So youve made the leap and decided to offer boat/RV, wine or other specialized storage. If youve done it right, you probably have a sizable investment under your belt. Now its time to start making that investment pay off by acquiring customers.

Fortunately, finding people who need this type of specialized storage isnt hard if you know what youre doing. Im going to reveal how to find these customers. But before I do, I want to teach you about a direct-marketing concept that will not only help you with specialized storage but marketing your business in general.

Marketing gurus call this concept message to market match, which is nothing more than matching your message to your target market. In other words, if youre selling steaks, dont present your marketing materials to vegetarians. If youre selling boat storage, why advertise to people without boats? The same goes for wine, RV and other specialized storage.

So, the $64,000 question is: How do I find people who own boats, RVs and enough wine they need extra storage?

Boat and RV Storage

Marketing to boat and RV owners is quite simple. Several list brokers offer detailed mailing lists of them by geographical area. Use the addresses to send them your strategic marketing materials. You can narrow your list based on other criteria such as:

1. Household income
2. Gender
3. Geographical area (property radius, ZIP code, city or county)
4. Age
5. Credit score
6. Credit cards held
7. Many other criteria that would probably surprise you

Some places to get lists include InfoUSA, Melissa Data and W.S. Ponton. To purchase a simple boat/RV list, go to www.infousa.com. 

You also should head down to your local boat or RV dealership to create a strategic alliance. Most dealers are looking for ways to add value to their customers, so theyll welcome your information. Tell the owner you would like his salespeople to give customers a voucher for boat/RV storage at your facility.

Make whatever offer youre comfortable with on the voucher, but dont be wimpy about it. After all, these customers come at almost zero advertising cost. You can afford to offer a free month or a discount. The idea is to make the dealer feel like theyre giving their customers something special as a gift.

If you get an aggressive dealer, ask them if theyll mail a letter (you pay for postage and printing) to their customer base endorsing your facility for storage. This works extremely wellif you can get the dealer to do it. Just be sure to enclose the voucher to increase your response rate.

Wine Storage

Locating customers for wine storage requires a little more thought. The idea remains the same though. As a wine-storage provider, you must find wine enthusiastspeople who have a passion for winewho buy so much they run out of room in their kitchen and basement for it!

Although you cant find one at InfoUSA, there are several lists you can buy. You see, wine collectors are much like other enthusiasts. They cant get enough information on their favorite topic. So they subscribe to magazines like Wine Spectator and Food & Wine. You might already know this, but almost all magazines sell or rent their subscriber lists and can break them down according to your geographic requirements. Simply call the magazine to inquire about list rental or use. To protect their subscribers, they may require you to send them your marketing piece for pre-approval. Then youre home free.

The power of direct marketing is amazing. With the sophistication of todays list brokers, mass marketing rarely makes sense anymore. For a complete list of lists head down to a major library and look through the Standard Rate & Data Service. The next step is sending the right message, a topic for another article.

Derek M. Naylor is the President of Storage Marketing Solutions, an advertising and marketing agency dedicated exclusively to the self-storage industry. For a complimentary marketing-strategy session, newsletter and to obtain free samples of the marketing letters discussed in this article, call 800.941.4805; visit www.storagemarketingsolutions.com.

The Inside Self-Storage Reno Expo debuted July 19-22, drawing a highly focused crowd of attendees, predominantly developers. The four-day event included the ISS Golf Classic, a full roster of educational seminars, keynote speaker R. Christian Sonne, a packed exhibit hall, an evening cocktail reception, the Prime-Time Open Forum, the "What Every Storage Operator Needs to Know" Q&A session, roundtable discussions, the Management Workshop, the new Acquisitions Seminar, the Developers' Seminar and more.

This expo was the first time ISS hosted a tradeshow in the Reno-Tahoe area, and the event will be returning next summer. Many attendees enjoyed the lake proximity and recreational options, parlaying the trip into a family vacation. Others rolled the dice at the hotel casinos, commenting the tables were more affordable to play than in Vegas.

If you weren't able to attend the show, visit the Self-Storage Training Institute, www.selfstorageeducation.com, for great tools and resources to help you further your success in the industry. Also, keep checking the ISS website for updates on the ISS Vegas Expo 2007 at Mandalay Bay, Feb. 20-23.

Check out photos from our new summer event!

To submit a news release, e-mail [email protected]. 

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Metro Storage Joins Forces With ING Clarion

Metro Storage LLC, which operates facilities under the name Metro Self Storage, announced a $250 million joint venture with real estate investment firm ING Clarion. The partnership will acquire and develop storage projects in select markets in the Midwest and Southeast. The new enterprise was launched with the $15 million acquisition of a 100,000-squarefoot, climate-controlled facility in downtown Chicago. Info: www.metrostorage.com; www.ingclarion.com. 

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OpenTech Formalizes Partnership With C&A Solutions

OpenTech Alliance Inc., maker of the INSOMNIAC self-storage kiosk, formalized a partnership with C&A Solutions LLC of Round Rock, Texas. The latest company to join OpenTechs Alliance Partner Program, C&A provides credit card and check processing for domestic INSOMNIAC customers.

The alliance assures facility owners a robust interface between C&As payment gateway and INSOMNIAC kiosks as well as confirms their long-term commitment to provide technology solutions. Info: www.opentechalliance.com; www.casolutions.net. 

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BETCO Sponsors ISS Legal Learning Webinars

BETCO Inc., a single-source manufacturer of self-storage building components, has signed on as the premier sponsor of the Inside Self-Storage Legal Learning Webinar Series. Presented by industry legal expert Jeffrey Greenberger, the informational web events take place on the second Tuesday of every month, 11:30 a.m.-12:30 p.m. ET. Each focuses on a key legal issue within the self-storage industry. Past topics have included arbitration clauses and lease modifications.

We are pleased to become the first sponsor for the ISS Webinar series, said Terry Campbell, BETCOs director of marketing. While the program is relatively new, we view it as a unique, interactive self-storage communications medium that has a great future. We want to share in that exposure.

The series is currently free to participants. Octobers webinar focuses on the legal side of offering tenant insurance. To register, visit www.insideselfstorage.com/webinars. 

BETCO offers an array of self-storage building products, design, consultation and shipping services and can provide professional construction crews for any project. Greenberger practices with the law firm of Katz, Greenberger & Norton LLP in Cincinnati, representing owners and operators of commercial real estate, including self-storage. Info: [email protected]; www.betcoinc.com. 

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Get Free Access to State Lien Laws

Self-storage industry professional Ron VanVarden of Stockton, Calif., has launched a new resource, the Storagelaws Network, www.storagelaws.net. The website provides free access to information on state self-storage lien laws.

VanVarden initially created the website for the internal use of a self-storage company that operates in California and Nevada.

There has not been a no-cost, one-stop resource for locating state lien laws for the self-storage industry, he says. Just look on eBay, and you can find storage facilities from California to North Carolina selling whole units or piecing out units. So many facilities make their own rulesit puts the whole industry under scrutiny. Info: 209.466.4444; [email protected]. 

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Pogoda Moves to Larger Quarters

Pogoda Companies, Michigans largest self-storage operator and broker, relocated in August to larger offices in the same city. The new address is 30301 Northwestern Highway, Suite 400, Farmington Hills, MI 48334. Telephone and fax numbers remain the same.

The company also recently launched a website at www.pogodaco.com, featuring information about its management, brokerage and consulting services for the self-storage and manufactured-housing industries, along with employment opportunities and company news.

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Smartbox to Open Franchise in Fla.

Smartbox, a leader in the portable self-storage industry, is expanding into Jacksonville, Fla., with a franchise expected to open in November. Based in Richmond, Va., Smartbox has franchises in Georgia, Louisiana, North Carolina and Virginia. Info: www.smartboxusa.com. 

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Storage Owners Launch Mailing and Shipping Service

Self-storage owners and developers Keith Marshall and David Boatner recently launched a new venture, From Ship To Store, which provides turnkey shipping and mailing systems, on-site installation and training to the self-storage industry.

Marshall and Boatner originally set up their own mailing system at their Bay Area Self Storage facility in Texas. They discovered how difficult it was to bring together all of the individual pieces. Ship To Stores aim is to take the complexity out of the process. Info: www.fromshiptostore.com. 

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United Stor-All Forms JV With Harrison St. REC

Self-storage operator United Stor-All Centers has formed a joint venture with Harrison Street Real Estate Capital LLC of Chicago to target the acquisition, development and re-development of storage properties. The companies plan to develop and acquire a bulk of assets valued at more than $300 million during the next three years. The union has already acquired an 800,000-squarefoot, 6,500-unit, nine-property self-storage portfolio with assets in five states. The portfolio was purchased for $90 million. Info: www.unitedstorall.com; www.harrisonst.com. 

Records storage is an option for any self-storage facility wishing to diversify and add high value to its service base. Is one of these four proven models right for your facility?

A generally accepted principle of management concludes, If you cant measure it, you cant manage it. Measurement is a requirement of any business. But how you size up the success of a storage facility depends on individual standards. Lets examine four diverse types of self-storage facilities successfully offering records storage. Each case study representative of one of my clients. See which model standards of success might suit your own goals and expectations.

Limited Space, High-Yield

The first case study may seem odd to some, but several clients have followed this model with varying degrees of success. Joe Smith runs a single facility with a full-time manager and part-time handyman in a small city of about 300,000 people. The design is mundane by Southwest-market standards, but its properly managed.

Smith decided several years ago he would dedicate a section of his facility to records storage. The area, which runs along the back of the property, has typical 8-foot ceilings and holds 26,250 box positions on appropriate racking.

His records-storage model is minimal services with no deliveries; marketing focuses on small-business accounts of fewer than 100 boxes each. The facility declines medical accounts because of their unique service requirements. Smiths services are limited to retrieval, re-file and box-number indexing only. He provides next-day, will-call service with no delivery option, meaning clients must come to the site to pick up items.

Smith markets in two ways: over-the-counter, small-business sales of pre-designed packages; and telemarketing to business prospects within a 2-mile radius of the facility. It took four years to fill the dedicated space. Lets look at the results.

Case Study 1

26,250 Boxes in storage after four years 
278 Small-business clients (average 95 boxes each client) 
$.50 Price per box 
$.82 Yield per box 
6,500 Square feet dedicated to records storage, with 8-foot ceilings 
$41.19 Yield per square foot annually

Each year, Smiths client-growth rate of 9 percent forces him to fire one or more of his worst records-storage tenants. Since the facility is full, hes opted not to sell the service anymore. Actual yield is enhanced by three factors:

1. Each year the account base is purged of worst payers to allow room for better clients.
2. The service-requirement ratio decreases, reducing labor costs.
3. Prices increase annually, based on the regional CPI published by the U.S. Department of Labor. Smiths measure of success is based on annuity revenue that continues each year because of the permanency of records-storage contracts.

Lite Records Storage

Our second case study has been implemented in more than 100 companies in the United States as well as some in the United Kingdom. Clients whove followed this model are successful by their own measure. But see what you think.

Mary and Fred Jones own a single facility in a Northeastern suburban town of about 125,000 people. The facility is upscale but not climate controlled. Mary manages the self-storage and Fred runs the records side.

The facility has a small non-climate-control metal warehouse with 5,500 square feet and 18-foot ceilings, which accommodates 44,550 box positions. The higher ceiling allows the Joneses to employ a single-catwalk racking system. They leased 50 percent of the racking initially and purchased the other half later with existing cash flow.

The facility offers 17 services, including Internet-based shopping cart technology available at a reasonable cost from a software provider. There are no full-time or part-time employees; instead, Fred chose just-in-time labor and outsourced courier services for all pickups and deliveries. His services provide high margins averaging 50 percent to 80 percent; monthly revenue equals or exceeds storage revenue because of his aggressive approach.

The sales and marketing program includes Freds part-time efforts, two agent salesmen, and over-the-counter sales and telemarketing. He has successfully filled his site and developed a new building adjacent to the first. Lets look at the results after 2.5 years.

Case Study 2

44,550 Boxes in storage after 2.5 years 
158 Business clients (average 282 boxes each client) 
$.35 Price per box 
$.52 Yield per box 
5,000 Square feet dedicated to records storage with 18-foot ceilings 
$43.37 Yield per square foot annually

Fred and Mary had to decide if theyd invest in a second building after three years in the business. Their growth rate from existing storage and outside sales has been somewhat successful. Over-the-counter sales have been surprisingly strong, yielding many valuable under-the-minimum accounts. Freds strategy is to employ a full-time salesman next year and fill his second building in the next two years.

Business is aimed at growing annuity revenue with a goal of 100,000 box positions. Fred wisely developed an exit strategy from the get go: to sell the business after six years or 100,000 box positions. Todays market has numerous buyers with ready cash. Fred will have to select one of two ways to sellbased on a multiple of earnings before interest, taxes, depreciation, and amortization (EBITDA); or gross sales and the building sold in a separate real estate transaction.

Nontraditional Records Management

The third case study has been implemented successfully in about a dozen self-storage companies in North America and Europe. Brothers Dave and Ken Johnson are real estate developers and entrepreneurs in the South. Their family owns one large self-storage facility and other businesses mostly driven by real estatein a major market. Ten years ago they started a records-management business within their self-storage facility. Its a world-class, modern operation with many amenities. They market it aggressively.

With little expertise in records management, the Johnsons accumulated more than 300,000 boxes. They soon realized they could increase profitability by building a separate warehouse designed for commercial-records management. They hired a consultant and added a full-time operations manager and a salesperson. The new building holds up to 500,000 box positions. The Johnsons have transitioned to traditional records management successfully and now have a full-service facility.

Case Study 3

300,000 Boxes in Storage after 10 years 
458 Business clients (average 655 boxes each client) 
$.32 Price per box 
$.45 Yield per box 
20,000 Square feet dedicated to records storage, with 30-foot ceilings 
$95.04 Yield per square foot annually 
$1,900,800 Gross storage and service revenue (service is based on 65 percent of storage revenue from records storage)

In a decade, the Johnsons evolved from a simple to a sophisticated approachsomewhat unintentionally. They offered services and provided quality to clients, but until two years ago had no real goals. Now they are poised to become a market leader and grow to a million boxes, or sell their business for a big profit. Remember, they can sell their records business without selling their self-storage because real estate is a separate transaction in records management. The Johnsons success can now be measured as a traditional records center with long-term annuity revenue.

Multiple Storefronts

Our fourth case study follows a new concept implemented only a handful of times exclusively in North America. Clients who have followed this model have the potential to be extraordinary earners. A management group in a large U.S. city has 12 self-storage storefrontseach with 500-plus unitsin a single metropolitan market. Two sites have large warehouses. Their companys portfolio is funded by wealthy individual investors. The management group also owns the records-management company.

The plan is to have enough storage space for a million boxes in two or three locations across the city. The first building has 15,000 square feet with 40-foot ceilings, enough to house 270,000 boxes. The second and third will be slightly larger to meet the 1 million-box goal.

These entrepreneurs plan a combination of seven selling methods to reach large- and small-business accounts. The multiple storefronts may attract more than 100 new small-business accounts per year, for a total of 1,200 to 1,500 annually. Front-office sales will be grounded in a commission-based incentive program. Three to five full-time salesmen will sell directly to large regional and local clients. High-yield, small-business accounts will become the most profitable segment of the market.

The results of this model are not shown because they vary greatly between individual centers. However, the return on investment can be high over a relatively short period. The real estate investment group has little problem raising capital. Goals are to maximize investor return while developing a perpetual annuity revenue stream.

As you can see, records-storage centers are a mixed bunchfrom simple to elaborate. Ive provided case studies to generate ideas for others to emulate. Measure the successes of others, follow in their footsteps and see how you size up. 

Finally, if youre unfamiliar with terminology in this article, I suggest you check out the Inside Self-Storage articles on demand at www.insideselfstorage.com. The database has numerous articles to assist you in understanding the records-storage concept. 

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, call 877.FILEMAN; e-mail [email protected]; visit www.fileman.com. 

Over the past year, the need for ancillary items has intensified. Consider for a moment that interest rates are up, gasoline is greater than $3, a cup of Starbucks is close to $4, and overall passenger miles are down. Hybrid vehicles are becoming commonplace, the first wave of baby boomers is retiring, and there is a lot of general anxiety in the marketplace.

So, is this an opportunity or a disaster? Years ago, an old sage commented, In every seed of adversity there exists an equal or greater seed of opportunity. With that in mind, lets explore what is happening in your market. Likely, you are experiencing rising costs, reduced margins, lack of traffic, and angst about tomorrow.

You may be aware of a great planning tool that uses SWOT analysis: Strength, Weaknesses, Opportunities and Threats. Its an exercise where you list on a T chart items that you and your competitors have in each category. As you list them, youll start to see areas you can improve, and where to capitalize on your competitors soft spots to gain market share.

Your analysis will reveal many items to use as initiatives or strategies. A word of caution: Unless you have endless resources and ocean-deep pockets you will never execute more than eight to 10 annually. But assume you have boiled it down to eight goals and objectives for the year, given responsibility to those who will carry out the program, established measures of accountability and are moving forward.

Reality vs. Silver Bullet

Some opportunities you identify will be clean-up, others will provide a clear competitive advantage. The reality is that until your business is running as a well-oiled machine, the last thing you should think about is diversifying. Your goal and objective is simple: Be profitable, put financial controls in place, and understand margins. Manage the balance sheet, create wealth, have an exit plan and, above all, focus. But, what about adding profit centers to your property?

If you keep your eyes on the balance sheet, your largest investment and asset is probably your ground. Most business owners dont think about its value until time to sell. I am going to suggest your ground is not a stationary asset; hopefully, like your business, its growing in value. Therefore, you need to continually evaluate the worth to see if youre growing the capitalized net income to support your sites appreciated value. In many cases, the revenue of the intended business doesnt keep track and owners look to other revenue sources.

The addition of a car wash to an existing business is definitely ancillary, not your core business. So what do you do when your SWOT analysis puts car washing at the top? How do you evaluate? Which kind of wash do you choose, and why?

Site Evaluation for Car Washing

A couple of rules of thumb will help evaluate your site. If your traffic count is in the 13,000 cars per-day range, consider a self-serve or in-bay car wash. If your daily traffic count runs up to 25,000, then an exterior tunnel will work; depending on other factors, if your traffic count is 38,000 cars or greater, you might want to consider a full-service tunnel.

These numbers are reported from a number of washes around the country and shouldnt be construed as a guarantee of performance. But they do give you an idea of how your site might match up.

Looking at gross revenues, the typical, self-serve (depending on region) does about $1,500 per month per bay; an in-bay equals approximately four bays of self-serve, or $6,000; and the granddaddies of car washingthe full-service and or exterior-tunnel washprocess approximately 60,000 cars per year at an estimated average price of $18 and $8 respectively.

Choosing the right car wash for your current or future needs requires thorough research. I suggest contacting and interviewing a number of car wash suppliers. You also might want to view an article in the ISS online archives, 25 Questions to Ask Your Car Wash Supplier, to use as a base in qualifying potential providers. 

Fred Grauer is president of Grauer Associates and vice president, investor services, for Mark VII Equipment LLC, a car-wash equipment manufacturer in Arvada, Colo. He has made a lifelong career of designing, selling, building and operating car washes. He can be reached at [email protected].

REB Storage Systems International has grown from a modest supplier of records-storage equipment to an international corporation. REB is a business partner for hundreds of commercial records centers and numerous Fortune 500 companies with in-house records management. The Chicago-based company provides comprehensive space planning, design and engineering services, as well as the manufacture, distribution and installation of storage systems.

REBs goal is to provide the most efficient facility design and the best long-term storage solutions for your business, says Lori Palmer, senior vice president.

Records Management or Records Storage?

Before a facility owner installs the first box, he must decide what he wants to offerrecords storage or records management. We begin by educating the customer in the differences in costs, operations and possible profit between the two services, Palmer says. We are experts at maximizing space for all types of records.

The design phase is conducted with an eye on maximizing productivity and profitability. Each project is a new challenge or a puzzle to solve, Palmer says. A team of engineers, records-management consultants and software experts work with the customer before the first component is ever ordered.

Our sales teams are engineers first, sales consultants second, Palmer says. REB was founded in 1962, and many team members have been with the company for more than 20 years. You dont find that depth of knowledge and expertise elsewhere in the industry.

Company engineers perform field measurements at the facility. Using a computer-assisted design system, the optimal solution for the space is determined. The result indicates how many box locations are available and the racking costs per carton.

REBs involvement with a customer doesnt stop with turnkey racking and shelving systems; the company also helps clients determine their return on investment. Once the customer knows how many boxes fit into the area, he has a good idea of the type of revenue that can be generated, Palmer explains. Using an average monthly storage fee of 25 cents per box, clients can calculate income for basic storage. However, many additional services can generate money. Palmer advises owners choosing records management to establish it as a completely different business from their storage operations.

Racking as Required

REB assures the structural integrity of all components. Since the company continually produces records-storage racks in huge quantities, it can offer extremely low unit cost, even for small purchases, Palmer says.

Storage owners can buy racking as requiredno need to tie up working capital with empty shelves. REB also arranges long-term lease packages. Racking and shelves can be delivered from the companys 100,000-square-foot facility in Chicago, its distributor locations in Colorado, Florida and Massachusetts, or it can ship directly from a manufacturer.

Typical turnkey components consist of pallet rack, bar grating, decking, catwalks, stairways, mezzanines, open-shelf filing systems, rolling ladders, carts, trucks and vertical reciprocating conveyors. We have a catalog that stocks the largest amount of peripheral equipment in the industry, Palmer says. In addition to designing complete systems, REB sells single, free-standing, modular units requiring no nuts or bolts that are simple to assemble and move. The company also provides decking for all fire-code specifications.

Experience and Education

Under the guidance of President Thomas Lesko, son of co-founder Edward Lesko, REB has grown to work with a network of strategic partners, dealers and field representatives. Its contacts enable the company to provide design services and materials anywhere in the world, as evidenced by accounts in Asia, Europe, Mexico and North America.

But REBs goal is also to educate its clients, Palmer says. We have become the primary educators in records storage. In addition to its own team of experts, it will refer customers to several consultants and associations. REBs contacts include Cary F. McGovern (FileMan); Bob Rossiter (Rossiter Consultants) and Jim Spinney, (Spinney & Assoc.). These are experts who can help an owner determine the type of records-storage business he should offer, Palmer says.

Adding a records-storage service may first appear to be a daunting project. But we are experts at maximizing space for all types of records storage, says Palmer. REB will help turn wasted areas into profits by increasing revenue per cubic foot and reducing real estate and related overhead. 

For more information, call 800.252.5955, ext. 246; visit www.rebsteel.com. 

As the self-storage industry permeates our communities, it 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.

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Explosive in Storage Disabled 

From Pensacola News-Herald, 7.12.06 

Several items were detonated by bomb-disposal specialists at the American Mini-Storage facility, Pensacola, Fla. Deputies are looking for the last tenant to occupy the unit where a red, 5-gallon gasoline container, tackle box and cloth bag were removed by a pair of robots. The container was wired to an electric light fixture triggered to detonate when the light was turned on. An employee cleaning the unit after a tenant was evicted saw the device and called police.

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Storage Firm Suing Developer 

From The Sentinel & Enterprise, 7.25.06 

The owner of Self-Storage in Leominster, Mass., is suing the developer of the neighboring shopping center. The lawsuit, filed in a Worcester court, claims the developer tried to prevent Self-Storage owners from constructing an office on their own property. The suit alleges the developers objective was to place obstacles in the way so Self-Storage would sell the land at a distressed price. The corporation is suing for $250,000, according to court documents.

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Arsonist Refused Parole 

From WHAS 11, 7.21.06 

A man convicted of arson and manslaughter for his role in a fire at a self-storage warehouse that killed a Louisville firefighter in 1994 has been denied parole by the Kentucky Parole Board. It was the second time the man has come before the board since being sentenced to 25 years in prison for taking part in the fire that led to the death of Strawn Nutter. Nutter died after he fell through the roof of the burning building and was trapped inside.

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Zoning Granted: Nothing but Storage 

From The Times-Herald, 7.13.06 

The Newnan, Ga., planning commission recommended approving a zoning request by Prime Ventures Corp. for 8.4 acres of land on which the owners intend to build a self-storage facility. Under the conditions placed on the property, nothing but a self-storage facility could be on the property, even if the venture failed, until the owners had the land rezoned.

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Airport Approves New Storage Rates 

From The Herald-Tribune, 7.14.06 

The Sarasota-Manatee Airport Authority in Florida approved a new rate schedule for its self-storage business, University Self Storage. Universitys prices had been about 4 percent below the local market average. The new schedule will keep rates for units without air-conditioning about 2 percent below market, while those with air-conditioning will be 1 percent above the local average.

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Storage Donates to Buy Canine Cops 

From The Journal, 7.28.06 

Harrington Self-Storage, in Harrington Del., is among several business donating funds to help the police department buy a new Labrador drug K-9. The department has been looking to get a dog since January 2004. Most of the funding for the dog and equipment came through business donations and a state grant.

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Drug Stashes Found in Storage Units 

From Philadelphia Daily News, 7.20.06 

Self-storage units appear to be the latest hiding place for drug dealers to stash their illicit goods. Philadelphia police announced they had seized more than 100 pounds of cocaine from a unit in a Northeast storage facility. The stash had a street value of $5.4 million. A similar raid six days earlier at the same place netted almost as much of the drug.

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Truck Permit Denied Storage Company 

From The Express-Times, 7.6.06 

The Williams Township, N.J., zoning board has denied a variance for a proposed self-storage facility to double as a dealer for a truck-rental company. The applicant said one to four trucks at a time would have been parked in front of the facility. He had argued the parking location would provide customers with easy access to the truck and send the message that trucks are available. The boards two objections were that the trucks would act as large billboards and that they may not be in the best condition.

Americans spend fervently ship packages every day of the year, fueling an already boisterous $900 billion mailing industry. Many self-storage operators have begun to claim a piece of the pie for themselves, offering mailing services directly from their office and retail areas. With studies forecasting explosive growth in shippingprimarily due to increases in Internet-based commercemaybe its time you grabbed a slice of the profits.

Shortcut to a Shipping Business

If you have an office and a retail area at your self-storage facility, youre one giant step closer to starting a mailing center. Acquiring scales, hardware, software and postal-carrier contracts can be time-consuming challenges for time-pressed operators, but now theres a shortcut.

From Ship to Store provides all the services necessary to start a mail centeraffordably and without all the hassles, says Keith Marshall, who co-founded the Texas-based operation with his partner, David Boatner. We pull all the vendors together and provide the training, making it much quicker and cheaper than self-storage owners can do on their own. We can get everything up and running within a month.

Once a storage owner calls From Ship to Store, Marshall gets the ball rolling by ordering the necessary equipment: scale for weighing packages, shipping-label printer, postage machine, receipt printer, and PC system and software. The software automates the printing of shipping labels and documentation, eliminating the need to fill out bills of lading and export documentation.

The system compares rates and delivery dates of three carriersFedEx, United States Postal Service and DHLallowing the customer to select the most suitable price and delivery time. Contracts with all carriers are coordinated by From Ship to Store, which also assures new mailing centers are equipped with all proper signage.

The entire system is installed and configured by Marshalls staff, who will also arrange on-site traininga one-day session to educate employees about all the hardware, software and shipping transactions.

Like bread and butter, self-storage and mailing services make the perfect team, says Marshall. What makes this beautiful for self-storage owners is they already have their overhead covered. You dont need extra people to operate a shipping and mailing business. Managers can handle shipping transactions in their downtime.

Once the system is up and running, operators are on their way to recouping their investments and reaping greater revenues. At my facility, I ship 150 to 200 boxes a month, netting between $800 and $1,000 more through the mailing services, says Marshall.

Taking Care of Business

Necessity is the mother of invention, but frustration just might be the father. Marshall and Boatner conceptualized From Ship to Store after theyd personally experienced the aggravation of introducing shipping services at their own facilities. When numerous colleagues started calling for guidance on adding mailing centers, the pair knew they had a business opportunity. There was a real need for a company that could take all the complexity out of the process, says Boatner, who owns Store Smart Storage, in Manor, Texas.

One of the best perks for a storage owner, Marshall says, is that each box enters the facility in the arms of a potential tenant. As soon as theyre in the door, I have a shot at selling something to them. Even if they dont need storage right now, when they do need a unit, theyll think, Well, why dont I just go to the place where I send all my packages and buy my stamps?

Postal services have become a successful profit-making venture for many self-storage facilities. As the shipping industry continues to grow, Marshall believes there will only be more ancillary opportunities for storage operators. A shipping and mailing service, he says, is a great, affordable side business thats perfect for self-storage. 

For more information, visit www.fromshiptostore.com. 

Comic genius Steven Wright once deadpanned: You cant have it all. Where would you put it? Todays self-storage options have proven him wrong. Americans bulking up on flashier, speedier vehicles have discovered that versatile storage facilities are their grown-up toy chest.

Boats and RVs dot the lakes, rivers, woods and coastlines of Shreveport, La., home to an enthusiastic population of adventure seekers and nature lovers. The outdoors is a way of life in this part of the country, but many residents dont have enough room to stow their weekend and vacation gear. Thats where Ellerbe Storage Center comes in. Catering to the needs of campers and boaters, the 1-year-old facility also offers wine storage and business services.

Two Birds, One Stone

For a long while, many Shreveport residents had two choices on storing their RVs: park many miles from home, or comply with strict ordinances on parking within city or neighborhood limits. Commercial real estate broker Ricky Lennard experienced firsthand the frustration of parking his boat. After landing a deal on an irregular-shaped lot with limited frontage, he decided to develop his own storage facilityone that embraced RVs and boats instead of condemning them.

On Nov. 21, 2005, Ellerbe Storage Center opened its doorsand business has been as brisk as a Ski Nautique skimming Lake Bistineaus surface on a summers morn. The facility offers 22,325 square feet of conventional storage, 10,080 square feet of boat storage, with another 18,000 devoted to RV space.

It really was a no-brainer to open an RV- and boat-storage center, says Shaun Ferguson, property manager at Ellerbe. Its no exaggeration that the state motto is Sportsmans Paradise, because in Louisiana everyone has at least a boat. We are located in an affluent area of town that has extremely strict covenants in the communities, so parking a recreational vehicle in a driveway is not an option.

By summer, boat and RV storage was nearly 80 percent occupied, offering 24 units sized (15-by-50) to accommodate RVs and party barges, as well as 24 drive-through units (12-by-35) for fishing boats, ski boats or construction equipment. The 15-by-20s rent for $340 a month, the 12-by-35s go for $195.

We really hit on a need for this area, says Ferguson.

The Whole Kit and Caboodle

Ellerbe is self-storage done right. Conventional units range from 5-by-5s to 10-by-20s, and offer:

• Drive-up access for easy loading and unloading
• Monthly pest control
• Individual door alarms
• In-set cylinder locks
• Digital video surveillance, round the clock
• Climate control

Extra-wide driveways accommodate moving vans coming and going, and ample night lighting keeps the area bright all hours. Ellerbe also provides platform dollies for moving convenience. Music is piped throughout the buildings, adding to the peaceful atmosphere. Security is considered a high priority. Plus, theres a septic dump, water station, electrical outlets and overhead lighting in the units. The response has been gangbusters, says Ferguson.

Wine Cellar Sells

Wine storage is a recent luxury to the Shreveport community. Ellerbes 900-square-foot cellar meets wine-storage standards of 54 to 56 degrees with 50 to 70 percent humidity.

We thought we had a real good shot at it because wine storage does well in places [with similar demographics] like Dallas and Houston, Ferguson says.

A biometric fingerprint scanner controls access to the cellar, which is also monitored by video surveillance. Most wine-storage cellars charge per bottle, but Ellerbes fees are based on space rented. Six sizes are available. Small lockers fit four to five cases, ideal for those just starting a personal wine collection; medium lockers hold 10 to 12 cases; large fits 18 to 20 cases; and a 4-by-5 walk-in unit is spacious enough for 60 to 70 cases.

Some people collect comic books, Jay Leno does expensive cars, and more and more people are becoming wine collectors, says Ferguson. Were just answering another need. Plus, wine storage lends a certain prestige to the place. The cellar is off to an impressive start, with two avid collectors already storing private collections, and a number of restaurants renting space.

To further appeal to well-heeled clientele, designers made sure the entrance to Ellerbe created a memorable first impression. Our lobby looks more like a grand hotel than a self-storage office, says Ferguson. We have stained-concrete floors, granite countertops and a comfortable sitting area with sofas, chairs and lots of plants.

A hospitality area can be reserved for small business meetings, complimentary bottled water is available, and a business center holds daily office hours, providing copying services, fax machine and wireless high-speed Internet. Plus, we have a great 500-squarefoot retail center with office and packing supplies, adds Ferguson. Weve got it allboxes, packing tape, bubble wrap, peanuts, mattress coversthe extra amenities that people need.

Lands End

With the Shreveport business afloat, parent company Southern Storage Centers recently celebrated the grand opening of facility No. 2: South Bossier Storage. The 100 percent climate-controlled site began offering traditional storage space in June and promises drive-in boat and RV units within a few months.

Having found its niche, Southern Storage Centers plans to aggressively build throughout northwest Louisiana, Arkansas and eastern Texas. Were hoping to expand by two facilities a year for the next 10 years, says Ferguson.

According to Ferguson, its no surprise Ellerbe is becoming a oft-visited spot by big-toy collectors in the Shreveport area. Ive been in the business for 10 years and have visited storage facilities from the East Coast to the West Coast, he says. Ive never seen one set up quite like this one. Its pretty awesome. 

The convenience of mobile storage has finally seduced the public. While some self-storage operators ignore the elephant in the room, others are jumping on her massive back and hoping for one heck of a ride.

Reach back in your memory banks and try to recall your skepticism about mobile storage: A proven business model hadn’t emerged; nobody was sure if it would work; potential customers didn’t know what it was; interstate moves were unfeasible; boxes were dissimilar and didn’t last; blah, blah, blah.

PODS changed the mobile landscape with its national massive marketing. Today’s potential customers call self-storage facilities and ask about PODS. Usually they’re referring to containers and mobile-storage services, not specifically the $200 million-a-year company Portable On Demand Storage.

What’s good for the goose is good for the gander. Many self-storage operators have decided it’s financial genius to piggy-back on PODS’ success. “For a long time, none of us were sure whether mobile storage was going to stay or not. But now I think we’re all in agreement,” says Chuck Helms, president of North Carolina-based Kontane Inc. “Mobile storage is really just the next step in the evolution of the storage business.”

Mobile-storage suppliers say their phones are ringing like never before. Most callers are investors and entrepreneurs investigating a mobile-storage only business. They say it’s a little surprising a flood of self-storage types aren’t jumping on board. Though more are starting to realize it’s the perfect marriage, says Bill Norris, who founded Go Mini’s, the oldest mobile-storage company after PODS.

“Self-storage is a popular and crowded industry,” Norris says. “What catches the self-storage guys by surprise when they start looking at portable is they can extend their business beyond a 5 to 10 mile radius.” Norris is referring to cross-town moves, which account for 75 to 80 percent of all relocations. Rather than pay premium rates for a moving company, people are content to load their own boxes at home and have a mobile-storage company pick up their packed containers, which are then delivered to the new residence.

In instances where a home is sold but not yet ready for move-in, once again, mobile storage has an edge over a rented unit. People prefer to load and unload only once, eliminating the facility pit stop.

How Small Can You Go?

Self-storage owners looking to take the plunge have three distinct options. They can buy a dealership, a franchise, or go independent. Inside Self-Storage spoke with a sampling of four companies representing diverse opportunities for investors. Units and Mobile Attic offer franchises in which clients purchase equipment and exclusive territories. Go Mini’s sells dealerships, and Kontane Inc. supplies containers for those on the independent path.

Startup costs and break-even points run the gamut—with some thresholds surprisingly kind to smaller operators who want to go slow.

Units Franchise

Units supplies its clients with containers, operating software, marketing support, training, and a heavy-duty delivery truck with a rollback body. The company manufactures a galvanized metal container, which protects stored items from mold and mildew, says Michael McAlhany, president of South Carolina-based Units.

“We give our franchises full control of their operations,” he says. “There are no call centers; everything is handled on a local level ... We are very competitive on the startup end; another advantage is state-to-state moves.”

McAlhany estimates startup costs at close to half a million dollars, which includes 20 containers and the initial franchise fee of $40,000 to $60,000 to cover a population territory of 400,000. The sturdy containers may be stored outdoors; and are stackable to three high, allowing operators to maximize warehouse space.

Because Units containers are weatherproof, they may be left for onsite outdoor storage at residential or commercial sites, a popular feature. However, as McAlhany points out, many urban communities prohibit people from storing visible containers on their property for more than 30 days.

Mobile Attic Franchise

Mobile Attic “does things a little different than everybody else,” says Ben Terrell, vice president of logistics. The Alabama-based company mainly works with small businesses. The $35,000 to $50,000 franchise fee buys protected territory and marketing support that includes a professional TV commercial that can be tagged with a local phone number.

Terrell says the company’s all-weather, aluminum container is meant to be stored outside, eliminating the need for a warehouse or a forklift. In fact, about 70 percent of Mobile Attic customers keep the containers onsite. Commercial clients include hospitals using them for records storage, restaurants for dry inventory, and construction companies storing supplies.

“Our equipment isn’t customized,” Terrell says. “Our trucks are standard roll-back trucks and our containers have wheels on the bottom. With our system, you can use an old truck, then upgrade later.”

Franchises must buy a minimum of 30 containers to start, but can grow in smaller increments, adding as few as 15 at a time. Average container cost is $3,000. Terrell estimates it could take 1.5 to 3 years to pay off a container, depending on whether rent was $100 or $200 monthly, as the market allows. “Our containers are probably two- to three-times the size of some of the other ones,” he adds.

Startup costs can be as low as $150,000 (not including franchise fee) for 30 containers and equipment, assuming a self-storage facility already has staff, land and workable software. “Most of our franchisees are the drivers and also manage the financial,” Terrell explains. “It can be a one-man deal, or four or five guys can be working the thing.”

If an operator gets to the point where he has 200 to 300 containers within the first two years, “he’s doing a great job with our model,” Terrell says.

Go Mini’s Dealership

A dealership from Florida-based Go Mini’s is priced at $23,000 for a territory of about 400,000 people. “There are no ongoing royalties and fees that you would normally associate with a franchise,” says Norris.

Go Mini’s first clients were predominately moving companies, but in the last six months alone, 35 self-storage operators signed on for dealerships, according to Norris. “We are now in 182 markets in 46 states and Canada, and about to venture into the U.K. and Alaska and probably Puerto Rico.”

Operators should budget a half-million dollars to get up and running the first year, Norris advises. As dealers, they must purchase a minimum of 36 galvanized-steel containers and a transport truck. Containers, which may be stacked three high, are weatherproof and won’t sweat regardless of rain or humidity, according to the company. Go Mini’s provides guidance and marketing assistance such as TV ads, and an interstate program is in the works.

“Typically, one transport truck will grow a dealership to 100 containers,” Norris says. “What dealers find at the 100- to 150-container level is, if they don’t take money out of the business, they can buy four to 10 containers a month out of cash flow. Then it really starts rolling well. The secret is getting up to the 125 to 150 level.”

Kontane Containers

Kontane Inc. makes and sells HomePak, a portable-storage container system. The units are constructed of exterior-grade plywood and a moisture-proof base; they must be stored inside and can be stacked three high.

“Franchising isn’t for everybody,” Helms says. “There are lots of very successful people in the storage industry who know how to run a business. They just want someone to provide the pieces so they can put the total package together. That’s where we are the logical alternative.”

Some customers start with as few as 10 containers and add more as they grow the business. “A lot of franchises won’t talk to small operators. We’ll sell whatever a customer wants to buy,” says Helms.

Though Kontane is a container manufacturer, staff counsels clients on getting their mobile business started, pointing them in the right direction for forklift and truck purchases. “The delivery system is still one of the biggest decisions an operator has to make,” Helms says. “The preferred method is a flatbed truck with a truck-mounted forklift.”

Wooden containers are less expensive than metal versions yet durable. “A wooden box with a tarp on it should have an indefinite shelf life,” says Helms, explaining tarps protect containers when they’re sent out to residences. The ratio of covers to boxes is about 1-to-4.

Wrap Up

Container quality has come a long way since the early days of mobile storage. Numerous long-lasting options are now available to operators. The viability of one-way moves has also evolved through collaborations between franchise members and others. Check with the Mobile Self-Storage Association (www.ms-sa.org) for updates on its efforts to foster communication and education within the industry.

Other portable-storage factors to consider include container sizes, pricing structures, and the royalty fees and minimums a franchise may require. And no one should underestimate the importance of marketing to this industry niche.

“You can’t rest on your laurels with this thing,” Terrell says. “You’ve got to get around town and out to the local businesses, get the containers in people’s yards where they can be seen, and run the commercials.”