Local promotional tie-ins are a cost-effective marketing technique. They carry a high return on marketing dollars, meaning very little money invested results in a lot more money coming in. First, lets define our term: a promotional tie-in involves linking your storage facility with other businesses in your local market.

For example, lets say you have a Dominos Pizza a mile or so down the road. You go in and introduce yourself. You find the store needs some storage space, and you strike a deal: The pizza parlor gets a free 10-by-10 unit for three months in exchange for putting your coupon on every pizza box that goes out the door during the 90-day period. One owner used this exact approach. In three months, he got 20 extra rentals through the pizza-box coupon. Considering he only sacrificed about $300 in revenue (to cover the free unit over three months), thats not a bad return!

Moving Companies

Another business that works well with promotional tie-ins is the moving industry. About six years ago, one storage owner contacted a new moving company in his area. He knew the business was struggling and asked the young owner if both his moving trucks were being used to full capacity. It turned out they werent, so the storage owner said he would pay the moving company 50 percent of its usual rate to book the trucks for storage customers during off times. Not only did the moving owner agree, he was willing to put a large magnetic sign on the side of the truck that said, Well move you for free to ABC Self Storage.

Over the years, both parties have been delighted with the arrangement. The storage facility uses and recommends the moving company exclusively, recommending it as his in-house mover. If a customer agrees to rent a unit for six months, he gets a three-hour move for free. If the customer agrees to rent for a full year, he gets a five-hour move.

Lets look at how the numbers might work. Lets say the moving company usually charges $25 an hour for a move. You only pay him $12.50 an hour, providing your customers use the truck during designated times when theyre not in use at the full rate. A six-month customer will cost you $37.50 in moving fees, while an annual customer will cost you $62.50; but when you consider the value of that six- or 12-month contract, you see its well worth it.

Not only that, but providing a moving truck to customers is a fantastic USP (unique selling proposition). Your customers get free use of a truck, and you never have the hassle of vehicle maintenance, insurance, etc. When the opportunity presents itself, there is no reason for you to go to the expense to offer something a moving company already does.

Real Estate Agents

Real estate agents provide another great tie-in opportunity, as they are constantly doing business with people who are moving and need storage. To get started, approach a number of agents with an offer of free booklets of moving and storage tips they can pass out to clients. The title of the booklet might be something like The 17 Things You Must Know Before Your Next Move. While its content will remain the same for all agents, you can customize the cover to each business.

Include a coupon for your facility on the inside of the back cover, and add a code unique to each agent. This way, youll know who is sending business your way. Finallyand most importantreward the agents for their cooperation. For example, consider giving them gift certificates to a local restaurant or shop. And cash is always popular! Again, this is a win-win situation. You get your company name in front of an untapped market, and you help real estate agents help their customers. The trick is to sell your site in a way that is subtle, more informational and less sales-oriented.

Use Your Imagination

There are many other businesses with which promotional tie-ins can be successful. The important thing is not to prejudge any industryyoud be surprised which ones will work for you. Be creative in your approach and consider all possibilities. And keep in mind that tie-ins can also work online. Link your website to that of other local businesses, and always track your results. Whether you work with a business physically or virtually, you want to know the source of your new customers.

Be active in your community, especially local business functions, and be on the lookout for opportunities. The chamber of commerce provides an excellent venue for networking with new business owners in your area. The smart storage operator is always looking for ways to effectively market his services through others. Dont be concerned about approaching business owners and being turned downthat is their loss. Your goal is to have the greatest number of people sending potential renters your way at minimal cost. The cleverer you are, the more profitable you will be.

Fred Gleeck is a profit-maximization consultant who helps self-storage owners/operators during all phases of the business, from the feasibility study to the creation of an ongoing marketing plan. He is the author of

Secrets of Self Storage Marketing SuccessRevealed!, available for purchase at www.selfstoragesuccess.com. He is also the producer of professional training videos on self-storage marketing. To receive his regular insights via e-mail, send a blank message to [email protected]. For more information, call 800. FGLEECK; e-mail [email protected]; visit www.fredgleeck.com.

Most self-storage owners would like to think their staff is loyal, trustworthy, honest and dedicated to their business. Unfortunately, temptation, greed, and social and financial pressure can drive some employees to treachery. Even the most efficient storage facility can fall victim to employee theft.

Larceny can be committed by one employee or several. Forging and hiding receipts, pocketing loose change and stealing merchandise from the office are common practices. There have been reports of managers creating bogus payrolls, over-billing expenses and committing purchase fraud. Some employees even go so far as breaking into storage units and stealing tenants goods, later calling police to report a break-in.

The U.S. Chamber of Commerce reports that billions of dollars are lost every year to employee theft. Stealing is a severe threat to any business, and it only takes one or two people to cause financial chaos. Self-storage owners should recognize the risks, deter dishonest employees from working at their facilities, and understand the benefits of the appropriate insurance.

Protect Your Business

So what can you do to protect yourself from employee dishonesty? In-house theft can be hard to detect, especially if the criminal is good at what he does. There are several ways to keep a closer eye on your facility and minimize risk. Start by watching out for unusual occurrences, such as discrepancies in cash amounts and missing supplies and merchandise. Take notice of employees behavior. Watch for unusual working hours, poor work performance, constant complaining and defensive behavior.

Implementing an antitheft regime in your facility can also reduce your risk. Employees will be less likely to steal from you if they think there is good chance of being caught. Perform regular surprise visits and audits to keep track of merchandise and receipts. When employees take time off, use their replacements to double-check payroll and accounting.

Organize an awareness program to educate workers about crime and keep them on the lookout for theft. Set up surveillance in key places such as the management office and primary storage areas. Not only will this create a historical record of events, it can deter theft from outside the facility as well. Avoid retaining tenant keys to eliminate access to customers goods. Most insurance companies wont write policies for storage facilities that keep keys because of the increased risk it entails.

Finally, know who you are hiring. Some people have theft in mind from the start, and you can avoid hiring these candidates by conducting thorough background checks and obtaining previous job references.

Get Covered

In addition to deterring crime, secure an adequate amount of employee-dishonesty insurance. Losses due to employee duplicity are excluded under most commercial policies, and many owners dont realize the importance of this coverage. It can protect against damages from theft, embezzlement and other related risks, and can be tailored to fit the size and scope of your operation. In most cases, your business-property and liability insurance package can be endorsed to provide coverage against employee dishonesty, loss of money and securities from your premises, and loss of other covered business property such as computers.

One important point to remember about an employee-dishonesty claim is the act must have been committed with manifest intent. In other words, the loss must be the result of an unethical act such as lying, through which the employee sought personal gain. Without manifest intent, these kinds of claims are generally disallowed.

Also, inventory-shortage claims are excluded from employee-dishonesty policies because losses can occur from a variety of reasons besides theft, such as accounting errors. Consider also that money and security claims and business-personal claims are not the only losses that can be covered under employee dishonesty. Endorsements might be available to protect you against check forgery, credit-card misuse and computer fraud to supplement your existing protection at extra cost.

This article is a guideline to aid in minimizing risk in self-storage facilities. The information it contains is intended to be of general interest and does not address the circumstances of any particular individual or entity. Nothing in this document constitutes legal advice, nor does any information constitute a comprehensive or complete statement of the issues discussed or the laws relating thereto.

Amy Brown is part of Universal Insurance Facilities Ltd., which offers a comprehensive package of coverages specifically designed to meet the needs of the self-storage industry. For more information, or to get a quick, no-obligation quote, call 800.844.2101; visit www.universalinsuranceltd.com.

In the past, self-storage businesses received the lions share of rental payments in the form of paper checks, but these are quickly becoming a thing of the past. Electronic-check payments, known as electronic funds transfer (EFT), are fast becoming an efficient, economical way for storage owners to collect funds from tenants.

According to the Federal Reserve, EFT transactions totaled 44.5 billion in 2004, exceeding paper-check transactions at 36.7 billion. The shift to EFT is one indicator of the growing role technology plays in business. The more significant impact of this trend is electronic checking competes with and complements credit-card transactions in providing optimum convenience for business owners and customers.

Credit and Debit Cards

Your facility may already accept credit cards for point-of-sale and automatic-payment transactions. Paying rent automatically by credit card offers many benefits for you and your customers. Tenants like the convenience, and storage owners report that auto-pay customers tend to rent for longer periods. Though you must assume the cost of credit-card transactions in the form of processing fees, your funds management still improves. Predictable and timely tenant payments relieve you of the tasks and expense involved in pursuing delinquent accounts.

Debit cards that carry the Mastercard and Visa brands can be used for transactions in which the exact amount of a sale is deducted directly from the cardholders checking account. They may also be used for transactions in which the cardholder enters a PIN to complete the sale. This method is used for point-of-sale transactions only, since the merchant cannot hold a customers PIN for use in an automatic-payment scenario. Many businesses prefer a debit-card transaction to paper checks because they are confirmed against a customers checking account balance before payment is approved.

The Benefits of EFT

An EFT payment, also referred to as an automated clearinghouse (ACH) payment, is a paperless transmission of money through a computer network. EFT provides an attractive payment alternative. It involves automatically debiting customers checking accounts when payment is due, and withdrawals register on their monthly statements. Since EFT payments are processed before paper checks at the Federal Reserve level, they ensure rapid posting to your business account.

To accept EFT, you need a merchant account with your bank or payment-processing company, along with an Internet connection to upload your batch transactions. You also need to file a Credit Exposure Risk Status Report indicating the maximum amount in EFT transactions you intend to process each month. Finally, youll have to pay processing fees.

Generally, youll pay a fixed monthly fee to your bank or processing company for use of its online service center, which allows you to upload transactions and retrieve activity reports. This fee might range between $20 and $25. Youll also pay a flat or per-transaction fee for your EFT processing, based on the rate you negotiate. These file fees are competitive with credit-card transaction fees. They might range from $20 to $50 if you pay a flat monthly fee or approximately 10 cents if you pay per transaction. You might also pay an account-setup fee as well as charges for nonsufficient-funds (NSF) transactions, though these are much less expensive than NSF charges on paper checks.

How It Works

To automatically debit a customers checking account, you must have the tenant sign an authorization form for you to keep on file. (If the account is joint, both account holders are required to sign.) Next, you run one of your customers blank checks through a magnetic-ink check reader, which transfers the account and bank-routing numbers into your management software. Every day, your management software will display a screen to let you know if you have EFT payments to process. The software sends all the information directly to your bank or processing company in a batch, and you never see tenants personal financial information.

When your batch uploads to the bank or processing company, its transmitted to the ACH. From there, each transaction from the file is sent electronically to the customers banks, and each account is debited for the amount of payment. The transactions are then sent to your bank and credited to your account. The turnaround time for the batch transaction, from upload to deposit, is less than 48 hours. If a customers payment is for some reason reversed, youll know within 24 hours.

Electronic banking allows storage owners to deposit funds without going to the bank. It also establishes a more positive relationship between the business and customer, as it eliminates many scenarios involving late payments and fees. EFT is well on its way toward being the norm in everyday self-storage transactions.

Alison Kiesa is the sales and marketing director of Syrasoft Management Software LLC, which has produced management-software solutions for the self-storage industry since 1991. For more information, call 800.817.7706; visit www.syrasoft.com.

People in the self-storage industry talk about marketing as though its something you have to add to your business. But the fact is your business already uses marketing. The question is whether it is being handled properly. In the Frontier Days, traders traveled from settlement to settlement, carrying their entire inventory in their packs. These pioneer peddlers had to decide what to carry, how much to stock, how much to charge, and how to convince prospects their goods were worth the price. In doing these things, they were engaging in marketing.

This little bit of history is meant to make a point: Marketing isnt some exotic, newfangled notion. Youve been using it since the first day you decided to go into business. I know there are sophisticated techniques and high-tech formulas that earn the people who have mastered them a lot of money. But for our purposes, lets focus on how your natural sales skills can be the basis for some simple yet effective strategies.

Non-Storage Customers

Good sales skills enable you to anticipate what customers need before they know they need it. For example, if theyre renting storage for household goods during a move, you know they could probably use garment-storage bags, furniture covers, desiccants, cartons, bubble wrap, tape and so on. You sell these items to customers all the time, so its not exactly ESP. But what if you were to apply the same approach to people who havent come in to rent storage space, those who visit your facility with the intent to purchase retail products?

Given time, these customers may become renters. But since you dont currently have a business relationship with them, how do you anticipate what they will buy? You probably already have a better inventory of moving supplies than most retail stores. And your employees have learned through experience what people need during a move. So the real question is: How many retail prospects are in your area and how do you reach them?

According to the U.S. Census Bureau, 16 percent to 20 percent of Americans move their homes every year. Homeowners move every 8.2 years and renters move every 2.1 years. That being the case, there should be a good number of people in your market interested in purchasing retail moving products.

How do you reach them? Traditional outdoor signage may attract drive-bys, but there are more active ways to promote sales. Ads in the local shopper publications might work, but think also about places these prospects frequent, such as real estate offices, apartment complexes and supermarkets. A well-placed flier at these locations could garner the right attention.

Current Tenants

What about your current customers? How do you encourage them to purchase more than space? Include a coupon for retail purchases with your monthly invoices. Even if your tenants dont use it, they might pass it on to a friend. Remember, once people connect you with moving supplies, word-of-mouth will come into play, saving you real marketing dollars.

Theres no better source for commonsense marketing ideas than your own imagination and experience. If youve had success with a promotion youd like to share with others, feel free to contact me. Im always happy to pass along what Ive learned from friends in the business.

Roy Katz is president of Supply Side, which distributes packaging as well as moving and storage supplies. The company has developed merchandising programs for many leading companies including Storage USA, the U.S. Postal Service, Kinkos and Mail Boxes Etc. For more information, call 800.284.7357 or 216.738.1200.

Theres no doubt the Internet has changed the way we do business. While the impact of the web has been greater for some industries than others, its finally affecting the self-storage industry and shaping our business landscape. One of the main reasons the web has such an enormous influence is because it gives consumers greater access to information on products and services. With more information at the buyers fingertips, the balance of power between buyer and seller (control of the sale) has permanently shifted toward the consumer. Its a buyers market and a national marketplace.

Realities of the Online Market

Nothing illustrates this paradigm better than the recent experience of a friend of mine. She was in the market to purchase a new car. In the past, she dreaded the dealership car-buying experience. This time, however, she was much more confident. Thanks to the Internet, she was able to research all the models that interested her. She compared all the features and extras, and printed out all the data and MSRP prices.

Before my friend even walked into a dealership, she knew exactly what she wanted and what she was willing to pay for it. In addition, she had already lined up financing on the web and knew her monthly payment. No more Let me talk to my manager or What do you want your payment to look like?thanks to the web, she was in control of the buying process. This is the reality every business owner now faces. The question is how and when to turn this to your advantage.

Accept, Adapt, Be More Competitive

Some business owners worry the Internet takes away their control. They suspect their data might be accessed or hacked into by an unauthorized party. They worry about their Internet service provider or the entire power grid failing. You could get paranoid about these doomsday scenarios. While they are valid concerns, at some point, you have to cross the threshold of fear and ask yourself, Do the benefits outweigh the potential drawbacks?

Thats where many self-storage owners stand on the web issue these daysweighing the pros and cons. But the ones who are willing to accept a web-based reality are the ones who will survive in the long-term. Smart owners will adapt to the new national marketplace and determine how they can use the Internet to make their businesses more competitive. Operators need to understand the web is more than a powerful medium for consumers to research products and services; its also an effective platform for managing a business.

Many industries are using the Internet to run their operations more efficiently using real-time web-based software. The Internet eliminates a lot of paperwork and redundancy in systems. It also reduces operational costs, enables a more streamlined management approach, and allows for faster response to rapidly changing market conditions. A storage owner can access his web-based system from any Internet connection in the world. He can even monitor his facility while on vacation with his family.

Self-storage leaders like Private Mini Storage, Public Storage, Storage USA, U-Haul, and Your Extra Space havealready shifted their operations to a web-based platform. Its only a matter of time until all of our industry forerunners convert. If you agree that a web-based management approach is here to stay, ask yourself how you can adapt your business accordingly.

Advantages of a Web-Based Platform

The power of the web lies in its ability to connect to a network. It offers business owners an opportunity to look big but stay small. By shifting to a web-based platform, a self-storage owner can take advantage of a bigger network of operators (economies of scale) and compete with the big brands without sacrificing his personal business identity.

I recently spoke to three self-storage owners who transferred their business operations to the web. Each is a different class of owner and a leader in his own league. When I asked why they decided to switch to a web-based platform, this is what they had to say:

• Lee Fredricks of Texarkana, Ark., owner of six Tri-State Mini Storage storesMy roundtrip drive to all our facilities is about 16 hours. The difficulty in managing the properties up close and personal is very challenging. I need a method of keeping a close eye on my facilities from very far away. We are a very small operation, and we run a tight budget because of our debt-service ratios. I want a simple and easy-to-use management system that requires minimal hardware, makes me more money and saves me money. I dont want to keep spending more every year to upgrade my hardware and get faster machines.
• Van Gray, owner of Your Extra Attic, a 14-store chain based out of AtlantaOur operational costs have been reduced in terms of what we pay for technical support because we use a free live-chat tool over the web. It has also reduced the paperwork and faxing load from facilities to the corporate office. We can now standardize the rates between facilities and adjust them, which will increase our revenue across the board. Also, we keep getting referrals from other self-storage companies who are on our same platform, and this has resulted in significant occupancy increases in some of our stores.
• Andy Hyde, owner of All City Self- Storage in PhiladelphiaMy storage building is 15 miles away from my office. My partner is five miles away. My marketing company is in Texas. My accountant is farther way. I looked at standalone packages that transmit data periodically; it really wasnt enough. I wanted to get into the system to work on letter templates and business rules. And when my employees have trouble, I want to be able to help them without having to drive to the store. I recently migrated to a less expensive web-based platform because I want something in real time but thats affordable.

Lee, Van and Andy got over the fear factor of putting their business on the web and now leverage the Internet to improve their service and profits. Their focus was not just getting better online technology; they really asked themselves how the technology could bring them a long-term, strategic business advantage. By embracing the changing reality the web brought to their businesses, they created a cost benefit. The Internet enabled them to tailor their storage offering to customer preferences.

The Right Solution for Your Business

How do you pick the web-based solution that balances your business and customer needs? At the end of the day, owners all want the same thing: They want the best technology and tools to manage their business at an affordable price. They want to know how the technology will allow them to improve their bottom line.

There are a lot of software platforms to choose from and more and more vendors crowding the marketplace. All the programs are starting to look the same, though each claims to be better than the others. How do you determine which is best for you? Here is a simple checklist to use as you shop for your web-based solution:

• Simplicity and Ease of Use: You want technology that is simple and easy to use. Does it perform basic management functions securely and reliably? Does the vendor have a large base of successful users in the industry?
• Increased Occupancy: The power of the web lies in its network. Does the software connect you to a bigger pool of customers? Does it offer you the advantage of co-branding? Can you receive referrals from fellow operators?
• Savings: You are in business to make a profit. There is no reason to change your software unless it improves your bottom line. Does the technology save you money on operational expenses, tenant and property insurance, credit-card processing and after-hours phone support?
• Increased Service: Customers demand increased convenience. Does the technology enable customers to make payments, manage their accounts and get help online?
• Knowledge of the Business: Is the technology created by professionals in the self-storage industry? Does it allow you to leverage the know-how and best practices of the industry to strengthen your business?
• Affordable Technical Support: All technology purchases require support and upgrades. Make sure all forms of technical support are available and, more important, affordable. Find a vendor who furnishes regular upgrades at no additional cost.
• Price/Cost: Dont be fooled by fancy corporate presentations on expensive features. Web-based technology is not inherently expensive. Is the technology affordable? Does it deliver value as determined by improved profits?

The Internet offers a once-in-a-lifetime opportunity to transform your business and gain a permanent strategic advantage. Embrace the web and you will be surprised to see how fast your profits increase. Use the checklist and good old-fashioned personal judgment when you shop for online technology. Leverage the web to fill your storage units, make more, pay less and compete with the big brands without losing your independence.

Srini Vasan is the director of eMove, a subsidiary of U-Haul International Inc. and the worlds largest online marketplace for moving and self-storage products and services. Independent self-storage owners can connect to the eMove network by becoming an eMove Storage Affiliate. Premier-level affiliates receive WebSelfStorage, a web-based point-of-sale and management software. For more information, call 866.MY.EMOVE; visit www.emove.com.

Its a technological world, and Im a technological girl. I prefer online shopping to braving the mall. I love my laptop. Im addicted to my PDA, MP3 player and AIM. My phone is for text messaging, and I keep a blog. My keychain holds a USB memory key. I buy CDs only to rip them. All my photographs are digital. And when I go out with my single friends, its now an e-mail address I watch them slip to their promising prospects. E me, they say with a coy little smile.

Spend an hour in a coffee shop hotspot or waiting in an airport and its like being at a mechanized carnival. Step right up, ladies and gentlemen! Welcome to the New Worldthe world of web, wireless and all manner of hi-tech wonders! Youll see hands-free devices send data through the air! Send pictures to your friends through your cell phone! Zap your business card to a colleague! And those of you with a stomach for astonishment can watch as multiple storage facilities conduct businessin real timefrom a central database via the Internet!

People are coming around on this technology thing. As one of this months writers deftly points out, you have no choice. Get on board or get out of the way, he says. In either case, the revolution is on. Dont feel like communicating via e-mail? Tough. Dont want to conduct business via the web? Too bad, baby. You may be a small facility, you may be a business that prides itself on personal touches. But if you fail to give customers the conveniences they cravei.e., online rental and payment options, e-invoices and self-serve kiosksdont be shocked when a PC dances on your bottom lines grave.

Even if you dont like it, developments in self-storage software and related technology are accomplishing wondrous things for operators in this industry. In the pages that follow, youll read about kiosks, call centers, online payment processing, centralized database solutions, wireless devices, future software features and more. A few years ago, the ISS Annual Software Issue (every May) focused solely on providers of management programs and how to choose between DOS and Windows. Our horizonsand yourshave been greatly expanded by a plethora of new-fangled products.

All that being said, I love to play devils advocate. Hi-tech tools are fantastic, but what about the importance of personal relationships? Can an e-mail convey the affability of a phone call? If tenants rent their units through a kiosk and pay their bills online, how will operators get to know them? How will they learn who their tenants are and what they store in their units? And what will all this automation mean for the position of on-site self-storage manager?

Good questions, all of them, and worthy of contemplation. Perhaps you should think about them over a caramel macchiato while viewing your management reports remotely from a Starbucks near you.

Have fun at the fair,

Teri L. Lanza
Editorial Director
[email protected]

Youve finally made the decision to buy management software. At first glance, it seems all you need is a good product. But while software quality is of utmost importance, theres something else to consider: technical support. For most buyers, software support is an afterthought, an add-on many believe to be necessary only immediately after the sale. But the truth is technical supportinitial and ongoingis as critical as the product itself. The question is how to make the most of it so your software can be operated to maximum potential.

Do Your Homework

Often, the person who buys the software is not the person who will use it. This is especially true in the self-storage industry where the primary decision-makersowners and investorsare one step removed from a facilitys day-to-day operations. Site managers are often the last to know when new software is being installed, despite the fact they are the ones who will use it the most.

Its imperative for your managers to familiarize themselves with the software by practicing on a demo and reading the manuals providedbefore you install it on your facility computer. The first few support calls your managers make should not be exhausted on fundamental, how-to questions that could have been easily addressed in advance. For the same reason, you should be as familiar with the software as you expect your managers to be. Support technicians are qualified to answer questions from people with various levels of expertise, including operational employees. Its your duty to take advantage of that distinction in service.

Many vendors offer training around the time of installation. Being educated about the product beforehand will be beneficial for you, your staff and your vendor. By not entering the training cold, youll retain information more effectively. And those conducting the session will be able to delve into more advanced topics, ultimately helping you optimize use of the software.

Know Your Specs and Keep Current

Your vendor should provide you with a list of the hardware and software youll need to use its product. Your management software will be rendered useless if you dont have the right equipment to run it. That being said, if you know of a deficiency in your system, share this information with your support staff if a problem arises with your software. More than likely, the deficiency and problem will be related, which means your issue can be easily identified and resolved.

Your vendor will also release regular product upgrades. Although you have the option of keeping your current version, upgrading to the latest edition is always best. An upgrade typically includes new or modified features that enhance the product and improve the way you do business. Support technicians are trained to provide customer assistance for the latest version of their product. By the same token, few support teams are willing or able to assist a user operating an outdated version of their software.

A History Lesson

Before contacting technical support, there are things you can do ensure your issue is handled in the most appropriate manner and least amount of time. Inform the representative if your problem is one that has occurred in the past. Any respectable support department will be able to quickly identify your account and scan a history of your calls. A previous inquiry on a similar matter can shed light on your current situation, regardless of who handled the callwhich means you can spend less time on the phone with a support technician and more time servicing customers.

Error Messages: What, When and Why

Support teams are frequently contacted as a result of an error message that appears during operation of the software. Error messages should not be ignored. Programmers deliberately encode them into software to warn users when something unusual has occurred. In a best-case scenario, the message is simply a result of a single event that can be easily reversed or resolved. In a worst-case scenario, the message is an indication of a problem that, if disregarded, can lead to more trouble down the road.

Contact your support department as soon as an error message appears, and try to recall exactly what you were doing before the message came into view. Its the support technicians responsibility to determine why it occurred, and any information you provide will improve the likelihood of a quick resolution.

If you must move past an error message, its critical to write down its contents word for word. No matter how confusing a series of numbers or letters may be to you, it means something to your technician. If possible, take a screenshot of the message and fax or e-mail it to your support department. (On most computers, you can create a screenshot by pressing Print Screen on your keyboard and copying and pasting the image into your word-processing software.)

Dont Cry Wolf

Some software users will call a support department with minor issues that dont require immediate attention to continue facility operation. These callers will typically have their calls answered in the order they are received within a specified time frame. If your computer is down, meaning you cannot do anything until you receive help, a good support staff will give your call priority. But dont take advantage of this policy by claiming your problem is worse than it is to jump to the front of the line. Not only will you be cheating the customers who really need immediate assistance, youll also risk losing credibility with your vendor.

You and your employees should take full advantage of all the software resources available to you. Technical-support services are vital, and learning how to use them effectively can only add to the success of your operation.

Veronica Hsia is the director of marketing for Domico, which has provided management software to the self-storage industry for more than two decades. For more information, visit www.domico.com.

“The future’s so bright, I gotta wear shades.”

This well-known song excerpt sums up the future of self-storage technology. The next few years promise better and simpler management software that tightly integrates with advanced security systems; wireless devices that can be mounted anywhere and moved in a flash; IP-based equipment; and software with remote-monitoring abilities. Of course, the hardest part of predicting future developments is imagining technology yet to be discovered. In the meantime, let’s envision how existing tools may come to be applied in the self-storage arena.

Web Everything

Twenty years ago, a major computer manufacturer advertised “the network is the computer,” meaning networking abilities were a PC’s most critical function. Today, the Internet is the computer. If your PC isn’t connected to the Internet, it’s a boat anchor. Regardless which self-storage management software you use, it will soon necessitate an Internet connection—if it doesn’t already. Why? There are several reasons. The first is flexibility.

Most of today’s management and security applications are written with personal productivity tools. They have limited abilities regarding networking and Internet access. But rewriting current applications to be web-accessible with database engines that can accommodate one to hundreds of users means self-storage owners don’t have to change software as their business grows. Being able to access information from anywhere at anytime also increases productivity.

For the software provider, the flexibility afforded by the web means it can offer one application that will work for all of its customers, regardless of the size of their operations, simplifying upgrades and support. The same flexibility allows self-storage tenants to securely pay their rent, view payment history or rent units online—all without extra fees for using a third-party provider.

As management software integrates more closely with a facility’s security functions, self-storage operators will be able to create online access logs for customers who depend on deliveries made to their units, such as pharmaceutical representatives. The logs can provide detailed information about when packages were dropped off or picked up and even include video of the actual deliveries.

Access-control software that monitors door alarms, keypads, gates and surveillance cameras will also benefit from the web, giving owners the ability to run security locally at each site, centrally from a single location or a combination of both. For example, an owner with only one or two sites may run all his security locally with a resident manager. But an owner with 10 locations may choose to operate security for all his sites from one facility, giving him the option to use only day-time managers and outsource off-hours security to a monitoring service.

At some point, browser interfaces may be incorporated with other devices, such as keypads, cameras, muxes, controllers, etc. Although few managers would wish to open a browser to see what is going on inside their keypads, technical-support personnel might use a web facility to troubleshoot problems. The greatest value for customers will certainly center on implementation of access-control and management software into powerful web-accessible database applications.

Wireless Technology

Wireless applications are flying at us so fast it’s like trying to get a sip of water out of a fire hose. Every day, a new feature emerges, like last year’s big entry: the ability to take and send digital photographs with a cell phone. This year, streaming video was added, allowing text messaging, e-mail and Internet browsing. These days, we expect that wherever we are, whatever we’re doing, we can acquire information. We expect wireless solutions, even in self-storage.

Wireless door alarms have been an alternative to hard-wired door alarms for years. Soon, wireless keypads, intercoms and video cameras will allow easier installation and flexibility for owners who decide to add equipment to their site or update current technology. For example, adding hard-wired equipment such as a keypad can mean expensive trenching for additional conduit. But broadband wireless applications will eventually eliminate these costs.

Wireless security cameras are in their infancy. They are generally based on an Ethernet connection (similar to the Internet), which has been used by businesses for years to provide network connectivity to conference rooms, guest offices or laptop users who want to move around the office without being tethered by wire. Because digital video involves transmitting lots of information, wireless cameras don’t currently offer the picture quality a storage operation demands. But the product will mature, and when it does, adding a camera to building six will be as simple as bolting it to the building, aiming it, then configuring it on the DVR in the office.

Will there come a day when installing all devices on a wireless network will be less expensive than a wired solution? My bet is yes, but it will take time. We’ll see what unfolds as the wave of wireless solutions comes at us.

IP Devices

IP (Internet protocol) devices are great for moving large chunks of information like computer data, voice communications and video. Over the last year or two, network video recorders and IP cameras have become the products of choice in the commercial security market. They’re still more expensive than DVRs and traditional video cameras, but as the price becomes more competitive, these solutions will find their way into the self-storage arena.

Intercoms are also coming available in an IP version. While these lack some of the basic features of traditional intercoms—like the ability to play background music and running announcements—these deficiencies will disappear as the technology improves. The main benefits of IP intercoms are ease of use and configurability. Instead of needing an office intercom station with an array of push buttons, messages come over speakers via a PC. Add wireless to the intercom solution, and you can add stations all over the facility with minimal effort.

Finally, as IP phones come to small businesses and local-area wireless solutions become available, self-storage managers will be able to take phone calls from anywhere on the property. As the phone works off the facility PC, it may one day be possible to integrate the phone and intercom system, allowing you to make and answer calls through any intercom on the premises.

Electronic Door Locks

Customers continually expect the latest in security from their storage sites, and the industry has answered with the addition of personal electronic door locks. Standard door locks with exposed door latches are fine for most properties, but for added protection, facility owners can now offer units with electronic locks and keypad or card access.

Like the online access logs mentioned earlier, these solutions are particularly useful to storage tenants who rely on deliveries to and from their units. Code-access electronic locks relieve the facility owner of responsibility from accepting packages or keeping keys for customers. And they allow business tenants to accept packages even when they aren’t physically present to sign for them.

Unattended Self-Storage: Maybe Yes, Maybe No

As security undergoes a technological revolution and the web gives us unceasing access to information, reducing the need for onsite managers, does “unattended” self-storage make sense? It’s tough to say. The business drivers are there. Many owners complain of the difficulty of hiring qualified employees. It’s hard to find people who want to live on site and have good sales and operations skills.

Technology exists that will allow site security to be monitored remotely. Rentals and payments can be handled online and via self-service kiosks. Even voice or video conferencing is an option to provide customer assistance from a remote location. But when a tenant really needs help, it’s hard to replace the human touch. Other businesses that have experimented with self-service options, such as grocery stores and airlines, still keep an attendant on hand for assistance. While unmanned self-storage sites may be on the horizon, it’s difficult to say whether they will ever be completely automated. Certainly, developments like electronic door locks, remote site access, kiosks and Internet access will make the possibility more viable.

Tools and Integration

For decades, self-storage security crept along the technology curve. Keypads controlled entry, and then came card access and video surveillance. But eventually, two things changed the world: the Internet and the events of 9/11. Businesses and consumers have become more security conscious, resulting in a revolution of offerings.

What did this transformation mean to the self-storage owner? Greater systems integration and more equipment options than ever before. Management software merged with access control to heighten monitoring abilities and streamline daily business processes. Not only does the software work with entrance and exit gates, it collaborates with video surveillance, elevators, lighting control, alarms, climate control and sprinkler systems. New purchase options include web-based features, centralized and remote facility monitoring, wireless and IP devices, and electronic locks. There are limitless customizable solutions for every facility. The future is very bright, indeed.

Tom Lewellen is the sales and marketing manager for Scottsdale, Ariz.-based PTI Integrated Systems Inc., which offers a complete, integrated management-software and access-control system for self-storage worldwide. For more information, call 800.331.6224; visit www.ptiaccess.com.

Wireless networks are springing up everywhere in places like Starbucks, McDonalds, airports, hotels and libraries. Its almost impossible to go a whole day without stumbling into a wireless zone or hotspot. Why are they so popular? The reason is simple: freedom from wires, desktop computers and the office environment. Its not difficult to see the benefits of working outside the boundaries of traditional workspace.

How Does Wireless Work?

Wireless networks, also known as WiFi, transmit data across the same radio spectrum associated with mobile phones and garage-door openers. Using an antenna linked to a high-speed Internet connection, the network sends signals to your wireless device, usually a laptop or personal digital assistant (PDA), which has its own antenna to send and receive data. Though WiFi connections are advertised as good for up to 300 feet, the best connections with the highest data speeds usually occur within 100 feet of the network.

The big advantage of WiFi is its simplicity. It allows you to use your laptop or PDA anywhere in your home or office without wires. All of the technology is hidden in a card that slips into your wireless device. Many laptops and PDAs already come with a WiFi card built in. In many cases, you dont have to do a thing to start using itjust get on the network and go.

How Secure Is It?

A hotspot is a connection point for a WiFi network, a small box hardwired to an Internet connection. It can be open or secure. If a hotspot is open, anyone with a WiFi card can access it, connecting to the network and using its bandwidth to surf the web. If the hotspot is secure, users need a key code to connect.

Security has always been a concern for people using wireless technology, and open networks still abound. But such fears are largely unfounded. The WiFi Alliance supports the new WiFi Protected Access (WPA) standard, which replaces the old, less secure protocol. In addition, new security tools are constantly in development. Simply put, many people now take wireless seriously, and so it keeps getting better and safer.

WiFi in a Records-Center Environment

The increased use of business computers and the need for worker mobility have created the demand for wireless networking. WiFi is meeting a long overdue demand for many industries, including self-storage. If your storage site offers records storage as an ancillary service, youve no doubt discovered the benefits a wireless network provides.

Typically, in a records-storage environment, you communicate with your customer database through a PC workstation or a handheld device that connects to the PC via a cradle. In the past, that handheld was a 16-bit DOS device that acted like an electronic clipboard, collecting barcodes from boxes or files and only transferring them to the database through physical connection to the PC. But users were also limited by the devices memory capacity. They had to drop the device into the cradle and download its data several times a day.

Thanks to WiFi, new handheld devices allow users to complete more tasks in less time. With a plug-and-play connectivity to your internal network and some sophisticated software, you can be completely mobile at your siteno more multiple trips to and from the desktop workstation. Now you can do what you need directly through the wireless device, saving time and reducing costs. To transfer data in real time from your records-storage area to your database, all you need is to be within a wireless zone.

Got Productivity?

WiFi allows records-storage operators to process tasks more efficiently. They can use their wireless handheld from anywhere on site to request a list of files or boxes to be pulled from the shelves, update the database with new barcode scans, and retrieve detailed box or file information. It also allows them to share a common access point with other users. Since handheld devices dont need a cradle to upload or download information, several people can access the database simultaneously. And the devices work from any hotspot, not just the one inside your facility.

Got Service?

WiFi increases your level of customer service, as it provides records-storage customers the benefit of real time information about their files via web-based software. Just imagine the peace of mind they have when they can see their items have been received by your facility and safely filed. Your handheld devices even allow you to capture signatures for proof of delivery or receipt. Hows that for instilling customer confidence?

Wireless technology also increases the responsiveness of your business. Mobile users can act on customer requests from anywhere at any time, reducing legwork and labor requirements and enhancing customer satisfaction. Using WiFi means less downtime, so more records can be processed each day. Implementing a wireless network at your facility can create as much as a 10 percent savings on labor costs and an increase in order efficiency.

Is It Time to WiFi?

WiFi may be the new frontier, but you must know when the time is right to implement it. Opportunities to increase productivity and value abound at most facilities. When deciding how to best use the technology, focusing on day-to-day tasks is an excellent way to start. Many of your routine business processes may be a natural fit for mobile functioning. Even tasks that seem unlikely candidates may benefit from a wireless network. Ask yourself the following:

• Would I save time and money by eliminating trips to and from my PC to upload or download data?
• Would immediate access to facility data speed my decision-making or responsiveness?
• Would quick access to information about customers records be valuable to me?
• Is my data captured manually for later database entry?
• Would greater mobility improve my work performance?
• Is data retrieval at my facility difficult or time-consuming?
• Would wireless data capture improve the accuracy and integrity of my information?
• Would on-demand access to information enhance the quality of my customer service?

If you answered yes to one or more of these questions, its time to go WiFi. Free yourself with a wireless network and reap the business benefits of mobile computing.

Christine Spisto is the director of marketing for ONeil Software Inc., which provides records-storage software and full-featured commercial and corporate record-center tools, including the companys flagship product, RS-SQL, which ensures records-center productivity and profitability. ONeil supplies barcodes, laser scanners, printers, industry education and more. Its products consistently offer automation, enhancements and new features. For more than 20 years, ONeil has provided software and hardware solutions to more than 800 record centers in more than 50 countries, from start-ups to multinational companies. For more information, visit www.oneilsoft.com.

Like many members of the Baby Boomer generation, I find computers to be a mixed blessing. They are certainly expedient, but they lack the flexibility and forgiving ways of old methods of doing things. They require you to execute tasks the right way and in the appropriate order. As my office colleagues can testify, my entry into the age of the Internet has not been graceful, but I am making progress.

Being in the real estate business, I have one principle concern at the forefront of my mind: What is a propertys value and why? Computers and the Internet allow us to make all kinds of calculations and comparisons. The data lets us plumb the depths of information to really understand a facilitys worth. But more important, technology can create and destroy self-storage value. This became true while the old curmudgeons were sitting on the sidelines, unaware of evolving trends and significant changes in industry marketing.

Three Short Stories

There are approximately 202 million Internet users in the United States, which is roughly 69 percent of our total population. Nearly two-thirds of those users have access from home. When you consider what portion of those users might also be potential self-storage customers, marketing your facility on the Internet only makes sense. Let me share a few anecdotes that will demonstrate how I came to the conclusion about the importance of online marketing in this industry.

First, about a year ago, I was at the ISS Expo in Las Vegas when I overheard two of the largest self-storage operators talking about getting 8 percent to 10 percent of their customers from the Internet. I was impressed. Talk about creating value.

My second awakening was during a visit to a facility in Denver. While Im not in the habit of calling a project an ugly baby, this one was not prettya dilapidated old warehouse you would need a guide dog to find. It was, however, essentially full at good rental ratesa prosperity not typical of nearby competitors. When I asked the owner how he leased up so quickly, he said, Since I couldnt afford much Yellow Pages advertising, I just used the Internet. I get almost all of my customers from the Internet, and it doesnt cost much. From that moment, I was converted.

The third reason I believe the Internet is important in self-storage marketing is because of the progress of my companys own website. Last year, it got 3 million hits. My webmaster pointed out that if there are 40,000 facilities in the United States, there were 75 hits for each one. She was quick to point out that not all of the hits were from people looking to rent storage; nonetheless, every day, there are a little more than 8,000 people poking around on the Internet, looking for information about our business.

Creating Value

Lets just take a stroll through the math and see how much value is created by using technology to market a facility. Lets assume a hypothetical project of 50,000 square feet and the average 8 percent increase in rentals cited by the large self-storage operators I mentioned earlier. (See the table below.) The first thing to notice is NOI and value go up by 11.4 percent, even though rents went up only 8 percent. Thats whats called operating leverage. The value goes up a whopping $450,000not bad! Whats even more impressive is what a mere 8 percent increase in occupancy can do for your equity, which actually increases by more than 46 percent. No wonder the big guys are into the Internet.

Sample Project
	Before Internet Marketing	After Internet Marketing	Net Change	Percent Change
Revenue (50,000 @ $10/SF)	$500,000	$540,000
Expenses @ 30%	$150,000	$150,000
NOI	$350,000	$390,000	$40,000	11.4%
Value @ 9% cap rate	$3,890,000	$4,340,000	$450,000	11.4%
Loan @ 75%	$2,918,000	$2,918,000
Debt Service @ 5.5%	$206,000	$206,000
Cash Flow	$144,000	$184,000	$40,000	46.3%
Equity	$972,000	$1,422,000	$450,000	46.3%

Nothing to Lose

Theres also a downside involved with Internet marketing. Namely, if you are not marketing via the Internet and your competitor is, he could be getting renters that would otherwise come to your facility. I think its safe to assume that if a customer finds what hes looking for on the Internet, he will not go to other advertising venues. With the technological maturation of younger generations, online purchasing behavior is more common than ever. I know my daughter and her friends wouldnt think of using the Yellow Pages!

If you arent earning more business off the Internet, you might actually be losing it. Having seen the impact an 8 percent increase in rentals can have on value, consider what an 8 percent reduction does for a property. To save you from deciphering another of my charts, Ill just give you the bottom line: The numbers are roughly the same, but in just the opposite direction, which is not a happy circumstance.

Online marketing services are actually inexpensive. A facility can have its own webpage listing for well under $200 per year. It doesnt take long to break even, especially compared to the high cost of Yellow Pages advertising. When you compare the risks to the value and cash flow created, the cost is inconsequential.

Useful? Yes. Nirvana? No.

Theres a difference between hosting your own facility website and simply having a page on a niche website (one devoted to a single product or industry, like self-storage). There are advantages to both, but a large self-storage website that contains pages for multiple facilities in addition to general information and educational articles may have a more effective reach to your desired audience.

Can you expect a web page on a niche website to generate an 8 percent increase in business for your facility? Maybe. The site must be actively marketed and properly configured to appear on the first page of search results on most search engines. Even though consumers visit higher-traffic sites of general interest more frequently, this doesnt mean the information is easy to find. Niche sites allow consumers to find you quickly and easily.

While some self-storage websites offer ways for customers to reserve or rent units online, most people just look up information about a facility and call. You may never know how many renters start with a web search because they dont tell you they found you on the Internet.

While precision in measuring success is elusive, the anecdotal information indicates the Internet is productive and has a growing influence on revenue. As a self-storage owner, if you dont use the web for marketing, you could be losing renters to other facilities. Likewise, you are passing up a chance to materially enhance your value and return.

It is imperative to include online methods in your marketing plan. If you look at history, those companies that failed to change with the times are no longer around. Im not saying you have to toss out all of your current systems and equipment and break the bank, but the numbers show even small changes in occupancy have large effects on your net worth. If someone else gets renters who never even knew your facility existed, you get hit with a double whammyyou lose the customer, and you lose the potential for increased revenue.

Michael L. McCune is the owner and president of Argus Real Estate Inc., a real estate consulting, brokerage and development company based in Denver. His company also hosts www.selfstorage.com, a marketing medium for owners in the self-storage industry. Broker affiliates of the Argus Self Storage Sales Network can offer a facility six months of free Internet advertising, allowing owners to reach thousands of potential renters monthly. Users can request a basic or premier listing through their Argus broker, securing their own web link and a customized web page. For more information, call 800.55.STORE or visit www.selfstorage.com.