By Scott Zucker

The following article was reprinted with permission from the Mini-Storage Law Commentary, published by the former law firm of Shapiro, Fussell, Wedge, Smotherman & Martin.

Marketing your facility is an essential part of operating your self-storage business. Without customers, all you have is a lot of space for rent and, worst of all, no revenue. Every self-storage owner or manager knows the importance of "selling" his services to the public. What many operators do not know are the risks of "overselling" their services and the potential liability that may await them for making promises they can't keep.

If nothing else, the catch phrase "truth in advertising" should govern a facility operator's actions while marketing his facility. Whether it is through Yellow Pages advertising, brochures, signs or just word-of-mouth, telling the truth about your facility will guard you from later claims by your tenants that you misrepresented to them the services to be provided for the rent that was paid. For example, if your facility has video cameras that are on 24 hours but are not monitored, you cannot say you offer "24-hour security." Instead, you can say that you offer "24-hour surveillance." Similarly, if you have managers living on site, you cannot say that you have "24-hour on-site managers." Instead, you can say you have "resident managers." Whatever the example, it is always best that the statement be factual. It is also always better to be more specific in your advertising about what services your facility provides so your customers will not expect more than is provided and be disappointed.

It is equally important in your advertising that you choose descriptive words carefully. Facility operators should never use words such as "guarantee" or "promise" unless it relates to "friendly service." Certainly, a facility owner or manager should never promise or guarantee the safety or security of his tenants' property, and should always avoid using words such as "security" in his advertising.

By simply glancing through the Yellow Pages under "storage," it is common to find statements like "security fences and gates," "security-code access gates," "full security fencing and lighting" or "safe and secure storage." These phrases could connote that the self-storage facility is promising to safeguard its tenants' goods, which is exactly opposite of what a self-storage facility provides. It is much more appropriate to use phrases such as "perimeter fencing," "personalized-code access gates" or "fenced and lighted."

Once again, self-storage is the business of renting space suitable for storage. It is not a warehouse-type business and does not provide for the care, custody or control of its tenants' goods. Yet, if a storage facility represents through its advertising that its tenants' goods will be safe and secure, it risks altering its legal obligations to its tenants to make it responsible for the protection of those goods.

For example, in a case decided in Washington state, a tenant whose property was stolen from a Shurgard facility sued the company for the loss. As part of its case, the tenant argued that Shurgard had falsely advertised the security of the facility. Specifically, the tenant claimed that Shurgard had advertised in its Yellow Pages ad: "We have safe storage all locked up," and in a separate flier, "Shurgard managers live right on site ... making sure everything is safe and secure." Last but not least, the tenant argued that the name "Shurgard" was meant to imply a "degree of diligence and security."

Although the court in the Washington case did not find in favor of the tenant on its loss claim, it did not disallow the tenant's claim for false advertising under the state's Consumer Protection Act. Since the case was ultimately settled, the issue of whether there had been false advertising by Shurgard was never resolved. Unfortunately, that leaves the question of what is appropriate storage advertising to later cases. However, the Shurgard case provides a strong warning to other storage operations to avoid overselling in its advertising.

A recent case decided in Michigan provides another example of how advertising can get a self-storage facility into trouble. In this case, a tenant's property was destroyed by a fire at the storage facility. The tenant sued the storage facility for the property loss and argued that the facility's advertising was fraudulent. To support its case, the tenant showed that the facility represented in its Yellow Pages advertising that the storage units were "fire resistant." The tenant claimed that since his property was destroyed by fire, such a representation was fraudulent. In its defense, the storage facility presented testimony of an expert who attested that "fire resistant" did not mean "fireproof." Ultimately, the storage facility was able to prove that the materials used in the construction of the storage facility were actually fire resistant, and that fire resistant was not synonymous with fireproof. Although the storage facility won the case, the fact that the lawsuit arose over the words "fire resistant" and "fireproof" provides another lesson to storage owners to be careful in the words they select for their advertising.

In addition to truthful advertising, it is crucial that facility owners and managers never make false representations to their customers about security issues or whether or not prior incidents have occurred at the facility. A facility manager must be honest in answering these sorts of questions, both with prospective and current tenants. For example, if a potential tenant asks if there has ever been a fire, theft or flood at your facility, the manager must answer honestly. The owner or manager is allowed to say, however, that since the incident occurred, efforts have been made to prevent future occurrences (if, in fact, such efforts have been made).

If a facility operator acts with deceit, the court can choose to invalidate a tenant's lease based upon the fraudulent actions. In a recent case decided in Georgia, a tenant whose property had been stolen sued the facility for the loss. The tenant claimed that the storage facility had committed fraud based upon misrepresentations as to the occurrence of prior break-ins. The tenant argued that had he known prior break-ins had occurred, he would never have rented the space. Although the facility had a very strong lease protecting it from liability for such a loss, the court held that the tenant's lease was void due to the manager's false statement to the tenant that there had never been a theft at the facility, when in fact such thefts had occurred. The court ruled in favor of the tenant for the value of the stolen goods. The most important aspect of this case is that, due to the misrepresentations made to the tenant, the court ignored the otherwise strong provisions of the lease that would have protected that storage facility from the tenant's loss claim.

Most commonly, tenant complaints arise where their property is stolen or damaged. If you have told the truth about the risk of self-storage, have not promised the security of your tenant's goods and have been honest in answering questions posed by your tenants, your defense to claims by tenants that you are responsible for the loss will be strengthened. Certainly, nothing can prevent a tenant from suing a facility for the loss or damage of his goods. However, in order to enhance a facility's defense to such claims, it is becoming increasingly important for a storage facility to be clearer about the services it provides. As shown by recent court decisions, any misrepresentations to tenants can affect a storage facility's rights to defend itself on claims brought by tenants. Marketing is essential to a self-storage facility's success, but if not handled carefully and honestly, it can also be the reason for its failure.

Scott I. Zucker is a partner in the law firm of Weissmann & Zucker, P.C. Mr. Zucker is an expert in the field of self-storage law and represents self-storage owners and managers throughout the country in matters that include contracting for construction, preparing lease agreements, defending tenant claims and handling employment disputes. He can be reached at (404) 364-4626 or via e-mail at [email protected].

By Angela Kiper

Earlier this year, the following voice mail was left on our office phone:

This is Detective Jim Smith from Clandestine Meth Lab Unit. I wanted to advise you of a hazardous situation that we have neutralized out at your self-storage facility in Phoenix. We had information that a couple of suspects were storing chemicals and equipment, and possibly manufacturing methamphetamines and dangerous drugs in your lockers. We served two search warrants and did, in fact, find a clandestine lab in one of your lockers that has substantial contamination inside.

We removed a lot of chemicals and equipment that were hauled away by a professional impact and environmental-disposal company, but there was quite a bit of hazardous chemicals and equipment in the lockers. And there is substantial contamination. I'm advising you that, as the owner of the property, you have certain liabilities to be concerned with. You're going to need to have clean-up people come out to assess the contamination and repair or replace whatever is contaminated; and you are not allowed to re-rent those locations until they have been certified as being healthy and decontaminated. It's Wednesday afternoon at about 5:15, and we got your phone number off the City business-permit records. If you need any other information, please call me back and I'll be glad to explain the situation.

We knew from the call that we had a problem to address--one that would probably involve the Environmental Protection Agency (EPA), Arizona Department of Environmental Quality (ADEQ), Phoenix Police Department, Maricopa County Department of Health and possibly other agencies. What we didn't know was how to handle it.

What Is a Clandestine Lab?

A clandestine laboratory is one used for the primary purpose of illicitly (illegally) manufacturing controlled substances, such as cocaine and methamphetamine (meth). Clandestine labs are typically small, utilizing common household appliances, glassware and readily available chemicals. While some clandestine laboratories may be located in industrial areas, they are most frequently located in residential areas, and are increasingly showing up in self-storage facilities. Self-storage facilities are particularly dangerous for this activity due to the lack of proper ventilation and temperature controls that add to the potential for fire, explosion and exposure to humans.

There are many different methods for producing methamphetamine. Each method has its own inherent dangers. Many of the chemicals used are caustic or corrosive, and some of the processes create noxious and harmful fumes. Additionally, many of the chemicals can be found in common household items such as lantern fuel, cleaners, acetone, muriatic acid, diet pills, cold capsules, Drano, road flares, matchbook cover-strike pads, iodine, Red Devil lye, etc. Clandestine laboratories present numerous hazards to people and the environment. Extreme potential for fires, explosions, and exposure to hazardous chemicals and fumes are but a few of the dangers.

What Part Is Hazardous Waste?

The most dangerous chemicals typically encountered in meth production are hydriodic acid and red phosphorous. Red phosphorous is found in fireworks, road flares and bombs. Hydriodic acid is used as a commercial disinfectant and is corrosive enough to bore through concrete.

Both of these substances emanate toxic gases. When red phosphorus burns, it generates a toxic smoke containing phosphoric acid. If this smoke is inhaled, the acid will chemically burn the victim's airways and lungs, often resulting in chemical pneumonia. In addition, red phosphorus will transform into white phosphorous when a spark or flame is present, which may auto-ignite several times if it continues to have contact with air or water. Friction can ignite deposits of red phosphorous left on equipment or the surrounding area. If individuals dismantle equipment, the red phosphorous residue may not only spark, but also ignite gases remaining in the reaction vessel, intensifying the problem. Exposure to or inhalation of either chemical can cause respiratory damage, chemical burns and death.

The danger of chemical fires and explosions extends beyond meth manufacturing. In addition, traces of red phosphorous will likely remain on discarded materials and equipment, presenting a flammable hazard for three to four decades. Depending on the extent of the contamination, and whether the area affected is a structure, soil or water, costs can range from thousands of dollars for the initial cleanup to hundreds of thousands of dollars to remediate a water supply.

Just as legitimate industries generate secondary services, clandestine lab-site "oil barons" support and profit from the manufacture of meth. After producing the finished product, clandestine lab workers are typically left with five to six pounds of hazardous waste for each pound of finished meth produced. This waste is often disposed of by these "oil barons." They are paid $2,000 or more to discard the waste, which can end up in your onsite dumpsters or in your units. Renting a unit for the storage of toxic waste can add up to hundreds of thousands of dollars profit for the "oil baron."

When, in the second phase of production, the clandestine-lab cook separates red phosphorous from the mixture, lab workers often use bed sheets or pillow cases as filters. When left in a dump site, this fabric holds large traces of red phosphorous and hydriodic acid, which will become an environmental threat for years. Simply an attempt to unearth or clean up the site can create enough friction to ignite the red phosphorous, causing chemical fires. Some of the waste commonly found in a clandestine lab that become hazardous include freon cans, compressed gas cylinders, discarded clothing, shoes, gloves, respiratory mask filters and dust masks, and pillow cases/bed sheets.

So Where Do We Go From Here?

Once our problem was revealed to us, we had many questions and no readily available answers. We searched for the answers through consultations with the police detective, our attorneys, the property managers and other experts in the field.

Question 1: Should we evict the tenants for violating the terms of the Crime Free Addendum of their storage agreement?

Since the tenants were in jail, weren't getting out soon and were late in rent payment, eviction was inevitable.

Question 2: Are the two units and all their contents considered a hazardous-waste site? Is the whole facility considered a hazardous-waste site?

Clandestine labs are considered hazardous-waste sites by both the federal and state government and should only be entered by trained and equipped professionals. Anyone finding a clandestine laboratory should leave it alone and immediately contact local law enforcement.

In his phone message, the officer said that one of the lockers had "substantial contamination" and the two lockers must be decontaminated and certified "healthy." Therefore, we concluded that only the two units were "hazardous-waste sites" and not the entire facility.

Question 3: The two units, aside from being used as a meth lab and waste-disposal facility, contained many household items, including a dismantled car. Should we dispose of the tenants' possessions? If so, how should we dispose of them? Through public auction? In the dumpster?

If we sold the possessions at auction, we could be legally liable for any contamination or damages to the successful bidder. There were just too many items that might contain residual contamination from the clandestine laboratory operations. Clothing especially easily absorbs chemicals. If we disposed of the possessions ourselves, we might be violating laws and risking contamination of the garbage cans, dumpsters, landfills, etc., used for the disposal.

Hiring a federally certified hazardous-waste disposal firm would be an extremely expensive endeavor because it would need to hire certified technicians clothed in special hazardous-materials handling uniforms, and would be required to properly dispose of all the contents in each unit into a federally approved hazardous-waste dump before it would clean up the units.

Question 4: Should we allow the tenants (or their family and roommates) to remove the contents from their units, even if the contents may be hazardous?

After discussions with legal counsel, we decided that the most cost-effective and legal way to remove the possessions was to convince the co-tenants (who were not arrested) to remove the possessions from both units themselves. The onsite managers called the co-tenants in hopes they would voluntarily remove the remaining possessions from the units. The managers didn't get much cooperation from the co-tenants at first; they were probably hesitant to return to the units out of fear that they, too, would be arrested on the spot when they showed up.

We drafted a letter for the co-tenants' signature, which advised them that chemicals/contamination may still be present on the personal property, that they were to remove the items at their own risk, and that they assumed any liability for the removal. It took a few weeks to complete the task, but the co-tenants finally removed all the stored possessions out of the units.

Question 5: Were we required to inform the other tenants of the hazardous conditions in that building? In the whole facility?

The detective advised us that we shouldn't re-rent the units until they had been certified as being healthy and decontaminated. The police posted a bright-red notice on each of the two units that read:

A clandestine laboratory for the manufacture of illegal drugs and/or hazardous chemicals was seized at this location on 3/3/99. Known hazardous chemicals have been disposed of pursuant to law. However, there still may be hazardous substance or waste products on this property either in the building or in the ground itself. Please exercise caution while on these premises. U.S. Department of Justice, DEA, 664-5600.

Most of the dangerous chemicals were removed by the police. All that remained was a small amount of residue which, although volatile, wasn't likely to affect any other units or other buildings at the facility. We concluded that no other tenant notification was necessary (aside from the notices posted by the police) unless the interior walls needed to be removed during remediation.

Question 6: What would testing and clean-up operations entail, and who would be allowed to conduct the operations?

Even when law enforcement is able to arrest and prosecute the individuals involved with a meth lab, the often staggering cost of removing the containers, contaminated apparatus and obvious waste is only a part of the total clean-up and remediation cost. Law enforcement is often burdened by the initial clean-up cost, while property owners, environmental agencies, health departments and, ultimately, the tax payers are burdened by the larger remediation costs.

General clean-up of a clandestine meth lab location involves two phases: gross clean-up and remediation. The gross clean-up involves law enforcement officials physically removing the materials that pose immediate and significant health hazards. This would include the removal of any waste products that are considered toxic (i.e., corrosive, ignitable or reactive in nature). Glassware, jars of chemicals and any finished product are usually included in the gross clean-up phase.

During remediation, hazardous-material firms remove and dispose of all hazardous waste remaining from the gross clean-up phase and return the property into a habitable state. However, the costs can be substantial. In a storage facility, for example, clean-up may range from washing the walls to removing/replacing drywall, as well as the wood or metal-stud framing. Because explosions sometimes accompany/cause chemical spills, the cleanup may require the demolition of an entire building.

If the soil is contaminated, it also must be decontaminated or removed to prevent seepage, which can cause a chemical fire. If the problem poses an immediate hazard to public safety and the property owner is unable to pay the remediation costs, funding for the clean-up will come from the "Superfund," a financial account that local, state and federal agencies can access to rectify such situations.

It is a Class 3 felony in Arizona for anyone to treat, store, transport or dispose of hazardous waste without appropriate authority. We discovered several licensed firms in the yellow pages under the heading "Waste Disposal--Hazardous." We also asked the police for recommended "hazardous cleanup" companies. Luckily, our property managers were able to find an acceptable firm.

Question 7: What agencies, if any, must we report our clean-up efforts to?

If the amount of hazardous substance found was a "reportable quantity" we would be required to obtain a letter report documenting the cleanup and disposal activities for submittal to the Arizona Department of Environmental Quality, as well as the Environmental Protection Agency, upon request. The report would need to include a complete evaluation of field activities and all waste transportation and disposal documentation. Certificates of Destruction would also be forwarded upon receipt, if necessary.

Violations of the "reportable quantities" laws can be as high as $25,000 per each day of the violation under Arizona law. Federal law can be at least as strict. Luckily, we did not have a reportable quantity of a hazardous substance (such as red phosphorus, one pound) or an extremely hazardous substance (such as sodium hydroxide, 1,000 pounds). The environmental assessment company that completed the environmental-site investigation concluded that the storage units presented no hazard to human health or the environment.

Question 8: Would our insurance cover any losses?

We reviewed our insurance coverage, including general-liability policies, business-interruption policies and property-damage policies for coverage of the costs of remediation of on-site contamination. None of our policies covered this situation. Our insurance agent informed us of a hazardous contents removal policy we could purchase for future coverage. Although the policy limits of $25,000 per "insured location" seemed reasonable, the policy contained so many exclusions that we determined the annual premium of $1,028 was not worthwhile.

Conclusions

In all, the two units used as a clandestine meth lab and waste-storage facility were relatively inexpensive to clean up. We were lucky. The Drug Enforcement Agency claims the current average cost of a per-unit cleanup is approximately $4,400, and it can run into tens of thousands of dollars.

Our total hard costs were only $3,300 for both units, which included attorney fees, the Registered Hazardous Substances Professional Contract Consultant fees and lost rents. Unfortunately, however, the soft costs (i.e., the lost rents from prospects and other current "legitimate" renters who may have seen the bright warning notices posted by the police and decided that maybe our facility wasn't safe enough for them or their possessions) were impossible to calculate.

As drug traffickers demonstrate their ability to sustain small-scale clandestine laboratory operations, the amount of hazardous waste generated will continue to cause serious environmental damage and pose immediate and long-term health risks to individuals. Meanwhile, those labs discovered will cost law enforcement, taxpayers, property owners and environmental-protection agencies millions of dollars annually.

Self-storage facilities are quickly becoming, and will continue to be, common areas for clandestine laboratory sites for a couple of reasons:

• These areas minimize contact with law-enforcement officials. Law-enforcement surveillance of these sites is, at best, a difficult task requiring extensive man hours and overt surveillance techniques.
• The often unmonitored areas provide for easy production of the drug and disposal of the toxic waste into the onsite dumpsters or in another unit.

So far, large-scale methamphetamine production has remained limited to the Western portions of the United States. But the detrimental impacts of the methamphetamine production process and the resulting waste "disposal" practices are beginning to be felt throughout the United States.

Currently, California is the number-one producer of clandestine meth labs, followed closely by Missouri, Arkansas, Arizona and Utah. However, as distribution moves eastward, production will also follow. As the drug organizations consolidate their hold on this emerging and very lucrative market, expansion into the Midwestern and Eastern regions of the United States may soon become a huge problem, and vulnerable self-storage facilities will become toxic-waste sites.

Recommendations

Although the erection of clandestine meth labs may not be easily halted, these operations can be displaced. If you are apathetic, negligent or just plain lazy, you will be targeted as "easy" and word will get around to the meth cookers in your area. Before long, your property won't be worth the land it's built on. But if you are alert, aware and take the proper precautions listed below, the meth cookers will move on to the next facility and contaminate it (or blow it up) instead.

• Ask questions. Find out why tenants chose your facility over others in the area.
• Follow your gut. If you get the feeling a potential client is acting suspicious, ask yourself if the benefits of renting to this person will outweigh the risks.
• Check identification.
• Fingerprint.
• Use a "Crime-Free Addendum" as part of all your contracts and require the signatures, positive ID and license-plate numbers not only of the tenants, but also of all people to whom they want to give gate or unit access.
• Talk to your local law-enforcement authorities and offer to assist with their canine training by allowing them access to your facilities. We let potential tenants know that we allow the police to train drug-sniffing dogs on our property.
• Learn to recognize possible methamphetamine users. They normally appear nervous and sometimes irritable, often sweating from the brow. Their movements may be somewhat jerky. They may appear acutely alert or anxious. They have dilated pupils and their eyes tend to rapidly track even slight movements. They may grind their teeth (if they have any left, due to poor nutrition and incessant grinding) or pick at or scratch their skin to the bleeding point (look for scabs). They have a tendency to talk incessantly and appear overly confident. Look for burns on their fingers or fingernails starting to fall off. Many are young, but have rotting or missing teeth. Beware, however--it doesn't take much for a user's paranoia to take over. They can become quite violent at the drop of a hat, and may be armed.

Meth cooks often pay cash for their rental units. They may try to pay several months in advance. They may want two units back to back so they will have an escape route (i.e., in case the police come to one door, the meth cooks go through a hole they cut in the wall to the next unit and out the door on the other side of the building, thus increasing their chances of escape). They will probably ask for a unit or units in an isolated area of the facility. Or, they may insist on a unit with overly adequate ventilation so the smelly vapors from the cooking meth will disappear quicker. In the case of our facility, two units were rented by two different people, one for storage of the unused and used chemicals, and one for the actual manufacturing ("cooking") of the meth. Both units were at the back of the facility far away from the management office.

• Check your traffic logs frequently. Is the tenant staying in the unit for an excessive amount of time (other than the move-in process)? Is the tenant keeping irregular hours? Does the tenant remain in the unit for four or more hours and then you notice an increase in traffic? (It takes as long as six to eight hours to complete the cooking process. Cookers often call their clients and sell right from the unit as soon as the cooking is complete.)
• When making your rounds, glance inside any open units. Make particular note of stains on the concrete or drywall, unusual liquids (cloudy or unlabeled containers), etc.
• Meth cooks may park their car away from the unit where they are working and in a position where it is hard to read the license plate number on the car.
• Keep your eyes (and your nose) open to the possible clues that a meth lab might exist in one of your units. Read the list of clues below for more details.
• If you suspect the existence of a methamphetamine laboratory on your site, call the police. Do not overlock the unit (it may be rigged) and do not confront the suspects yourself. Do not light a cigarette in the vicinity. Do not touch or move anything. Allow the proper authorities to handle the situation.

Clues to the Possible Existence of a Clandestine Meth Lab on Your Site

You may be unaware if there is a meth lab at your facility. Here are some things to look for:

• Unusual, strong odors (like cat urine, ether, ammonia, acetone, vinegar or other chemicals).
• Tenants who pay in cash. (Most drug dealers regularly use cash.)
• Lots of traffic or people coming and going at unusual times. There may be little traffic during the day, but at night the activity increases dramatically.
• Excessive trash, including large amounts of items such as antifreeze containers, lantern fuel cans, red chemically-stained coffee filters, drain cleaner and duct tape.
• Unusual amounts of glass containers being brought into the unit.
• Presence of the following items could indicate the existence of a meth lab:

Red Phosphorous	Alcohol	Starting Fluid
Toluene/Paint Thinner	Freon	White Gasoline
Camp Stove Fuel	Ether	Wooden Matches
Anhydrous Ammonia	"Heet"	Coleman Fuel
Phenyl-2-Propane	Benzene	Chloroform
Iodine Crystals	Black Iodine	Phenylacetone
Lye (Red Devil Lye)	DranoAcid	Road Flares
Muriatic/Hydrochloric	Epsom Salts	Sodium
Battery/Sulfuric Acid	Propane	Match Strikeplates
Phenylpropanolamine	Acetone	Diet Aids
Bronchodialators	Cylinders	Hot Plates
Boxes With Paper Towels	Cold Tablets	Hydrogen Peroxide
Household Batteries/Lithium	Rock Salt	Energy Boosters
Ephedrine (over-the-counter)	Metal

Special thanks in the production of this article goes to:

• Duncan B. Lingle, United States Drug Enforcement Agency, Phoenix Field Division Acting Group Supervisor, Arizona State Local Clandestine Lab Task Force Commander
• Kevin Flood, United States Drug Enforcement Agency, Phoenix Field Division Senior Special Agent
• Detective Jeff Reichert, Criminal Investigations, City of Mesa Police Department
• United States Department of Justice, Washington, D.C.
• Koch Crime Institute, Topeka, Kan.
• Gary Zwillinger, Attorney at Law, Morrison & Hecker, Phoenix

For more information, contact Angela Kiper, U-Stor Self Storage, c/o PCI Associates Ltd., 7100 E. Lincoln Dr., Suite C-134, Scottsdale, AZ 85253; phone (480) 990-0200.

By Kent Davies

Composing advertising artwork using your personal computer's publishing software in conjunction with your laser printer may lull you into a false sense of security. Creating successful ads requires very specific writing and composing skills--skills you can learn and use in conjunction with your software to create effective, small ads.

Small ads generate more bang for your advertising buck. Just because the space is small does not mean the diligence and forethought used in composing the ad should be similarly meager. The truth is, small ads require substantial time and creativity to be effective.

To harvest big bucks from small ads consider the following steps:

Grab Your Readers' Attention

If you want your ad read from start to finish, you must first motivate prospects to read beyond the headline. This is crucial, especially if you consider the fact that 70 percent to 80 percent of consumers do not read beyond an ad's headline.

Successful headlines present news or promise specific benefits. For example, advertising an upcoming special sale with a headline that reads "Spring Cleaning Storage Special" will not motivate prospects as much as an ad promising readers in bold type "Spring Break: One Month Free." The latter headline screams for attention and motivates storage shoppers to learn how to achieve the promised savings.

Keep headlines simple and direct. Do not use language that only confuses readers. Remember: You are not trying to impress them with your vocabulary. Your purpose is to generate rentals. Always use short, attention-grabbing and easy-to-understand words like "save," "safe," "unconditionally guaranteed," "satisfaction," "you," "bargain" or "new."

Increase your ad's visual impact by emphasizing your headline with appropriate photos or illustrations. This encourages prospects to read further. For example, using a photo of a barbed fence will reinforce the idea of security.

Titillate Your Prospects' Appetite

After your headline has grabbed a prospect's attention, carefully develop the body of your ad. What you want to accomplish here is to clearly and concisely help prospects understand the advantages of responding to your ad. This is especially difficult in small ads, but not impossible. Keep the text of your ad simple and direct, keeping foremost in your mind the ad's primary purpose.

If your goal is attracting new prospects to your climate-controlled storage facility, keep the climate-control aspect foremost in your mind while developing your ad. Give a phone number to call and/or a second-month-free coupon they can return by a given date.

If your goal is selling your new state-of-the-art security system, your approach would be quite different from advertising your new climate-controlled facility. The body of your ad must clearly reflect this difference. You might use attention-grabbing phrases such as "state-of- the-art security system" or "24-hour on-site security."

Cover the Five Ws

Be specific in your ad. Always cover the basics of who, what, when, where and why. Make sure your ad clearly states what your business is and, if you are having a specific price break, designate just what is on promotion--such as all 8-by-12 storage units are renting for a special reduced rate.

Avoid any confusion by clearly indicating the dates your promotion begins and ends. Nothing angers customers more than making a trip to a business and learning the sale was over yesterday. In addition, include your address and any nearby landmarks, such as a shopping mall, as well as your phone number and business hours. If you are open for extended hours during your promotion, clearly state this in your ad. Finally, clarify why you are having this sale, such as a "grand opening."

Be Specific

The more specific your text, the easier it is for its readers to grasp. Do not say "high ceilings." More effective text clearly states, "12-foot ceilings available." If you are advertising security, make sure your ad clearly specifies what extra security you are offering, such as "lighted, 12-foot, razor-wire fencing." A clear photo of your intimidating fencing reinforces your message.

Use Testimonials

Testimonials or endorsements are attention-grabbers. Nothing attracts prospects like the endorsement of a distinguished hero or respected celebrity. For example, if you are selling enhanced security, the interest in your ad increases exponentially if it's endorsed by a well-known and respected former police chief. A direct connection between the endorsement text and celebrity picture dramatically increases your ad's overall impact.

To be effective, endorsements or testimonials must be believable. Don't overdo it, or you will lose credibility.

Offer a Guarantee

If you offer guarantees, make one thing clear: If you offer a 30-day full refund to unsatisfied customers, express this prominently in your ad. Prospects always like knowing there will not be any hassles if problems develop or if they change their minds.

Use Coupons Effectively

A coupon at the bottom of an ad offering 25 percent off the first month for a limited time attracts prospects to your business and provides important feedback on which printed ads are most effective. Contest coupons for a six-month-free rental also help attract prospects.

Develop coupon code numbers to track your ad's effectiveness. Using a code, such as 51BCTS, for example, could identify the coupon's source as the May 1st ad on the Belleville Courier Times sports page. Tracking your media responses increases your long-term advertising's overall effectiveness.

Repeat Yourself

On your copy's last lines repeat your ad's primary purpose. A statement such as "Act today. Only seven units left. Don't leave your irreplaceable heirlooms vulnerable to theft..." summarizes your ad's main purpose of attracting security- conscious customers to your facility. The "only seven units left" effectively motivates prospects to rent quickly.

Make Your Ad Stand Out

With small ads, you need to remember that, in most publications, you are very likely competing in a sea of similar small ads. Therefore, you must use a design strategy that grabs a reader's attention.

Your ad's border is important. The more unique the border, the more it will stand out. There is no one answer as to the most effective border to use. A thick, black border may be more attention-grabbing if adjacent ads do not use similar borders. Consider using a different border for your coupon to make it stand out from the rest of your ads.

If you are using a photo or illustration in your ad, be sure that it is a clear portrayal of your primary message without a lot of frills or clutter. By connecting your text to your photo or illustration, you will significantly increase your ad's overall visual impact.

Do not put much faith in the idea that photos of young blondes in bikinis will attract prospects. People may remember the young woman's charms, but not your ad's specifics or your facility's name.

If you are using a sale or contest coupon, make it large enough for prospects to easily write their name, address and phone number. Avoid shading or color that only makes their handwriting harder to read.

Reverse Headlines

Attract more attention to your ads by reversing your headlines so that white type is on a black background. This is only effective on short headlines. Long headlines, especially in small ads, are more difficult to read when reversed.

Don't Mix Typefaces

Always select a good, readable typeface. Don't mix many different typefaces. Avoid having your ad typeset with italic, Gothic or other high-design typefaces. These designs are impressive in old books, but only detract from a small ad's overall appearance. In addition, stay away from all upper-case type (capital letters). They are more arduous to read than headlines using both upper- and lower-case letters.

More Bang for the Buck

Small ads deliver more bang for the buck. Do not deny your small ads the attention they deserve just because they are small. Like the one-minute speech, small ads that attract and hold the attention of their audience are, dollar-for-dollar, more effective than large ads that quickly consume your already meager advertising budget.

Writing effective small ads is challenging. By following these principles and developing an effective feedback system to measure your advertising's effectiveness, you will significantly increase your overall marketing power.

Kent Davies is a freelance writer.

By Jim Chiswell

The new year, decade, millennium have begun. To honor publishing deadlines, I am writing this as 1999 comes to an end, so when you read this in February, the old Y2K issue is rapidly becoming a memory. I'm sure there were a few problems here in the United States and probably many more across the globe, but the sun still came up on Jan. 1st. I can't help but feel that we all will experience a renewed sense of challenge and opportunity as we face the future.

I was excited when this magazine's editor asked me to continue my bi-monthly column. I promise I will keep trying to bring you my candid opinions, ideas and occasional off-topic comments. I sincerely appreciate the feedback I get from people across the country. Please keep it coming!

Talking Trash

As I travel across the country, I do a great deal of driving in cities big and small. The other day as I was sitting at an intersection, I watched someone empty his ashtray out his window. As the ash, butts and papers blew down the road, I could feel my blood pressure rising. It makes me crazy to see that, and it seems to be happening more often from town to town.

I can still remember my teachers in school (and that goes back a number of years) talking to us about protecting the environment by not littering. I can also remember the public-service messages with a tear on the face of the Indian chief for the litter that was at his feet. OK, so it turns out he wasn't actually Native American, but that's another story.

This sense of frustration got me thinking about our self-storage operations. I keep seeing larger and larger trash dumpsters at some facilities. I don't know where we went wrong as an industry. I honestly don't believe we should be everyone's garbage can. I know most communities require some on-site trash containers, but we need to place a strict limit on what we are willing to accept.

An old friend, Ken Nash from Springfield, Mass., has always fought putting a dumpster at his projects. He has fought many battles over it, but always won. He has a simple philosophy: What you bring in with you, you take back out. I urge you to look at the trash situation at your own facility. Are you providing a trash service for your commercial customers? If so, are they paying in addition to their rent? Do you have residential customers using your dumpster so that they don't have to pay local garbage costs? That happened to me at a facility in Florida.

Have you examined your trash expenses closely? If you have commercial customers who generate a great deal of cardboard, for example, could you put in a recycling dumpster just for them at no cost to you? I know one owner who actually generates a small cash flow from providing recycling containers for his customers. Take the initiative to reduce your existing dumpster size in the year ahead.

Telephone, Telephone, Telephone

Everyone has heard the old adage "location, location, location" in relation to selecting real estate. The same holds true for our industry until the project is built. Then our mantra should become "telephone, telephone, telephone." Unless each phone call is handled properly and that prospective customer at the other end of the phone line can be converted into a prospect standing in the office, the location of your facility just doesn't matter.

I am still amazed at the lack of telephone skills that exists in our industry. Many managers do not even have an outline of a script of things to cover during their call. The blame for managers' shortcomings on the phone comes back to us as owners. Some managers have never been told what is expected from them when they talk with prospects on the phone. If you have never "worked the phone" before, let me tell you it can be very intimidating.

There are so many simple things that can improve phone technique. Making a change from "Thank you for calling Jim's Bins" to "Thank you for choosing Jim's Bins" starts in motion a prospect's decision-making process about where to store his belongings. I have always believed you don't sell self-storage over the phone. Your goal must be to get the individual to come into the office. If you're bringing prospects into the office, you should be converting well over 90 percent of them to customers.

A mistake some owners make is not measuring results. One of the ways to measure results is to have a third-party company "mystery shop" your people on the telephone. I have had excellent results from a company called Double Check (phone (303) 888-0602; www.double-check.com).My clients have received some great insights into a manager's telephone strengths and weaknesses by listening to the recorded mystery phone call. I urge you to contact them.

What goals have you set for the "telephone, telephone, telephone" for the new year? If you haven't set any goals yet, there is still time to get them on paper. It is hard to be disappointed with the results if you have nothing to measure them against.

Drive-By Viewings, Day and Night

With spring just around the corner, it's time to start reviewing your landscaping plans. Next to the Yellow Pages, the second most important reason listed by prospects who become customers for choosing a facility is what they see when they drive by. What are the real net costs of those colorful annuals you plant near your entrance just as spring starts? If your residential customers are typical, with an eight- to nine-month average stay, just one new customer will cover your costs. And now is the time to think about it, not May or June.

P.S. When was the last time you drove by your facility at night? Are your lights on? Does your sign work? Are there letters missing because it has not been anyone's job to check? Does the lighting cause someone driving by to say, "This is a place I would like to use if I ever needed storage?"

Jim Chiswell is the president of Chiswell & Associates of Williamsville, N.Y. Since 1990, his firm has provided feasibility studies, acquisition due diligence and customized manager training for the self-storage industry. In addition to contributing regularly to Inside Self-Storage, Mr. Chiswell is a frequent speaker at Inside Self-Storage Expos. He can be reached via e-mail at [email protected] or at (716) 634-2428. You can also visit his Web site at www.Jimdot.com.

By David Wilhite

The self-storage industry has undergone tremendous changes over the past 20 years, evolving from a core group of small, mom-and-pop operations to a large, powerful organization of professional business people. The rapid growth of the industry has further created a variety of challenging new issues, many of which we are just coming to recognize.

When the self-storage industry was young, so were its buildings. Facility owners had secure new roofs that did not leak, factory-fresh doors that properly sealed their units, and a lower amount of crime at their facilities compared to today. This environment was very attractive to insurance companies, several of which developed products specifically for the industry. These specialty insurers provided better coverage than what was generally available at the time, and many offered significantly reduced premiums for substantial savings.

During the late '80s, the self-storage industry was maturing, as were its buildings. Due to various challenges we were experiencing at the time--primarily the recession--maintenance was deferred in many facilities. In addition, the criminal element discovered that self-storage facilities were an ideal place to conduct their activities. These developments caused insurance costs to rise and claims activity to increase dramatically in certain areas, such as customers' goods legal liability.

Customers' goods legal liability is a very important coverage that is specific to our industry. The basic premise of the self-storage industry is that we act as a landlords, not warehousemen; we never take possession of our customers' goods. Therefore, we are not responsible for those goods, since we are simply renting space. However, there are certain situations that can create legal liability on your part for damage to your customers' goods. For example, by providing a building to store goods, we represent protection against the elements. If a customer's goods are damaged by water or some other form of the elements, he may feel that you were somehow negligent in honoring that representation.

If you are found legally liable for damage to a customer's property, your customers' goods legal liability insurance coverage will probably pay the claim. Just as importantly, it provides defense costs even if a claim is found to be groundless, false or fraudulent. It also includes coverage for damage done to customers' goods stored in the open, should you be found legally liable for that damage.

Customers' goods legal liability coverage is not normally available in the standard insurance market and cannot normally be added to the standard business-owner's package policy. It is coverage available through specialty markets for self-storage insurance.

With the recession well behind us, most facility owners have finally gotten their deferred maintenance schedules under control. This new emphasis on routine maintenance is helping to contain losses in the area of our customers' goods. Aside from a complete re-roofing of your facility, there are many new products available for sealing aging roofs. There are also companies that sell maintenance products, such as unit-door threshold seals that provide cost-effective alternatives to more expensive repairs. Facility operators have also kept busy implementing new ideas of their own to help contain losses, such as providing pallets in each storage locker. The pallets keep their customers' belongings a few inches off the floor, helping to keep them dry in the event of surface water accumulation.

Security is also a major concern, and a tremendous number of vendors are in the business of providing various types of security equipment. A growing number of facilities today are equipped with door alarms, computer-controlled entry gates and high-tech surveillance equipment. These products, accompanied by a good resident manager, help control crime.

Sad to say, the days are long gone when we can rent a unit to new customers and turn our back on their activities in our facilities. Many operators today routinely photograph customers, and some even obtain their fingerprints. This may seem a little drastic, but it has become a necessary practice in some areas. Some operators argue that this type of intrusion will chase off customers; however, if it is done in a manner that expresses concern for their property, very few honest people will mind the extra care taken for their security. The customer it does chase off just might be a criminal, and lost revenue on a criminal is really money in the bank.

Another good crime-prevention procedure falls under the heading of follow-up marketing. For example, mailing the new customer a thank-you card the day he rents the unit is good marketing and can help you discover a problem sooner than if no contact was made until the customer became delinquent. You can also include referral cards with the thank-you note for customers' friends and neighbors. When a prospective tenant presents the referral card, the referring customer gets a gift or a discount. This creates good customer relations and helps reduce the likelihood of crime in your facility.

New construction and proper maintenance of our buildings, combined with hands-on management, attention to security and the prevention of crime, are creating safer and more secure places for customers to store their goods. Combine these efforts with good customer relations and we can all help to keep insurance costs for our industry at an affordable level.

David Wilhite is the marketing manager of Universal Insurance Facilities Inc. Universal offers a complete package of coverages specifically designed to meet the needs of the self-storage industry, including loss of income, employee dishonesty, comprehensive business liability, hazardous-contents removal and customer storage. For more information, contact Universal at Box 40079, Phoenix, AZ 85067-0079; phone (800) 844-2101; fax (480) 970-6240; www.vpico.com/universal.

By J. Mark Young

Self-storage developers and owners have seen a need to expand with the changing marketplace and are accomplishing this by offering their customers more than the facility "next door." A climate-controlled environment is one of the most common enticements. Benefits of climate-controlled storage spaces include preventing damage from moisture build-up, preventing the growth of mold and mildew, and preventing the corrosion of items stored inside the unit. When providing a truly climate-controlled space, we must consider both temperature and humidity levels inside the facility. At the same time, financial considerations are always a part of any business decision, and with climate-controlled spaces, all aspects should be explored.

Understand the expectations of your customer, and make certain he understands what benefits your facility provides him and the property entrusted to your care. Educate yourself on the methods and systems for providing a total climate-controlled environment in your facility. Remember: Whether you are building a new facility or retrofitting an existing structure, make sure you provide conditions that truly benefit your customer. Competition in every industry forces us to search for an edge in our respective markets. Total climate control can be that edge for you.

Humidity and Temperature

Humidity and temperature work hand-in-hand in our environment. Relative humidity is a measure of the moisture content in the air at a specific temperature. To understand the potential effect a particular humidity level will have on us or our property, we must first define the relationship between humidity and temperature.

As temperatures rise, relative humidity will fall. Measuring the relative humidity is how we account for the moisture in the air. It is basically a measurement of the moisture content of the air relative to the maximum temperature in the same area. When air is hot, the molecules spread apart, providing room for water molecules to evaporate. Conversely, when air temperatures fall, we see the relative humidity rise, due to the air molecules moving closer together.

At some point, condensation will occur. This is known as the dew-point temperature. Too much moisture is what allows corrosion to occur and for mold and mildew to develop. This is the result of high-moisture build-up and subsequent condensation on the surface of stored items. Too little moisture in the air can also cause problems. Without enough moisture present in the atmosphere, we would find woods separating and paints and wallboard cracking, not to mention the uncomfortable dry feeling we would have without enough moisture present. An acceptable balance is what we want to achieve.

To prevent corrosion and remove the environment suitable for mold and mildew growth, temperatures should be at or below 80 degrees with 40 percent relative humidity. These conditions happen to fall in the comfort zone most people find acceptable. Lower relative-humidity levels may be acceptable, depending on the contents of the storage space.

Drying Air With Desiccants

Desiccant dehumidifiers reduce the moisture content in the air by removing some quantity of the water vapor from the air with a desiccant wheel. Desiccant equipment is used to remove the moisture from the air stream and return it to the atmosphere outside the building. Dehumid-ification systems are able to reduce and maintain levels where corrosion, mold and mildew cannot thrive. After drying the air, conventional cooling equipment is used to bring the temperature to the appropriate level.

Desiccants can remove up to 10,000 times their weight in water vapor, making them much more efficient at drying the air than any conventional cooling or coil-type dehumidifier. For this reason, you are able to control the amount of moisture in a storage facility more precisely and reduce the air-conditioning tonnage required to cool the climate-controlled space.

Project Design

Air temperature and the moisture content of that air are directly related. In a perfect environment, we would be able to control the temperature and moisture level with ease. However, with storage facilities, we cannot create a vacuum because customers need access to the property. Therefore, we must take into consideration other factors in the initial design phase of a project.

Remember: As the air temperature rises, the air molecules expand and make room for more water vapor. Also, the measurement of relative humidity to the air will decrease at the same time. These two reference points should be a part of the total climate-control design process. The moisture level in the air is the enemy of the stored property. Higher moisture content provides the environment for corrosion to occur and molds and mildew to grow.

Thinking back to our earlier discussion of humidity and temperature, we want to design for space conditions at or below 80 degrees and 40 percent relative humidity. For winter conditions, we can hold 60 degrees and 40 percent relative humidity, and maintain a moisture content low enough to be suitable for the storage space. Temperature and humidity always work together in your design calculations.

What Does My Customer Expect?

"Do you have climate-control units available for rent?" Is this the question my customer is asking me, or is he asking if the property he intends to entrust to my care is going to be safe and free from the effects of corrosion, mold and mildew? Understanding exactly what the customer expects and what service you are providing is essential to your success and reputation.

Do your homework. Equip your facility to provide a conditioned space that will protect your customers' property. Train yourself and your managers to be prepared with appropriate solutions for the customer. Document storage for business and storage of fine arts and antiques can be even more critical, as well as lucrative. Again, understand the expectations from the outset in order to eliminate potential problems in the future.

Coming Back to the Future

Now it's time for all self-storage owners and operators to look forward. The future is now. The self-storage client base is changing and so are its needs. The industry has begun to seek new and more efficient ways to operate, but we must also realize our customers are doing the very same thing. Total climate control is the direction the industry is headed as customers' needs become more precisely defined. Total climate control can provide you an advantage by offering a value to customers they may not find at a majority of self-storage facilities today.

J. Mark Young is director of commercial and industrial marketing for Logis-Tech Inc. of Alexandria, Va. Logis-Tech has been providing corrosion control and prevention solutions for military and government facilities for more than a decade. The company has developed and trademarked its Environmental Stabilization System (ESS^®), as well as its Guardian™ and AIMMS systems, which are utilized for maintenance monitoring and asset visibility and tracking. For more information, visit www.logis-tech.com.

By Richard C. Dennis

The suggestions offered in this article are dedicated to managers, new and experienced, who are willing to pick up even one tidbit that may help them rent an extra storage unit or two per week or month. I will feel I have achieved something for my fellow managers if I can accomplish that feat.

For Managers Only

Managing self-storage facilities can be a comparatively stress-free position, but one of the more difficult parts of this business is salesmanship. There are not many of us who take to the chore of "selling" to a prospective tenant easily. To some, that part of this business can be very stressful. Dare I say, there are some managers out there who reluctantly do any more than disclose what is available and show storage units to prospective tenants if they come in. From that point, they let the prospect decide if he wants to rent a unit when, actually, the manager should be helping the prospect to decide, steering him in the right direction.

But first, the telephone. The odds are less than 30 percent that you will close on a prospect by talking to him over the phone. The odds jump to more than 90 percent once he is in your office. Therefore, your mission, should you accept it: Bring the phone shopper into your office--surely not too much of a mission impossible.

When the prospect calls you comparing prices with your competitors, your cheery voice certainly will catch his ear. Subconsciously, he is going to give value to the warmth of your greeting so that, even if your prices may be a little higher than your competitor down the block, he will want to come in to see your facility and what you have to offer. On the phone, you will want to roll out your big guns.

Tell the prospect what your specials are. If there are none, point out the benefits of your facility. Yes, there are "pricers" who believe only the lowest price matters. They do not realize the many benefits a self-storage facility may offer.

When the client walks in, put that dour, sour face in your pocket. It goes a long way toward making the prospect standoffish and defensive. He is only mirroring what is reflected on your side of the counter. When the prospect walks in, it means your phone presence did most of its work. Good. Now he is going to expect to see a cheery, smiley face, so don't disappoint him. Show your pearly whites as you greet the prospect. An outstretched hand of welcome is also nice.

Get to know the prospect. Ask his name, and use it constantly. There is no better way to ingratiate yourself than to use a prospect's name. People like to hear their name--it short-circuits any reticence or belligerence that might be forming in their mind. It shows that you care. While convenience of the location is the prime reason people consider your facility for renting, your cordiality and personality is the next probable reason why a prospect will or will not rent with you.

Challenging Prospects

We have all met the antsy type. He would rather be having a root canal than to be standing there talking to you. He is the person looking down his nose at you. He can't be bothered with details: what your facility has to offer, how your access gate opens with a code, that your contract calls for a reasonable vacating notice, that there is a late fee if the rent is not paid on time, that you require the unit be left as clean as it was when he received it. He just wants a storage space on his own terms and conditions.

Don't let this character run the ballgame. Be polite but assertive. Keep asking questions to help you control the situation. Ask for his identification or driver's license. How did he hear about your facility? Is there going to be anyone else who will have access to the unit? How long does he anticipate staying? How is he expecting to pay? Would he like to use a credit card with which to automatically pay each month?

When he asks a question, answer it and ask one of your own to regain control of the situation. Do not let your prospect dictate to you. If he attempts that tactic, you should politely correct him and indicate your company's policy does not provide for his request. Then ask another question. Each question you ask is designed to eventually get the prospect to initial and sign your company's contract and make sure that every page is properly filled in. If you've put your best foot forward--personally and for the facility--you've won over the prospect.

Things to Look Out For

Yes, it does take a degree of salesmanship when encouraging the prospective tenant to become a paying tenant. So, when showing the prospect a storage unit--and you'll probably show him more than one--start with the smaller size and work your way up to the largest.

By the way, the more units you show to the prospect, the less likely he is going to be a paying tenant--he's probably a tire-kicker or scouting around to open up his own self-storage complex. It could also mean you didn't do some salesmanship in the office before you took the prospect out. There is no reason why you can't help narrow the tour down to a precious two or three sizes suitable to the prospect's needs.

The most common excuse a "scout" gives to find out all he can about the prices and sizes of your facility is that he has a large home or both a home and office and isn't sure if he wants a small size or large. He wants you to provide all the sizes and prices he can get. But keep in mind: Your facility's owner is not in the business of helping others become his competitor.

Closing In

You should always try to close your prospective tenant. How do you do that? While you are escorting the prospect to a unit, you should be extolling all the virtues and benefits your storage facility has to offer. Point out the keypads that add to the security of the facility, the new roofs on the units, the clean exteriors--and emphasize that fact by stopping and picking up a cigarette butt or piece of paper, imaginary or otherwise. Make the prospect feel your facility would be an ideal, clean and secure place for him to store his goods.

Now that you have helped him narrow down his choices in the office, you constantly but subtly ask for the order, asking one of the following (or some variation):

• Do you think your goods will fit in here?
• The ceiling height should accommodate more than you anticipate, right?
• Do you think judicious packing and stacking will make this unit ideal for you?
• Do you have your own lock with you? If not, you'll find our prices are very reasonable.
• I'll take our lock off so you can put yours on, OK?

After asking one of the above questions, commence closing the door to the unit in anticipation of returning to the office. Finally, ask the prospect, "Is this the unit we want for you?" If you moved up in size as you showed your prospect and have asked your closing questions, you probably have a new tenant.

During the course of your conversation with the new tenant, you have made your talk light. The banter was jovial but businesslike. While you were explaining company policy and what is expected from the tenant, you made sure to have a set mental script you followed. If you have even just a touch of show business in you, you brought it out. It helped you. You're were on stage. Like a standup comedian, you presented your lines and, if it brought a smile or a chuckle to your tenant, all the better. It served to disarm him. It didn't matter if you had heard all your lines before--your prospect had not, and that is what you, as a performer, bank on to win over an audience.

Whether it is a single person or a couple with their kids and/or relatives, you had an audience. So, yes, you were performing. You could say you were in show business. And everything you did or said was designed to close on your prospective tenant.

Semi-retired from 30 years as a California broker in most phases of real estate and other entrepreneurial enterprises, Richard C. Dennis has applied his closing technique as a self-storage manager with his wife, Barbara. Together, they manage Brook-ridge Self Storage in Englewood, Colo.

By Mary Briggs

There was a time when a good-sized Yellow Pages ad was all your self-storage facility needed to remain competitive, when your facility was the only one within a five-mile radius, when free-rent giveaways were non-existent. That time is gone. In the past five years or so, competition has increased so much that in some areas, self-storage facilities are rivaling the convenience store--one on every corner. Consequently, the increased competition has made a remarkable change in advertising and marketing strategies, forcing owners to take a closer look at customers' needs and wants. Competition has made them look beyond their Yellow Pages advertising and test additional marketing avenues.

Surveys have revealed that customers have the opportunity to be selective because of the increase in facilities within their immediate area. "Good services" are a factor for selection. Move-in specials and giveaways have become determining factors. Convenience has emerged as a determinant as well. Market area has decreased from three to five miles, to one to three miles in radius.

With this information, owners defined their marketing area and began looking for advertising that would assist them in attracting customers in the immediate area. They began surveying the market area as to the highest percentage of current tenants in specific zip codes, and then by customer type: homeowners, apartment dwellers, commercial tenants, senior citizens, etc. Through the years, self-storage owners have used and re-used many kinds of advertising. Here are some conclusions:

The Best Marketing Tool

Your first and best marketing tool--which is also the one most often overlooked--is your on-site manager. A manager should be sales-oriented, know the competition and know how to sell the advantages of a particular complex. Also, he needs to be involved in the facility's marketing plan. If a manager believes in the marketing plan, he will make it work. Some of the best and most often used advertising ideas come from managers.

The Basics

Marketing and advertising tools come in varied shapes, forms and costs. Once you've defined your market area and customer type, decide what you want to say and how you want to say it. The following are some pointers:

• List all your major benefits and what they will do for your customers. Decide which benefits are most important and stress those in the ad. For example, a facility that features wide driveways can offer the benefit of a wide-turn area with easy access for large trucks.
• An effective ad will grab the customer's attention and motivate him to use your facilities. Build the ad around the benefits, listing them in order of importance. Begin with a rough draft, rewriting and revising it with improvements. Write it in plain, simple language--like you speak--so that readers can easily relate to it.
• Always use words that sell: free, new, discount, easy, improved, save, profit, money and you. These are the nine most powerful words in advertising.
• Your ad should also contain a persuasive headline that gains the reader's attention and promises a benefit. For example: "We can save you money." The headline should speak to your identified target market.
• Always proofread carefully: An error-free ad will enhance your image. Errors and omissions of specifics can tarnish your image and be costly.
• Define precisely any and all specials and giveaways. If your ad states "one free month with one paid," and the words "new rentals only" are omitted, current tenants may feel they are entitled to this special. You may have to honor the special in order to remain reputable and maintain good customer relations.

Inexpensive Advertising Tools

Numerous formats for advertising can be done inexpensively on a routine basis. An ad can be produced for a nominal cost through a print shop, or it can be reproduced on a copy machine as needed by the manager. Fees are kept at minimum if the advertisement is distributed directly by on-site personnel at the facility. Here's a review of some of the most inexpensive forms of advertising:

Tenant Referral. "Word of mouth" is rapidly becoming a viable source for new tenants. In some areas, tenant referrals are rivaling Yellow Pages in percentage for sources of new customers. To enhance this new customer source, one facility uses a tenant-referral coupon entitled, "Tell Your Friends to Stuff It." The coupon is 3.5-by-8 inches (three coupons can be reproduced on a standard 8.5-by-11 sheet of paper), offering an incentive for use by both the current tenant and the "friend." For example, each receives $10 off one month's rent.

"Stuff It" coupons can be included in move-in packets and/or distributed as tenants pay their monthly rent. Offering a discount to current tenants gives them a greater incentive to pass on the coupon, and it also serves as a thank you for their business.

Business Letter. Commercial- and business-storage tenants are still a relatively untapped source of new customers for self-storage. The business letter is an inexpensive method of promoting your facility and services to them. The letter can be targeted toward specific businesses, or toward a specific service, i.e., seasonal inventory storage. It should offer some type of discount or giveaway in order to track the response, such as 10 percent off or three free file boxes.

The letter can be sent by the manager on a monthly or quarterly basis, or can be used as an introduction for additional services or for a specific event, such as storage of dead and year-end files. It should always be followed up with a phone call or a visit from the manager to further promote your services.

Apartment-Tenant Referrals. Contacting apartment managers can be a good source for new tenants. For these, a "Space Invader" coupon, reproduced in the same vein as the "Stuff It" coupons, is an excellent tool that can be distributed by your manager.

Have your manager visit apartment complexes in the market area and supply them with coupons. The "Space Invader" coupon should have an incentive for the apartment manager as well as tenants. For example, a $10 referral fee and $10 off the first month's rent.

Every few months or so, re-contact the apartment managers in order to keep them supplied with coupons. Or, have an open house for apartment managers--invite them to the facility, show them around, offer refreshments and, most importantly, promote your services.

Thank-You Letters. Send out letters to "good" vacating tenants, offering them a discount on their future storage needs--such as a $20 discount on the first month of rent. For tenants who are leaving the area indefinitely or know they won't need storage within the next year, allow the tenant to pass the coupon on to a friend or relative. Transferable coupons increase the exposure of this marketing tool.

The Next Level

As competition increases, we often have to increase our advertising expenditures. Fortunately, there are several viable advertising options in the mid-dollar range that can be very effective. Here are some of the mid-range advertising options:

Fliers. Fliers are often used for short-term campaigns, such as a grand opening or a promotional special. Fliers can be distributed by the manager (or other sources) in specific geographical areas, such as parking lots and apartment complexes.

Keep flier advertising simple, specific and trackable. Keep headlines to less than seven words and body copy to no more than 50 words. Readers tend to have very short attention spans, so give the message quickly.

The cost of fliers varies greatly depending on quantity; the greater the quantity, the lower the cost of printing. Keep in mind the cost of this advertising has to include the cost of distribution as well.

Direct Mail. With direct-mail advertising, it is extremely important to know your specific market area. Coupons are sent to residences in a specific zip code. Computerized facilities can easily generate the highest percentage of zip codes for their current tenants, and use that as their primary marketing area. With a manual bookkeeping system, it takes a little more research in order to target your main zip-code area, but once this is achieved, it will greatly enhance your advertising effectiveness.

Direct-mail advertising requires that you offer something free, such as 10 percent off the first month's rent. Offer only one special. Don't confuse the reader by offering a choice of 10 percent off the first month or a free lock.

Direct mail can be sent through bulk mail by a manager, or through a direct-mail company. Normally, it is more cost-effective to use a direct-mail company, when you take into consideration the printing costs, employee time, mailing and the bulk-mail permits. With the direct-mail company, the cost is all inclusive, and these tend to average as low as 3 cents per piece, up to approximately 6 cents, depending on the area and quantity mailed.

Coupon Tabloids. This type of advertising is similar to direct mail, but normally the marketing area is not as specific. The cost is generally lower than direct mail. Promoters of these periodicals say that because the tabloids contain coupons for numerous businesses, the time use is generally longer because people keep these periodicals for an extended period of time. Once again, with this type of advertising, you need to use something that can be tracked for response.

Special Community Events. Every community has some type of local event that offers an opportunity for additional advertising, i.e., the chamber of commerce, Rotary or Kiwanis clubs. Participation in community activities is especially advantageous in keeping the facility visible in your area.

Facilities have conducted canned-food drives in cooperation with local organizations. They might offer $1 off a month's rent per can, up to a 20-can maximum. Prior to the drive, send a press release to the local newspaper promoting the community service. Also, send an additional press release after the campaign is over, announcing the amount collected and thanking all those who participated.

Participation in special community events works exceptionally well in small urban areas, but also can work well in the larger cities where there are small neighborhood organizations or local business associations.

The High End

The more expensive range of advertising is the Yellow Pages. It's the best source of advertising and tends to be the most expensive. The bonus is that people who pick up the Yellow Pages are already in the process of selecting a facility; you don't have to sell them on self-storage. You do, however, have to sell them on your facility--setting yourself ahead of the competition.

Keep in mind that larger ads tend to attract more attention. Make sure you match or beat your competitors' ad size. If you decide to save money and go with a smaller ad, you may end up losing a lot of business in the long run. In some areas, larger Yellow Pages ads garner preferential placement in the directory. If you have two or more facilities, you might afford a larger space by listing them both in one ad.

Most areas have more than one directory available. Try to evaluate directories as if you were the end user. Before buying space, check out the circulation of each, when they are published, and if the listings are accurate, complete and up-to-date.

When designing the ad, you should include several items: a headline with a promise or location, because most readers want a business that is nearby; business name, logo, phone number and operating hours; one or two key selling points, such as "we can save you money" or "credit cards accepted"; confidence-building information, i.e., "established in 1984"; and a closing command that spurs the reader to action--such as "call today to save money." Keep it simple, concise and easy to read.

Remember: Advertising is only as good as the response it draws. No matter what type of advertising you use, make sure it is trackable, so you can keep score on its effectiveness. Always keep it simple, yet specific. If it works, use it again; expand on it. If it doesn't work, eliminate it. Always keep an open mind, be creative and willing to try something new.

This article was written by Mary Briggs for Kevin Howard Real Estate, a management, consulting, brokerage and development firm based in Portland, Ore. For more information, visit www.portlandstorage.com.

By Harley Rolfe

It's time to discuss the rules of the road for operators facing competition--especially for the first time. Three live encounters in the last couple of months drew my attention:

• A letter from a competing self-storage organization summarizing the varying rates among the facilities in the area, suggesting that there was no reason for the disparities--and shouldn't we all get together and discuss industry problems?
• Remarks from a Midwest acquaintance describing conversations he'd had with the owner of a new competing facility, suggesting to him that price-cutting wasn't necessary and only hurt everyone in the industry.
• Plans for a company meeting that included inviting all the other competing facilities for a "social." The feeling was that all had the same problems and everyone would benefit from discussing them openly and together.

Pretty natural and innocent, right? We'll see.

When confronted with competition, a normal instinct on the part of commodity product competitors (like self-storage) is to try to control supply (be the only game in town) and/or control pricing--that is, get with your rivals and come to a little ... understanding. That's simpler than trying to buy them out, so why not? Because it can be dangerous.

Lighten Up

You may say, "Lighten up, Harley! We're small potatoes for this sort of thing." To which I will recite a story about a bunch of gas stations in a small Wyoming resort town where I once lived. They were subjected to an FTC trial for collusion. The usual riddle was at work: Are identical prices evidence of collusion or competition? Either could be the case. The local service stations never knew who roused the Feds, and they won the suit, but it cost each of them about $40,000. They could have lost everything. Don't feel that the ire of the FTC is reserved for the big boys (like Microsoft). Those regional offices have to earn a living, too.

Many business laws aim at protecting the public from predatory and exploitative practices by suppliers. Those in the strongest positions to do so are monopolies. And wouldn't most of us like to be just that? Our efforts to offer exclusives (such as good location, climate control, etc.) are aimed at making each of us the dominant choice in our marketplace. The trick is to do so and not fall to the temptations of the unlawful exercise of strong market-position power. It's not the monopoly that's the problem. It's the method of getting there (usually collusion) and certain practices afterward that can create difficulty.

Silent Partner

In any United States business activity, the government is always a partner, whether it's enforcing contract law, providing a stable currency, maintaining a peaceful society or, in this case, being sure that adequate competition exists to provide protection for the consuming public. Business could not proceed as we know it without the presence of the government--but it does have its drawbacks. The government purpose for business is to provide goods and services at the best price, provide employment and create a tax base. Notice that none of those addresses the welfare of any one business. We're on our own.

Government tries to protect society from exploitative business practices using regulation or competition. Competition is by far the best, because part of competitive behavior by suppliers is innovation, which is a good thing. Innovation occurs at a very slow rate without the spur of competition. Also, the adequate presence of competition in a market requires almost no involvement by the government--unlike regulation. While regulation can control pricing behavior, it cannot dictate innovation. Recently, the government has been at pains to reduce regulation, beginning with the telephone industry about 20 years ago, then trucking, airlines and, most recently, electric power. On the other hand, the government is more insistent about there being ample competition around to keep those capitalists (us) effectively caged.

Blindsided

What is a given to any marketer may be news to those not inured to the ways of serious marketing. Being ultra-cautious in contacts involving one's competitors is rule number one. Also, trade associations are a common way of providing a safe forum to discuss issues common to everyone in a particular industry. Associations are also sometimes used as a cover to participate in forbidden activities, so good administration is central to safe association operations. A common error is to have all the officers and functionaries be industry members. It's better to have a neutral outsider (such as an accountant, lawyer or paid administrator) preside over sensitive activities and avoid any suggestion of impropriety.

With many self-storage facilities being treated to increasing competitive pressures, the natural facility response can run afoul of the Feds. The relevant geographical area for self-storage is very local. Each operator knows everyone else. It is hard to engage in marketing without brushing up against anti-competitive situations. For industries used to marketing, early training for a newcomer includes a crash course on conduct relating to competitors. For an industry not accustomed to competition, a marketing culture doesn't exist. It's easy for them to be unaware of the hazards.

Anti-competitive practices are a matter of careful definition. If you suspect a problem, have a chat with your attorney. He can best serve you when you have a specific plan or situation in mind. It's better to talk with someone from whom you may need real help later. My remarks are intended as an alert.

They've Never Been There

There are those who sweetly say that competition is good for every one. It causes us all to be on our toes. They cite sports as their model, saying how silly it would be if only one team showed up--no competition, no game. They say it's almost un-American to be against competition. But those people have never been caught in the jaws of a price war. They know not the dread of watching margins shrink with all the suppliers threatened by each other. Each is unable to stop the pillage of a commodity marketplace that functions only through price-cutting.

We all have probably broken speed limits. If caught, we know the penalty. A $100 ticket stings. It slows us down for awhile. Messing with the anti-trust laws is a good way to imperil all of your efforts in a good business. Be prudent about competitive "speed limits." There are plenty of legitimate ways to meet competitive challenges. That is the usual setting for good marketing.

Harley Rolfe is a semi-retired marketing specialist whose career included executive-level marketing positions with General Electric and AT&T. He also owned lodging and office facilities for more than 20 years. Mr. Rolfe holds a bachelor's degree in economics from Wabash College and a master's degree in business administration from the University of Indiana. He can be reached at his home in Nampa, Idaho, at (208) 463-9039. Further information can also be found in Mr. Harley's book Hard-Nosed Marketing for Self-Storage.

With an extensive background in the self-storage industry, Clark Hotard brings a unique perspective and depth to his role as sales manager for Overhead Door Corp.'s self-storage system products. The company, based in Dallas, pioneered the upward-acting door industry, inventing the first overhead door in 1921 and the first electric-door opener in 1926. Today, the company and its divisions--including W.B. McGuire for loading dock equipment and impact traffic doors, and Horton Automatics for automated pedestrian entrances--is recognized as one of the nation's single-source manufacturers of integrated door and operator systems for residential, commercial and industrial applications.

Beginning his career in the early 1960s with B&M Corp., Mr. Hotard served clients in the pre-fab building market and was instrumental in developing time-saving solutions for client Kentucky Fried Chicken's rollout of approximately 1,000 store units. In 1974, he moved on to Tenneco, where he served as project manager, designing and remodeling service stations.

In 1982, as a private consultant, Mr. Hotard began developing self-storage facilities for private investors. As the industry was new, he was challenged to address and solve problems related to a variety of facility issues, such as security and climate control. In 1986, he joined a competing company to standardize construction procedures in the field, and soon thereafter moved into sales. At Overhead Door, Mr. Hotard acts as the team leader for direct sales efforts targeted to the self-storage industry. His product and industry knowledge are instrumental in expanding the company's presence in that arena.

ISS is now pleased to present an interview with Clark Hotard...

Why don't you begin by giving us a little bit of background on your involvement with self-storage and Overhead Door Corp.?

I got involved in this industry in 1982 building a facility in Jackson, Miss., while I was working as a consultant. I was also involved in one of the first climate-control facilities in New Orleans in 1983-84. That's when climate-control was just coming into its own. Since then, in the course of my career, I've built several self-storage facilities from the ground up. Ironically, I worked for a competing company for 12 years.

Overhead Door was founded in 1921 and invented the sectional garage door. In 1926 they invented the first electric garage-door opener. The company has grown since then to include virtually every type of commercial door produced in the United States.

Last December I was brought on board to head the self-storage division, which involves designing new, state-of-the-art door products, including hallway systems, dividing partitions, etc. These are the only products we offer related to this particular industry--the door that we have on the market now. And we're prototyping the self-storage hallway-system products as we speak. Those should come online in the next few months.

What we're trying to do is develop a self-storage hallway system using a flush and a semi-flush system, but also using advanced design technology and engineering to make it user- and installer-friendly. We also have a state-of-the-art self- storage door--the commercial door and the wind-loaded door--with several snap-on parts that eliminate a lot of fasteners and allow for a faster install and smoother operation. All three models have sealed ball bearings in the head plates as a standard feature.

What have you noticed in the evolution of this product since you've been in the business?

Well, I've seen things come along such as tensioning devices, the use of ball bearings, the use of snap-on components to eliminate fasteners, as well as efforts to make the door easier to install and operate. I've seen changes in packaging from individual doors in a box trailer to putting doors on pallets and being moved by a forklift. I've seen the advent of 20-year paint. The product has evolved in that regard, but the door itself really hasn't changed that much.

What do you see happening in self-storage as it pertains to your business, or in general?

I see the construction of more and more climate-control facilities, and the reason for that is two-fold: There are buildings available that can be retrofitted with relative ease and speed because the building is already there and existing. At the same time, I see land costs increasing. So consequently, less land is available for self-storage, and more climate-control will be built.

In years gone by, a self-storage facility could have several buildings on several acres. Now with land costs on the rise because of the boom we're experiencing in this country, people are buying less land and doing more with it, incorporating one large building with 300 to 500 units in it, and having it entirely climate controlled. Another thing we'll see coming about is this change: Before, climate-control units were contained virtually all on the inside of a facility. Now, I see the advent of a new prototype to be built that will have exterior, climate-control units, complete with a device that will keep the air-conditioning from being wasted. I also see much more multistory building coming on. Some of the major companies, such as Public Storage, have been building multistory facilities for a few years now--large, multistory facilities.

How much of a slowdown--if any--do you predict in development as a result of market saturation?

As long as there's reasonable money available, you'll see continued growth. This industry had peaked at one time during a recessionary period when no funds were available to build with, unless you had a company that was on the stock exchange, or a REIT; but as long as we don't see any drastic increases in the percentage of the prime rate, things should continue at an equal or only slightly slower pace. I don't see any more than a 4 percent or 5 percent decrease. I've been hearing about saturation for years, but I don't really see that much of it. Certainly there are areas that are overbuilt, but everybody's still renting. And they're still building. Take Dallas, for instance. I've been expecting Dallas to quit building for years and years, but that city has building going on everywhere.

I don't really don't see--unless the money supply is squeezed off--a halt in building. We've got an engine going here. It's climbing up the mountain full speed, so to speak; so unless somebody puts the breaks on--and they can certainly do that--I see continued growth.

Is there more demand for storage now?

I think there's more demand in that, nationwide, people are more apt to rent a unit that's climate-controlled. In years gone by, there wasn't climate control available, and people didn't want to put their valuables in an area that could get dusty or where moisture could cause damage. Now, with the increase of climate-control facilities and people getting more accustomed to the concept, they're more apt to trust a facility with their goods.

What have you noticed in terms of an increase of amenities at self-storage facilities, such as the sale of ancillary products?

I've noticed boxes personalized with logos available at various facilities, along with truck rentals and packing materials among other things. This is business like anything else. There are ancillary products owners can get involved with, and if they don't take advantage of it, they're losing good income. This trend will continue and you'll see more and more related products.

What do you see Overhead Door contributing to the industry as we enter the new millennium?

Overhead Door is a well-established company. We have a reputation for service and quality that far exceeds market expectations. We have a full staff of engineers who are constantly redesigning and improving each and every product we offer. We also have a well-established network of distributors throughout the United States who represent our company, some of them third and fourth generation. They're here to help us with these new products, in the warranty work as well as post-warranty work, which is a tremendous advantage to us.

We provide a 24-hour, toll-free number for our customers to call and receive the proper assistance with warranty and non-warranty issues. We are not owned by a steel company--our primary focus is doors. The best selling point we have is that we can call on our distributors for help in solving problems, such as broken springs or other things of that nature that come up, without the customer needing to locate help and possibly not getting the service he needs to continue his business. We feel this is a great advantage to us, and we intend to utilize it to its greatest potential.