THE WORLD WIDE WEB CAN BE A TREMENDOUS TOOL for self- storage owners. The problem is, there are a lot of misconceptions regarding how to use the Internet to market a storage facility. Here are some good ways to make the web work for you and your site.

In the storage industry, the ultimate goal is to get people to rent units, not win awards with our websites. When it comes to Internet marketing, many people don't understand this. The only thing your bank accepts is money. This being the case, you need to create a website that sells. Can it also look good? Sure. But the selling power of the site should take precedence over its aesthetics, bells and whistles.

How do we define a website's success from a sales standpoint? From the number of renters it generates. Many visitors to your site will not rent a unit online. Most interested parties will want to physically visit your site before renting from you. (But I still encourage you to create an online form they can fill out to rent a unit if they should so desire.) The goal of your website, then, is to provide a seductive enough offer to make prospects want to visit or at least call you.

What should that offer be? Before you make that decision, figure out the value of every visitor to your facility. How much is every prospect worth? Without that knowledge, it is impossible to make an intelligent decision regarding how much to spend and offer to get people to visit.

Here's how to make that determination: Take the total number of new people who visit your facility in a given month and divide it into the net amount of dollars you generated from those visits. For example, let's say you had 100 prospects visit. (You won't normally close every visitor, but for the purposes of this example, let's say you do.) Let's also assume the average person rents for seven months and the average rent is $100 a month. If you net $300 out of the $700 gross receipts for each person, you produce a net revenue of $30,000. Divide that number by 100 prospects, and you now know you can afford to spend up to $300 per visitor and not lose money. Of course, you don't want to spend that much, but you know you can if you need to.

The key to cost-effective marketing is to pursue those avenues that provide the greatest leverage. The web is one of those avenues. Let's say you were to offer people $50 just for dropping by. You know the average visitor is worth $300, so if you have to give away $50 bills to get people to come by, you'll do it--provided you've tried every method of marketing that costs you less than $50 first.

The nice thing is you don't have to offer people $50. You only need to offer them something that has a very high perceived value but low cost to you. This should appear on your website as an "Internet special." Create a unique offer that appears only on your website so you can track its effectiveness.

Make sure the offer is front and center on the website's first page. I know most owners want to put the facility name in the most prominent position on the page, but truthfully, this is not important to a prospect. Instead, highlight your irresistible offer. For example, you might have a line that says, "$50 in cash for everyone who takes a tour of our facility" or "Free first-aid kit (value of $38) for everyone who tours our facility."

Your site should be simple and easy to understand and navigate. Test the site on a 6th-grader. If it's too complicated for him, you need to go back and redo it. A simple site that shows a picture of your facility, and highlights your unique selling points, features and benefits will work. Also make sure people don't have to scroll forever on a page to get your information.

You should have no more than five pages linked to your home page. Those should be:

• A map to your facility
• Contact information
• Helpful storage tips
• Pictures of the facility (not too many)
• Description of unit sizes and what they can hold (no prices!)

Driving Traffic to Your Site

After you've designed a site that sells, you have to draw Internet "traffic" to it. A great site without traffic is worthless. First understand that, for the most part, storage is local. Promoting your site to a national audience doesn't make a whole lot of sense (unless you're a large national company like Public Storage).

Find ways to link with others who get a lot of local traffic and might help your cause. This would include local real estate agents, moving companies, schools, churches, chamber of commerce, etc.--any business people might contact if they were moving into the area.

Getting high rankings in the search engines will help you a lot. There are many search engines through which you can register for free, such as Yahoo! The next key area is paid search engines, where you pay to have traffic directed to your site. One of the most popular is www.goto.com, where you can register on a trial basis for $25. Some search engines charge a monthly or annual fee, others use a "pay-per-click" method (for a complete list, go to www.payperclicksearchengines.com. Registering on the search engines is very simple to do, and there are many out there.

The most important thing, when registering on search engines, is to select the right key words under which people might search to find you. Let's say your facility is in Orlando, Fla. You may want to choose the key words "Orlando," "Storage" and "Self-Storage." This will ensure you come up in a top position any time someone types in these or any other key words you select.

There are many other ways to create a website that sells and drive traffic to it, but these will get you started. I will cover this topic in greater detail in future columns.

Fred Gleeck is a self-storage profit-maximization consultant who helps owners/operators during all phases of the business, from feasibility studies to creating an ongoing marketing plan. Mr. Gleeck is the author of Secrets of Self Storage Marketing Success--Revealed! as well as the producer of professional training videos on self-storage marketing. To receive a copy of his Seven-Day Self-Storage Marketing Course and storage marketing tips, send an e-mail to [email protected]. For more information, call 800.FGLEECK; e-mail [email protected].

WHILE I AGREE WITH THE ASSERTION OF NOTABLE 1920S JOURNALIST WALTER WINCHELL that "Today's gossip is tomorrow's headline," I prefer the more contemporary rendition of columnist Liz Smith, who wrote, "Gossip is news running ahead of itself in a red satin dress." This relationship between rumors and reports is precarious. Gossip is a powerful force in social and business circles, but when media gets involved, you end up with a full gale. It can sometimes take credit for fueling progress, but generally, gossip does little more than wreak havoc.

Self-storage has been making headlines lately, in some not-so-positive ways. The rumors being generated from the media exposure have caused--I won't say a panic--but certainly a stir throughout the industry. For those unfamiliar with the recent news coverage, here is a summary:

On Sept. 26, the L.A. Times published an article titled "Storage Niche Overpacked," the gist of which was supply is overwhelming demand in our industry. The author refers to Public Storage's "humbling setback" from early this year, when the company was forced to drop prices. He includes quotes from Public Storage President Harvey Lenkin and Shurgard Regional Vice President Jim McNamee admitting an errosion in rates and occupancy. The article paints a dire future for self-storage, professing it too enticing to new investors and officially overbuilt.

Shortly after the Times article, on Oct. 6, CNBC and The Wall Street Journal ran a piece called "Storage Units, the Creeping Menace," in which author M.P. Dunleavey expounded on the social implications of the storage industry, the supposed "wretched trend of excess." She writes, "As self-storage becomes an increasingly indispensable part of consumer culture, there will be less and less incentive for people to examine their acquisition habits." You might think it unreasonable to be concerned about Ms. Dunleavey's issue with the luxury storage provides. But then there's the whole issue of credibility. Roped into her commentary were none other than Michael Kidd, executive director of the Self Storage Association, and Cris Burnam, president of StorageMart.

So what is the real impact of this? I was trained as a journalist, so trust me when I say there is plenty to be upset about here. I doubt Lenkin, McNamee, Kidd or Burnam had the slightest clue of these authors' intentions when they consented to an interview. But that's not the issue. Do we care whether the public views storage as a societal hazard, luring unsuspecting citizens into the den of glut? Not really. Anyone who has ever had need for storage knows its value in a pinch. Commercial users are fully aware of the cost benefits. And if you are one of the guilty, if you use storage as a means of managing luxury, let you be aware of it.

The real issue is the message this sort of press sends to those surrounding the industry, mainly the backers. When self-storage is painted as a suffering breed, red flags go up to investors and financial institutions. Suppliers begin to rethink their marketing strategies. Tire-kickers run screaming (which, some may argue, is not such a bad thing). Owners tighten their purse strings. People start to whisper, "The ship--it's sinking!" The rumor mill starts churning. And there she is folks, running down the street in her red satin dress.

You can't believe everything you read. You can't believe everything you hear, either. As British novelist George Eliot so eloquently put it, "Gossip is a sort of smoke that comes from the dirty tobacco-pipes of those who diffuse it: It proves nothing but the bad taste of the smoker."

Tradeshow Trouble

While on the topic of things whispered furtively in corners, let's talk tradeshow. Ooooh, what a dirty word it can be in this industry: tradeshow.

Everyone involved in self-storage knows there are two large entities that produce expos: Inside Self-Storage and the Self Storage Association (SSA). (Yes, there are now many state associations producing their own events. More on this later.) And everyone knows there are too many shows, and they are scheduled in too much proximity. And people--exhibitors in particular--are starting to get more than a little irked.

I don't blame them. They should be irked. Tradeshows are an investment, for attendees and exhibitors alike. Who wants to be in a position where they have to go for broke to be represented at key events, or choose between important marketing venues? Expos were intended to bolster the industry and its participants, not create strain and financial hardship.

At the recent ISS expo in Orlando, Fla., Sept. 25-27, I was frequently asked about attendance. Did we think Hurricane Lili and Tropical Storm Isidore, which were raging just off the Southern coast that week, had an impact on our numbers? The more bold asked the real question: "Don't you think you would have had a better turnout if you and the SSA had not scheduled your shows within weeks of each other?" The answer would have been a very simple "yes."

Each fall, ISS and the SSA compete for attendees. We also now contend with the Florida, Massachusetts, New York and Texas associations. Do we all have a right to produce and market these events? Absolutely. Are we doing a good job? Sure we are. Are we being responsible and considerate toward the members of the self-storage community? Well, that's a whole other ball of wax. The multitude of tradeshows is diluting the budgets of all participants. Eventually, someone will have to relinquish a revenue stream for the greater good of the industry.

Inside Self-Storage is exploring ways to do its part. There have been discussions about fewer shows between ISS and SSA. Eventually, there will be a resolution between the camps. The immediate problem is all the state associations that now think they can make a buck hosting their own expos. What they have not stopped to consider is the pressure this creates for all the vendors to be at yet one more show. It obviously also affects the success of national shows by thinning the attendee pool.

We at ISS do not personally feel exhibitors or attendees are reaping real value from tradeshows, featuring exhibits, being sponsored at the state level (with very few exceptions). The role of an association is to provide education, legal support, networking venues and administrative options. All of this is beneficial to members. Forcing the issue with an expo only does the industry a disservice.

I know what you're thinking: "ISS doesn't want the states to host shows because it hits them where it hurts--in the pocketbook!" But before you scoff at me, think about the state of the industry. While ISS and SSA may not be thrilled at the concept of losing their corner on the tradeshow market, there is a larger issue here. The overall health of the industry depends on solidarity, especially when the media seeks to mar our good name and the public begins to second guess our good intentions. It's just something to think about.

Please feel free to respond with whatever colorful comments you may have. My mailbox is always open.

Best wishes,

Teri L. Lanza
Editorial Director
[email protected]

WOULD ANYONE CONNECT A NAME LIKE RED DEVIL WITH SELF-STORAGE? Probably not. That is precisely why entrepreneurs Angus and Simon Burnett chose the name for their corporation. The name, along with its fiendish image, makes the company memorable. And there's no missing the glowing, 8-foot devil on the roof of the Red Devil Storage London headquarters, a former warehouse built around 1900.

Red Devil Storage is on the fast track to success. It opened its first facility in March 1998 and filled less than two months after opening. Today, that first facility remains 97 percent full, and the company has quickly followed with two other central-London facilities. The fourth facility, in Aylesbury, Buckinghamshire, has just been completed.

Red Devil Storage is part of holding company Eaton Securities, a private company involved with several industries. It is owned and operated by brothers Angus and Simon Burnett. The brothers follow the entrepreneurial footsteps of their father who, after selling his engineering yard on the Isle of Dogs, owned restaurants, petrol stations and car parks. Angus studied business at Manchester University, and Simon obtained a degree in art at the University of Reading, Berkshire.

"We see self-access storage as the area to expand out of the various others we are currently involved in," says Angus. "Our aim is impartial, professional advice to provide storage solutions to suit individual customer requirements."

The brothers' first venture into storage came almost by accident. One of their tenants, a self-storage operator, defaulted on his rent. The facility had been struggling to fill its 7,000- to 8,000-square-foot space it occupied in the brothers' basement car park in Princes Gate, Kennington. It took a great deal of work to make this site suitable.

"Kennington had been derelict for more than two years and was in a dreadful state of repair," says Angus. "We did a lot of power-blasting of walls, painting and making good. Once the partitioning system was in, it hid a lot." Then they focused on marketing the facility; but the building's excellent location almost sold the storage service by itself. "We concentrated on the locality and relied on walking around the area doing leaflet drops," Angus says.

The facility in Aylesbury was formerly a car showroom with a mechanics bay and spare-parts storage. Conversion included installing mezzanine flooring and changes to the existing structure. "It has worked very well," Angus says.

The facilities offer clean, secure storage, and removals and packaging supplies. Conveniently located, the facilities can be accessed seven days a week Patrons have access to archive, storage and wardrobe boxes; padlocks; tape; bubblewrap; racking; mattress, sofa and armchair covers; and a man and van to help move goods. Red Devil is also the agent for Teacrate PLC that makes plastic crates for rent or sale.

How have the Burnetts selected sites for each facility? "Location, location, location ... and price," says Angus. In addition to selecting a highly visible location that draws foot as well as drive-by traffic, marketing for the facilities is done through the Yellow Pages. Although there is strong competition for suitable sites for storage facilities, Red Devil has an ambitious agenda that includes plans to expand to 10 facilities.

Angus is excited about the self-storage industry and his own company. "It's a great business to be in, with good future-growth potential," he says. "You just need to have access to funds to drive it along as fast as you would like to."

For more information, e-mail [email protected].

OVER THE PAST THREE AND A HALF YEARS, MY HUSBAND, DAVID, and I have worked for an excellent company whose owner has shown us support in numerous ways. An owner should always be attentive to his managers' creative sides--some of us have great ideas, especially when it comes to marketing. Most of the time, managers come to the table with a variety of skills and knowledge picked up from miscellaneous jobs they've had. If you think you have a clever idea for a marketing event, don't hesitate to put it in writing and pitch it to your owner. If you don't have a creative bone in your body, ask friends, family, even tenants what they like to do on the weekends for entertainment--this should generate some inspiration.

If you have an event you'd like to host, you must first have a plan. Do not just give the owner a vague thought. Sketch out a preliminary budget, know if you have the right support staff, and create a list of what you need to buy, rent, have donated or make yourself. Then make a list of the companies with which you'd like to work.

Use your chamber of commerce to find local business listings. Once you've decided on a date and theme for your event, you can send these businesses a letter asking them to donate goods or funds in exchange for a sponsorship. You'll be able to follow that letter with an invitation to your event, whether or not they contribute. Use a notebook to store all your quotes, in-house invitations, fliers and any other related materials. This way, if your owner asks you to further present your ideas, you are one step ahead with organized notes.

I have held several business after-hours parties through our chamber of commerce because it will advertise the event and reach maximum potential customers--especially if your thrust is file, merchandise and equipment storage for the business owner. These professionals want a short party where they can come right from work. They want to network, eat and drink, see a limited tour of your facility and leave with some giveaways. You may not earn any immediate customers, but the referrals and positive conversations at attendees' respective offices on the next day could do your location wonders.

I held my first party in one of our climate-controlled buildings just six months after opening a property. I used 10-by-10s for catered spreads of food, 10-by-15s for rented golf and toss-football games, and a 10-by-20 for rented bar tables and chairs. The feedback was extraordinary. The common theme of comments I received was, "I didn't know storage facilities could be so nice."

In October, I was given authorization to host a Halloween haunted house in which I used climate-control and traditional units in themed ways. The 10-by-20 became a graveyard, the inside 10-by-15 a haunted livingroom, and a 5-by-10 featured a hanging ghoul and coffin. I also used several units for pumpkin-carving, face-painting, games and food. I wrote to local businesses--small and large--to assist with the costs. I even asked our local grocery store to donate apples and called Pepsi Cola of Buffalo, N.Y., for a donation of soda.

Remember, you cannot charge admission to your marketing events. They should be community-oriented and kid-friendly. Most important, always give your sponsors plenty of recognition. Last but not least, make sure every one of your guests leaves with a brochure, business card, referral voucher, etc. And don't forget to track your response in calls and rentals. If you earn a dozen customers from your event, chances are your owner will approve it again for next year.

David and Tina Fleming are an award-winning management team with Premier Self Storage Inc. of Western New York. David has more than 10 years of experience in the self-storage industry, having managed facilities in three states. He is currently a corporate trainer and senior site manager overseeing five locations. He and Tina work as full-time resident managers of Premier Self Storage in Lancaster, N.Y. To contact the Flemings, call 716.651.9500; e-mail [email protected].

One of a self-storage manager's worst fears is entering his facility one morning to face an angry tenant waiting at the front desk. The tenant is extremely upset because some electronic equipment he had stored in his unit has disappeared, and he wants to know what happened to it. When you check the scene, you find no broken lock or kicked-in door to indicate there was a break-in. What could have happened to his equipment? You know it didn't get up and walk away, but there is no physical evidence proving there was a crime.

THIS SCENARIO, AND ONES SIMILAR TO IT, CAN OCCUR AT ANY STORAGE FACILITY, no matter how well managed or secure. If you are a storage owner who retains copies of your tenants' keys, this type of incident can seriously impact your liability. As a self-storage owner, you do not take bailment of your tenants' property; therefore, goods are stored at tenants' own risk--as long as you are not negligent. When you maintain keys for the units, however, you change that situation, since you can enter a unit at any time. In this situation, you assume liability for the goods stored.

Burglary, robbery and theft are very common and can be committed by strangers, tenants and acquaintances in the area--even your own employees. There are legal differences among these three criminal terms, and it is important to know what they are.

Robbery occurs when an intruder accosts a victim for the intent of stealing from him. The assailant may be armed and usually targets a victim when he is least expecting it. A tenant may be robbed when he is accessing his unit and not paying attention to his surroundings. For this reason, it is good to have security cameras for surveillance.

Burglary happens when items are stolen because of a break-in; unlike robbery, there is no confrontation between the victim and the perpetrator. Burglaries are usually discovered because of physical evidence left behind. A manager may come in to work one morning to find a few storage units opened or damaged and their contents missing.

Should a burglary or robbery occur, the tenant is responsible for insurance to cover the loss or damage. Hopefully, he has a tenant-insurance policy. Some tenants may try to hold the owner liable for their stolen goods and pursue litigation.

Theft, also known as mysterious disappearance, happens when items are taken without evidence of forcible entry and no victims were confronted by the perpetrators. The scenario at the beginning of this article is a perfect example of theft because there was no broken lock or damaged door, and items from the unit were taken without the tenant's knowledge or consent.

When someone is robbed and there is no evidence of forcible entry, it would be natural to assume the person who stole the items had a key to the unit. There are an unlimited number of ways someone with the intent to steal can get a copy of a key. It's as easy as a tenant losing her purse--with a key and information about her unit--and a stranger with bad intentions finding it. A friend or acquaintance might steal the key from her home or office, eventually helping himself to items in the unit. Copies of keys could be stolen from the management office during a burglary, putting tenant units at risk. The worst-case scenario would be a disgruntled employee who steals the keys, makes copies, returns them to the office and later robs tenants after he quits working for you.

Why would a manager keep copies of tenants' keys? Some owners ask managers to inspect for hazardous materials or other criminal activity; copies of keys are kept so managers can make their rounds whenever necessary. This is not a safe business practice. If you are concerned about criminal activity, alert the police and have them handle the problem. Another reason would be in case a tenant loses his key. However, if a tenant loses his key, it is his responsibility to call a locksmith. Some facilities keep keys to accept packages and deliveries on tenants' behalf.

If you are about to renew your insurance policy and your insurance company finds out you retain keys, don't be surprised if it requires you to sign a form stating you no longer retain keys before it will renew your coverage.

It is understandable that a manager may have reasons to retain keys; but when it comes down to the risks associated with this practice, the odds against you are too great. Find alternative ways to inspect your units and assist your tenants with lost keys.

Universal Insurance Facilities Ltd. offers a comprehensive package of coverages specifically designed to meet the needs of the self-storage industry. For more information, or to get a quick, no-obligation quote, write P.O. Box 40079, Phoenix, AZ 85067-0079; call 800.844.2101; fax 480.970.6240; e-mail [email protected]; visit www.vpico.com/universal.

Editor's note: The following was recently sent to Inside Self-Storage as a letter to the editor. I thought it was a good idea to start a new tradition with this particular issue, the theme of which is "Managing Managers," to recognize outstanding employee performance in the self-storage workplace. There are so few opportunities to acknowledge the hard work of managers and other office-support staff. If you would like to commend a co-worker or employee in the magazine, please send an e-mail to [email protected].

Dear ISS:
My name is Geneen Gieseke. My fiancé, Bud Warner, and I are property managers for Stor-It Self Storage in San Juan Capistrano, Calif. Recently, Bud and I were scheduled for a vacation. Our regular relief managers, Patti and Paul Bitzer, were covering most of our days off. There were only two days they could not cover, and the home office sent our floater, Donna Abernathy.

Donna is a very energetic, dedicated employee. Sometimes, when there is need, she will work seven days a week. She loves her job and enjoys the people for whom and with she works. The morning before she was scheduled to work at our property--Sept. 11--she fell down the stairs at home, breaking her leg and fracturing her arm.

The day she was scheduled, I went to the office to say "hi" before leaving on our trip, not knowing what had happened to her. There she was behind the counter with her leg in a cast and her arm in a sling. I could not believe my eyes! I said, "Donna, what in the world are you doing at work?" She replied, "I would rather be at work than sitting at home doing nothing." She begged the doctor and the home office for a work release, even though she still had to return to the hospital to have further tests on her arm that evening.

The home office sent Warren Van Alstine to help her that day, and they rented a few units. Two days later, she was scheduled to work for us again; but this time the little trooper was on her own. She drove herself to work in her cast and took care of the property. She did not want to disappoint Bud and I, as we had not had a vacation in a long time.

Donna is absolutely amazing. Her dedication in this matter and all other situations is above and beyond the call of duty. She is a wonderful person and friend, and we would like to thank her for all her hard work and dedication. Without her help at all of our properties, things would not run as smoothly. I wish there were more people in this world with her work ethic and enthusiasm. She is a joy and pleasure to know.

Thank you, Donna. We love you!

--From all the employees at Stor-It Self Storage

A self-storage manager can be courteous, meticulous about paper work, one of the nicest people in town and maintain a spotless facility, but if he doesn't understand how to use the most important tool in the office--the telephone--you end up with an empty facility that houses a really friendly maintenance person. While all the mentioned traits are important in a manager, strong sales skills are the most crucial. And yes, sales skills can be learned. Just as someone is not born a doctor or attorney, you are not born a salesperson, necessarily. With training and repetition, even the most timid manager can be great at sales.

With storage facilities built next to each other, it is even more important for managers to have strong phone and sales skills. Almost 90 percent of prospective customers will call a facility before visiting the site; they will typcially make two to seven calls before making a decision. When the phone rings, the manager has one chance to convince the caller his facility is special and the best choice for the customer.

A tremendous amount of money is spent getting the phone to ring. An exceptional manager will be excited about the phone ringing, assuming it is a new customer. The main purpose of the phone call is to get the customer to visit the facility. A great phone presentation will determine a sense of urgency--get the caller to visit the site immediately or as soon as possible, no matter when they need it. Remember, they are calling because they need storage. People don't call around to get prices because they are curious about storage rates. Managers prepared for the phone call have the best ratio of calls to visits.

The customer may initially think he is shopping for the best price, but the manager needs to redirect the conversation toward educating him about the facility and how it will best serve his needs. You are the storage professional, and while the customer may think he needs a particular size or type of unit, you have special knowledge that will assist him in getting what he really needs and will probably save him money, making that customer very happy.

If the person answering the phone at the facility is new to the industry, a phone script may provide some assistance. Just be sure to keep the script flexible enough to allow employees to reinforce the strong points of the facility without simply rattling off the features. The customer needs to feel the manager really knows the facility, is proud of it and can relate the product and services to the customer's needs. Be careful choosing the words and language used. Try to communicate on the customer's level, understanding that technical terms storage employees use on a daily basis don't mean a thing to the caller.

Good business practices require you document each phone call and mentally review it to determine if all issues were covered. This will create a good habit and ensure the next phone call received addresses every key point.

With training, time and repetition, everyone answering the phone at the facility can become a great salesperson. It's not enough to just quote prices and be nice on the phone--you must know your product, be proud of it and truly want the caller to rent his unit from your facility. When you convince the customer you are the best person to handle his storage needs, not only will you get the sale, but you will have started a great relationship with the prospect that leads to referrals, better collection and an overall better business.

Rebecca McMahan is president of Management On Site Training Inc., which specializes in training, consulting and property management in the self-storage industry. For more information, call 713.838.2339 or e-mail [email protected].

As we endeavor to perfect our self-storage operations, it is imperative we create a work atmosphere conducive to higher productivity. Not only will this act as motivation for our staff, it will give them a sense of ownership as they strive to make a difference. One of the most effective ways of achieving this is to create an environment where everyone involved feels a part of the success. You can accomplish this with incentive programs, contests, recognition, and opportunities for your managers to take ownership in the operations of their stores.

Incentive Programs

An incentive program is one way to create a highly productive work environment. These types of programs, if properly implemented, can create an atmosphere in which a standard of excellence and healthy competition are fostered. The goal is to level the playing field so each member of your team takes part in and ultimately drives the success of your operation.

Most storage operators fail to recognize the importance of including their entire team in their incentive programs, but it is the only real way to achieve success. For example, you can give each of your storage locations a monthly goal tied to a bonus. Everyone involved in the running of the store is a part of the program. If a store hits its goal, the manager, relief manager and anyone else involved is given a bonus for his efforts.

A successful incentive program also requires a means for instant gratification. I have found monthly incentives are the most effective. For example, you might try an individual incentive for employees who achieve a certain score on their monthly telephone-mystery shop. This will help relief managers and part-time employees feel part of the team. With everyone striving to score as high as they can, healthy competition is created and the store's overall mystery-shop score improves. Each person desires to score high, not only to receive the bonus, but to achieve his personal goal. You can then recognize everyone's level of performance in monthly staff meetings.

Contests

Another approach to developing more productive work environments is running creative contests between your stores. You can really sense excitement from everyone involved, because they are all part of the program. They have fun and even tease each other, which creates more cohesiveness throughout the team. As everyone strives to come out on top, you'll see improvements in the communication and enthusiasm of your staff.

For example, at one set of stores where a contest approach was used, everyone involved in the selling process had an incentive to follow up and prospect for new rentals. Because of their overall attitude toward winning, the employees continually called each other to update on new customer appointments or follow-up calls to be made and discuss how to create more customer visits to the store. There was positive feedback from almost everyone involved. Not only did the staff develop stronger relationships with each other, but also with the employees at the other stores. As you look at new and innovative ways to develop a more productive work environment, be sure to consider running contests between your stores.

Awards and Recognition

Another technique for creating a highly productive work environment is to publicly reward your team members with annual awards and in monthly staff meetings. Public recognition will not only show how much you appreciate particular individuals, but will indicate to the rest of the team the skills and talents it takes to excel in the operation. It will increase the respect your team members have for one another. For example, I nominated one of my managers for a national "Manager of the Year" award, and she won as a runner-up. Not only do her peers have greater respect for her, they now realize what qualifies as a standard of excellence.

Positive feedback for good performance is just as important as compensation for achieving a goal. In staff meetings, it is important to recognize and reward contest winners and team members who have met or exceeded their goals for the month. Team members like to feel as though they are contributing and enjoy being recognized for it. Offering positive recognition in front of peers is a wonderful way to show your people how much you appreciate their contributions to the success of the operation.

These practices and programs prompt managers to become more proactive in the marketing of their stores and take a greater role in making it successful. Because they know the value of their contributions, they are more willing to learn what it takes to build relationships with key influencers who will increase their referral business and give them the opportunity to earn more money. They also understand providing a positive experience through the best possible customer service encourages previous customers to come back and to refer their friends.

Incentive, contest and recognition programs cannot be successful unless facilities maximize their overall sales programs. Everyone involved in the selling effort must know their conversion ratios (number of callers converted to renters) and consistently try to improve them. Making the phone ring is useless without the commitment to maximize each call and rent more units. When everyone at a store is involved in the sales effort and is given an incentive for high performance, the store is ultimately more profitable.

True success comes from a partnership between you and your team. If you help your people become successful, they will make you successful. Use the above programs to create a highly productive work environment. Provide incentives based on goals, run contests and recognize the efforts of your team members as much as possible. Involve your managers in the operations of their store, and always seek opportunities to ask them for their input. You will see your team members flourish and your profits soar.

Brad North is founder of Advantage Business Consulting and specializes in sales and marketing training to the self-storage industry. He has produced two live videos along with a workbook titled "Maximizing your Sales and Marketing Program." This resource helps managers take their sales and marketing programs to a higher level. Mr. North also offers comprehensive on-site sales, marketing, feasibility and operational training to the self-storage industry. For more information, call 513.229.0400 or visit www.advantagebusinessconsulting.com.

IN THE COURSE OF RUNNING MY BUSINESS, I SEE WHAT a lot of owners are offering their management staff in the way of base wages, bonuses and medical benefits. Let me say this: We have certainly come along way in the past 10 years.

Back in the Dark Ages of self-storage, you could hire a management team for $1,000 per month--maybe less. A lot of owners thought because they provided a small, one-bedroom apartment, they didn't even have to offer wages. They looked for a caretaker-type manager with a retirement income. Of course, back then, the on-site manager didn't do a lot; he basically collected rent and used a pegboard system to write receipts.

Before I discuss wages, let's take a look at the typical storage manager of today. Most owners are still looking to employ a couple or team. Nearly three-quarters of the openings I see include a resident managers' quarters--even at the new sites--and most managers still want to live on-premises. Some owners are building the apartment in a separate location so the living quarters are distinct from the office.

Most facilities are open seven days a week, with the full-time management team working five days and a relief staff working two. The full-time staff are no longer mere caretakers. They must be office managers, maintenance people, sales and marketing experts, and collection agents. If you were to hire different people to handle all of these jobs, what would it cost you? Now that you have a little understanding of what a typical storage manager does, let's talk about wages, bonuses and benefits.

As I said earlier, most storage facilities employ a full-time team, which can be a husband and wife, a committed couple or separate individuals. If they live on the property, they are likely to make less in actual dollar compensation than if they lived off-site. Most teams make a salary and are not paid by the hour. (Keep in mind, just because you are paying a salary does not mean you can work the managers 75 hours a week without paying overtime. An employee must supervise other full-time employees to be exempt from being paid overtime.)

Also keep in mind you cannot use the cost of housing to offset any wage deficiency. For example, you are probably not charging the managers for the apartment--it is part of their compensation package. If you value the apartment at $500 per month and you pay your managers $1,500 per month, they are actually making $2,000 per month. That's $12.50 per hour in a 40-hour week. If you expect your managers to work six days a week, however, you could get yourself in trouble when you break that compensation down to an hourly rate. (Not to mention you will have a difficult time finding managers to work for those wages.) If you do not have an on-site apartment, you can expect to pay more--and probably an hourly wage, not a salary.

In the past, facilities in the South and Pacific Northwest paid the lowest wages in the industry. This is no longer the case. The size of a facility does not necessarily dictate wages offered, either. A smaller site, due to its monthly income, may not be able to afford the same wages as a larger one. But the larger site may have more staff, so the owner will have spread wages out between more people.

For a salary, on-site management team, current base wages are between $2,300 and $3,500 per month, with housing included. If the team lives off-site, you can either pay a salary with a housing allowance or pay an hourly wage. One team was recently placed off-site at a Santa Barbara, Calif., facility at $5,500 per month. They are paying $1,650 for their apartment. Another team was placed at an opening in the San Diego area where the owner is offering a base wage of $2,500 to $2,900, including medical, dental and a 401k plan. (Not all managers get medical benefits, though most would like them, since the average age of managers is 45 to 50, and medical coverage is a big concern for them.)

Annual wages for nonsalary managers that live off-site range between $30,000 and $40,000, or $12 to $15 per hour, plus bonuses. Relief managers are typically paid an hourly wage from $7.50 to $11 per hour, depending on location. Relief managers generally do not receive bonuses. (Bonuses are probably a whole other article; but they can be determined many different ways: per lease, as a percentage of income, in relation to occupancy levels or telephone scores, or a combination of these.)

The main thing to remember is times--and, therefore, wages--have changed. No longer can you pay low wages and expect to hire or keep a good management team. One owner in Southern California was recently looking for a new team, but was only offering a base wage of $1,500 per month. He had not replaced his staff in four years and was completely out of touch with the current fee structure.

If you expect to have a good management staff, hire them, train them, give them the tools they need to do their jobs, and pay them well. You will have less management turnover at your facility, your managers will respect you more, and they will work harder for you. Everyone involved will be happy and motivated to produce the income you all deserve.

Pamela Alton is the owner of Mini-Management^®, a nationwide manager-placement service. Mini-Management also offers full-service and "operations-only" facility management, training manuals, inspections and audits, feasibility studies, consulting and training seminars. For more information, call 800.646.4648.

Everyone loves package deals because they provide extraordinary value and a feeling people are getting a better deal than everyone else. A storage facility can purchase a package that includes an entry-access keypad, exit keypad, management software, real-time integration, lightning protection and toll-free technical support, all at a very reasonable cost. I'm talking about cutting-edge, durable products with no restrictions on the number of tenants or access codes. Package deals are nothing new, but the secret is knowing how to find bargains.

Travel agents have always offered special-combination hotel and airfare deals. Lenders offer attractive credit-card merchant rates to their construction-loan clients. Construction companies offer package deals when you use their preferred architect because they know he will use cost-saving designs compatible with their work. There are hundreds of other examples of packages in various industries. This business strategy makes sense, since administrative and support fees are consolidated with compatible products. The vendor offers lower prices and everyone comes out a winner. Now, let's see how this same cost-saving strategy applies to self-storage.

In every area of self-storage, there is fierce competition for the savvy shopper, especially in the field of security and management products. Management software is available from dozens of companies, including innovative leaders, aging brand names and struggling newcomers. Their products range from modified accounting programs to enhanced contact managers to specialized industry software. Loyal readers of this column are already familiar with the newest advances in management and security products. It's time to talk value.

Not all brands of security and management software are compatible. Thus, the costs of integrating these products will have a signif cant effect on purchase price and maintenance costs. There are three types of integration offered in self-storage:

Universal Interface

About 15 years ago, professionals in the self-storage industry developed a generally agreed upon set of standards that defined how management software and security products should share information. The standards were officially labeled "universal interface." Unfortunately, it was a voluntary system, and it did not take long for dozens of variations to appear.

Eventually, universal interface became little more than a marketing term. Over time, other standards have tried to take its place, all with varying degrees of success. Contrary to its name, universal integration does not mean you can mix any access system with any management software. Instead, you have to ask each company with which systems it integrates and what special products you must purchase. Typically, the hardware and software required adds cost to your purchase and may restrict you to specific versions of each company's products.

There are also a few hidden costs. For example, major updates to your management software may require an expensive update to your access security. Furthermore, the support agreement with the security company may not cover support for your management software, even when the issue relates to your access codes. If you are determined not to replace existing management software or access products, universal interface may be your best choice.

Preferred Integration

With a preferred integration, software companies each choose a preferred security vendor. Their recommendation may be an unbiased desire to satisfy your security needs, or it may serve as payback to a company that recently helped close a sale. There is no way for you to determine the motives of your sales agent.

The costs associated with a preferred integration can be lower than that of a universal interface, but not all preferred deals are good for the consumer. A preferred-integration package deal may be a savvy way to bundle outdated products or a desperate attempt for financial survival. Finally, even if two companies have a good relationship in the present, there is no guarantee they will maintain a cooperative relationship for years to come.

Turnkey Integration

During the last 10 years, software companies have been developing their own lines of security products. Likewise, security companies may have introduced their own brand of management software. As a result, administrative costs were reduced and the combined retail costs of both product lines were reduced. As an added benefit, the consumer has only one number to call for support on either product line. The most powerful features of turnkey integration are pay-at-the-gate rent collection, individual door alarms, remote management, and real-time viewing of surveillance cameras. In addition, the cost savings of turnkey integration can be significant.

Over the next few years, more companies will be moving to turnkey integration. In turn, package deals will become increasingly popular. Saving money is only a matter of knowing what to look for and who to ask.

Writer's note: An upcoming issue of TechTalk will suggest products and gadgets that improve manager efficiency and tenant convenience. Please e-mail me if you use an item you would like included in that column.

Doug Carner is the vice president of marketing for QuikStor Security & Software, a California-based company specializing in access control, management software, video surveillance and call-center products for the self-storage industry. For more information, call 800.321.1987; e-mail [email protected]; visit www.quikstor.com.