In the storage business, signage is generally given little thought. But when used correctly, external signage can help you generate a lot more walk-in/drive-by traffic. Internal signage can help increase your profits and help you sell and promote ancillary products and services more effectively. This article is about helping you understand how to use internal and external signage to your greatest advantage.

External Signage

The purpose of any and all signage outside your property is to get people to stop in and visit or, at a minimum, call. That being the case, there are some important dos and donts to making signs work.

Dos of External Signage

Size matters! Use the largest sign youre allowed based on the zoning regulations in your particular area. Even if it costs a lot more, its always worth it. You make the investment once and it pays off for years. With all the messages people are bombarded with as they drive down the street, you want to do everything you can to stand out.

Get a quality sign. Want to save some money? Dont do it here. A good sign is a great long-term investment that will pay you dividends for years to come. Get a cheap one and youll end up having to redo it a few times when it falls apart or gets knocked over during a storm.

Use the right colors. The best colors to use for visibility and attention-grabbing are black on yellow. Surprising? Hardly. Check your local Yellow Pages! Although you may not like it, marketing researchers have found these colors work the best to be noticed. This doesnt match your color scheme? Thats not relevant. If you choose not to use these colors, however, make sure your type and background heavily contrast so people can read the sign clearly from a distance.

Consider an unusual shape. Just about every sign on the street looks the same. If you can, find a way to make yours different. If you are allowed to create an unusually shaped sign, do so. I recently saw sign in the shape of a lightning bolt that looked great.

Include your phone number. People who see your sign are often driving by. They are in a hurry, but they will almost always have their cell phones handy. This means you need to have your phone number listed on your sign. Theres no need to include the area code because everyone knows what it is; but it is essential to make it large enough to read.

It is preferable to get a phone number that is easy to remember. Do what you can to get a number with repeating digits to make it easier for people to remember at quick glance. If there is a familiar exchange in your area, try to secure that for your first three numbers. As to the last four digits, try and get them all the same (5555) or with two repeating digits (7788). And make sure you have an effective outgoing message on your answering system for those people who call after hours.

Keep it simple. The ideal sign will include the words self-storage in large letters on the top line. If you must include the name of your facility, put it in small letters underneath. Beneath the name, put the phone number. There is no need to put the words phone number or phone before the digitspeople will figure that out.

Donts of External Signage

Dont get your ego involved. When it comes to signage, leave your ego behind and put profits front and center. Successful signage often doesnt even contain the facility name. Yes, we all love to see our own names in print. This is followed closely by the desire to see our business name highlighted in our signage. Get over it. Frankly, no one cares what the name of your facility is. The vast majority of people rent from you because youre conveniently located. The main thing you need to do is let them know youre there.

Dont use colors or typestyles that are difficult to read. Subtlety is not your goal here. If youre looking to win design awards, you dont want to follow my advice. The only award Im trying to help you win is at the bank. Although some colors may blend well with your overall look, they may also go unseen by people driving by. Similarly, some typestyles are very hard to read. Stick to type that wont confuse people, old standards like Helvetica and Times. And watch out for thick lettersthey are frequently harder to read from a distance.

Dont listen to graphic designers. They are creative people, but they are not marketers. Dont let your graphic designer convince you that you need a certain kind of sign because it will help brand you. When you hear these words, run! Try depositing your brand at the bank. The last time I checked, it only took cash and checks.

Internal Signage

One of the primary reasons to have signs on your property is to get people to buy other stuff. If your only source of income and revenue is renting units, youre missing a big piece of the puzzle. Properly done, you should have your office set up like a 7-11 to sell all kinds of products related to storage.

Lets face it. Most people rent a unit and then rarely, if ever, come back into the office except when they are ready to vacate. We cant make any more money from these people if they never come back into the office. The goal of every sign on your property should be to drive people back where youll have the opportunity to sell them other storage- related products. Use the signs as a teaser to get them there.

Where do you put your signs? Everywhere. I would even put a small sign on top of your entry keypad, if you have one. This sign can change to reflect your weekly specials. If its cold out, offer people free coffee to come into the office. Is it close to Halloween? Seduce them with candy. Find any excuse you can to get them to come inside.

Put other signs everywhere you can find an available wall. One facility I know of used a set of numbered signs, something along the lines of 17 Reasons to blah, blah, blah. Each of the signs listed a different reason. The manager told me some people would run around the whole facility until they had found all 17. The key is to have signs visible in the most heavily trafficked areas. To be effective, signs must be seen.

How many signs should you have? A lot. More than you feel comfortable using. Most owners dont put up signs because they think they look obnoxious. If youre trying to learn how to be subtle, Im not the right guy to listen to. The only thing I care about for you is profit, not subtlety.

What should your signs say? Dont have the exact same sign everywhere on the property people will ignore them. Create different signs with pertinent information. Give people valuable advice and lead them to the office in the process. For example, one sign might say, NEVER pack with newspaper. Then explain why its not a good idea to use newspaper to pack. Tell readers the alternative is packing paper that you just happen to have for sale in the office.

Dont view your signage as an afterthought. Signs can be an incredibly important marketing toolif used correctly. If your signs dont fit the descriptions above, maybe its time to redo them. The time and money you spend on effective internal and external signage will be worth it. Create the signage based on the above recommendations and watch your profits soar!

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 SuccessRevealed! 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].

Self-storage is the hottest thing we have going, says Rick Hunter, national sales manager for document-production company SouthData Inc. Entering the industry just over a year ago, the company experienced 30 percent growth in sales last year and an additional 30 percent as of press time. Founded in 1985, the company specializes in document production for a variety of industries, including financial services, municipalities and homeowners associations.

But Self-Storagehad not been considered a possible market until a serendipitous event. One day, sales representative Joy Adams noticed a self-storage facility while pumping gas. Intrigued, she checked it out and found the facility did not use any kind of payment coupon book. Research showed there were more self-storage units in the United States than apartments. We did a lot of research and found no other company offered a payment book for the self-storage industry, Hunter says.

Payment books are a very simplified and easy way of receiving payment and are used by mortgage companies, apartment complexes, homeowners associations and a variety of industries requiring regular monthly payments. The self-storage industry was ripe for this kind of product. SouthData custom designs and prints booklets for individual facilities. The manager marks the unit number, cost and any late fees on the outside of the book. Each month, the customer sends in his payment coupon and check.

The multiple services SouthData provides are the brainchild of President John Springthorpe, who formerly worked as a computer programmer with private defense contractors. He and his brother founded SouthData, and later, Springthorpe became the sole owner. The Mt. Airy, N.C-based firm has earned a national reputation for outstanding customer service, and designing and printing cost-saving payment products. It produces millions of payment books, billing statements, tax documents and related items per year.

Tradeshows are SouthDatas primary method of marketing to other industries, and the plan to enter self-storage was no different. We attended our first self-storage tradeshow in Las Vegas in September 2002, Hunter says. The response was phenomenal.   People were lined up 20 and 30 deep wanting to talk to us. Now tradeshows are the companys principal method of marketing, and SouthData attends more self-storage shows than those of any other industry. Sales have increased so much the company hired Carol Alderman as an additional sales representative.

Naturally, any company entering a new industry sets goals, but in its short time in the self-storage industry, SouthData has landed some heavy-duty customers, including: U-Store-It, ranked No. 6 in Inside Self-Storages 2003 top-operators list; The Pegasus Group, No. 38; and American West Management, No. 39.

What are clients saying about SouthDatas coupon-book payment system? Denise Rhodes, owner and manager of Marble Falls Public Storage in Marble Falls, Texas, began looking at billing options. The family-owned facility was on an anniversary-date billing system and sending out monthly statements when it decided to change. All rents became due on the first of the month. But the storage company also wanted to eliminate mailing statements following the recent increase in postage.

SouthData offered the perfect product for us and our customers, who were used to having a tangible reminder of their payment due date, says Rhodes. Many of us who make payments on a car or house are accustomed to payment coupons, so this was not a new idea to anyone.

Marble Falls started using coupon books in February. Rhodes is pleased with the customer service she received from SouthData, particularly from Adams, as well as the coupon-book system. Not only did SouthData provide us payment coupons, it worked with us to implement all the additional ideas and information we needed on each coupon, such as credit-card information.

Although SouthData manufactures more than 18,000 unique products for more than 1,300 clients in 40 different states across a variety of industries, plans are in the works for new products serving self-storage needs. We are listening to the self-storage industry, and future items will be based on what we hear the customers need, Hunter says. Self-storage is the biggest growth industry for us.

For more information, visit www.southdata.com or call 888.453.2460. 

Most people interview too many candidates. More time spent up front deciding who should be interviewed allows for more time to prepare for your candidates who are scheduled for interviews. Try starting with your top five choices. Unless you are scheduling a day or two before the interview, ask the candidates to call you in advance to reconfirm the appointment with you. This serves three purposes:

• It serves as a reminder to you of the appointment.
• It will decrease your chances of a candidate becoming a no-show.
• It will give you a good idea of how well this candidate can follow instructions.

Now that your top choices are scheduled, it is important to prepare. Schedule some time out of your busy day where you can sit down and go through your candidates résumés and applications without interruptions. Make notes to yourself based on the information the candidates provided, especially if something stood out about them that you would like to know more about.

The important thing to remember about interviewing is your primary goal is to secure information to aid you in determining if the candidate is qualified to perform the job. To glean that information, you will have to be disciplined in following a well-thought-out interview process. Structure and objectivity are key components in developing your process. Interviewing is not fun, but time spent preparing for it increases your chances of making the right hiring decision. Lets face ita bad hiring decision will cost you time and money!

Once you have prepared an agenda for your interviews, review it to make certain it keeps a coherent format without jumping around. You have already made notes about the candidates. Now make sure your line of questioning is consistent with the additional information you want to know about them.

Try to keep things in logical sequence. For example, you will want to know about job related experience, the candidates most recent or current job, his capabilities for this job and what his long-term goals are. You should ask a mix of open- and close-ended questions.

Decide who in your organization should be a part of the interview process. While there are some advantages to having a panel interview session with your candidate, you should be warned this is the most difficult interview process to structure and control. No matter what method you decide to implement during interviews, the important thing to ensure is everyone who participates is prepared by being familiar with the candidates background and knowing how your interview process is structured.

On the day of the interview, you will want to make sure you have arranged a meeting place, i.e., a conference room, office, break room, etc. You will want to ensure wherever the interviews take place is free of distractions and interruptions.

When the candidate arrives, thank him for coming. Introduce yourself and what you do for your company. Do this even if you have done so on the phone. Let the candidate know you will be the one making the hiring decision. Tell him you like to take notes during interviews so you may be writing quite a bit and he should not let that distract him. After explaining approximately how much time the interview will take (you should not go longer than 90 minutes), briefly outline the topics you will cover.

To maximize the benefits of conducting an interview, be sure to limit your participation in the process. Keep in mind the 80/20 rule. This means the candidate should be talking 80 percent of the time and you 20 percent of the time. Tell the candidate at the start of this process you will be happy to answer any questions he has at the end of the interview. Too often, interviews go off track when a candidate jumps in with questions. If this does happen, kindly remind him questions will be answered at the end of the meeting.

Do not ask your big questions up front, as you will want to establish a comfort level with the candidate first. Ask simple questions that will ease the interview in the direction you would like it to go. If your candidate has a problem answering a question, and there is a moment of awkward silence, let him think. If you feel you have to say something, just encourage him to take his time. You may have to develop techniques of your own to keep quiet.

You may think of new questions to ask as your candidate talks. This is good, because you may want to drill deeper into the topic you are discussing until you are satisfied with the answers. If you find a line of questioning is important and want to probe further, go ahead; but make sure you get back to your agenda and follow it.

What to Ask

Here are some great topics to cover so you can get a better idea of who the candidate is and if he will fit into your organization:

Moment-of-truth scenarios. These revolve around what the candidate may have done on a typical day in a former (or current) job. Ask a question like Can you please describe to me in some detail what a typical work day was like for you? What did you do from the time you started in the morning and left in the afternoon? Then listen as the story unfolds. These types of scenarios will open up opportunities to probe deeper, i.e., what kept his interest? What lost his interest? Was he bored? Why? What frustrated him?

Customer-service situations. These are moment-of-truth situations with a customer service twist. Ask your candidate, Can you relate to me an instance, in your previous or present job, when you were faced with a disagreeable situation involving a customer? Please tell me what his objection was and what you did to resolve it. This is a great way to find out what your candidate thinks is good service.

Communication and management. Ask the candidate how he feels about written vs. oral communication. Have him explain the pros and cons of each. You may find out how well he can take direction in written form and implement it. Ask the candidate what he liked most about his current or former employer (boss, coworkers, etc.) and what he liked least. Ask him to describe to you his ideal of a perfect boss. This line of questioning may help you determine if this person can work with you and your management style.

Hypothetical situations. Give the candidate a hypothetical situation and ask him how he would handle it. Better yet, give him a hypothetical situation and how it was handled. Then ask him how he could do a better job handling the same situation.

Some questions should never be asked. As a rule of thumb, never ask direct questions about a candidates age, sex, religion, nationality, health or family status. If you are not sure, it is better to err on the side of caution and not ask the question.

After Questioning

After you have asked all your questions, be sure you have left time for the candidate to ask his. Tell him how much time you have left and sit back quietly. Answer any questions honestly. If you do not know an answer, offer to get one from someone else, but do not make something up. Give the candidate enough information for him to determine if he would like to pursue the position further.

Be sure to cover the major items:

• Salary and benefits. Give a salary range, not a specific figure at this stage.
• Work hours and scheduling issues. This is very important if the candidate is expected to work nonstandard hours, weekends or holidays.
• Appearance standards. If you have a uniform policy, explain it.
• Additional interviews. Explain the steps in your hiring process, i.e., if there will be a second interview.
• Time frame. Give the candidate a timeline when you will make a decision.

When the interview is over, give the candidate your business card and let him know you are available for future questions should he have any. Thank the candidate for coming and show him the way out. Once he is gone, take a few moments to review your notes. Write down any items you left out while they are still fresh in your mind. Give yourself enough time between interviews so you can prepare for your next candidate.

A solid interview process helps you make better hiring decisions. The hiring decisions you make today will be the strength of your company tomorrow.

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

If you are a builder who got the building itch from Kevin Costners movie Field of Dreams, if you think the adage If you build it, they will come, applies to your 5 acres, think again! On the other hand, if you are competing with an owner who has this type of mentality, you must become better at operating your business.

In times like these, your management prowess can make or break a project. Tough competition and a slowing economy will require you to sharpen your management tools to effectively attract more customers than your competitors. Therefore, the important question is, How can I become more effective at managing my investment?

First and foremost, you must master the basics of self-storage, which are:

• Build the project in a growing market with good visibility
• Hire friendly employees
• Train for service excellence and business philosophies
• Compensate employees well
• Praise jobs well done
• Lead your employees by example
• Market your project effectively
• Operate your business in a customer friendly manner
• Evaluate and reinforce your training and philosophies
• Set policies and procedures for employees
• Visit the property often
• Communicate regularly with employees
• Communicate regularly with your customers
• Get referrals for new customers
• Give customers a means of communicating with the owner

Management Intensive

If you havent already determined the selfstorage business is management-intensive on your own, here is a news flash: You must manage your managers or they will manage you! Very few employees can see the big picture or understand your business philosophies. Therefore, you must get better at hiring employees and effectively communicating to them the business and customer needs in self-storage.

For you Monopoly fans, you can have the best properties on the board and still not make money or win the game. People have to land on your property or you do not get the rent money. The moral of this story is, if your managers cant get a customer to land on your property with a phone call, you wont get the rental. This can be a real problem if you have a Boardwalk type of propertythe customer may base his buying decision on price if your employee didnt differentiate your product and services. He should get the Go to Jail card, and you should go back to Go, because you will not collect that extra $200.

Self-storage owners are often afraid to terminate employees who are not performing well. Dont make the mistake of keeping a poorly performing employee on your payroll. If you are not spending time at the property with your employees, you will not be able to determine whether they are truly being effective. And as a supervisor, you must have an agenda when you visit the property. Here are examples of items you should be reviewing on a regular basis during your property visits:

• Marketing ideas and issues
• Sales (number of phone calls received during that week vs. rentals)
• Employees mystery-shopping sales evaluation
• New-tenant questionnaires (check for ad source)
• The list of delinquent tenants (preferably listed by number of days delinquent)
• The move-out questionnaires, to look for areas to improve customer service
• Reports from computer
• Internet use (or abuse)
• Auction paperwork
• Maintenance and cleanliness issues that need to be resolved

The above list is merely some of the items that should be covered. Yesterday, when I visited one of my sites, I had the following notes as my agenda for time spent at the property:

• Congratulate employees on mysteryshopping scores (Tim 99, Nancy 100, Jack 94)
• Randomly review rental agreements and files for accuracy
• Ask why administration fees were waived on new rentals
• Ask about the free rent credit given to units 4508 and 2105
• Ask about security problems and any customer complaints
• Check merchandising of products
• Review the petty-cash receipts and approve
• Check Internet use
• Inventory six spaces for next auction
• Ask about status of project list
• Check for uniform cleanliness and inspect the restroom
• Problems/issues (customer or employee)
• Praise for last months net increase of 25 spaces

What Gets Measured Gets Done

Keep in mind you cannot possibly cover everything in one visit. A highly effective supervisor should be visiting the property weekly for at least four to five hours. If your property is not easy to visit on a weekly basis, you must become effective at managing by the numbers. It is important to learn to interpret the management reports from the computer. And you must learn to use e-mail, fax and the telephone effectively. At a minimum, the facility supervisor should visit once a month for a full day.

While you are visiting the property, watch, look and listen to everything happening at the business. You can learn so much when you are observant. If you happen to see behavior that is unacceptable or not to the standard you would like, let the employee know as soon as possible. It is imperative you address issues immediately. If you procrastinate, you are condoning the inappropriate behavior and/or you may forget to bring up the matter at a later date. However, be careful not to address issues in front of a customer or other employees if they are not involved praise in public and critique in private.

There are numerous markets around the country that are experiencing over-saturation. Combined with a slowing economy, this could spell disaster for an operator who is not maximizing the management of his investment in the self-storage business.

Think Like Your Customer

Your business will experience a higher level of customer satisfaction if you can operate on a daily basis with the customers perspective in mind. Customers expect that storing their goods should be safe, convenient and easy. This shouldnt surprise you. However, I have heard employees say to a customer, You will have to get here by 4:15 if you want to look at or rent a unit, because we close at 5. Thankfully, this was one of my competitors. Why would an employee discourage a person from visiting the store and renting, even if it was almost closing time? The answer is either 1) the home office said the employees werent allowed overtime or 2) the (burned-out) managers are running the show.

Are your employees and operations promoting customer convenience? Assess your property, renting procedures and policies from a customers perspective. Years ago, all my properties had typical storage-access hours from 7 a.m. to 7 p.m. After receiving several customer complaints and move-out questionnaire forms that suggested we extend our hours, I decide to offer hours from 6 a.m. to 9 p.m. Since that time, we have acquired new rentals on a monthly basis because we had the longest office hours in town. In addition, since we now have individual door alarms monitored by a security company in the evening, we have offered extended gate hours. This is one small example of offering convenience to the customer.

Too often, you will find storage is still being operated with caretakers who are merely rule-driven. Rules and policies are necessary, but they can drive some customers to your competitors. This is especially true if the employees are presenting rules and requirements during their sales presentations. This information can be covered once the customer has signed the contract.

Nothing Beats Visiting the Property

To excel at management, a supervisor must keep his employees rowing in the same direction. One way we can ensure employees know what direction they should be taking is active supervision. Therefore, it is important to make customers needs the center of your discussions when visiting the property. This means you must lead by example and continually demonstrate that customers are the focal point of our service business.

I recently visited a property where it took 45 minutes to go through the rental process (the time did not include showing the space). The employee said, I cant believe how impatient people are today. I took the opportunity to point out her rental process had too much paperwork to be signed at the time of rental and she should streamline the process. It shouldnt take more than 15 minutes for a customer to complete the rental agreement. Do you know how long it takes for your employees to rent a space? If you are spending quantity time at the property, you should know this type of fact.

Keep Your Focus

As a supervisor/owner, you must learn to keep your focus during property visits. Managers often waylay you and get you too focused on solving their problems. On occasion, they may bring up a priority; however, more often than not, you will find yourself discussing the petty-cash check, the customer who stinks or some other topic. To keep employees focused, you must maintain a high level of awareness of the item, action or topic at hand. Important things on which to focus are:

• Improving customer satisfaction
• Increasing profitability
• Fairness
• Creating a more organized business
• Assisting your understanding of the market and business through reports
• Monitoring the accuracy of employees

It is not always easy to keep your eye on the target, especially when there are so many distractions. Dont lose sight of new ways to keep your customers happy. This doesnt mean you should not have rules, but you shouldnt let them abuse your kindness.

For example, if you waive a late fee once, customers assume they can get you to waive it again. Some plead for mercy, some threaten to move out, and others simply ignore the reoccurring fee. My policy is to waive the customers first late fee and educate him on the policy in a friendly manner. Any late payment thereafter will be assessed, and we will again politely explain the policy to the customer. Learn to be flexible and train your manager to make good decisions based on your companys philosophies and values.

Where Does the Buck Stop in Your Organization?

Who in your organization is ultimately responsible for the property? Are they spending enough time helping employees focus on the important things? Are the employees responding to training and direction given by management?

Dont let your property suffer because of lack of attention or action. Effective management requires constant decision making and action. If you have complacent or poor performers, allow them an opportunity to find a job they like. If you keep this philosophy in mind, it will make your decisions much easier.

Industry expert Carol Krendl has been involved in self-storage for nearly 20 years. In addition to working as a corporate trainer for a large self-storage developer with 69 selfstorage properties, she has written many articles on a variety of industry topicsincluding a quarterly newsletter on sales and customer serviceand conducted seminars for selfstorage owners and managers. Krendl has served as president of the Western Region board of directors of the national Self Storage Association as well as treasurer and secretary of its Executive Committee. She is also on the board of directors for the newly formed California Self Storage Association. For more information, e-mail [email protected].

Quality managers are quality people, from all walks of life, who have mastered the skills of managing a selfstorage facility. They are warm, friendly, honest, energetic souls who enjoy working independently and working with the public. They are relationship-builders who are able to work within established guidelines; and they have an entrepreneurial enthusiasm about their self-storage businesses. Some of the characteristics they share and concepts they have learned are presented in the paragraphs below.

First Impressions

Quality managers realize the curb appeal of their facilities is their first opportunity to encourage a potential tenant to walk through the front door. They realize most of their business is from drive-by traffic because it is human nature to want to store ones possessions as close as possible to ones home or place of business. Small things like frequently changing reader boards, making sure the landscaping always looks good, and ensuring the facility is well-maintained and clean builds an impression with the public that the store is well-managed and cared for.

Customers

A second key to a quality managers success is understanding a customers motivation as he enters the office. That understanding dictates the managers presentation of what he has to offer the customer. Most self-storage tenants are in a state of transition. Something in their lives has changed and created the need for them to put things they value someplace outside their home or business. They come to us searching for a safe, comfortable solution to their problem.

Smiling the moment a customer walks through the door, saying hello, and asking how you can help sets the customer at ease. If the manager is sitting down when a customer enters, standing up is a sign of recognition and respect. If the manager is in the middle of something, pausing just long enough to acknowledge the customer makes him feel more comfortable about being there. It indicates he will not be ignoredits just going to take a moment before he can be helped. Quality managers greet customers and tenants as though they were anticipated guests of their establishment.

Office

Quality managers also know the importance of a clean, appealing, well-organized office. The office counter is kept neat and holds a welcoming candy dish with quality candy. The area behind the desk looks organized, efficient and businesslike. The managers are nicely dressed and well-groomed. The sales-display area is neatly arranged with clearly marked prices and interestingly arranged products for sale. Everything the customer sees and hears is geared toward the impression that we care about him (and, therefore, his goods), that we are a professional organization. This reassures him his trust will be well-placed.

Preparedness

The successful manager has at his fingertips all of the materials he may need to make the sale, including: 1) brochures or handouts, 2) information on unit sizes, their configurations and capacities, and 3) retail-product prices and information. The contract and any documents that go with it are available, preassembled and ready to go.

A quality managers presentation is well-rehearsed, without hesitation or groping for words or materials. Product knowledge and familiarity with all of the benefits of the facility should flow like water from a fountain to our thirsty customer, easily answering questions such as What is climate control? and Why do I need insurance?

Many customers are completely unfamiliar with self-storage, so the sales process is an educational process as well. The more features the manager mentions, such as ceiling insulation in non-climate-control units and drinking fountains on site, the more knowledgeable the manager becomes in the customers eyes. Managers often try to make a sale with the fewest possible words. Quality managers recognize the value of taking the time to give a brief but complete presentation of the facility and its attributes.

Facility

Quality managers always show the prospective tenant a unit of the size he intends to rent and trys to ensure the unit is the actual size in need. They have clean units of each size available for show and, if possible, may have a demonstration unit set up with shelving, boxes and other sales items.

The golf cart is clean and in good working order. When units are shown, unit features are demonstrated, such as easy glide doors, locking mechanisms, drive-turnarounds for moving vans, etc. This is an opportunity to mention physical security features such as fencing, security cameras and lighting, as well as how often the manager personally makes rounds on the property, etc. Experienced managers know that, in the customers mind, how well the facility is presented and taken care of represents how safe their goods will be.

Sales

Actually making the sale is a gentle art well-mastered by quality managers. It is a matter of resolving questionspreferably before they are even raised by the customerand presenting them a contract to sign. Successful salespeople are prepared to respond to objections. For example, if the customer says he is just shopping for prices, the manager should be prepared to discuss nearby facilities, their rates, and what their own facility offers that is of superior benefit. This is done to assure the customer he will be fairly (or generously) treated.

Professional salespeople never make disparaging remarks about the competition. They also always ask the customer if he needs any boxes, tape or packing materials, and mention selected ancillary products they carry. They are aware of each products use and benefits and present them to the customer with confidence.

Tenants

Over time, quality managers build relationships with their long-term tenants. They know their names on sight, and what units they occupy. Sometimes, tenants seem to think of managers as part of their family when they come to visit their stuff, they visit the manager, too.

Quality managers are able to adapt to tenants needs without letting them unduly impact their own lives or the function of the business. They treat each customer with respect in all day-to-day activities, even the ones who do not necessarily respond in kindness. When it is necessary (and sooner or later there is always a time when it is necessary) a quality manager has the strength and self-respect to stand up to an inappropriately behaving customer and put him in his place to the extent necessary to conduct business in a civil, professional manner.

Competitors

Relationships with competitors are important as well. Managers need to be aware of other facilities attributes, prices, hours and specials; in addition, whenever possible, they should have an amiable relationship with the managers.

There are times when a facility does not have what a customer needs. It is better service to the customer, the community and the industry by sending that customer to a competitor that can serve his needs rather than simply turn him away. Most competitors will return the favor in kind when they have the opportunity to do so. Talking with competitors about events that happen in your mutual trade area helps to keep you abreast of new developments. Alert managers also know and understand federal trade laws about price fixing and collusion and are careful in every conversation with competitors to avoid any potential for wrongdoing.

Trade Partners

Overseers of apartment buildings, moving companies, professional office buildings, churches, schools, community organizations and the like are an ongoing source of rentals effective managers cultivate over time. In the minds of trade partners, visits and conversations that create a positive lasting impression about the self-storage facility and manager are an excellent means of generating multiple rentals.

Savvy managers also reward trade partners that bring them business with expressions of appreciation such as theater tickets, boxes of cookies or gifts of nominal value. Repeated contact and relationship-building is the key. Superior managers also keep a wary eye out for opportunities to promote their facility at community events, neighborhood sports programs, etc.

Industry Awareness

Managers who excel keep abreast of what is happening in their industry. They avail themselves of information and benefits provided by trade associations, magazines, conventions and seminars. They may also participate in local community organizations such as real estate associations and chambers of commerce.

Business Practices

Another characteristic of quality managers is their ability to view their store in a business sense. Managing the income and expenses of a store in a businesslike manner involves the simplest of things, like making sure entries are correct, totals balance and mistakes are quickly corrected (never hidden!), along with more complex issues, such as understanding the basics of contract law, state and federal self-storage laws, and the legal requirements and ramifications of holding auctions. A quality manager exercises business sense rather than emotion in dealing with customer issues. Resolution is based on the best potential economic outcome rather than personal feelings regarding tenant behavior.

Maintaining Asset Value

Maintenance of self-storage facilities, for appearance and the long-term value of the property, is usually left almost exclusively in the managers hands. Some duties such as landscaping and HVAC maintenance may be contracted out, but it is usually the manager who oversees their work.

This responsibility, plus the managers onsite duties, can have a significant impact on the long-term value of the property and property-maintenance costs. Seemingly little things, like not letting grass grow up through the asphalt, can have a significant cost impact down the line in terms of asphalt repairs, just as appropriate temperature control in climate-control buildings affects the life of HVAC equipment. Small repairs left unattended can grow into big repairs over time.Quality managers keep a wary eye out for potential problems and follow up to be sure they are resolved.

Business Principles

All managers have daily real-life experience with competitive rates in their marketplaces and can easily see the benefits of reducing them. Superior managers also have understanding of the other side of the equation: the business principles that push rental rates higher.

Three basic business concepts quality managers should understand are net operating income (NOI), capitalization rates (cap rates) and return on investment (ROI). Understanding these principles helps managers know why the best rental rate is usually a balance that pushes rates as high as the reality of the marketplace will allow.

NOI is total income less all of the operating expenses of the property. Managers improve NOI by giving the fewest possible discounts, collecting the highest possible rents and frugal management of the stores operating expenses. (Note: Operating expenses do not include mortgage payments or the owners income taxes).

Cap rates are often used when a property is for sale or by financial institutions to estimate the value of a business. Different types of industries have different ranges of cap rates based on what properties have sold for in the past. In recent years, self-storage cap rates ranged from about 8 percent to 11 percent, depending on the marketplace and the condition of the property. To calculate the estimated value of a property, the NOI is divided by the cap rate. How a small increase in rents can have a dramatic increase in the value of a property is shown below.

A five percent increase on a $50 unit is only $2.50 per month. For a store that usually makes $40,000 a month, a 5 percent increase translates into a $240,000 difference in the value of the property. Similarly, rentalrate reductions and discounts decrease the value of the property. When managers understand small amounts on a daily basis do make a big difference in the financial worth of the property, it helps them support rate increases and minimize discounts.

An example of return on investment (ROI) would be if you purchased a $100 Certificate of Deposit at the bank that paid 10 percent per annum. In one year, you would receive $110. Your ROI was $10, or 10 percent on your initial investment of $100.

Investors evaluate different types of opportunities to see what is going to give them the best rate of return for their money. They make purchasing decisions based on the expectation they will be able to earn returns on their money similar to the returns of others in the same business.

In the self-storage industry, income is determined primarily by rental rates. To achieve the expected rate of return, rental rates need to be at least equal to other rents in the marketplace. If rates are lower and expenses are the same, less net money is earned and investment returns are lower than anticipated. Superior managers develop the perspective of viewing their store as one of many potential business investments, and strive to make that investment as valuable as possible.

Loyalty and Ethics

Self-storage managers have a pretty unique job. There is great deal of autonomy and responsibility. They are often privy to information about customers personal lives other types of business managers would never hear. Respecting each customers personal confidences is an integral part of a quality managers behavior.

Property owners place their trust in managers to safeguard their investment. That investment may be what they are planning to use to get their children through college, supplement their retirement, or any number of other human endeavors. The self-storage industry is a close competitive community where privileged information could be inadvertently revealed in casual conversation. Quality managers respect the trust placed in them and take care not to reveal professional confidences.

Quality People

Quality people who have made their way into the self-storage industry come from all walks of life for the unique benefits self-storage offers. They bring a multitude of talents and experience to their work. In the end, those who are the most successful are those who continually strive to become more knowledgeable about their duties and position, and who have mastered the art of treating all they encounter with professionalism, consideration and respect.

Donna May is the president of Bulverde, Texas-based Joshua Management Corp., which provides consulting, employee training and evaluation, and third-party management for self-storage facilities. Joshua Management provides business assistance at all levels, whether a person wants to enter self-storage, invigorate a stores performance, get advice on troubling issues or leave the industry at the peak of performance and investment gain. For more information, call 830.980.8253 or visit www.joshuamgmt.com.

For the next two months, every magazine you put in your hot little hands will have something trite to say about the holidays, the impending New Year, resolutions and all that jazz. But what is so new about the New Year? The older you get, the faster the years go bytheres no news here. I want fill you in on some things that really are novel and fresh. After all, theres a lot more to the passing of time than writing a new date in your checkbook.

In 2004, Inside Self-Storage will offer two innovative services to this industry, both pertaining to key information that will assist developers in project planning. The first is a comprehensive, full-day developers seminar, which will be conveniently packaged with our annual Las Vegas Expo. On Feb. 8, immediately prior to the show, interested parties can participate in this eight-hour tutorial, which will cover all aspects of the development process, including site selection, zoning, feasibility, due diligence, site design and unit mix, and a whole lot more. Attendees will be guided by eight of this industrys top development experts, and ISS hopes to expand this event to all of its future expos. For more details, see the ad on page 92.

We are also pleased to announce we will be partnering with Charles Ray Wilson of Self Storage Data Services Inc. to publish a brand new series of Self Storage Market Performance Reports unlike anything seen before in the industry. These periodic reports give account of how self-storage is performing in the nations top 50 MSAs (Metropolitan Statistical Areas). Security analysts helped design the report format to meet the needs of investors, owners and other third parties. ISS will be the exclusive publisher of the national summary data, while detailed regional information will be available via subscription. If youre interested in learning more, you can contact Ray at [email protected].

With all this great information coming online for those on the development side of the field, what about those in operations? Facility managers and their support staff are the lynchpin for any thriving storage site. Who you hire and how you train can veritably make or break a business, especially for those owners who are remote.

This issue focuses on quality management: what makes a first-rate manager, how to interview and hire right, training and evaluating performance. Employees are every business greatest asset. Owners should be proactive in educating and communicating with their staff. You managers out there can take your future in your hands by learning as much as possible, asking questions and recognizing the pivotal role you play in a facilitys success. No, this isnt anything new; but its tried and true.

Best wishes,

Teri L. Lanza
Editorial Director
[email protected]

They are business owners, consultants, company presidents and industry experts. Many of them have been working in self-storage for 10 years or more. While there are many wonderful women of note working in the business, for this special feature, ISS chose a few of these respected women and asked them about the changing face of self-storage, its future and the evolution of the womans role in the industry. We hope for future opportunities to highlight other women like them.

Pam Alton, Owner,
 Mini-Management Services

AGE: 52

Pam Alton has a bachelors degree in business from Western Michigan University. She started Santa Barbara, Calif.-based Mini- Management Services with her late husband, Ron. The company has six employees who manage 12 facilities. Mini-Management also does consulting, feasibility studies, audits, training and due diligence and specializes in manager placement.

HOW DID YOU GET INTO THE SELF-STORAGE BUSINESS?

In the 1980s, my husband, Ron, and I were selling residential real estate in California. When the market took a downturn in the late 80s, I looked around to see who was still making money. At the time, my mother-in-law worked for Shurgard (Storage Centers Inc.). Ron called me one day and said he found an ad for a lease manager for two days a week for Shurgard. So we took the job and worked there for about two months. Then we were offered the position of resident managers at a Shurgard facility in Santa Barbara.

When we took that property over, it averaged about 70 percent occupancy. Within three weeks, I only had seven vacant units. I started teaching other managers within my organization how to market, answer phones and rent units. Then, one day, a self-storage owner called me and asked if I knew of any managers. I placed a manager with him and took the commission to start Mini-Management.

WHAT CHALLENGES DO WOMEN FACE IN THIS INDUSTRY?

Ive found people in this industry to be very open and giving in their knowledge and sharing experiences with others. I never did business with anyone I felt didnt want to do business with me because I am a woman. It may have even given me an advantage in some ways. A lot of owners are construction guys. They are used to having their secretaries answer the phones, make decisions and handle the paperwork and daily operations of their business. So it was pretty natural for them to turn over those types of things to me. In the beginning, there was only a handful of women. We pioneered to open the doors for other women to be accepted.

WHAT DO YOU SEE FOR THE FUTURE OF SELF-STORAGE?

I am seeing a more professional image in the management staff. I dont see a big move away from on-site housing. That was a big myth. A few people have moved from it, but some have come back to it. Whether on-site or off-site, its a professional image and attitude these managers need to have.

HOW CAN MORE WOMEN BUILD A CAREER IN SELF-STORAGE DESPITE IT BEING A TRADITIONALLY MALE-DOMINATED INDUSTRY?

They need to obtain all the knowledge they can: attend the trade shows, read the magazines, talk to peopleput themselves out there, maybe even take a few risks. Take a management contract or offer out of the norm. Learning and keeping your face out there in the forefront is important.

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Anne Ballard, President and Co-Founder,
Universal Management Co.,
Executive Director, Georgia Storage Owners Society

AGE: 51

Anne Ballard was a consultant for real estate developers when a client who owned several storage facilities asked her to handle his marketing, advertising and management training. Five years later, Anne launched Universal Management Co. in Atlanta. She and business partner, Norma Taylor, own 100 percent of the company. Universal, which celebrated its 10th anniversary in October, now has nearly 100 employees and manages 30 facilities. The full-service management company also does feasibility studies, site audits and inspections, monthly consulting, marketing and manager training.

WHAT KINDS OF CHALLENGES HAVE YOU AND YOUR PARTNER, ALSO A WOMAN, FACED IN RUNNING A SUCCESSFUL COMPANY IN A MALE DOMINATED ENVIRONMENT?

We sometimes find youre faced with people who still, even in this day and age, dont always consider that a woman might understand the construction process, the permitting, the banking and financial relationship, and the design criteria. We are very involved in all of those things. In developing credibility, you really have to work harder to prove you do know what youre doing and have a good experience base. Our knowledge base is probably more extensive than that of some of our male counterparts. We tend to have a better knowledge base when it comes to managing the managers and training the owners.

ARE YOU SEEING MORE WOMEN IN MANAGEMENT TRAINING?

Absolutely. I have a lot of friends who own management companies around the United States, and most of them are women. When it comes to the day-to-day operations, women do multitask a little better. We have been pleasantly surprised in the last five years that we do have a lot more men now who are good at the marketing and office process. When we started, the women ran the office, and a men did the site work. Those barriers have definitely been broken down. We have gals that do our site work. We have guys that do office work. We have worked very hard to make it more of an equal-opportunity industry.

WHAT DO YOU SEE FOR THE FUTURE OF THE SELF-STORAGE INDUSTRY?

Were going to see an improvement in the use of the available technology to ramp up our income. As little as three years ago, if you asked a seminar audience if they were all online, you would see 20 percent of them say they were still running manual operations. If you ask that question of todays audience, theyre all computerized.

As an industry, weve come a long way. We still have a long way to go, but our industry adapts to technology changes faster than some other retail industries because we have a dual face. Not only are we retail, but were also landlord-tenant real estate. Also, our industry is predominately owned by independent operators. It will always be that way. A lot of people forecasted there would be huge consolidations and 50 percent of the operators would go away, but thats not the case. The very nature of self-storagein that it is a localized businessis going to keep independent operators at the forefront of our industry.

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Diane Cooper, President and CEO,
Storage USA

AGE: 44

Diane Cooper received her bachelors and masters degrees in business administration from Baker University. She joined Storage USA in August 2003 and is the former senior vice president for GE Consumer Finance, which is responsible for managing GEs operation of JC Penney Credit Services. Diane has more than 16 years tenure with GE and is a seasoned executive with extensive marketing and operations experience. Storage USA became a part of GE Real Estates family of companies in May 2002 as part of the acquisition of Security Capital. The Memphis, Tenn.-based company owns and manages 541 facilities and has more than 1,700 employees.

GE SEEMS TO HAVE MANY WOMEN IN HIGH POSITIONS. IS IT TOUGH FOR WOMEN TO RISE TO EXECUTIVE LEVELS IN THIS INDUSTRY? WHAT CHALLENGES DO THEY FACE?

I have worked very hard to achieve my success at GE, but I wouldnt characterize the road it took me to get here as tough. GE is a leader in creating a diverse work force. In fact, it was recently named one of the 100 best companies for working mothers by Working Mother magazine. GEs value statements include a commitment to performance, which includes advancement based on meritocracy. Simply stated, this means all employees are given opportunities to grow and advance in the company based on their professional accomplishments. This practice holds true for men and women at GE. My dedication and hard work, coupled with GEs atmosphere that fosters advancement, made this possible for me. In addition, there are two professional groups that aid women in their advancement at the company, such as our Womens Network and our Mentoring Program, both of which have been initiated at Storage USA.

WHAT ARE SOME OF THE ADVANTAGES OF BEING A WOMAN WORKING IN THIS INDUSTRY?

I am still very new to the self-storage industry, so this is a difficult question to answer at this point. I can tell you the reception and energy I have received from employees, key industry contacts and customers all lead me to believe Storage USA and I will be a successful combination.

WHAT ARE YOUR GOALS FOR STORAGE USA OVER THE NEXT 12 MONTHS?

I have three major goals for Storage USA for the coming months. First, we will continue to refine and execute processes that drive efficiency and speed to boost customer satisfaction and bottom-line results. Specifically, the company is working on improved data systems that will put our National Call Center and properties on a common platform. This centralized data will empower our decision-makers at the local level, and thus provide a better rental experience for our customers.

Next, we will continue to focus on upgrading our portfolio, meaning we will build, acquire and divest properties at the most opportune times with an overall goal of operating the best and most productive company in this industry.

Finally, our third goal is tied to the companys commitment to its employees. My initial field observations tell me we have a strong team with a high level of dedication to the customer. We will continue to develop these strengths in our employees and reward them with opportunities to grow into new roles within the company.

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Nancy Gunning, President,
Chesapeake Resources Inc.,
President-Elect, Self Storage Association

AGE: 53

Nancy Gunning left broadcasting in 1988 to join Chesapeake Resources Inc. The Rockville, Md.-based company operates and/or owns 27 facilities in Maryland and Virginia under the trade name Self Storage Plus, and is a partner in eight facilities in New Jersey and New York. Chesapeake has about 80 employees.

WHAT ARE YOUR DUTIES AS PRESIDENT ELECT OF THE SSA?

I am the chairperson for the self-storage counsel. This year, were trying to get all 50 states to affiliate with the national association. Last year, we only had 10. At our convention in San Diego in September, we had 19 states affiliate with the national association. My goal is to get all 50 states affiliated by the end of my presidency in April.

ARE MORE WOMEN BUILDING CAREERS IN THE SELF-STORAGE INDUSTRY?

Yes. What I see in my company and the self-storage industry is most of the women are involved in the operations, marketing and management, and most of the men are involved in the construction and development. I see that when I go to conferences, too. But more women are getting involved in the development side.

WHAT ARE SOME OF THE OBSTACLES WOMEN FACE?

I was fortunate. I didnt face many obstacles in this business. The owner of my company is an entrepreneur. He gave me free rein. I cant say that for a lot of women. But there are probably more opportunities in storage for women because storage has changed. Its going more toward a retail business and women are good at details. We have a good eye for style and design.

WHAT DO YOU SEE FOR THE FUTURE OF THE SELF-STORAGE INDUSTRY?

Its going to become more professional and more retail-oriented. Overbuilding continues to be a major problem all over. Were in the Washington metropolitan market and we have overbuilding. Lease-up used to be projected at three years, now it can take four years. Overbuilding has really hurt many owners. They cant be aggressive when raising rates. There is discounting all over the board.

WHAT ADVICE WOULD YOU GIVE TO WOMEN LOOKING TO GET INTO THIS INDUSTRY?

Start tomorrow. Its a great business for women. Most of the women I know in this industry are well-respected. There isnt a glass ceiling. There are a lot of women owners, and some who own their own management companies. There are a lot of opportunities across the board for women.

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Carol Shipley, President,
United Stor-All Management Co.

AGE: 46

Carol Shipley began her career in the selfstorage industry 19 years ago when the small development company she worked for built its first self-storage facility. She headed up the management of that first facility as well as a second before joining Storage USA. She left her post as senior vice president nine years later to start her own company with partner Bruce Manley. United Stor-All Management Co., a development and management company based in Mount Airy, Md., celebrated its third anniversary in October. United Stor-All manages and/or owns 30 stores and has nearly 100 employees. Carol also does feasibility studies, consulting, public speaking and training.

YOUVE BEEN IN THE SELF-STORAGE INDUSTRY FOR MANY YEARS. WHAT ARE SOME OF THE CHANGES YOUVE SEEN?

There have been tremendous changes. We truly have gone from the mom-and-pop industry to a very sophisticated industry. There have been huge changes in technology, the look and design of our properties, the features and benefits we build into the properties today, and in the way they are operated. They are more professionally run properties. Its gone from being a realistic business to a retail business to really, today, more of a customer-service-focused business.

ARE YOU SEEING MORE WOMEN IN MANAGEMENT TRAINING?

Definitely. I see a lot more women in the industry overall. Women are a huge part of our customer base. I personally believe more than 90 percent of the decision-makers for the user of our product are female.

WHAT STEREOTYPES HAVE YOU HAD TO OVERCOME TO BE A SUCCESSFUL WOMAN IN THE SELF-STORAGE INDUSTRY?

You certainly have to know your stuff. You cant be timid in this business. You have to know what youre talking about. You have to know your business and you have to stand your ground. Ive had to go headto- head with developers and contractors and many men in different facets of this business. Ive had people accuse me of a number of things, such as the only reason Ive made it as far as I have in this business is because Im a female. I dont believe that for one second. The women who are in this business, have become part of this business, have stayed part of this business and are strong in this business arent there because they are women; they are there because they know their stuff.

WHAT DO YOU SEE FOR THE FUTURE OF THE SELF-STORAGE INDUSTRY?

I see continued changes in our industry, mostly from a technology perspective. In the next five to 10 years, were going to see some real big technology changes in our operations, in the physical plant, and in the way our customers find us. Certainly, the Internet has become an important aspect of our business, but I foresee in five to 10 years 50 percent or more of our business will come to us from the Internet. The Yellow Pages will cease to existor at least cease to be a big factor in our advertising. Most teenagers and college students today dont even know what the Yellow Pages is or where they would find it. Everything is done on the Internet. Those are our customers of the future. To reach customers, operators and owners are going to have to have a big presence on the Internet.

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Ramona Taylor, President,
Space Control Systems Inc.

AGE: 60

Ramona Taylor has a degree in computer science. She began her career as a computer programmer before launching her own company in 1984. Headquartered in Nevada City, Calif., Space Control now has 18 employees. The company recently reintroduced a new version of its popular self-storage management software NX.gen, which is Internet-enabled.

COMPUTER SOFTWARE AND SELF-STORAGE ARE BOTH MALE-DOMINATED INDUSTRIES. HOW IS IT YOU GOT INVOLVED IN BOTH?

I first started working as a programmer because I enjoyed it. Its a challenge, like doing a crossword puzzle. I was working for shares of stock for a company that did several different software packages and one of them was for the self-storage industry. So I became the product manager for that package. I would talk to the users about what they wanted in the package and what could enhance it. When the company went bankrupt, I thought the self-storage industry was ripe for a good self-storage software package.

WHAT CHALLENGES HAVE YOU FACED TO BECOME SUCCESSFUL BUSINESS OWNER?

As a business owner, one of the challenges has been getting and keeping good employees. To that extent, I moved the company two years ago from the San Francisco Bay area to where we are now, Nevada City, because there was too much competition for technical employees. Its about an hour northeast of San Francisco. Its been a very successful move. There are talented, good people here and there arent a lot of jobs.

WHATS IN THE FUTURE FOR SELFSTORAGE MANAGEMENT SOFTWARE?

As time goes on, people are going to use the Internet more and more for different functions. There are some problems that are going to have to be addressed before we can use the Internet that much, such as the worms and viruses that cause so much lost time. The Internet is becoming so popular with the general public somebody is going to have to solve these problems. Were obviously torn on the free-press idea of having the Internet be completely free; I have lost hours of time because some stupid worm got into my computer. You cant depend on the Internet when those things still happen. We all have software that scans for viruses several times a day, and yet we still get hit now and then.

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Randy Tipton, Vice President of Strategic Planning,
Universal Insurance Facilities Ltd.

AGE: 50

Randy Tipton began her career in insurance in Syracuse, N.Y., about 30 years ago. Now a certified insurance counselor, she started as a file clerk and learned the industry from the ground up through continuing education, seminars and on-the-job training. Randy worked for several large insurance companies, including Trans-American Insurance and MiniCo Inc., before joining Universal in 1995.

WHAT ARE SOME OF THE OBSTACLES WOMEN FACE IN THIS INDUSTRY?

In insurance, when I first got into management, there was a point where I was sitting around a boardroom and I was the only female in a pack of 10 or 20 men. I dont know if I could say there were any obstacles because I made it. Everybody talks about that glass ceiling, but I think I was lucky; and I made it because I worked really hard and was really committed. I never felt there was an obstacle in storage. It is a male-dominated industry, but Ive always been treated with respect and given the position I deserve and, accordingly, treated others the same way. Ive never felt being a woman was an obstacle.

TELL US ABOUT SOME OF YOUR ACHIEVEMENTS SINCE JOINING UNIVERSAL.

There are many achievements my staff and I have accomplished. The quality of the Universal staff is just phenomenal. The creation of my team gives me such a sense of pride. I find it an achievement that weve grown from grassroots of nothing to being a major player in the industry. Weve had clients who started with us back in 1995 who insure with us every year because they trust us. Our growth has been through referrals and word-of-mouth.

I conduct a seminar at the ISS tradeshows, and a couple hundred people sit in the room to hear about boring insurance. They rely on my expertise and my honesty to guide them on protecting their assets. It used to be there were only five or maybe even 20 people. We have grown to be known as an industry expert. Im really proud of that.

WHAT ARE SOME OF YOUR GOALS FOR THE FUTURE?

One of the exciting things were just embarking on is were bringing to the storage-insurance marketplace one of the biggest and bestand most financially solventinsurance companies in the entire insurance industry. American Alternative Insurance Corp. (AAIC) is the new carrier for Universals self-storage program. AAIC is a wholly owned subsidiary of American Re-Insurance Corp. and has an A.M. Best Rating of A+XV (Superior).

The insurance industry has just been bombarded with a bunch of serious economic and financial problems, 9/11 being one of them. For years, insurance companies have earned a profit off investment income. The combination of disastrous events and no investment income has put the insurance industry in tremendous turmoil. Rates are going up. Capacity is reduced, and the availability of insurance companies has been severely reduced and sometimes eliminated.

In the midst of all of that, we are moving to an insurance company that is one of the finest in the world. Its a really big deal, particularly because so many storage owners are doing conduit loans, dealing with large financial institutions, and the requirements on the insurance side are severe. Well be one of the few insurance companies that can comply with all of their needs. Bringing AAIC to my clients is something were really proud and excited about.

Since 2000, Spain has been experiencing a tide of immigrants leaving Northern Europe and the United Kingdom like no other time in its history. Nicknamed EUmigres, they are drawn by the warm climate and easy lifestyle of Spain. But finding housing has become a concise science, and new arrivals hunt living accommodation in an ever-decreasing precious commodity—urban land.

The average living space for any family of four is 100 square meters, all modern appliances included. Any remaining ancillary and recreational items are packed on terraces to be retrieved when needed. The vast majority of people are in dire need for additional space, and it’s easy to see self-storage is a beneficial service.

The entrepreneurial spirit and pioneering vision of a few companies have been working hard at creating, promoting and providing awareness of a valuable resource—storage space. There are close to a dozen facilities throughout the Spanish peninsula in Barcelona, Madrid and Malaga. These numbers are not insignificant. The industry first began to take shape less than a decade ago, and the speed at which additional sites are expanding is commendable. Being late bloomers in the industry provides certain advantages in knowledge and offerings, but also a number of challenges to overcome.

Self-storage is considered an industrial business; therefore, zoning restrictions are an issue. To accommodate the increasing need for housing developments in recent years, industrial zones have been reclassified for residential and commercial use. This pushes industrial zones to the outskirts of the cities.

Nikolas Soskin, general manager, and Serge Kaouane, country manager for Spain of Easybox Self Storage; and Eduardo García Bardón, manager of Greinnsa Mini-Almacenes, agree a site must be no more than a 20-minute drive from any point in the city limits. This has the industry in a race to obtain the right building or location in the current industrial areas.

Planning, Developing and Constructing

Generally, a facility is developed and completed in phases, using the revenue obtained from current rentals to complete the remaining floors or units. The lack of knowledge the municipalities have for this industry can make the process more difficult.

Kaouane believes it’s a matter of addressing the business plan in terms the authorities can understand. Construction regulations and codes may have to be reevaluated to comply with local municipal laws. Understanding the laws and regulations and working with people familiar with self-storage projects leads to a timely inauguration.

Financing is a make or break deal. Spanish banking institutions do not understand the nuances of the industry or the potential profitability storage can provide. Banks are cautious about lending the funds needed to complete a facility. However, due to a common currency and the United Kingdom breaking ground in this arena, it is possible to obtain financing from British banking institutions.

Soskin has been able to obtain financing for sites in Spain and Italy via this method. This, however, is not the only source of funding—personal, other equities and investors may be needed to finance this type of venture. Bardon states if there is some type of collateral, such as a structure for conversion, financing construction is easier. Typically, though, personal equity and other investors may be needed to finance this type of venture.

Getting the Word Out

Although the Spanish public has little knowledge of the benefits of self-storage, the new immigrants, particularly those from the United Kingdom, bring awareness of it from their own countries. Marketing efforts can take up the majority of budgets. Some people who need storage will shop around for the typical container- storage system. While researching, they run across self-storage facilities and discover the advantages, location and cost.

Word-of-mouth tends to be the most typical way people learn about self-storage. The Yellow Pages, local phone guides, web pages, direct mail pieces, building signage and location are other methods employed to promote and educate the public.

Who’s Here Now

There are a number of facilities currently operating in Spain—Easybox and Greinnsa are just two. Each has been successful in introducing this new concept to the public and business community. Via climbing occupancy and increasing exposure, these organizations are the innovators of what will become a household word in the coming years. Although they have taken a different approach in providing self-storage, they share the basic concepts of providing additional usable space.

Easybox is a group with more than 20 years of European self-storage experience. It owns and operates two sites in Spain—Barcelona and Madrid—and three in Italy. The site in Madrid is a conversion. The location in Barcelona is a new, third-generation building with high visibility from the highways leading into the city from the airport and beach resorts. This location can be reached by a 15-minute drive from any point of the city. Although developing third-generation buildings can be more costly, Soskin believes they are the best structures, as they are built according to an organization’s plans. At the same time, adapting an existing structure can be more challenging.

The Barcelona facility is a four-story, 2,000- square-meter building. It offers round-the-clock access, video surveillance and security-code access, an on-site property manager, insurance, ancillary supplies, and plenty of parking space for loading and unloading. Easybox is renting space while phasing and completing the remaining levels. Within six months, the company has filled approximately 140 of the 250 available units—60 percent individual and 40 percent bulk occupancy.

A significant amount of time and money has been spent to educate the public and promote self-storage. The company uses its site as the primary marketing vehicle. Kaouane uses the building’s top-floor window to display mannequins moving into a unit. The Yellow Pages, a website, the local phone guide and an intensive, customer-training program are the company’s other promotional methods. Right on track to deem its project a complete success, Easybox believes it will take up to three years fill its 550-unit center.

While researching a use for a portion of a warehouse, Bardón stumbled across self-storage about six years ago. Having grasped the concept and understanding the need for self-storage, his company quickly converted the warehouse into storage units. The success of these units prompted the company to turn the rest of the warehouse into a formal self-storage site.

The facility, located in a 30-year-old industrial park and off the major freeway circumventing Madrid, can be accessed from any point of the city in 10 minutes. The site’s established entity in the metropolis means locating the building is easy, despite the industrial park forbidding signage on the exterior of the building.

The 3,000-square-meter facility offers tenants a variety of unit sizes, forklifts for easy transport to individual units, 24-hour security— an after-hours alarm system is activated when the center closes—and personal keys to access units during business hours. Boxes, bubblewrap, packing tape and shelving are available for purchase.

Educating the public on self-storage is also the facility’s largest expense. The Yellow Pages, direct mail and a local magazine are used to promote availability. Greinnsa boasts 100 percent occupancy, which has led to the opening of another site in Alcobendas, the northeast corridor of the city.

Greinnsa plans additional facilities, concentrating its efforts on the cities with the highest population. According to Soskin, Easybox has plans to open an additional 10 sites this year.

Conclusion

Self-storage entrepreneurs have invested a great deal into developing this industry in Spain and are reinventing a service that, in the past, has been difficult, timely and expensive. Some conventional storage companies place containers in open lots. As Easybox’s slogan states, what better place to store items than in a “clean, dry and secure” area? Bardón hopes one day anyone needing his storage will know all they have to do is call Greinssa to “alquilar una habitación,” rent a room, as people acquaint themselves with self-storage.

For more information, contact Nikolas Soskin at [email protected]; Serge Kaouane at [email protected]; or Eduardo García Bardón at [email protected].

Congratulations! You got your facility approved, built and, finally, filled up. A lot of hard work, worry and effort have paid off, and you now feel like king of the hill. However, this success has created a dilemma. If you are too full, you cant help the next caller; you get a reputation in the community for being occupied, so no one calls.

At the same time, the only thing that goes down is the temperature at night; everything else goes up. Utilities cost more, property tax rises, wages go up, and inflation, even at a low level, still exists. What to do to offset rising expenses? How about raising rents to new and existing customers? But if you do, wont you lose tenants? And what about someone else coming into your market and offering low rent-up specials that may draw paying clientele away from you?

Does raising rents actually work? Recently, large operators have reported the necessity of lowering their rates. How do you successfully raise rates to offset increasing expenses when the big guys cant? Are you ready for the secret? Then, remember this: If you only have price to sell, you will live and die by price alone. If you have value to sell, you can sell value.

The Value of Value

What is value, and why is the customer willing to pay more for it? How can you brand yourself and get away from the belief that all storage facilities are the same and the only difference is the price? Lets think about this. What do you have to offer the consuming public that will allow you to charge more than the guy down the street? I dont know what your facility is like, so I will tell you about mine. I make certain it is clean. I make it is as safe and secure as I can. I make sure the staff is friendly and helpful to customers.

If you do all these same things, the real question is, does the prospective customer know it? Does he know what to expect from you and your business? Can he expect consistent courteous treatment and have a positive storage experience? What message do you convey in your advertising? In the way the phone is answered? In your facilitys appearance? In the rental presentation? What do you do to differentiate yourself from the competition in the eyes of the prospect and customer?

How do you advertise your offering? Do you over promise and under deliver or vice versa? Does your customer service produce that feel good feeling in your customers and staff, or do you have an adversarial relationship with staff and customers? Both can work, but positivity is easier than negativity, and has longer lasting effects.

Lets look at it another way. Consider a standard organization chart. At the top are shareholders, then descending along the vertical axis are the president, CEO and COO. The org chart forms an inverted T, and along the horizontal axis comes all the VPs: the VP of marketing, finance, production, personnel, etc. Under finance, you have accounts-payable and accounts-receivable. Under marketing, you have advertising, promotion and sales.

So now we have a complete organization chart, right? I think something is missing. What is the purpose of a business if not to serve the customer? If you look at a standard organization chart, where is the customer, and who or what department is responsible for dealing with him?

I think org charts are all wrong. The customer should be at the top, the business and employees in the middle, then the shareholders or owners at the bottom. With this focus, success is yours. If customers are happy, staff will be happy and ownership will be, too. Focus on the customer, and you focus on success.

Your Managers Are Your First Customers

Now that we understand the customer is the No. 1 focus for success, how do we adequately take good care of him? The first customers in your organization are your front-line managers. What type of people should they be? People like dealing with others like themselves, so your managers should mirror your clientele as much as possible in age, education and other demographics. They should also be attired so they can look sharp, feel sharp and be sharp. Consider that when you go into a full-service department store, you can immediately identify a salesperson, as he is dressed to impress.

Now we come to wages and training. You may be blessed with long-term employees, but someday they will no longer be with you. If you have depended on the idiosyncrasies of a particular employee and he leaves, you will unlikely be able to replace his unique characteristics. Therefore, the job must dictate the employee, not the other way around. Similarly, anyoneincluding the owner/managermust be able to walk into a business at any time, know its status and how it runs. To affect this end, you need to identify the processes (rental process, collection process, etc.), systemize them, and memorialize them in writing to achieve consistent, repeatable results.

Lets talk about employee pay and benefits. Why do you have employees? The paramount reason is so you are freed from the dayto- day, front-line management responsibilities. No matter how rewarding dealing with the public might be, you are like a piece of real estate and need to be put to the highest and best use. Your job is to make the business work and run. The employees job is to work and run the business. Thats why you hire them.

Consider that your employees are on the front line; they deal with the paying customer and can make or break the business because of this. Do you want an order-taker or an order-maker? What does your business require? What are you willing to pay to keep that highly trained, highly motivated, loyal, hard-working employee? Maybe more than your competitors, so a competitor wont steal them away. Everyone likes medical insurance, too, so consider that as well.

So what kind of a compensation program is best? Consider that while sales drive the business, it is money in the bank that pays the bills. The more money that is in the bank, the more that can go to owners and employees. Therefore, a program that encourages more money in the bank is ideal.

We have discussed that the purpose of business is to focus on, and take care of, customers; and everyoneconsumers, employees and ownersare all customers. If you focus on big bucks, the consumer does not care what you want. But if you focus on what the consumer wants, you can make big bucks.

I have examined many field-tested and proven ideas for maximizing your business potential. However, the message herein could be put on the front page of The Wall Street Journalthose who practice it would agree, while those who do not would not get it. This is because diverse people think differently, which is what makes business so interesting.

Each owner has his own ideas on how best to run his business sometimes successfully, sometimes not. My proven prescription for a healthy, growing business is to make sure all customers feel well cared for. By doing so, you will be cared for in turn. My business continues to thrive and grow, while others complain of lower occupancies and lost revenues. I choose to manage my business for maximum results.

Jack Donner has been in the self-storage business since 1972. He owns Americas Best Self Storage, which he built from the ground up. He spends part-time managing the facility from his home, far from the site. He is a successful business person, coach and consultant. If your dream has become your nightmare, he can help you avoid pain, pitfalls and financial loss, and achieve success. For more information, e-mail [email protected].

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

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Q: My retail office has large glass windows, and I am very concerned about vandalism. What do you feel would be the best way to secure my office?

MICHAEL IN FONTANA, CALIF.

A: Large plate windows in an office are difficult to protect because you need to have the office on the outside of the perimeter fencing and gate. Rarely do huge bars on the windows entice prospective tenants to rent at your facility. Since there isnt much you can do on the prevention side, lets talk about securing your office if a break-in does occur.

The most popular options are glass-break detectors and motion sensors. Glass-break detectors use the acoustics of the breaking glass to signal an alarm. Motion detectors use infrared to detect motion and heat in the office. Both can be used to signal a local siren, klaxon and/or an offsite monitoring station. Also make sure to install a good video-surveillance system with cameras in and outside of the office. Cameras have the added benefit of creating a visual deterrent too.

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Q: Building codes required us to install stairwells in our three-story building, but we would prefer tenants not use them unless there is an actual emergency. What do you recommend?

SHELLY IN PLANO, TEXAS

A: Sometimes, all it takes is a simple sign stating an alarm will sound if the door is opened; other times, the actual alarm is required. There are a couple of ways to go about this. One is to install a panic bar on each floor with an integrated alarm siren. This is an effective, but costly way to do it.

Another way depends on your existing site security. High-tech security systems that offer individual door security can often tie-in stairwell doors to their systems. All that is required is a door contact and a wire run to the office or, if you have a wireless system, it is as simple as installing a sensor on the stairwell door. This way also allows for logging of all stairwell activity.

Tony Gardner is a licensed contractor and installation manager for QuikStor, a provider of self-storage security and software since 1987. For more information, visit www.quikstor.com.