Most of you think of Inside Self-Storage as a magazine only. Others believe were an industry association. But neither of these quite hits the mark.

Actually, ISS is a lot more than a magazine. Were steadily growing to include a wider range of products and services in diverse formats. In addition to monthly and annual publications, we provide two annual expos, online seminars (webinars), a weekly e-newsletter, a blog, an RSS feed, a scholarship program, online self-storage tools and more. We even offer ongoing education through our Self- Storage Training Institute, which supplies an easily accessible, comprehensive curriculum, including multimedia resources and certification. (For more information, see pages 113-116, or visit www.selfstorageeducation.com).

Many of our aims at ISS match those of an association, but our focus is vastly different. National and state self-storage associations serve the critical functions of political watchdog and activist. While ISS follows and reports on developments in this arena, it does not participate in lobbying and lawmaking. We do share a fundamental vision: service to the industry as a whole; the improvement of available information; and the facilitation of communication among all segments of the business.

I wish I had a dollar for every time someone approached me at the ISS booth during our recent expo in Las Vegas and said, Id like to join your association. Im always surprised that people find their way to our show yet know so little about who we are and what we do.

Yes, wed like you to join. But instead of an annual membership, we offer an annual subscription. Rather than charge hundreds of dollars per year, we provide many of our resources for free. Were here to support you, in every way we can imagine and implement.

In future issues, look to this section for updates on ISS projects and programs. Ill tell you about new things you can read, get, attend, visit, etc. Theres a lot going on in our world. Between magazines, keep current with our weekly e-newsletter and Storage Speak blog. Both are readily found at www.insideselfstorage.com. 

Teri Lanza is business development manager for

Inside Self-Storage. She was previsiouly the editor of ISS magazine.

Youve spent a lot of time, effort and money to get someone to call you on the phone or visit your facility. When a prospect walks in, you want to see your investment pay off. But what if the person just isnt ready to rent a unit? In this case, you should have a fallback readyan alternate offer for when your first attempt fails.

Do you say, Thanks for coming in. Why dont you come back if you need a unit? That doesnt make the cash register ring. Retail sales, however, are an excellent fallback. Ancillary supplies arent there only to add dollars to each rental; they can create a customer interaction where one doesnt exist.

If you sell a person a box, they will go home and fill it. Then theyll have to figure out where to put the box. If you sell someone packing tape or storage tubs, they will go home and pack up some things. Again, theyll have to decide where to stash the stuff. Where do you think theyll come next?

I know small sales are not always exciting. And we all want to make the most of each day. Selling someone three boxes and a roll of tape just doesnt sound that wonderful. But little transactions can set off a series of events leading to a rental.

So, when people come in to see you and dont rent, get a conversation going. Talk to them about what sorts of projects they have coming up, and take them on a tour of your retail section. Show what will be needed and sell some supplies. This way, you create some revenue from the time spent, and help prepare prospects to sign a lease later.

Certainly, if someone rents a truck but not a unit, youll see them again. Most likely, theyll be rolling up to your door and asking for storage because they ended up with excess property following the move.

Its easy to forget a storage rental of 100 years can start with the purchase of one roll of tape. It can happen. This is why you want to develop a fall back position for every situation where a person isnt quite ready to rent. You know the scenarios:

1. I am not moving until next month.
2. I have to shop around some more.
3. I need to check with my spouse.
4. No, I just need a truck.
5. Im not sure Im ready to do anything yet.

Fine. Go to your fall back position. Sell boxes, tape and other supplies. Depending on the persons situation, you could create a sizable retail order and show you care enough to be helpful. When the time comes to rent a unit, youll be the first choice.

If you let someone hang up the phone or walk out of your store without making some kind of purchase, you risk two things:

1. They think you didnt care enough to sell them something. Bad for you.
2. Your competitor sells them something. Still bad for you.

In the first case, youve created negative feelings and wont be the logical first choice for the storage rental or next supplies purchase. In the second case, you have allowed your competitor to take a customer away from you.

This is why large automakers have so many models of cars. If they dont sell you the top-of-the-line, most profitable car the first time you shop, at least you buy something and will be riding around with their logo on your car. Chances are youll give them the first crack at your next auto buy.

Dont let future customers get away from you. Go to a fall back position. If you cant sell someone the whole enchilada, at least you can sell them a taco and get them used to buying from you. That way, when their appetite for storage develops, theyll head back to your facility. 

Tron Jordheim is the director of PhoneSmart, an off-site sales force that helps storage owners rent to more people through its call center, secret-shopping service, sales-training programs and Want2Store.com facility locator. You can read what he is up to at www.selfstorageblog.com. For more information, e-mail [email protected].

After more than 30 years in real estate, I am still surprised by advancements in technology that help us do business, and the Internet is no exception. We all know the importance of having a web presence for business purposes, but a principle concern is always foremost in my mind: What is a property worth and why?

Computers and the Internet allow us to make all kinds of calculations and comparisons to arrive at values. The technology also lets us analyze the information to really understand how the values are derived. More important, Ive learned computer technology can create and destroy the value of a self-storage facility. This happens while many sit on the sidelines, unaware of trends and what is becoming a significant change in marketing strategy within the industry. Heres what I found doing research.

Nielsen/NetRatings, a global leader in Internet media and market research, reports 207 million Internet users in the United States. In 2005, Americans spent approximately 18 percent of their Internet time engaged in commerce-related activityup from 15 percent in 2004.

By comparison, users spent 4 percent of their online time conducting searches. This indicates people are more familiar with the Internet and will often bypass a search engine if they know exactly what they need. Therefore, having a recognizable, intuitive or well-advertised web address will help capture more users who avoid using search engines.

Creating Value

A few recent events have changed my mind about the importance of online marketing. When I was at last years ISS Expo in Las Vegas I heard two of the largest self-storage operators say they were getting 8 percent to 10 percent of their customers from the Internet. Not surprisingly, I was impressed by this number and wanted to see how an 8 percent increase would impact a facilitys bottom line.

Lets just take a stroll through the math and see how much value is created when a project adds Internet marketing to its strategy. I have taken a hypothetical project of 50,000 square feet with an 8 percent average in rental increases from the Internet.

The first thing to notice is the net operating income (NOI) and value go up by 11.4 percent, even though rents increase only 8 percent. This is known as operating leverage. The value goes up a whopping $450,000not bad! Even more impressive, a mere 8 percent increase in occupancy can increase equity by more than 46 percent. No wonder the big guys are into the Internet.

Now lets see what an 8 percent reduction in revenues does for a property. After all, the Internet doesnt create renters, it just directs them. Using the same model facility and math equation, the numbers are roughly the same amount and percentage, but in the opposite directiona potentially devastating circumstance.

Risk and Reward

As with all marketing ventures, theres some risk involved in adopting a new technology-driven marketing strategy. Clearly, the downside is if you are not marketing via the Internet, you are likely losing business to someone who does.

Its safe to assume if customers find what they are looking for on the Internet, they will not research other advertising media. Certainly, with the maturation of the Internet generation, such purchasing behavior is increasingly common. The potential rewards of increased revenue and competitive advantage outweigh the risks.

Online-marketing services are actually quite affordable. A facility can have its own webpage listing on a national site for less than $200 per year, which boils down to two months rent on a 10-by-20 unit in most locales. It doesnt take long to break even, especially compared to the high cost of Yellow Pages and other print advertising. When the risks are compared to the value created, along with cash flow from gaining or losing customers, the cost is really inconsequential.

Can you expect a webpage on a niche site (one that is devoted to one product or industry) to generate an 8 percent increase in business for your facility? The question is difficult to answer. The site must be actively marketed and properly configured to make sure it is on the first page of search results on most search engines. Also, the site should have a draw beyond just your facility.

A niche site can have a more effective reach depending on its targeted audience. Consumers tend to visit high-traffic, general-interest sites more often, but this doesnt mean theyll easily find what theyre looking for. If the information is buried too deeply, consumers become frustrated and go elsewhere. Niche sites allow consumers to quickly and easily find you.

In the End

Its plain and simple: Self-storage owners who dont use the Internet for marketing risk losing renters to other facilities. Likewise, theyre passing up a chance to materially enhance value and returns.

In todays fast-paced, high-tech world, you must include online venues in your marketing plan. If you look at history, youll clearly see companies that didnt change with the times are no longer around. This doesnt mean you have to toss out all of your current systems and equipment and break the bank, but even small changes in occupancy can have substantial effects on your net worth. 

Michael L. McCune has been actively involved in commercial real estate throughout the United States for more than 20 years. Since 1984, he has been owner and president of Argus Real Estate Inc., a real estate consulting, brokerage and development company based in Denver. In 1994, he created the Argus Self Storage Real Estate Network, now the nations largest network of independent commercial real estate brokers dedicated to buying and selling self-storage facilities. For more information, call 800.55.STORE; visit www.selfstorage.com. 

The next time you visit one of those big box stores, take notice of how few employees there are compared to department stores of 30 to 40 years ago. With fewer employees these days, it seems the oft-heard Can I help you? is now just another thing of the past. Dont get me wrong: This column isnt about criticizing todays stores. Instead, I want to praise todays packaging programs that take customer service to another dimension.

Weve all been taught: Clothes dont make the man, You cant judge a book by its cover, and Beauty is only skin deep. Well, when it comes to serving and selling retail customers, superficial packaging can be super; in fact, great packaging can sell a product without an employee sales pitch. Let me explain.

Ive learned in my years of working with self-storage professionals that, like those big chain stores, the cost of employees can make the difference between being in the black or the red. Still, our employees are expected to rent space to new tenants, serve existing ones, and keep the whole operation running smoothly and looking great. With all these responsibilities, they may not have the time to give retail sales their full attention.

Sometimes new employees may not know how to help customers find what they need, explain the products benefits, and close the sale. Fortunately, well-designed packaging can make all the difference in making a sale, despite all of these interfering circumstances.Packaging Pays for Itself

Modern consumer packaging has to be designed to work in a self-service marketplace. Professionally designed displays and packaging help customers find the exact products they need; assure them the contents are intact; answer their questions; and even do a good job selling the product. No wonder todays stores dont need as many employees as in the old days.

Unfortunately, the packaging of every retail product intended for the self-storage industry is not well designed, which can put a dent in any facilitys retail efforts. There are two leading causes of poor package design in our industry:

• Cost CuttingBasically, suppliers with this mindset believe consumers (and, presumably, your customers) wont notice when they cut corners to produce their products and packaging. The outcome is poorer quality products and less-appealing packaging.
• Product ParalysisThis is my term for a product that has never changed. Likewise, these products stale, dated packaging hasnt changed either.

No matter the cause, poor and/or outdated packaging doesnt do anything to help sell a product; instead, it will likely weaken retail sales. But how do you judge packaging?A Closer Look

I think if youre good at sales, you can judge package presentation as it appeals to consumers. Most good salespeople have the ability to see things from their customers points of view. So, lets evaluate retail products as they might.

Take a commonly stocked line, such as the many varieties of Bubble Wrap. Does the overall design of the different products unify them into an attention-getting group that invites closer inspection? In other words, are they designed to be displayed together like Campbell Soups or McCormick Spices are on supermarket shelves?

Now look at the individual packages. Do the words or pictures convey how this individual type of Bubble Wrap is to be used? Is it a bag for china, or sheets for furniture? Is it a special design to protect corners of pictures and mirrors? Or, is it self-cling designed for convenience?

The packaging should identify exactly how a product is to be used, leaving nothing to the imagination. Customers want to make educated buying decisions. If the selling idea isnt immediately obvious, chances are customers wont ask for your help, and youll likely lose the sale. So, when you are making your inventory-buying decisions, evaluate each items packaging for informational purposes, and dont forget to judge how it complements other merchandise in the display. The idea is to draw customers to a display, allowing them to narrow down their product choices to fulfill their specific needs.

Another consideration is the brand name. Two types are helpful:

• Descriptive BrandsThese names reflect the products benefits or uses, allowing customers to immediately grasp the concept. For example: Cling N Hold stretch wrap, HoldsWell rope, WaterTight poly-mailers and MoverTough boxes.
• Well-Recognized BrandsThese sell well because theyve been around for years and the public knows they hold a particular. For example: Master Lock locks, Sharpie markers, and Scotch tapes.

On DisplayOnce youve evaluated the packaging of your retail products, step back again and consider whether your displays are maximizing merchandise appeal. A clean display with identifying signage will attract customers to products. But to increase secondary impulse buys, you need a market-tested plan-o-gram. The best ones place secondary products alongside the most popular. For example, the customer intends to buy moving boxes and tape, but the plan-o-gram sells him on labels, markers and packing materials.All Hail Silent Sellers

Packaging design, displays and plano-grams should be the silent sellers of retail products at your self-storage center. The next time youre comparing retail products to include in your inventory, take these items into thoughtful consideration. Each should help sell the product whether or not an employee is present to answer frequently asked questions.

There isnt any point in stocking your store with merchandise that only takes up shelf space and collects dust. On the other hand, superb packaging and alluring displays might punch up retail sales beyond belief. 

Roy Katz is president of Supply Side, a distributor of packaging, shipping, moving and storage supplies. The company has developed merchandising programs for many leading companies including the U.S. Postal Service, The UPS Stores, Kinkos, Mail Boxes Etc., Uncle Bobs Self Storage and Extra Space Storage. For more information, visit www.suplyside.com . 

Storage Pros, West Seneca, N.Y.

When the temperature is below freezing, snow is 3 feet deep and the wind chill is 10 F, think of the luxury of driving into a toasty storage building to load or unload goods. Thats the glory of renting units at Storage Pros in West Seneca, N.Y. This is the next-generation storage facility, says Timothy Wandtke, director of operations and development for Storage Pros and designer of the site.

Owned by Sarasota, Fla.-based Benderson Development Co. Inc., Storage Pros operates nine facilities in New York and two in Florida. The West Seneca site is one of four offering drive-thru access. Though not the first to provide this amenity, Storage Pro is certainly the most luxurious.

The single-story location was designed with a false second floor that presents an attractive two-story facade to increase curb presence. The office, floored in Italian tile, features a showroom with a full line of packing supplies. Large flat-screen monitors display security images, and automatic sliding glass doors glass lead into the climate-controlled section. Adding a touch of color, canvas banners exhibit seasonal messages throughout the property.

The $2.2 million facility has a mix of 387 conventional and climate-controlled units and 65 RV, car and boat spaces. A planned third phase will add another 185 climate-controlled units. The store, which accepts deliveries for its customers, is planning to add post office boxes, Fed-Ex shipping, faxing and copying, and moving truck services.

Since its January opening, Phase II is performing above projection, Wandtke says. Total occupancy for the site is 47 percent. Prices for conventional units range from $32 a month for a 5-by-5 to $199 for a 10-by-40. Boat and RV storage averages $80 per month. Climate-control prices are $52 a month for a 5-by-5 to $230 a month for a 10-by-40. These units feature wall-to-wall carpeting, automatic lights and individual alarms.

Teamwork for Success

The facility features a drive-thru and climate control.

The team of 20 dedicated, hardworking employees is at the heart of Storage Pros success. We could build the best site the world has ever seen but its the management team that makes a facility, Wandtke says. Each store has a full-time manager and part-time relief manager.

Staff members receive individual training from a regional manager overseen by Wandtke. Sites are visited weekly by senior management. Periodically, managers are given a full site review in which issues are identified and corrected. This process also establishes short-term goals for improvement, he says. In addition, the company holds regular meetings and six to seven training sessions per year. We have high employee retention, he says. Some have been with us as long as 14 years.

Security Draws Customers

Wandtke doesnt believe in using live-in management. Managers need a quality of life just like the rest of us, he says. Office hours are 8:30 a.m. to 5:30 pm, Monday through Friday, and 9 a.m. to 4 p.m. on Saturday; however, customers have 24/7 admittance through the facilitys access-control system provided by Digitech International Inc.

A digital-video security system records continuously and features real-time viewing via the Internet. A cyber-dome camera and 18 full-color cameras are strategically positioned throughout the facility. Two 20-inch LCD high-definition monitors and one 42-inch high-definition plasma TV are mounted directly behind the managers counter in the office. Management software monitors coded entrance gates, doors into the climate-controlled building and individual units.

Reservations and Retention

Climate-controlled units may be accessed through the lobby.

Although Storage Pros uses a combination of its website, Yellow Pages and XPS Services reservation center, the company staff is credited with closing 96 percent of all visits, Wandtke says. During the initial telephone call, an on-site consultant will determine the customers needs and recommend one or two unit sizes. A brochure about the facility is mailed to every prospect. Those who come to the facility are taken on a tour to view security features and amenities. Afterward, the prospective tenant can relax in the office with coffee and cookies while the manager completes a rental agreement, Wandtke says. Upselling the climate-control feature is almost a natural since the tenant can view those units though the sliding doors in the office.

Having a call center service means calls are never missed, he adds. Calls not answered within four minutes roll over to XPS. If a prospective customer calls a Storage Pros location but wants a different one, staff takes the information and ensures the desired facility return the call within 15 minutes, Wandtke says.

A ZIP code analysis is used to identify target customers. In addition to single and multi-family homes, we are targeting commercial and retail markets, Wandtke says. We can show businesses how much they could save by using our storage rather than their own space for inventory.

Elements for Success

The front desk.

The core of Storage Pros mission statement is to provide superior people, products and service, Wandtke says. We do that with the best trained professionals and clean, safe, well-maintained storage at an affordable price, he says. Expansion is also on the horizon. The company plans to add sites at a rate that the market and their principles will allow.

Storage Pros is a member of the New York Self Storage Association and several chambers of commerce. The stores participate in charities such as Little League, Variety Club and Toys for Tots. And not to overlook the four-legged in need, Wandtke is considering a feline adoption center for each site. Stores will keep a cat in comfort and safety until the animal goes home with a new family, he says.

Wandtke recognizes that to stay competitive, the storage industry will have to continue to add amenities, services and security. Managers will have to be better trained to compete in their prospective markets, he says. Feasibility studies for new locations must be detailed, and site visibility and curb appeal will be extremely important. Finally, facility designs should maximize space and dollars spent. 

For more information, visit www.storageprosonline.com.  

Everywhere you look in todays world, you find technology. Were all affected by it to various degrees. How many of us would think of leaving our house or office without our mobile phone, laptop or even an iPod? What would we do if we werent able to get our e-mail at a moments notice?

With so many tools at our disposal, sometimes its difficult to sort through what is really necessary. The same holds true for technology in the storage industry. Some advancements really will make your business life easier. The trick is finding out what works for you and your facility. Possibly, you arent even aware of all the options.

Intelligent Keypads

Facility access has been greatly affected by technology. Our company typically sees increased activity from Memorial Day until Labor Day, a period we affectionately call Lightning Season. During the summer months, many facilities are struck by lighting or experience power surges, which may cause a power outage or the system to restart improperly. Because most access-control systems are computer based, this used to be a big problem. The system would be down and the facility would be at a standstill. Recently, smart technology has played a part in overcoming this.

When a computer or controller fails, keypads can now store all necessary information to provide normal access until the computer is restored. This should be a standard feature with new systems offered by security-system manufacturers. Keypads should also display user-defined and customer-specific messages on entrance and exit. You should have the option to send individualized messages on a tenant-by-tenant basis.

Wireless Wonders

Many wireless keypad communications use the popular WiFi 802.11b platform. Wireless technology continues to advance all the time. The days of carrying your laptop everywhere are a thing of the past with todays PDAs and smart phones. Facility reports can be sent directly to your device within seconds. You can effortlessly keep up to date with everything at your facility without even using a computer. The new devices can also access camera systems to monitor and review on-site activities. Numerous customized options are available.

The Internet has expanded the way we do business as well. Online payments make it more convenient for tenants to access account information and pay bills. When a payment is made, it should be a seamless transaction into property-management software. Integration is the key to making this work smoothly. Some vendors offer the ability to create and host a web page. And this only begins to scratch the surface of what will be available in the future!

Going Mobile

Mobile storage is one of the newest and most popular additions to the storage market. People can have a unit delivered directly to their door and keep it as long as it takes to fill.

Though the service is convenient for clients, its a challenge for storage owners to manage. The ability to track the location of the container at any given time is mandatory. Modern software can enable you to map the location of containers and identify addresses. The option to print maps and directions for the delivery and pick-up driver is a nice feature. In addition, the program should make it easy to access, track and understand scheduling.

Automatic Zoned Lighting

Another smart use of technology is the ability to automate lighting systems based on the location of units. Its accomplished via zone input at an electrical control panel: A customer enters a pass-code at the gate or door, which in turn signals the computer to send a message to the electrical panel identifying the zone to illuminate and, bingo, let there be light! When the customer exits the facility, his pass-code signals the computer to flip the switch.

With an individual door-alarm system, you can control the lighting in each unit. This device works with the door-alarm contact, activating unit lights when the door is open. Once the door is properly closed and latched, the lights power down. Lower electric bills is a side benefit to not relying on tenants to douse the lights.

Stay Tuned

Each self-storage facility operates differently. What might be right for one store may not work for another. Select tools that meet your needs while keeping an eye on flexibilityyoull likely want to make system upgrades down the line. Staying on top of evolving technology isnt an easy task, but adopting the right advances will save you bunches of time and money. 

Jon Reddick is vice president of Sentinel Systems Corp. of Lakewood, Colo., which has manufactured self-storage software and security systems since 1975. Mr. Reddick has extensive experience in sales and marketing in the electronics and telecommunications industries. For more information, call 800.456.9955; e-mail [email protected]; visit www.sentinelsystems.com. 

Many credit card transactions in the storage industry are not face-to-face swipe transactions and will cost you more in non-swipe fees. The old-fashioned way of setting up a conventional retail-swipe merchant account may not take this into consideration. Do you really need to be paying more for these transactions?

In addition, processing cards through a credit card machine by keying in the recurring monthly transactions may be putting your business at risk. You need to follow required security guidelines for handling and storing credit card numbers to protect the cardholders data.

Account Flexibility

Today more than ever, its important your merchant-services provider be flexible in designing accounts to meet your needs, whether you use swipe or non-swipe transactions. Look for merchant accounts that reflect the way you are processing transactions. For example, you can virtually eliminate the expense of purchasing a credit card machine by opting for todays innovative kiosks, payment gateways and management-software payment modules. This saves you from the tedious job of manually entering card numbers into a machine for monthly credit card payments. It also reduces the risk your business has in storing cardholder data. Further, it provides your business with a way to assure all cardholder data is encrypted, creating a database so monthly transactions process automatically.

Decisions, Decisions

Did you know that non-swipe rates in a conventional retail swipe merchant account are substantially higher than those in a mail order-telephone-online (MOTO) account? You have the choice to be set up with either or both, based on your needs. A conventional swipe account can appear to have attractive rates. However, business owners sometimes dont realize they may be paying the higher non-swipe fees most often.

To make sure your customers are confident every time they make a payment, find a Payment Card Industry (PCI) compliant provider. PCI is the card association program for jointly managing cardholder security for Visa, MasterCard, American Express and Discover. To better understand this system, you can view VISAs overview at http://usa.visa.com/business/accepting_visa/ops_risk_management/
cisp.html?it=search. 

The Setup

There are two ways credit card merchant accounts can be set up based on your facilitys number of swipe vs. non-swipe transactions.

First, with credit card transactions for retail accounts (where 51 percent to 100 percent of transactions are swiped) the card is present at point-of-purchase. This type of merchant account is needed for processing through a credit card machine, kiosk or mini-swipe card reader attached to a PC.

Second, fees for MOTO non-swipe merchant accounts (where 50 percent to 100 percent of transactions are keyed) are designed for businesses that dont make many swipe point-of-sale transactions. Typically, these businesses use payment gateways or management-software payment modules to process monthly payments or payments by phone.

In general, a storage business processes a greater volume of non-swipe transactions than swipe ones, unless it sells numerous moving supplies. By setting up two merchant accountsretail and MOTO non-swipeyou will receive the lowest non-swipe rates available. In addition, many merchant accounts are designed to default to the address verification system. This is a service in which the merchant verifies the card-members address, thereby lowering the risk of the transaction and reducing fees for the business. 

Claudia Miller is president of C&A Solutions LLC, which offers a full suite of electronic-payment solutions, including: e-Pay Manager, a virtual-terminal gateway with side-by-side ACH/credit-card processing; automatic bank drafts; credit/debit card services; online payments for checks and credit cards; payment kiosks; electronic-check conversions for point-of-sale, phone and accounts-receivable; and electronic NSF recovery. Merchant services are provided by The CASHLINQ Group, a registered ISO/MSP with Bank of America NA. For more information, call 512.255.6961; e-mail [email protected]; visit www.casolutions.net. 

After Sept. 11, 2001, the airline industry moved quickly to install self-service kiosks at check-in counters. Now, almost every airline has kiosks, which activate more more than 65 percent of check-ins. Hold on to your hats folks, because a similar self-service phenomenon is occurring in the self-storage industry.

24-Hour Service

Many consumers now prefer do-it-yourself to customer service. Just why is self-service so attractive and inviting? To understand, its worth taking a look at several trends in human behavior. Some say weve been trained by ATMs, fast-food restaurants and the Internet to do things ourselves. Others claim customer service has gone downhill and they would rather not be subjected to a customer-service representative with a bad attitude and no regard for their welfare. And some people are simply more comfortable with machines than human interaction. Add it all up, and it seems most of us prefer to go it alone.

Besides the do-it-yourself factor, businesses are turning to self-service kiosks for another reason. I recently listened to a presentation by Paul Orfalea, the founder of Kinkos, in which he revealed the companys individual store revenues jumped 10 percent to as much as 50 percent once the business stayed open 24 hours. Although late-night sales were pretty low, customers liked knowing they could go into a Kinkos whenever they wanted, Orfalea explained. Round-the-clock convenience was a key differentiator from the competition although the majority of customers never used Kinkos services outside of regular hours.

Kiosks provide the same appeal. Think about it: Your foot traffic might be low during off-hours, but customers like knowing they can patronize your facility anytime day or night. With a kiosk, they can make payments and rent and visit units 24/7.

A Premium Advantage

Consumers are willing to pay for the convenience of anytime storage, as many in the industry are discovering. Storage Solutions, a management firm operating a number of facilities in Phoenix, charges a base price for access during office hours and a premium for extended access. Tenants pay an even higher price for anytime access.

This trend is similar to ATM customers willingness to pay that extra $1.50 or so for money when and where they need it. The fact is consumers want convenience and are willing to dig deep for it. Its like going to a convenience store, using one-hour photo processing or opting for FedEx. The extra cost is worth the convenience.

Kiosk Price Tag

The attractive part about comparing ATMs and self-storage kiosks is the price difference. The average cost of an ATM is about $30,000. Add to that an additional $12,000 to $15,000 per year for maintenance such as cash replenishment, servicing, telephone lines, and you can end up with a whopping bill. Fortunately, self-storage kiosks are much lower in price, running between $10,000 and $20,000 each. The monthly maintenance and warranty services fee to cover replacement of parts, kiosk monitoring, marketing help and other services is less than half that of an ATM, typically running between $1,800 to $5,000 per year.

Usage Patterns

With self-storage kiosks across the United States and Canada, we now have a detailed understanding of usage patterns. About 54 percent of transactions occur during 9 a.m. to 6 p.m. The number remains consistent even when a manager is on site and available. When questioned, most managers chalk this up to customers being in a hurry and not wanting to take the time to chitchat with office staff. To consumers, self-service is faster and more convenient.

Looking more closely at the data, another trend pops out. Many new rentals are made through kiosks on Saturday morning between 5:30 a.m. and 9 a.m. This makes sense when you consider most people start their moving process on Saturday mornings by getting a truck and finding self-storage. Which would you choose: the facility that opens at 9 a.m. or the one with a self-service kiosk available anytime?

If we look at the hours of self-storage kiosk usage (see graph: Typical Self-Storage Kiosk Hours), they tend to parallel those of ATMs. Kiosk usage rises throughout the day, peaks about 5 p.m., and falls off as midnight approaches. Noteworthy, too, is transactions occur at all hours of the day. Some facility owners may assume anyone who rents at midnight is probably a criminal. In this way, the chart is a little misleading.

What we really find in reviewing kiosk data from the last three years is there have been exactly zero rentals between the hours of 10 p.m. and 5 a.m. Instead, typical nighttime activity entails payments by people working graveyard shifts or early hours (i.e., landscapers, construction workers and commuters). These people value the ability to make payments outside regular hours.

Access Control

Operators still concerned with midnight rentals should remember kiosks dont control access to the property. Access codes are assigned by the management software or security system and follow policies you assign. If a customer rents a unit through the kiosk during off-access hours, you can provide them with an access code that only works during standard hours. A few facilities take an extra step and require new tenants to come back during office hours to get access codes so the manager can meet them personally.

Self-service is a growing trend in almost every business sector, including travel and retail. It makes sense that self-storage should get on the bandwagon too. Kiosks have proven to be great attractions at storage facilities across the United States and Canada. Theres a reason Public Storage, Shurgard and numerous other operators have implemented kiosks: Consumers love self-service. 

Curtis Sojka is vice president of marketing for OpenTech Alliance Inc., makers of the INSOMNIAC line of self-storage kiosks. For more information, call 602.749.9370; e-mail [email protected]. 

Most business owners are vulnerable to ongoing employee theft. One of the most widely used methods is through a credit card system. As your employees get rich, you become subject to fines, penalties, and the loss of revenue and credit card-acceptance privileges.

Over the past seven years, our company has been asked to help hundreds of merchants with this problem including many owners in the self-storage industry. Weve learned education is the first step.

Internal Fraud

The truth is hard to face, but its critical to accept the possibility a trusted employee may cause serious damage to your business. The U.S. Chamber of Commerce reports 75 percent of employees steal, and 35 percent do so on more than one occasion. In every type of card acceptance whether it is retail, telephone or Internetstaff members have significant opportunities to steal. This includes personal information (identity theft) as well as money.

We recently surveyed a broad sample of 250 merchants (see chart for results). Their answers were disconcerting if not surprising. What they suggest is merchant education is very low when it comes to employee theft.

Loss of Credit Card Acceptance Privileges

As rates of disputes, credits and charge-backs increase so does your likelihood of getting hit with penalties and fines. When a merchant experiences a significant number of these, it causes the cost of acceptance to increase substantially. In fact, under federal laws and MasterCard and Visa regulations, you could be terminated.

The rules for acceptable chargeback ratios have tightened. If you have a chargeback ratio of 1 percent for a rolling-forward period of four months, or if your rate exceeds certain thresholds for a one-month period, you are subject to monitoring protocols and termination.

The most dangerous situation is if you and your company are placed on the terminated merchant file (TMF). If this occurs, your company and whoever signed the application may face an effective lifetime ban on credit card acceptance. You simply cannot afford to let this happen!

Plan of Action

It is the responsibility of every owner to have a monitoring system to identify increasing rates of charge-backs and credits as well as pattern changes indicating fraud. Further policies, protocols and procedures must be present to combat these issues. If you are threatened with a loss of card-accepting privilegeseither due to compliance violations or fraudyou must take steps to remediate the issues with measurable outcomes.

The credit card companies are not your friends; they will terminate you rapidly and possibly with no warning, as they have done to hundreds of thousands of other merchants. This can put an end to your business. Education and awareness are your keys to avoiding employee theft and credit card woes. 

Ross Federgreen is a co-founder of CSRSI, which provides an integrated approach to the analysis, design, implementation, deployment and management of electronic transaction services and systems. Since 1999, the company has helped more than 350 public and private institutions reduce the cost of acquiring money and minimize liability exposure related to payment transactions and customer data. For more information, call 866.462.7774, ext. 23; e-mail [email protected]; visit www.csrsi.com.

A question self-storage managers constantly ask is, How do we get more new customers, and what is the real reason they choose us? The answers are many, but having a basic understanding of the most common denominators can give you a competitive advantage that spells the difference between success and failure.

For example, can you identify why customers choose your site instead of competitors facilities in your market area? Was it because you are closest to home? Do you have the best price or offer the best security? How do you quantify these answers?

The Questionnaire

To learn more about our renters, we have a created a New Tenant Questionnaire to present when customers sign a lease. The form, which takes less than 30 seconds to complete, asks the following information:

1) How did your hear about us? Was it through the Yellow Pages, a drive-by, fliers, coupons, website or a referral?
2) Why are you seeking self-storage? Is it for personal or business reasons, vehicle storage, etc.?
3) How far from our location do you live? Are you 0-1 mile, 2-3 miles, 3-5 miles or more than 5 miles from the facility?
4) Why did you choose to rent from us? Did you shop for the best price, the facility closest to home, best security, customer service/management?
5) If you were referred to us, who made the referral? Was it a friend, relative, a current or previous tenant, a competitor?
6) How many other storage facilities did you consider before renting with us? Did you look at 0, 1, 2, 3 or more?

In addition to the above information, the form asks tenants for their names, phone numbers and rental-unit numbers. The managers send the completed forms to the main office each month, where the original is placed in each customers file. In this way, our managers have complete data to use when making marketing decisions.

Many Uses of Data

The information generated from the New Tenant Questionnaire has been used in a number of different ways. At the end of the month, we take the data and determine what percentage of our customers came from Yellow Pages, drive-bys, etc. By having this information, our management can better determine if advertising dollars are being spent effectively.

For example, if we expected more clients would be generated through drive-bys, we may decide to try and increase the size of our signage to attract more attention. Or, perhaps we might consider changing the colors of the sign or the facility. Maybe we would give the building a new window look, all with the hopes of catching the eye of passersby and increasing business. If we are getting a large percentage of our business from fliers or direct mail, and the majority of our tenants only live within a mile of our store, we may decide to increase the amount of times we use this method because it has already proven its effectiveness.

By collecting this data over a long period of time, and reviewing it regularly, we can also be aware of patterns or marketing shifts. For example, if last year most of our tenants rented from us because we had the best price, we may want to check the competition and see how our rates compare. If we are considerably lower in price, we may decide to raise our rentsjust enough to increase profits but still undersell our competition.

On the other hand, if we see we have received a large number of referrals from competitors, perhaps we should find out why they are sending us business. Are they full? Do we have sizes they dont? Knowing the answers to these questions and relating them back to customers needs will give us a better understanding of how to leverage our facility against the competition.

In Summary

Having knowledge about why customers come to our store, why they rent from us, what they are going to be storing and how our competitors stack up to us is extremely valuable information. A simple form to collect the information is priceless. Self-storage managers need to know this data if they are going to effectively market their facilities, maintain a competitive advantage and stay in touch with the needs of potential as well as existing customers. 

Mel Holsinger is president of Professional Self Storage Management LLC, based in Tucson, Ariz. The company offers facility management, consulting and development services to the self-storage industry. For more information, call 520.319.2164; visit www.proselfstorage.com.