1: Ineffectively Tracking Your Marketing

This is one of the most common and costly marketing mistakes. Many operators have some tracking methods in place, but the accuracy is questionable. Some just flat-out dont track at all. I believe there are two reasons owners are not properly tracking their marketing: Either they dont know how to track or are not willing to take the time to do so because it seems like there are many more pressing issues.

While tracking does take time and energy, it will pay off. Consider this: If you knew someone was stealing $3,000 per month from your facility, how long would you wait before you took the time to investigate and stop it? Not long at all, right? You would take every action possible as quickly as possible. You should feel the same about tracking your marketing. If you dont take the time to put proper methods in place from the outset, youre wasting money each and every month on ineffective marketing without even knowing it.

As the industry gets increasingly competitive, operators simply cant afford to spend their valuable marketing dollars blindly. To be successful, you must know how to bring tenants in the door at a reasonable cost. Without proper tracking, theres no system to determine which marketing efforts are successful and which arent.

There are lots of easy-to-use tracking techniques, many of which can be implemented with very little time or money. Things like unique phone numbers, promotions and coupon codes, and website URLs can provide you with essential data you wont get anywhere else. If youre only tracking based on feedback from your customers as to how they found your facility, youre making a costly marketing mistake. Customer feedback is only somewhat reliable and must be coupled with the other tracking techniques listed above.

Many owners rely on their managers to track the source of each customer but without giving them the tools to properly do so. Make sure your managers are trained to know what to expect from each of your marketing campaigns. If theyre not, they cant accurately track customers. Managers must be able to understand your promotions, get prospects excited about them and then track them.

Mistake #2: Failing to Convert Prospects

The goal of marketing is to bring interested prospects to your phone line, door or website. Unfortunately, that is as far as marketing can go. Its up to the manager or, in some cases, the call center to convert those interested prospects to tenants.

I talk with operators every day, helping them analyze the effectiveness of their marketing, online and off. I continually find that unconverted prospects result from one or a combination of three things:

  • No response 
  • Slow response 
  • Poor response 

No response is a missed call or unanswered e-mail. Missed calls are an easy problem to address. Because youre investing marketing dollars to get the phone to ring, its crucial to answer every single call. There are great call centers in this industry that specialize in answering calls when your managers arent able to. I encourage you to take advantage of them.

Unanswered e-mails are a growing concern in the industry. With the continual growth of the Internet as a marketing tool, its becoming more important to know how to respond to Internet-based customers.

I want to pause here and point out that Internet marketing does not result in only email-based customers. The Internet is a valuable tool that will provide you with more phone calls, more walk-ins and, in some cases, online reservations via your website. That being said, Internet marketing will provide you with an increased number of prospects who e-mail for more information.

There are many things you can do to encourage managers to respond to e-mail inquiries. First, make it easy for them to check e-mail often, and give them incentive to do so. Equip the office with high-speed Internet access and an easy-to-use e-mail system. Second, design a response plan that is easy to follow. Make sure it gives managers clear direction on how to check their e-mail, how quickly you expect them to respond to these inquiries, and what crucial information should be included in their response.

Its not only critical to respond to these prospects but to do so as quickly as possible. The Internet makes it easy for prospects to shop around. If someone has e-mailed you, its critical to respond to him quickly before he receives a response from your competition. I encourage a same-hour response. Of course, thats not always possible, but it should be a goal. If you can provide a response to a prospect within minutes of his inquiry, youll see your conversion rates skyrocket.

An important thing to point out is just because a prospect comes in via e-mail doesnt mean you have to respond via e-mail. If he has provided his phone number, call him immediately, and then follow up with an e-mail if you dont reach him.

The most effective way to help your managers respond quickly is to develop e-mail templates. These will not only ensure a quality message is sent every time; they will relieve the manager from having to come up with a new e-mail for every prospect.

Poor response is the third weakness I see when helping operators evaluate the effectiveness of their online marketing. Often, a facility will stress the importance of a quick response to every single e-mail but forget that message quality is also key. Your response has to be compelling; it has to show your excellent customer service, address the customers needs, and present your facility as his best option.

Every e-mail you send in response to an inquiry should follow these guidelines:

  • Introduce yourself and greet the customer by name.
  • Address any specific needs the customer has mentioned, such as unit size, climate control, etc.
  • Include compelling features your facility offers that directly correlate to the customers needs.
  • Provide the facility address and easy-to-follow directions to the site.
  • Invite the prospect to call and reserve a unit over the phone or set an appointment to visit. A compelling special often helps speed this process along.

Mystery shopping is a great way to ensure your facility is not only responding to these e-mail prospects, but responding quickly and in a compelling manner. By letting managers know you will be mystery shopping for e-mail response, you are reinforcing its importance. Always remember to incorporate the results into your incentives and bonus plans!

Marketing is a huge investment. Dont let these all-to-common marketing mistakes occur at your facility. Take the time to properly evaluate and track your marketing to ensure you will succeed in the competitive years ahead. 

Megan Eckert is the executive vice president of USstoragesearch.com, which helps more than 9,000 facilities increase occupancy through affordable Internet marketing. For complimentary Internetmarketing tips, call 866.880.0742 or visit www.usstoragesearch.com

Marketing to Win in Competitive Times

Article-Marketing to Win in Competitive Times

I’m going to open this article with a bold statement: The self-storage industry, as you’ve known it, is dead.

What used to be an industry with little to no competition is now full of fierce rivalry in most major markets. What used to be an industry with a “build it and they will come” philosophy for acquiring new tenants now must use aggressive marketing programs just to maintain occupancy.

In 2008, your focus will shift from operations, financing and management to facility marketing. Not that those first things will be any less important, but the rules of the game have changed. Owner/operators who are able to attract and keep new tenants for the lowest possible cost will win.

Small Fish, Big Pond

My introduction to self-storage took place in the office of Jim Knuppe, owner of RAS Management in Castro Valley, Calif. Jim is a wise man. In one sentence, he summed up the state of the industry for me: “Competition follows profits, and the self-storage industry has been highly profitable.”

You see, Jim and his team had gone from being the only self-storage provider in their market to being one of hundreds. They went from being a sharp needle on an empty desktop to being a needle in a haystack. Most of you have experienced something similar.

In this article, I’ll share secrets to winning in these competitive times. I won’t be writing about how to improve your curb appeal?you’ve heard enough of that. I won’t tell you to take doughnuts to local apartment complexes either. Your competition is already doing that, and the apartment manager has caught on to the trick. The answer is much deeper than that anyway.

But before I proceed, we need to understand the challenge we face with great clarity. And it starts with supply and demand, a basic business principle.

The Balance of S&D

In the past, there was much more demand for storage than the industry was able to supply. When a consumer needed space, he didn’t have many choices. In fact, many prospects were put on waiting lists because the facility of their choice was 100 percent occupied. Naturally, another facility popped up around the corner and took off some of the heat. And demand was strong enough that the new site didn’t have a problem finding tenants.

Before long, supply caught up with demand. To adjust, owners simply placed a bigger Yellow Pages ad than their competition and were able to pick up more business.

After looking at the latest Self Storage Association Demand Study, it’s apparent that demand for storage hasn’t gone down, but supply has dramatically increased. And it will continue to the point that building and maintaining the occupancy necessary to be profitable will be much more difficult. Understanding this balance of supply and demand is part of the solution.

In the past, a consumer might have had one or two facilities competing for his business. Now he opens up his Yellow Pages or does a search on the Internet and finds 10 to 30 facilities close to his home or office. Knowing that your next customer will see 20 to 30 Yellow Pages ads under the “Storage” header is important. Knowing that he might receive a direct mailer from your competition is also important. Knowing that he now has a choice and is aware of that choice is crucial.

You must get better at differentiating your facility from competitors, and you must communicate better than you ever have before. There are a few methods I recommend to do this, and I’ll get to them a little later. First, I want to talk about your mindset.

Get Your Head in the Game

Your mindset about competition and marketing is much more important than anything else. If you deny that this industry requires marketing, you’re going to struggle. Of all the owner/operators I know, those who understand the situation and aren’t afraid of aggressive marketing consistently enjoy the highest profit and occupancy.

In other words, are you playing to win, or are you just playing not to lose? If you’re playing not to lose, you’ll always be one step behind your competition. But if you’re playing to win, you’ll approach your sales and marketing challenges with confidence, conviction and passion. You’ll be willing to spend extra money and energy on these efforts. When operating income starts to decline, you’ll realize your marketing budget is the last thing to cut, and that you must out-innovate and out-market your competition to gain the profit you deserve.

I’ve had the honor of talking with some of the most profitable self-storage operators in the world. When we approach the subject of marketing, the conversation doesn’t get magical or involve overly complex strategies. Sure, there are advanced marketing capabilities every operator should be using; but what separates the winners from the losers is the mindset of those running the show.

The winners realize that a finite number of consumers are in need or want of storage, and the facility with superior force at the point of contact will ultimately win the business a majority of the time. So, rule No. 1 for winning in competitive times is to have a “play to win” mindset. You must out-innovate, out-communicate and out-serve your competition. If you do that, your future will be bright.

Enough Pep Talk

Let’s get to brass tacks and discuss a few strategies to start you on the right foot for 2008. Now that the market is highly competitive, some operators are spending more money on advertising, hoping to find a silver bullet that brings them their desired number of new tenants. For example, some spend an extraordinary amount on radio advertising, hoping it will help them reach the goal of 20 new tenants they have set for a given month.

Rather than looking for one way to get all of your new tenants, however, I suggest you create a well-rounded marketing plan that brings consistent, inexpensive results. This usually involves around 10 strategies that each bring in two to five new tenants per month. The result is the same, but the budget is usually lower, and the outcome becomes much more reliable.

Having a single medium bringing in all of your traffic is like putting all of your eggs in one basket, which usually spells trouble. Take a look at what happened to the Yellow Pages industry over the years. Prices have gone up and effectiveness has gone down. Those operators with all of their eggs in the Yellow Pages basket are now paying the price in a big way, even though the concept of backing out of the directory scares them to death.

So let me give you two areas of focus to help you diversify your marketing budget, get more results, and spend less money doing it all.

Winner’s Focus #1: The Internet

You’ve heard a lot about Internet marketing over the past year or two, and guess what? Most of what you’ve heard is true. The print Yellow Pages are dying, and the Internet is taking over. Here are a few statistics to bolster my point:

  • The Kelsey Group, an independent research organization, found that 43 percent of consumers search the Web to find a local merchant. It also found that 54 percent have substituted the Internet for their phone book. Obviously, Yellow Pages still have a presence, but they’re fading fast, and now is the time to act.
  • Fifty-one percent of consumers conduct research online before making an offline purchase. Just because a consumer doesn’t reserve a space online, the impression you make with your website might influence his offline purchase.
  • More than 29.5 million consumers searched the Internet for storage in 2007.

The Internet is a big deal for storage providers. It has local impact. Just because the Web has the amazing ability to connect people from all over the globe, this doesn’t mean a consumer in Ogden, Utah, isn’t using it to search for and buy storage in his very own town.

If you don’t have a website, for heaven’s sake, get one. If you do have a website, hire a professional to review it for effectiveness. Make sure you’re touching on consumer hot buttons and converting visitors into paying tenants.

Once you’ve established that your website is effective, make sure you’re well placed on the search engines. When consumers look for something online, they start with a search engine such as Google or Yahoo. If you’re not on the first page of results on all search engines, you’re losing business to the competition that has made the effort to get on the first page.

One more note: Due to the way consumers search online and other intricacies, you should make every justifiable effort to dominate the first page of search results. Consider using storage directories as well as pay-per-click and organic search-engine-optimization campaigns. Internet marketing is usually inexpensive enough that you can run multiple campaigns effectively.

Winner’s Focus #2: Guerilla Marketing

Guerilla warfare is a very effective strategy for undermining competition. From that line of thinking comes guerilla marketing. Unconventional, unexpected and usually inexpensive marketing tactics work very well. (Forget about spending big dollars on mediums used by companies like Coca-Cola and General Motors. You’re not them, and you don’t have their budget.)

To begin creating your guerilla-marketing strategy, you must determine your target market. To do this, apply the 1 percent factor, which says that 1 percent of your target market equals your total number of units (100 percent occupancy). For example, if you have 449 units, your target market is no more than 44,900 households. Don’t spend money marketing to more than that number, or you’ll be wasting your budget. When you analyze advertising this way, you’re able to easily eliminate many options.

Continuing with this example, you need to identify every option for communicating your innovative message to those 44,900 households. This usually includes making offers to local businesses and apartments, hosting community events, and sending press releases to local media?anything that will reach your 1 percent.

Do everything you can to innovate beyond the standard storage options, too. Extend gate access hours to those who qualify. Offer discounted packing supplies. Offer package acceptance, wireless- Internet access, conference-room access and whatever else you can to differentiate yourself from competition.

Then offer a risk-free way for consumers and businesses to use you for storage. The more attractive you make your facility, the more tenants you’ll draw. Like a magnet to steel, you’ll pull in everybody who needs or wants storage to your facility over your competition. You’ll find yourself winning in these ultra-competitive times.

Commit to playing to win. Even if you only have one facility and you’re up against larger operators, you can thrive in these times if you have something good to say (innovate), say it well (create excellent marketing messages) and say it often (be consistent). 

Derek M. Naylor is the president of Storage Marketing Solutions (SMS), a full-service marketing and advertising agency dedicated to the self-storage industry. For a free subscription to his e-newsletter, call 800.941.4805 or visit www.storagemarketingsolutions.com

Manager's Memo: Resolutions Reap Rewards

Article-Manager's Memo: Resolutions Reap Rewards

Its impossible to believe, but we are now in 2008. Need some help making resolutions to set the tone for a successful and rewarding year? Read on for tips to get your facility off to a great start.

R = Responsive

Operators need to be more responsive to customers. Overall, I think the industry has done a pretty good job in meeting customer needs, supplying clean, secure and convenient space to store treasures. But now we need to ask ourselves what else we can do.

How about extending gate hours for commercial customers, or adding a kiosk for tenant convenience? Perhaps provide a cold bottle of water in the summer when tenants are moving, or a cup of hot chocolate when its chilly outside. The idea here is: How can I be more responsive to customers, and then make a plan to fulfill this commitment?

E = Evaluate

How well are you performing at your job? We each need to regularly review how we do things. For example, could you be more efficient in answering the phone or greeting potential customers when they walk into the office? Can you do a better job of maintaining your grounds and buildings?

What can you do to improve your curb appeal? How can you collect better data to know what competitors are doing? In short, what will it take to improve your performance?

S = Sell More

As competitors enter our markets, we have to constantly upgrade our selling techniques to increase occupancy as well as the sale of ancillary supplies and services. Do you have a good inventory of things customers really want and need? Can you display my merchandise more attractively? Should you add goods and services outside traditional self-storage? Can you convince potential customers your facility is the best suited to their needs? Answers to these questions can be just the trigger to help us sell more and more often.

O = Organize

Most of us in todays hectic world often seem to run ragged. Perhaps we need to look at how we organize our priorities and time. For example, if we organize our office so were not constantly looking for things, it will cut down on the time it takes to complete simple tasks. If we tidy the maintenance room, it will take less time to fix things with the proper tools and hardware.

Design your to-do list so important things get done first and lesser items get done when you have an extra minute. This way, your work life becomes streamlined? and you might just have more time for a social life!

L = Laugh

Studies indicate that laughter leads to a longer, happier life. Start the day by reading the comics in the newspaper. A few minutes of laughter can get you going in the right direction. Laugh at yourself: Recall a funny event that happened to you once. Pick a new comedy show to watch. You may find yourself looking forward to it, and youll maintain a more positive attitude during the week. Life is more fun when you can laugh, so do it more often!

U = Understanding

By resolving to be more understanding of a different viewpoint, you become aware of possibilities and are more creative in problem-solving. If an employee or customer sheds new light on a situation, try to understand the point before you insist on doing it your way. Understanding does not mean you have to change or compromise; it simply means you have another perspective to consider.

T = Training

Even old dogs learn new tricks. For some of us veterans of the business, updating training is positive step. Think about how much the world of self-storage has changed over the past several years. With technology making things easier and faster, we either keep pace or well eventually be passed over.

Take a class at a local community college. Go online to learn a new process or subject. Read a different magazine to expand your horizons. Pull out some of those past articles you saved from industry publications and refresh your thinking about the business. The important thing is to learn constantly. Youll be rewarded many times over by new knowledge, which will allow you to be more versatile.

I = Innovate

Trying something new leads to success or failure, but always teaches you how to do things better. Come up with a fresh idea for your facility. Create a new landscape design or way to market your site. Innovation is the key to staying ahead of your competitors. Those who stay ahead, win.

O = Observe

Watch successful businesses operate and copy them as much as you can. By evaluating the way another company operates, you can pick up useful techniques that can be applied to your own facility. Observe how great operators treat customers and employees, and how they prosper even when new competition enters the market. Spend an evening at a highly successful restaurant and watch how staff takes care of you. Go to a neighboring business and ask for advice. By watching and emulating others, we can increase our own aptitude.

N = Neighbor

Become a better neighbor to those around you. Walk your neighborhood and become familiar with people in the area. Stop in at nearby businesses and introduce yourself. Get involved in a Neighborhood Watch group or help in a local charity project. Make your facility a drop-off point for a charity such as Goodwill or the Salvation Army. Work with your local police or fire department to host a finger-printing event or helmet day for the kids. Strive to be a good neighbor by getting involved; you and your facility will ultimately benefit.

S = Send Thank-You Cards

This is my favorite because its easy, takes little time, has minimal cost, and the rewards are tremendous. Take a few minutes each day and write one thank-you note to a tenant or business you appreciate. A simple thank you such as, Dear Friend, I just wanted to take a minute to thank you for being my friend, will surprise recipients and make them feel just a little bit better about themselves.

People may forget how much others mean to them, but by making a simple commitment to this every day for a year, youll make a positive impact on 365 people in 2008. Think about how powerful it would be if each of us did this!

So there you have it: New Years resolutions for 2008. Good luck and best wishes for a healthy, happy and prosperous future. 

Mel Holsinger is the president of Tucson, Ariz.-based Professional Self Storage Management, which offers self-storage facility management, consulting and development services. For more information, call 520.319.2164; visit www.proselfstorage.com

Legal Perspectives: Why All the Hot Air About Climate Control?

Article-Legal Perspectives: Why All the Hot Air About Climate Control?

Over the years, in articles and presentations, Ive identified several ugly words that should never be used in the business of self-storage. On that list has been the term climate control. While it may not have to be banished from your vocabulary completely, this phrase must be used with caution. Perhaps give thought to changing the term to temperature control or temperature and humidity control.

Lets start with the problem. According to the American Heritage Dictionary of the English Language, New College Edition, the term climate means meteorological conditions including temperature, precipitation, elements and wind that characteristically prevail in a particular region. If your rental agreement or ads state that you have climate control, you are implying that you have usurped Mother Nature and have the ability to control the elements of your region including wind and rain.

This is not really what youre doing. Instead, youre regulating the heat and/or chill, perhaps even the humidity, which is actually temperature/humidity control, in the premises. If you are heating or cooling, you might want to call it heated or cooled space (not including humidity control).

Defining the Problem

We dont have a national or state definition of what the term climate control or temperature control means, which is the root of the problem. Ambiguity always lends itself to misconceptions.

For example, lets say a customer calls Facility A to get a price on a 10-by-10 climate-controlled unit. The owner responds with a positive sales pitch stating the site has heating and air-conditioning with redundant systems, meaning if one heater or air-conditioner breaks, theres enough capacity in the secondary system to provide heating and AC until the main one is repaired. The facility is kept at a perfect 72 degrees, regardless of the weather, because it is so well insulated.

This facility has installed a state-of-the-art humidity-control system maintaining a perfect 54 percent relative humidity, whether the facility is heated, cooled or just running the fan. All systems are backed up by a natural gas-powered generator, so reliability is practically guaranteed. The operator says all this only costs $150 per month.

Now, the same customer calls Facility B and asks for the price on a 10-by-10 climate-controlled unit, which is $100 per month. But the second owners definition of climate control might mean he turns on a big exhaust fan to circulate the air when indoor temperatures rise above 90 degrees.

If the customer moves his goods into Facility B, hell probably be disappointed to later learn he is not getting the 72-degree, 54 percent-humidity year-round system backed up by generators like at Facility A. This is because the customer would likely have thought all facilities are climate-controlled the same way. The exception may be the services provided at Facility A. In fact, its likely that every facility has a different definition of climate control.

Disclosing the Solution

This is why its so important to disclose in your rental agreement what exactly you will be providing for the additional rent collected in the name of climate control. That is, what do you contractually agree is the definition of climate/temperature control? Either by rental agreement clause or addendum, you must advise the occupant what it is you will be providing: heating, cooling and/or humidity control.

Also, in some hot areas of the country, self-storage facilities use swamp coolers. These coolers merely keep the temperature inside the building about 10 degrees cooler than the outside ambient temperature; thus, it is hard to represent a temperature range that units will maintain.

Humidity controlled by air-conditioners running enough to keep the stored goods from being moist is something different than humidity control using a special system that adds or removes moisture year round. For all of these reasons, it is easy to see why the consumer could be confused by the term climate control.

Another problem is people sometimes rent climate-controlled units expecting their property will not get moldy. If youre heating in the winter but not cooling in the summer, its possible for moisture to accumulate and cause mold. If youre in a moist climate, the chance of mold is even greater.

Further, if someone brings damp or wet items into a self-storage unit, it really doesnt matter how much climate or humidity control you have. A cold, dark unit is going to breed mold. Hence, youll need disclosure about mold, the possibility of its presence, and ways to avoid it during storage included in your rental agreement.

State Legislation

Undefined climate control has gotten the attention of several different state legislatures. While there are a few states considering the addition of definitions of temperature or climate control to self-storage statutes, only Nevada has a statute regarding the advertising of a climate control for storage of personal property:

The Statute provides: (1) the owner of a facility for the storage of personal property or a person acting on his behalf shall not advertise that the facility is climate controlled unless the advertisement specifies the range of the minimum and maximum temperature and humidity within which the facility is maintained; (2) if an owner or a person acting on his behalf fails to indicate the range of temperature and humidity of a facility in the advertisement that refers to it as being climate controlled or fails to maintain the temperature and humidity of the facility within the advertised range, the owner is guilty of a misdemeanor and is liable to the occupant for any damages that are caused to the occupants personal property as a result of the extremes in temperature or humidity not withstanding any contract provision in the rental agreement.

This requires Nevada storage owners to state exactly what they mean by climate control, temperature or humidity control in any advertisement. If you fail to truthfully advertise what you mean by climate control, I believe civil sanction is warranted. I cant agree that failure to advertise accurately or, worse, failure to maintain the proposed range of temperature or humidity stated in your advertisement should be deemed a criminal act, but it is in Nevada.

Its only a matter of time before other states follow suit. Some are thinking about legislating the actual range of temperature and humidity that will earn a label of climate controlled.

While simply switching the use of term to temperature controlled may not avoid the problem completely, the phrases temperature controlled, heated, cooled or humidity controlled are more accurate and recommended for inclusion in agreements and advertisements. In addition, your rental agreement should have plenty of language to cover the possibilities that can occur if systems providing the temperature or climate control fail.

This language should also cover the potential eventualities of storms, hurricanes, tornadoes, blackouts, brownouts or other disasters that may befall your facility and prevent systems from working. For example, one storage operator in Gulf Shores, Ala., lost his roof to a hurricane right after opening. Obviously, his climate control was not functioning at that time.

The industry as a whole must work to define climate control and related terms before more unreasonable legislation is propagated. 

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. 

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. He is the legal counsel for the Ohio Self Storage Owners Society and the Kentucky Self Storage Association. His 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] . 

Expert Advice on Yellow Pages Advertising

Article-Expert Advice on Yellow Pages Advertising

In May 2007, Bill Gates predicted that the death of the Yellow Pages would occur over the next five years for the under-50 crowd. But based on statistics from independent third-party studies conducted by respected research companies CRM Associates and Knowledge Networks/SRI, Id say Gates report is greatly exaggerated.

Case in point: In 2006, the Yellow Pages Storage heading listed 26 million references nationally. Studies of the top 300 Yellow Pages headings are conducted by third-party research firms every year, and Storage continues to remain in that list; in 2006, it was No. 107. In fact, the use of this heading in print Yellow Pages shows a 7 percent annual growth. Whats more, the majority of Yellow Pages users for the Storage heading are between the ages of 25 and 49.

This is not to say the Internet is not effective in drawing new customers. Statistics show that 6 percent of new storage customers are lured through local Web searches; but 72 percent still come from print Yellow Pages. Yes, the Internet search numbers are growing, but print is still the first and foremost way to attract prospects.

Pump It Up

Well leave the topic of Internet directories for another day. Right now, lets talk about how you can pump up your facility call volume to achieve the industry average of a 3-to-1 return on investment (ROI). If you havent yet set your marketing budget, note that the average Yellow Pages print expenditure per property is 6 percent of total annual revenue. Some spend more, some less; a lot depends on occupancy level.

What elements should you consider when developing your print Yellow Pages marketing plan?

  • Directory selection 
  • Ad placement and rate negotiation 
  • Design, layout and ad copy 

The Yellow Pages publishing industry has become highly competitive. Gone are the days when consumers received only one directory. Now, most people receive a primary (or utility) directory published by their local phone carrier. They also receive one or more secondary directories. The largest and most well known is the Yellow Book. Still, more than 200 other directory publishers operate locally or regionally.

Choosing Directories

The primary/utility directory has the highest market share 99 percent of the time and is, therefore, the directory in which you invest the majority of your Yellow Pages dollars for that market.

Heres how to proceed:

  • Contact the directory advertising department, and it will assign you a local sales representative. First, ask for studies conducted by third-party (unbiased) research firms to ensure the directory has the highest market share.
  • Ask which ZIP codes are covered by the directory delivery area.
  • Ask for tear pages (the actual pages for your heading from the current directory) and look at what competitors are doing. Storage advertisers have a distinct advantage over those in other industries: Youre not competing against everyone in the heading, only those within your service radius.
  • Follow the above steps for each directory covering your service area.

Determine Size, Placement and Rates

Once youve inspected tear pages and competitors placement, choose an ad size that promises a good, competitive position. Your best negotiating tool is knowledge, so heres a key piece of information: Yellow Pages ads are placed first by size (largest first) within an ad-size family, such as full pages, half pages, quarter pages, etc. Also, seniority wins.

For example, the first advertiser to buy a full page will always own the first full-page position as long as he continues to renew his ad. The same will hold true for the second, third, fourth position, etc. If you buy a full page, yours will be the last full page listed in the next issue unless another advertiser orders a full page after you.

Request the appropriate rate, along with prices for enhancements such as color or white knockout (background). Sales reps always try to sell the biggest, most enhanced ad for commissions and quotas. They will use statistics showing that enhanced ads get more calls; they wont tell you the highly inflated cost could greatly reduce your ROI. Avoid enhancements unless page design indicates your ad might be lost without them.

Now ask about discounts, especially if youre a new account. Ask whether newcomer discounts are ongoing or if they gradually disappear, dropping by some percentage point each year. That way, you can estimate your actual costs for subsequent years, keeping in mind that publishers will increase rates by about 2 percent to 5 percent annually. If youre a current advertiser, ask about discounts for upgrading your ad size or enhancements.

Elements of Design

You only have about 30 seconds to attract a prospective customer, so your ad needs to be concise, persuasive and uncluttered, yet engaging enough to catch attention and complete enough to answer questions quickly. First, grab the readers attention with a humorous graphic, tag line or unique special offer. Next, address what is important to the storage customer:

Location. First and foremost, people want a convenient location. If youre in a metropolitan area, location (not just city name) should be displayed prominently. For example, if youre on a well-known street, display the cross street or landmark. Consider including directions, such as Right off Highway 1, Jones Drive Exit. And be sure to feature a simple map in the ad, using landmarks if possible.

Call to action. Every customer likes to get a deal; make a special offer, but dont make it too specific in case you want to change it. For example, you might want to say A Free Months Rent but follow it with Call for details so you can change it. Or, you may say Special Offer: Call for Details to drive inquiries.

Accents. Consider using a starburst or boxes or color to draw the eye and initiate calls. Emphasize features that differentiate you from the competition. For example, are you the only one, or one of the few, that can boast climate control as one of your competitive advantages? Be careful in the number of features you advertise, though, because using more than three makes the ad look jumbled.

Graphics. To draw attention to your ad, photos will be most eye-catching and are more contemporary. The use of line drawings may say old fashioned, leading consumers to believe (often incorrectly) that your facility is out of date, both in style and technology. Clip art (heaven forbid!) doesnt even enter into the design vocabulary.

Copy points. The best way to know what your customers want is to ask them why they came to you and like storing at your facility. Theyre probably very interested in things like security, gate-access hours or office hours. Use copy points for these features.

Yellow Pages publishers will provide ad design for you as a free service. But keep in mind they have no vested interest in making your ad stand out above your competitors. When evaluating your ad, ask the following questions:

  • Does the headline grab attention?
  • Does it list specific products or services?
  • Does it use keywords, such as guarantee, best value, largest selection, etc.?
  • Does it anticipate the users questions and answer them?
  • Does it make it easy to contact the business?
  • Does it feature the advantages that set this business apart from competitors?

Making the Most of It

To get a leg up on the competition, you have to be smart about your Yellow Pages print advertising. Do your homework: Know which directories cover your facilitys service radius. By being an informed consumer, youll be in a better position to get the best rates from publishers. Finally, understand the elements of design that make for a successful ad.

All of the above will help get your phone ringing. If youre not getting at least 72 percent of new customers from print Yellow Pages, then youre either lucky enough to be in an area where drive-bys draw new customers, or youre missing an opportunity to achieve an average 3-to-1 ROI through this medium. 

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

Building Brand Recognition

Article-Building Brand Recognition

When we think about motorcycles, Harley-Davidson usually comes first to mind. The company has one of the greatest brand-marketing schemes ever to hit planet Earth. It’s one of the few brands men and women are actually willing to tattoo on their bodies. Extreme, isn’t it? Maybe, but it’s a great example of incredible branding!

When you hear someone mention “The Blue Oval” or “The Bow Tie,” do you think Ford and Chevrolet? When you hear the letters “HP,” do you think Hewlett-Packard? These corporations spend millions of dollars on their brands every year just so you don’t forget who they are. As a storage operator, you don’t need to create a brand with equal impact to these companies; but be aware that your brand is as important to your business as your commitment to customer service.

Creating a Brand

Your brand may be the full name of your business or a shorter version, nickname or acronym. Two examples: International Business Machines is better known by the acronym IBM, and Coca-Cola is known best as Coke.

When you create your logo, stick with a simple one- or two-color design. You’ll realize the importance of simplicity when you have promotional items printed and learn every color is an additional charge. Try to avoid complex colors with gradient shading because they’re difficult to print inexpensively.

Your logo should be a specific font style, size and color. It should be created in a software program that does layered or vectored art work (most printers prefer vectored). There are many companies online that will create your brand or logo for you. In addition to vectored artwork, you may want to ask for bitmap (.bmp) and jpeg (.jpg) file types so you can manipulate the artwork in Microsoft Word, PowerPoint and Publisher. If you want to print hats or shirts, embroidering shops can use bitmap artwork.

Trademarks

Businesses that show the federal trademark or registration symbol for their name, logo or slogan are widely considered to be more credible, established and professional. These symbols attract more sales. In addition, having a trademark will garner added protection against other companies picking future names similar in sound, appearance or meaning, as well as ownership rights as protected by your state or the United States Patent and Trademark Office.

Taglines, Slogans and Promises

Maybe these sound familiar:

  • What’s in your wallet?
  • You’re in good hands with ... 
  • Built Tough 

You can incorporate a slogan, tagline or promise in your brand, but it has to be believable. My facility uses “Your Total Storage Solution” because it’s the only facility in our area to offer RV storage, boat storage, self-storage and climate-controlled storage on one property. We believe we have it all, and it shows.

When to Use Your Brand

Strive for consistency whenever you use your brand. It should be incorporated in your business cards, line cards, stationery, leases and all marketing. Coffee mugs, pens, key fobs, baseball hats and logo clothing are examples of promotional items that can be used to generate revenue.

In our office, we wear our logo shirts because we feel it gives a professional look to our business. We give out our business cards with pride. Our lease and promotional items are presented to customers in a folder with our brand and tagline. We give away key fobs with LED lights on them. They are printed with our brand and phone number to remind customers how to reach us.

If you’re not sure how much pride a brand generates, visit a motorcycle rally. Approximately 500,000 bikers attended the Sturgis, S.D., rally this summer. At last count, there were more than a million Harley Owners Group members. Taxable sales are estimated to exceed $12 million in just over a week.

With a little hard work and creativity, you too can create excitement and generate revenue with your brand. So enjoy building your brand and marketing it to your soon-to-be storage tenants! 

Ed Heil is the manager of operations and security at Lake Havasu RV & Boat Storage of Lake Havasu City, Ariz. For more information, call 877.764.1961; visit www.lakehavasustorage.com