In the May issue of Inside Self-Storage, in the article titled Rich Client or Thin Client?, incorrect contact information was provided for the author, Markus Hecker, and his company, SMD Software Inc. The company is based out of Raleigh, N.C., and the correct phone number is 919.865.0789. We regret any inconvenience this may have caused.

Marcus & Millichap Real Estate Investment Brokerage Co., a real estate investment brokerage firm, released its 2005 National Self-Storage Research Report, which indicates investors are gaining interest in self-storage, due in large part to a favorable lending environment and significant investor competition in other property sectors. National self-storage sales were up 10 percent in 2004, driven by activity in the North-Central and Northeast regions where sales more than doubled. Overall dollar volume reached nearly $800 million, up 50 percent from 2003 and more than double the volume reported in 2001.

The report provides in-depth coverage of key markets, broken into regions: North-Central, Northeast, South-Central, Southeast and Central. It also identifies markets of prime interest, including Atlanta, Boston, Chicago, Las Vegas, Los Angeles, Phoenix, San Diego, Washington, D.C., and others. Additional report findings include:

• Construction activity was brisk in 2004, as almost 15 million square feet of self-storage came online.
• Lenders are starting to view self-storage real estate more favorably. The sector has one of the lowest default rates when compared to multifamily, office and retail properties.
• Following a decline in investment activity in 2004, self-storage transactions in the West are expected to increase this year.
• Investor demand for storage properties in the South-Central region remains strong, with total dollar volume climbing 64 percent to $55 million in 2004 and the median price per square foot rising 54 percent to $44.
• The Southeast will continue to be one of the strongest performing regions, as several of its Metropolitan Statistical Areas are expected to register above-average job and population growth in 2005.
• Limited supply and relatively high cap rates spurred significant investment activity in the Northeast last year, with transactions in the $10 million-plus category totaling nearly $130 million, accounting for two-thirds of total dollar volume.
• Transaction velocity more than doubled in the North-Central region in 2004, and dollar volume rose to $192 million.

For a copy of the complete report as well as reports on other property types and markets nationwide, visit www.marcusmillichap.com.

Where have the gas-station attendant, bank teller and corporate receptionist gone? While theyre not completely extinct, they are shrinking in number. Like it or not, were all changing the way we do business. In the past, we built relationships and often made buying decisions based on them. These days, we deal more with e-mails, the Internet and self-service kiosks than we do with people.

You used to visit your clients personally. Remember the big corporate parking lot with the 25 spaces reserved for visitors? Remember the palatial lobby and the receptionist who knew your name? And, of course, the boss, George, always welcomed youafter all, that was his way of staying apprised of new products and services. When George made a buying decision, your relationship was part of his motivation.

Today, Georges company operates out of the same building; but there are only three visitor spots, a lonely phone on the counter, one or two empty chairs, and a sign reading Salespeople by Appointment Only. George now spends much of his time researching new products and suppliers on the World Wide Web.

Hard Negotiations

A good friend of mine is the sales and marketing manager of a small company whose mission is to invent new retail products, find a manufacturing source, and secure distribution through mass retailers such as Wal-Mart. He has a huge challenge, as these retailers typically wont see or welcome a salesperson.

Instead, they find what they need on the Internet, maybe make a phone call to ask specifics, establish several acceptable vendors whose product is sufficient, and ask for a price. Two or three suppliers are selected to negotiate final cost in a face-to-face meeting. Salespeople are not welcome. Negotiators are instructed to bring their profit-and-loss statements and be sure those in attendance are authorized to negotiate price changes.

A buyer like our client George might ask, What percentage of your cost does the accounts-receivable department represent? If your response is 1.5 percent, George will likely say, Please reduce your price by 1.5 percent, as we will pay you by wire transfer on the exact day and time stated in your terms and conditions of sale. And we have no intention of paying your accounts-receivable expenses for those who dont pay on time.

Its hard to imagine having to lay down your profit-and-loss statement in front of a customer. But undeniably, one of the side effects of technology is the reduction or elimination of relationships in the sales process and exchange of information. The bottom line these days is its all facts, figures and technology, while relationships are virtually (and literally) missing.

The Y (Young) Generation

So where does that leave us? It seems were caught in the middle of an overhaul in the way we do business. Relationship-based buying still exists for those who graduated from college before the Internet and PC explosion. I once attended a seminar in which the speaker asked all members of the audience over the age of 36 with an MBA to raise their hands. After they did so, he proceeded to say he was sorry for them because the icons they studied in school were the likes of IBM, Kodak, Sears and Xeroxall of which had lost or were losing their market positions.

One might conclude those older than 36 are comfortable in the world of relationship selling and uncomfortable filling out an Internet RFQ (request for quotation). Conversely, people in their early twenties not only have a greater understanding of and comfort with technology, they depend on it. Relationships almost dont matter to them. In fact, some would say that while these young people are technologically at ease, they struggle with personal relationships.

Last week, while doing volunteer work for my college fraternity, I walked into the presidents room to discuss events of the previous week. He was communicating with no less than five people on AIM (AOL Instant Messenger), plus one on his cell phone whom he was telling to get onto AIM. The TV was going, his favorite music was playing in the background and, last but not least, he was doing his homework. Be with you in a minute, he said and pointed to an empty chair.

Some would suggest this is just the beginning of a trend that will ultimately find us having to re-learn basic human communication. Colleges will have to offer classes on interpersonal skills: So, Jon, whats your major at Harvard? Well, Bob, Im studying the lost art of relationship-building.

From the self-storage industry to mining engineering, all of us will be affected by these changes. Younger leaders and the competitive demands created by the likes of Wal-Mart will push technology faster than ever. So we either need to get on the wagon or out of the way. At the bare minimum, be sure your software vendor is keeping you current. In addition, you might consider hiring a sub-30-year-old to make sure potential customers can find you on the web and you can quickly reply to their Internet inquiries.

Lee A. Miller is president and CEO of Andrews Software Inc., which provides software services and products to the records and information-management, confidential-destruction, and corporate markets. For more information, visit www.andrewssoftware.com.

Unless you completely understand and implement all of the elements of an effective self-storage sales program, you are merely going through the motions. Missing any one of them will diminish your facilitys overall success. Following are five key steps to running a profitable, productive business. Focus on each, and watch your sales soar.

1. Pay attention.

On average, self-storage customers call four to five facilities before making a decision on where to store. They have more choices than ever and access to a great deal more information, thanks to the Internet. This being the case, you must consistently ask yourself what kind of impression you are making on prospects.

Pay careful attention not only to the physical appearance and amenities of your site, but the quality of your phone-sales presentation. After all, if you cant entice prospects on the phone, theyll never see how remarkable your facility is. The first step is to be aware of your facilitys strengths and weaknesses, capitalizing on the former and improving the latter.

2. Master the sales presentation.

The development and implementation of an effective sales presentation is critical. It will take focused effort and ongoing training for continual improvement. The average store converts only 35 percent of its callers into renters. However, more than 90 percent of customers who visit a facility will actually rent a unit. This illustrates the importance of maximizing the potential of each call. If you can make a positive impression during the phone presentation and set an appointment to have the customer visit, you have a much better chance at closing the sale.

The presentation should begin with a friendly, professional greeting, as this creates the customers first impression of your store. Then ask about the customers needs and what he will be storing. This will give you the information you need to steer the presentation. Is the prospect storing household goods? Mention the many retail products you offer, such as packing supplies. Is he storing inventory for his home business? Emphasize your security features and any business services you offer. Finally, close the presentation, also in a friendly, professional manner.

Build value with the customer to establish rapport and set yourself apart from competition. If you can develop an effective sales presentation that improves your caller-to-renter conversion ratio, you can increase profits, even as the market becomes more competitive.

3. Consistently measure results.

Once you implement an effective sales presentation, you must have a system to measure its results. There are mystery-shopping services available to evaluate your incoming calls, providing recordings and advice on how employees can improve. You can also arrange to have mystery-shoppers visit your store. It is important for everyone involved in the selling process (even part-time employees) to be included in the evaluation, as it will help develop consistency in your sales efforts.

Use a customer-traffic sheet to record each call or visit and what was discussed. This is a great tool to track weekly and monthly sales activity and can be used as a method to follow up on future rentals. It can also be used to schedule appointments and measure components of the sales process, like month-to-date conversion ratio, rentals phone activity, etc. Finally, the traffic sheet is a good place to note how customers found out about the facility, which helps you measure the effectiveness of your advertising and marketing.

4. Know your competition.

You must know your competitors better than they know themselves. If you really know the facilities in your market area, you can steer your sales presentation toward your sites unique advantages. For example, if yours is the only store that offers individually alarmed units and security cameras in your market, emphasize these features in your presentation. Not only does it demonstrate the value of your site, it shows customers what differentiates you from competitors.

The more you know about your competition, the more confident you will become in selling your advantages. Start shopping competing facilities in the area on a consistent basis. Whether you do so as an anonymous potential renter or a friendly colleague is up to you. Either way, knowing what your competitors offer is the best way to know how to tailor your sales presentation.

5. Create an atmosphere for higher productivity.

You should have an employee-bonus program and make sure everyone on your staff is a part of this incentive plan. Not only will it create a team atmosphere, it will encourage employees to buy in to your sales efforts. Motivate staff members to achieve company and personal goals, and you can expect more consistent results.

Use the bonus program to set an expectation for acceptable and exceptional performance. Its a great opportunity to set objectives and recognize employees for their efforts. If implemented correctly, incentives create an atmosphere for higher productivity, which will strengthen your overall sales program.

Brad North is the founder of Advantage Business Consulting, which specializes in on-site sales, marketing, feasibility and operational training for the self-storage industry. He has produced two live videos and a workbook titled Maximizing Your Sales and Marketing Program, which can help managers improve their sales and marketing efforts. Mr. North also launched A TelePro, a mystery-shopping service that assists in educating, evaluating and improving the phone-sales performance of self-storage professionals. For more information, call 513.229.0400; visit www.advantagebusinessconsulting.com.

Over the past few years, technology has vastly improved the way self-storage operators do business. First, there was a mass migration from DOS to Windows-based property-management programs, and then web-based software entered the scene. New offerings brought electronic billing options and systematic ways to collect marketing data. Many operators created a virtual storefront, allowing tenants to rent units, pay their bills and access their account histories over the Internet in real time. These sophisticated features are making facilities more competitive in their markets.

But the changes have just begun. New technology will integrate all the facets of a self-storage operation and offer more money-making features. For example, web-based systems make it easier to share data between facilities, simplifying multi-site operation. They also allow call centers, which handle calls from prospective tenants when the site manager is busy or after-hours, to access a facilitys system and answer questions, rent units and collect payments. Finally, web-based software integrates with self-service kiosks that add customer convenience on site.

These days, owners expect to have access to their business data from anywhere at anytime, and web-based systems provide that kind of remote management. Users can see up-to-the-minute reports, keeping closely involved with their operations from any Internet connection. They can even consolidate reports from multiple sites into summary documents that analyze business trends. As they monitor financials and occupancy, they can adjust rental rates based on demand to maximize revenue.

Picking and Choosing

Now that you understand the benefits a web-based management system can provide, the question is how to choose from the available programs. While all Internet-based programs aim to offer remote access, they have fundamental differences in design. Two common systems are thin client and rich client.

With a thin-client program, a central server instead of your on-site computer holds all facility data. What this means is the PC in your office uses a web browser to download the business data you needthe information is no longer stored on your computers hard drive.

When you consider this type of program, pay special attention to the amount of data that will be passed back and forth between the server and office computers. Even with broadband Internet access, you may notice slower transmission speeds as your database grows over time. For example, it may take longer to print leases and receipts with the web-based program than it did with your old Windows program. And theres another potential drawback: With a thin-client program, if your Internet connection is temporarily interrupted, you will be unable to access the central server and, therefore, your data.

The other approach to web-based systems is a rich-client program written in Microsofts .NET (dot net) language. Rich-client programs use the same user-friendly design as other Microsoft products. They also eliminate sluggish speeds and continue to operate even when your Internet connection is down. What makes this possible is redundancy, meaning an identical copy of the database is stored locally on your PC. Since the data co-resides on your computer, a disruption to your Internet service only delays your updates. You can still access customer information and operate from any site. The local and central databases synchronize instantly once the Internet connection is restored.

With a rich client, when you make changes, such as processing a new move-in or accepting a payment, the information is immediately uploaded to the central server. Changes to rental rates or other adjustments integrate with all stores in real time. And tasks like printing are faster, because you dont have to download the information first.

Using .NET also gives you access to reliable, cost-effective SQL server databases. SQL databases give you a choice about where and how you host your data and which vendors you use for electronic billing and other services. For example, you can choose to host your own data or opt to let a software company host it for you. You can shop for the credit-card processing company that offers the most competitive rate and providers of ACH services. Being able to comparison shop and select vendors allows you to save money.

Whether you choose a thin- or rich-client option, Internet-based systems are evolving to offer better integration with all aspects of the self-storage business. Off-site operators have better, faster access to their data. They also have more options for providing top-notch customer service. User-friendly technology is the key to the future of the industry, and those who embrace it will far surpass those who dont.

Markus Hecker is the director of marketing for Raleigh, N.C.-based SMD Software Inc., which provides management software for the self-storage industry. For more information, call 919.865.0789; visit www.smdsoftware.com.

Last month, we discussed the elements of communication and how it forms the foundation for marketing and sales. This month, well look at marketing designed for the launch and support of records storage lite (RS-lite) in a self-storage environment.

No business can exist without selling something, which is why the importance of sales and marketing cannot be overemphasized. Marketing is the precursor to sales. To get a customers attention, you must demonstrate how your product or service has value to him. What makes this tricky is people value different things; but what seems to be common to all members of the human race is the avoidance of pain and the pursuit of pleasure. Dealing with records is a pain all business owners seek to avoid, whether their operations are large or small.

The business of records storage, like self-storage, is largely driven by peoples problems: lack of space, audits, litigation, employee fraud, etc. Records are often relegated to a basement, closet or storage room until an important issue rears its ugly head. When marketing records storage, you seek to show clients how they avoid this pain by storing their boxes at your self-storage site. If you accept the definition of marketing we used in last months columnMarketing is everything you do to put yourself in front of the customerand you agree the process must be simple and attractive to the customer, the goal is to develop a marketing plan that reflects those basic concepts.

The Elevator Speech

The elevator speech is one very powerful marketing tool. The playful premise behind it is you encounter a prospect in an elevator on the 25th floor and have only until you reach ground level to sell the person on your product or service. When you arrive at the lobby, he should know everything important about your offering and why it would be valuable to him. In your situation, the elevator speech is a brief, carefully constructed statement that tells interested parties the most essential information about your company and its RS-lite service. It summarizes your solutions value into a well-organized, digestible paragraph that will be compelling for your prospect.

You can use your elevator speech on the phone, during standard sales calls, at networking events, or any time you find yourself face-to-face with a potential customer. Following are a few questions that will help you construct an effective presentation:

1. What is your product, service or solution?
2. What need, problem or pain does it address and solve?
3. Who is your target client?
4. What does your offering do for him?
5. How does your offering work (how does it provide value)?
6. What makes you and your offering different from and better than others?

Customer Contact

Many marketing experts say prospects do not really pay attention to you and your business until the third contact, so you should devise a reason to communicate with prospects regularly. Some business owners use newsletters, others offer educational events, and some call on clients to introduce new products or services. Records-storage articles and websites are filled with stories about marketing methods owners have used to make (or break) their businesses. Read as much as you can and learn from others experience.

Some of the most successful RS-lite operators in self-storage use a showroom at their facility to demonstrate to clients how records management works. If you have the space, there is not better way to convince prospects of your services value than show and tell. If you dont have the luxury of a showroom, you can also consider using a laptop presentation or kiosk.

Finally, the Internet offers many inexpensive marketing opportunities. Professional videos and Flash applications can quickly walk prospects through a demonstration. Invite clients to visit your website by sending an e-mail with a link to your presentation, which should be informational and entertaining. Some enterprising owners have even offered a prize for spending a certain length of time on their websites. Be creative, and use as many marketing tools as you can to get your message in front of prospects.

Cary F. McGovern is the principal of FileMan Records Management, which offers full-service assistance for commercial records-storage startups and sales training in commercial records-management operations. For help with feasibility determination, operational implementation or marketing support, call 877.FILEMAN; e-mail [email protected]; visit www.fileman.com.

Management software is a fundamental consideration for any self-storage operator, and the technology is always changing. The market has seen an influx of web-based management packages, which deliver an array of advantages. But which one do you choose? When shopping for the right product, your primary consideration should be how the software will connect to the Internet: via terminal services or a thin client. This article compares the performance, benefits and licensing costs of each.

Terminal Services

Terminal services allows multiple users to log into a facilitys server under separate user sessions, meaning several people can use a facilitys management software from remote locations. Rather than installing the software on several computers, you install it on a single server. From a user perspective, it works just like its on his PC. Terminal services consists of three components: a remote desktop for administration, remote assistance and the actual terminal server. It allows changes to the server from two administrator connections, and one system administrator can invite another to connect to the server from any Internet portal.

Terminal services works through Windows Server 2003. To use it, youll need a server with 256 MB of RAM to run Windows Server, plus an additional 21 MB for each user. Keep in mind if you are running an older software application, your server may support up to 40 percent fewer users, and youll have to increase your server memory by an additional 50 percent. Check with your software vendor to make sure its product is supported in a terminal-services environment.

The biggest benefit to terminal services is centralized server administration. Because all users connect to the same server, installing new software and implementing regular updates is easy. On the other hand, terminal services is not a good solution for an enterprise environment, and there can be a tremendous amount of overhead for even the simplest of tasks.

The cost of terminal services includes the purchase of Microsoft Server 2003 plus two licenses for every user: a Client Access License and a Terminal Services Client Access License. The accompanying chart gives an estimation of costs based on a server with 20 user workstations. Obviously, the price will fluctuate based on how many users connect to the server. The following does not include the price of storage-management software, hardware or any additional networking costs. The published price is the suggested retail price, and the street price is what you should expect to pay.

Cost Breakdown: Terminal Services
Item	Description	Published Price	Street Price
2003 Windows Server	Operating system for server computer	$999	$729
Client Access Licenses (20)	Required to connect Windows Server 2003	$799	$589
Terminal Services Client Access Licenses (20)	Required to connect Windows Server 2003 terminal services	$2,899	$1,799
Total		$4,697	$3,11

Thin-Client Applications

A thin-client application uses an Internet browser to connect to a central server. It allows for quick implementation on user computers because all Windows operating systems include a preinstalled browser. While some packages rely solely on Microsofts Internet Explorer, others allow use of additional browsers, such as Netscape. This is an important option, as Explorer continues to be plagued with security vulnerabilities.

Two types of thin-client applications are used with storage management software: application service provider (ASP) and webbased data warehousing. With ASP, you store all your data in a remote server farm the software provider maintains. This gives you a centralized storage area that can be accessed from any Internet location. However, ASP requires a constant connection to the Internet. If the connection is unavailable on either the users or hosts end, the software is unable to operate.

Web-based data warehousing provides redundancy, which enables your business to continue even if your Internet connection is disrupted. This software works with a transmitter applet that transmits data based on user-defined intervals. After the Internet connection is re-established, changes are automatically sent to the server.

In terms of benefits, thin-client applications generally outperform those using other server-connection methods. Plus, all you need is a computer with Internet access to view your data. Finally, they carry reduced operating-system costs. On the other hand, if you fail to choose an application with redundancy of data, your software is inoperable when the Internet connection is disrupted.

Thin-client applications do not require licensing fees for multiple users. The cost simply includes $599 (street price, $799 published price) for a Red Hat Linux ES Standard operating system. Your storage-management software and hardware are, again, separate expenses.

Regardless which web-based solution you choose, research the product thoroughly before purchasing. While thin-client connections generally surpass their terminal-services counterparts, ASP requires an Internet connection to handle day-to-day business operation. Consider web-based software for your storage business and connect to the possibilities.

Steven Smith is a technical support manager for Empower Software Technologies LLC in Sun City, Calif. His goal is to ensure customer satisfaction for each call received by his support team. He has 15 years of IT-based experience in technical-support management and as a network architect and design consultant. He previously worked as a database administrator and contract specialist for Boeing Information Systems. Empower is the developer of Storage Commander self-storage management software for single- or multi-facility operations. For more information, call 909.672.6257; e-mail [email protected]; visit www.storagecommander.com.

Online payment processing is supposed to be easy, right? But recent modifications to rules and regulations by credit-card companies have caused confusion about what merchants can and cant do. Navigating the dos and donts may not be easy, but being able to accept credit-card payments online without having to pay the interchange rate is a real business advantage. Just make sure you understand the guidelines and how to choose the best payment-processing vendor for your needs.

Lets start by getting the technical jargon out of the way. Below is a list of some rules and regulations governing electronic credit-card payments and an explanation of how they affect your business. Each rule impacts the way the processor, merchant and customer interact before, during and after a payment. When searching for payment processor, you should know how the candidates will handle your transactions. Rule violations can lead to a forfeiture of service, delayed service and fines to the processor.

1. Your electronic payment option must include a bona fide convenience. The fee for the payment must be disclosed to the cardholder as a charge for the convenience, not use of his card.

The alternate payment method, i.e., paying online via credit card, is not the convenience. The convenience is the ability to pay rent any time of day, any day of the year. The convenience may also include the ability for customers to print payment receipts and histories off your website. In either case, any fee you charge the customer must be identified as a fee for the convenience you offer, not use of his credit card.

2. The payment option must be in a nonpersonal environment.

The online payment method cannot also be offered as an onsite payment option. If the customer is conducting business with you face-to-face, he should not have to pay a convenience fee.

3. The convenience fee must be flat or fixed, regardless of the amount of the goods or services purchased.

Charging a convenience fee is acceptable, but it has to be flat, not based on a percentage of sales or a tier structure. A typical fee ranges between $3 and $5 per transaction.

4. The convenience fee must apply to all forms of payment accepted: ACH debit (electronic checks), Visa, Master Card, American Express and all other payment cards.

If you offer ACH and debit/credit-card processing, the fee charged to the customer must be the same for both. It is not acceptable to charge a $1 fee for ACH transactions and $3 for debit/credit-cards.

5. The convenience fee must be disclosed to the customer before completion of the transaction, and he must be given the opportunity to cancel if he doesnt want to pay the fee.

Its important that your online payment provider label convenience fees as such. It should show the customer the total payment before the transaction is complete so he is clear about the exact amount and the fact a convenience fee is being applied. The customer must also have the ability to cancel the transaction if he doesnt agree with the fee.

6. The transaction must reflect the amount including the convenience fee. The fee may not be submitted as a separate transaction.

When a payment processor submits a payment to the credit-card companies, it must be for the total dollar amount including the convenience fee. For example, instead of submitting an $85 transaction for rent and a $3 transaction for the convenience fee, you must submit an $88 transaction for both.

Moving Forward

Now that you understand the basics of how online payments work, lets look at other important factors involved in accepting online payments. First, consider some of the benefits: quicker nonsufficient-funds notification, recurring billing and cost savings. Recent government studies as well as studies conducted by Visa U.S.A. Inc. show a business spends between $2.38 and $10 to process each paper-based check that enters its office. With some online processors offering sub-$1 ACH payments, the savings are obvious.

For your online-payment program to be successful, those working with the service from inside your business must adopt and accept it. Employees must understand how to use the service, why your company has implemented it and all the benefits it entails. The programs success depends on your staffs ability to market online payment options to customers.

You must also understand the needs of your company. Many different providers can process your payments, but each offers a range of services that complement the overall solution. Things to consider when evaluating a processing company include its length of time in the business, ability to integrate with your website and management software, ACH and debit/credit-card processing, and whether it offers an account-management center to tie it all together.

The company should also have a strict security protocol to ensure the integrity of its processing system and your payment transactions. Too many business owners look only at the front end of a system (how transactions are initiated) and not the back end (how transactions are completed). Since everybody runs their operation differently, its important to work with a vendor that can easily adapt to the structure of your organization.

Online payments are here to stay. With more and more companies offering electronic options, the service has changed from a nice to have to a need to have solution. Adopting a payment engine that will meet your current demands and grow with your business can only contribute to your overall success. Companies that offer online payment processing now will be light-years ahead of companies that wait.

Brent Hoffmann is the vice president of sales for Payment Service Network (PSN). PSN provides checking/savings account and debit/credit-card processing to self-storage and multifamily-housing clients. For more information, call 877.390.7368; e-mail [email protected]; visit www.paymentservicenetwork.com.

Today, there are more than 370,000 ATMs across the United States processing more than 12 billion transactions a year. Imagine the bank lines we would face if we didnt have this technology! And tellers havent lost their place behind the counter.

The self-storage industry faces a similar revolution in technology. Owners have many new options to help them run facilities efficiently and make their managers more productive, including centralized call centers, web-based transaction processing and self-service kiosks. While some may be hesitant to take advantage of these tools, they may change the way we do business forever.

Centralized Call Centers

The telephone is the No. 1 source of new customer leads for storage facilities, and owners spend thousands in Yellow Pages advertising each year to get their phones to ring. This is fine when your manager isnt busy. But which customer is more important, the one standing at the counter or the one on the phone? A call center ensures managers never need to make that choice.

Call centers can be used in a number of ways to benefit the operations of a storage facility. They can accept overflow or after-hours calls, guaranteeing all customers receive professional treatment. They can take payments, answer questions and rent units. Most important, they can field numerous calls simultaneously, giving you confidence that youll never miss a chance to maximize revenue and managers can make the most of their office hours.

Web-Based Transaction Processing

The popularity and acceptance of the Internet continues to grow beyond anyones expectations. Last year, more that 75 million people accessed the Internet in the United States alone. More than 55 percent of those users purchased goods or services via the web. The Internet now represents one of the largest pools of customers available to any business.

How are storage operators using the web? Websites promote facilities to prospects over the globe, helping informed customers find the storage they want and educating an unlearned public about the benefits of the product. Since customers now expect to conduct business over the Internet, smart facilities are integrating other web-based options, such as online rentals and payments.

Self-Service Kiosks

Kiosks are popping up in all kinds of businesses: airports, car washes, photo developers, gas stations, convenience stores, grocery stores and many other retail outlets. Now the storage industry enjoys self-service solutions, too. Just as the ATM revolutionized the banking industry, kiosks will change the way we do business at our facilities. They provide service to tenants around the clock, allowing them to rent units, pay their bills, manage their accounts and more.

Is it the end of the self-storage manager? On the contrary, just as ATMs supplement the service bank tellers provide, kiosks will help storage managers be more productive. A kiosk can handle customers more routine needs, allowing managers to focus on customer service and a facilitys marketing efforts. Many customers prefer using a kiosk when they know what they wantits convenient and simplifies their experience. But when they have a problem to be addressed, theres no replacement for personal assistance and service with a smile.

Applied Technology: Five Case Studies

National Self Storage

of Tucson, Ariz., has 90 facilities in 12 states. In 2000, its management team decided to provide customers a web-based rental and payment system. It worked with a third-party development company to enhance its website, then began offering Internet options. Two years later, it added a centralized call center through another service provider.

Over the past five years, National has processed more than 35,000 Internet and call-center transactions. The result has been increased occupancy and a 20 percent savings in payroll expenses that add more than $250,000 dollars to the companys bottom line each year. Company President Robert Schoff is excited with the results. Our managers have become more productive and more focused on the customer at the counter, he says. The call center and Internet have provided more options for our customers to conduct business with our facilities at their convenience.

The owners of 3 South Self Storage in Montville, Ohio, took an interesting approach to technology. They dont use a facility manager; in fact, they dont even have a management office. When a new customer drives up to the gate, he picks up a phone and immediately contacts a centralized call center integrated with the facilitys management software. The centers reps can see available inventory, rent a unit and provide a gate-access code in minutes.

As an added convenience, the site owners have also integrated the management software with the facility website. Customers can rent units and print their lease agreements right online. Using a secure login, they can retrieve account information and make payments.

Overall, our manager-less facility has been working well. Handling administrative work remotely through our property-management software seems to be the key, says Christina Quinn, operations manager. Our biggest challenge is making sure each customer has filled out and signed a lease agreement. We are working closely with the call center to remind customers it is necessary to complete and drop off the agreement on the day of rental. Denial of gate access has been an effective tool to encourage completion of the lease.

Spaceage Storage

of Marietta, Ga., installed two kiosks in an enclosed office area. The company posted story boards on the walls to teach customers how to use the self-serve units. It also employs a part-time manager who assists customers when hes not out marketing the facility to local businesses.

President Tom Daniel is confident in the kiosks ability to handle rentals and payments. Things are going very well for Spaceage. Were nearing 80 percent occupancy in just 18 months of operation, and we believe this is a direct result of the self-service kiosk allowing our manager to go out and market the site during business hourswithout incurring additional personnel expenses. The companys property-management software is integrated with its kiosks and website, allowing customers to book rentals and make payments at their leisure.

OB Cos.

owns three Simply Self Storage facilities in Illinois, Indiana and Ohio. The company has combined a website, call center and kiosks to streamline and enhance its operations. Kurt OBrien, president, is committed to giving tenants as many options and conveniences as possible. Working with several third-party vendors, he arranged integrated technology that allows customers to rent units, access account information and make payments online or via the onsite kiosks. Both these services are supported by a professional call center.

Phoenix-based Storage Solutions with its 40-plus facilities strives to provide the best customer-service solutions for its managers and customers. It implemented a web-based rental and payment system along with a centralized call center in 2002. Since then, the company has processed more than 10,000 web transactions worth almost $1 million. It also started using self-service kiosks at specific locations and is seeing great results.

Were very excited about new technology that will help our managers become more productive, says Vice President Ray McRay. The call center and Internet have helped our managers focus on more important customer-service issues, and the self-service kiosk will provide customers with 24-hour secure access to our facilities.

These are but a few examples of how self-storage owners have used technology to help managers become more productive. Facility employees can now focus on superior customer service and marketing. Call centers, the web and kiosks have introduced efficiencies that will increase a facilitys bottom line, allowing storage owners to enjoy the benefits of the business sooner and for a longer time.

Rick McGee is president of Online Self Storage Inc., which provides online reservations and payments, websites and online-directory services to the self-storage industry. For more information, call 877.301.4635; visit www.onlineselfstorage.com.

Diane Botwin Alpert repressed a wave of revulsion when property consultants recommended a self-storage development for her property. Yuck. That was my thought, she says. I was so sorry I couldnt legitimately engage in retail in the neighborhood and commercial area because the market wouldnt support it.

Like many people, Alpert regarded storage as an unattractive if necessary service, the real estate equivalent of ugly feet. But since the feasibility study appeared to be accurate, she resolved to approach the business on her own terms as a woman and mother. It would have to be reflective of my sensibilities, she says, something I could be proud of.

To Alpert, this meant relying on the same values she used in raising her sons: high expectations, respectfulness, accountability, creativity and a sense of humor. The result is one of the most unusual self-storage facilities in the country. Flex Storage Systems of Topeka, Kan., has won architectural honors, but it ranks as more than an impressive building. Its an organic child of the community, a flower of collaboration. If thats not unusual enough, consider that Flex also mounted a major art exhibit within its walls, attracting several hundred visitors and national press.

In the Zone

In researching the industry, Alpert and her husband read about 300 Inside Self-Storage magazines and attended the 2001 ISS Expo in Nashville, Tenn. They quickly learned zoning approval can be a mammoth obstacle for storage developers. So many of them come in and try to slam into neighborhoods. Neighbors dont like it, and they shouldnt like it, Alpert says. Rather than brace myself for a fight, I went to the neighborhood association on the front end and showed them what I wanted to do.

Alpert also presented her vision to city officials. This facility would be an economic spark in a depressed residential area near downtown Topeka. Every department at city hall was asked for ideas on design and sustainability. Together, they created a flexible zoning classification allowing the climate-controlled building to be converted to retail, as dictated by the communitys changing needs. Plus, Alpert agreed to reserve a pad site on the corner exclusively for retail development.

Its all geared toward stabilizing the neighborhood, which is how I conduct my business, she says. You cant just be in a neighborhood; you have to be part of it. When the zoning change went before the planning and zoning board, the facility received unanimous approval. Alpert says the entire neighborhood came out to show its support.

Winning Design

Flex Storage Systems architecture also proved a feat of synergy. Alpert called upon the Kansas City, Mo.-based architecture firm El Dorado Inc., known for innovative design. She challenged principal architect Josh Shelton to rethink the mundane and exploit the simplistic, telling him she wanted a facility that effuses a sense of responsibility to the neighborhood and initiates long-needed renewal. After opening in April 2004, the facility won honor awards from the Kansas City and Central States chapters of the American Institute of Architects.

One common complaint among storage tenants, particularly women, is facilities tend to be dark and uninviting. Alpert made sure Sheltons design placed a premium on illumination. The low-slung, 17,000-square-foot main building is encircled by panels of greenhouse plastic that lets in waves of natural, diffused daylight. The roofline of the building shoots up, and as you open the door, you capture all the light coming in, Alpert explains. We used photocell lighting up and down all of our aisles. The architects also used cove lighting in the corners so they glow. Its absolutely beautiful.

Shelton mixed concrete and prefab steel buildings with pine-plank flourishes and a sloping shed roof to add warmth and enhance aesthetics. Traditional metal roll-up doors were used but were painted in four subtle, appealing colors. Outside, Alpert planted plugs of natural Kansas plains grasses, enhancing the post-industrial, contemporary look. A writer for New York City-based Metropolitan Magazine deemed the result the most beautiful mini-storage facility shed ever seen.

Moving In Moving Out

The art show, titled Moving In Moving Out, grew from El Dorados connection with Kansas City artist Jim Woodfill, who designed the facilitys sign. Eventually, local curator Hesse McGraw told Alpert that Flex would be an excellent place to install an exhibit. She was taken with the idea and commissioned works by five local artists. I wanted to integrate myself into this community, and thats how the art show came to be, Alpert says. It was a great opportunity to bring in people who ordinarily wouldnt come into this part of Topeka.

Again, collaboration reigned, with artists, architects and the owner communicating daily via e-mail to review artist Mike Sinclairs photos of the neighborhood. The area had degenerated decades ago when the military base closed and investors transformed devalued homes into cheap rentals. The art pieces were crafted to reflect this history of decline as well as the potential for urban renewal, hence the exhibits name.

Artist Marcie Miller Gross installation, Use-re-Use, embraced the themes of storage and the reality of a struggling neighborhood: In the lobby, she neatly stacked hundreds of pounds of freshly washed clothing and towels bought from the thrift store next door. After the show, the items were redonated. Sinclair displayed dozens of photos taken of the surrounding area, including kids at the grade school.

Moving In Moving Out opened last fall, attracting more than 200 people to the launch. Over the next few weeks, school children, art teachers, university classes, city council members and other notable visitors came to the facility for tours and discussions. McGraw wrote that the exhibit was a public collaboration that optimistically suffuses all who choose to participate.

To Market, to Market

Alpert concedes an art exhibit is an offbeat way to publicize ones storage facility. But it was right for Flex and for Alpert long-range community goals. I think marketing is an elusive thing, she says. A lot of it is word-of-mouth with storage.

Since development began on the Flex project, five other storage facilities have opened in the vicinity. How is Flex faring? Less than a year after opening, the main building with 131 climate-controlled units is well over 50 percent leased. The facility recently opened another 168 conventional units, which are renting daily.

The leading lady of the facility says shes pleased with how Flex has progressed. I think if women are going to be happy in business, they have to be true to who they are, Alpert says. Women bring a wonderful, intuitive sensibility to business. For more information, call 785.267.2233.