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The Calm Before (During and After) the Storm

Article-The Calm Before (During and After) the Storm

From the beginning of June until the end of November, the Coastal United Statesfrom Maine all the way to Texasis vulnerable to some of the most destructive storms on earth. The 2004 hurricane season was one of the worst on record, with four major hurricanes that caused billions of dollars in damage. The National Weather Service is predicting an active season for 2005, and the forecast shows an increased possibility for tropical storms and hurricanes.

Now is the ideal time to review your insurance policies and ensure your self-storage facility is adequately covered. Ask your agent if your policy covers the perils of wind and hail. If it does, what type of deductible do you have? Facilities in wind-prone areas may have a separate deductible for wind that applies on a flat rate or a percentage-of-building value. Knowing the details of your deductible before you experience a loss will eliminate any surprises if you need to file a claim.

If your primary insurance policy excludes wind coverage, there could be options available through another source. For example, a wind pool association or specialty carrier may be the best bet. In addition to coverage for wind and related damage, a complete insurance package should include business-income and extra-expense coverage.

A Note on Flood Insurance

Self-storage insurance policies, like most commercial policies, do not include flood insurance. Many facility owners dont realize their standard business policy doesnt protect them until its too late. Flood insurance can be purchased at any time, but theres a 30-day waiting period from the date of your application before coverage goes into effect. Its essential to plan ahead and get coverage from your agent before flooding occurs to ensure youll be protected if disaster strikes.

If you have a facility in a flood zone, being prepared can help minimize damage or loss. Keep your facility well-maintained, as doors and roofing can be ripped from buildings by strong winds and heavy rain if not properly secured. Keep landscaping in shape by removing weak or dead branches from treesthese can break, causing structural damage to nearby buildings and vehicles. Trees can even uproot if they are unhealthy or the ground is saturated. While no storm or its intensity is entirely predictable, forward thinking can make a difference.

Pre- and Post-Storm Prep

Create an inventory of your possessions and property. Consider making a videotape of the interior and exterior of your facility, describing each area as you record. Remember to include signs, fences, trees and landscaping, as they are vulnerable to damage. Digital photos are another option and easy to store on disc. Keep all of this documentation in a safe place away from the site. Should you need to file a claim, a set of records including receipts, bills and pictures will help establish the price and age of your property, as well as items that need to be repaired or replaced.

Once a storm watch has been issued, its time for action:

  • Move loose objects inside. Trash cans and signs can be dangerous in strong wind, damaging property and injuring people. If outdoor equipment cannot be moved, make sure it is adequately anchored.
  • Protect windows and doors from flying debris and heavy wind by covering them with plywood or other shielding.
  • Inside the office, elevate valuables off the floor to save them from water damage.
  • Back up essential computer files and records, and store them at a safe location. If your on-site computer is damaged or destroyed, youll need a duplicate of all records, contacts and databases.
  • Stay tuned to local radio and TV news for current information on the storms progress.

Once the storm has passed, assess the damage, being cognizant of seen and unseen hazards. Drive carefully through debris-strewn areas, and watch for fallen power lines, especially in areas with standing water.

Enter your facility with caution. Do not use matches, cigarette lighters or any open flame in case of gas leaks, and do not use electricity until your business has been properly checked by authorities. Do not enter your facility if there is any chance of the building collapsing, and do not try to remove any trees, branches or other fallen debris.

Contact your insurance agent immediately to report any damage. Include a description of the property involved, and when and where the loss occurred. Generally, the more information you can provide, the faster your claim can be settled. If possible, take photographs, and list damaged items in detail, including office equipment, furniture, computers and retail merchandise. Keep copies of everything you submit to your insurance company as well as all paperwork your insurance company sends you.

The storms are coming. But taking a proactive stance can minimize your risk.

John Roark 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 800.844.210; e-mail [email protected]; visit www.universalinsuranceltd.com.

Your Merchant Credit-Card Statement

Article-Your Merchant Credit-Card Statement

How many times have you said, I give up. I dont understand these charges on my credit-card service statement. If youre like the typical business owner, more times than you care to remember. In fact, many merchants have stopped trying to understand what theyre really being charged. Dont give up! Theres a wealth of information in your statement if you know how to interpret it. It can give you insight to fraud, compliance, cost and performance. You can also figure out if youre being charged according to the conditions of your contract or if additional fees are being applied.

Your credit-card statement can be received by mail or electronically. Depending on the size of the account, it can be sent to you daily, weekly or monthly. Though every service providers report will look different, it will include five key areas you should monitor:

  1. Plan summary
  2. Transaction activity
  3. Downgrades
  4. Fees
  5. Net settlement

The Plan Summary

On the first page of your statement, youll find your business name and billing address, the name and contact information of your merchant-service provider, your merchant ID number (MID), and the dates of business activity the statement is reporting. Next is the Plan Summary, presented as columns arranged from left to right. The summary will usually include the credit-card type, transaction count, total dollars billed, credit item count, credit amount, and a few other key figures. (There is no typical orderit varies from provider to provider.)

Card type refers to MasterCard, Visa, American Express, Discover, JCB or others. Those listed on your statement reflect the types you accepted during the given period. If you see a card listed that you dont accept at your facility, or you dont see a card type you know you accepted from a customer, contact your service provider immediately.

Transaction count refers to the number of items you billed for each card type. If a number looks off, again, contact your service providerfor example, your statement says you processed 1,000 Visa transactions, but you believe it to be closer to 100. The discrepancy could be due to any number of reasons, including system error, a mismatch between the calendar month and reporting cycle, unusual patterns of activity, or fraud.

Total dollars billed represents the total amount billed on each card type. Credit item count represents the number of items for which credit was awarded. Credit amount represents the amount of credit issued on each card type. You need to pay very close attention to the credit item count and amount, as these numbers can be a tip off to potential fraud. You should have a sound grasp of what your typical monthly item and dollar amounts are for the sake of comparison.

Transaction Activity

Following the plan summary, there will generally be a section that outlines transaction activity. In most cases, it is based on daily activity, but it might vary depending on how often you batch your transactions. For example, some companies process multiple batch settlements in a single day, while others combine batches over weekends or holidays. This can lead to a lot of confusion when you attempt to reconcile your credit-card statement against a bank statement. To add to the confusion, the credit-card statement cycle might not adhere to a calendar month or to the same cycle as your bank.

Downgrades

When it comes to credit-card statements, the area of greatest misunderstanding is the downgrade or additional charges area. Ironically, its also the area that provides the most information regarding system policy, practice and procedure, and potential sources of fraud.

Technically, a downgrade is a nonqualified transaction. Downgrades or additional charges are applied to any transaction that lacks any of the requirements necessary to obtain the best, or qualified, rate. These qualifications are outlined in your contract with the service provider. For the typical self-storage operator, the contract is executed as a retail relationship. This means the best processing rate is given only under very specific circumstances:

  • The card must be present.
  • The card must be electronically swiped.
  • The card must be a consumer card.
  • The presenter of the card must be the authorized cardholder.
  • The transaction must be settled (batched) within a 24- to 48-hour period of the authorization.

If the self-storage operator uses the same MID for retail and recurrent billing practices and the account is based on a retail relationship, every transaction generated from the recurrent-billing function will be downgraded. The operator will pay a significant surchargewhich might be equal to or greater than the stated best rateon each transaction. This puts him out of compliance with his contract, reduces his protection from charge-backs and reversals, and opens him up to fines from the credit associations.

Some of the primary reasons for downgrades include:

  • Accepting the wrong type of credit card, i.e., business vs. consumer
  • Using the wrong operation platform, i.e., retail, Internet or MOTO (mail order/telephone order)
  • Failure to adhere to policy, procedure or practice, i.e., swiping vs. keying card numbers

As a merchant, you cant control the type of card your customer presents. However, by paying attention to the types of cards your customers use before you negotiate the contract with your service provider, you can make sure youre covered for the cards you most frequently accept.

Its important to understand which operating platform is best for you as well. For example, if the majority your transactions are recurrent, it would be best to opt for a MOTO platform into your contract. Or you can choose to have multiple MIDs, which will allow you to use more than one platform type.

Finally, pay careful attention to the three Ps (policy, practice and procedure), or you could face steep charges. For example, if your contract stipulates that you should batch your transactions within a certain time frame, you must do so, or you will be considered late, and your transactions will be downgraded. The solution is to implement an auto-batch function or enforce strict policies at your facility that dictate when batching should be done.

While downgrades sound like a nightmare, monitoring them can give you insight to potential fraud activity. This is a complex issue and should be addressed by a competent expert; however, you can keep an eye out for red flags by tracking the type and percentage of downgrades on your statement. Changes in an established pattern may suggest fraud and should be carefully investigated.

Fees

The next part of your statement will address additional fees. There are more than 60 fee categories that can be applied to an individual statement. Examples include monthly statement fees, penny costs for authorization, settlement and batch fees, equipment fees, wireless fees, charge-back fees, extended guaranty fees and many others. Its important you understand what each fee represents, how and why it is being applied, and if the fees you are being charged are consistent with the conditions of your contract and industry standards. Again, these charges can be substantial, possibly even equal to or greater than the stated best rate.

The Net Settlement

Your net settlement is the amount of money you actually receive after all charges are removed. This figure allows you to calculate your actual effective rate, which is critical, because it tells you what youre really paying to provide credit-card service to your customers.

To calculate your effective rate, divide the total dollars billed by the total dollars received in your account. Some would argue the effective rate should be calculated by dividing the net dollars billed by the total dollars received. This modification takes into account reversed transactions. The important point is you are using this calculation as a comparisonto your expected charges and other offers of merchant service.

Finally, at the end of your statement, there is normally a summary box that lists total charges deducted from gross sales, yielding the net deposit to your account. By monitoring the five key areas of your credit-card statement, youll give yourself a much better chance of obtaining and maintaining a fair and equitable relationship with your service provider, and reduce the odds of fraud and compliance violations.

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 the liability exposure related to payment transactions and customer data. For more information, call 866.462.7774, ext. 1; e-mail [email protected]; visit www.csrsi.com.

Lifts: Movin On Up

Article-Lifts: Movin On Up

Like all equipment, self-storage lifts, or VRCs (vertical reciprocating conveyors), require maintenance and periodic service for continuous and safe operation. However, unlike other building upkeep that can be handled by facility employees, lift service must be performed by certified technicians. While you or your staff can be on the lookout for signs of wear or problems, all necessary work should be handled by qualified lift professionals.

In some states, like California, only those licensed by the State Contractors Board are allowed to service, install or maintain a VRC. In addition, the Division of Occupational Safety and Health requires each technician to carry a CQC (Contractor Quality Control) Identification Card at all times. Finally, no maintenance work begins until a lift is locked or tagged out of service, returned to a buildings lowest level, and disconnected from electrical power.

Service Frequency

A lifts service schedule is in part determined by the frequency of lift cycles. Lifts with a high cycle of use generally require more maintenance than those with low cycles. For example, a lift at a storage facility that is open 24 hours a day, 365 days a year, will require more care than one at a facility open only during business hours.

The rate of service will also depend on how many lifts a facility has. In general, the more lifts at a site, the less each is being used (division of labor). Less maintenance is, therefore, required.

The last consideration in determining maintenance frequency is the environment in which a lift is used. For example, a facility near a body of salt water may require more service than one thats inland, as salt water can be very corrosive.

A qualified lift professional can help you determine a proper service schedule. A high-cycle application requires inspection every 30 to 60 days, while a low-cycle application requires inspection every 60 to 90 days. In the interim, you should conduct your own daily safety checks, looking for damage or unusual operation.

If you hire outside maintenance personnel, dont assume they are testing the lift for you or have any knowledge of what constitutes a red flag. Dont allow your regular clean-up crew to service the lift under any circumstance. Lift maintenance can affect the lives of your staff and tenants, so entrust it only to certified technicians.

Lift Upgrades

Over the past several years, new technology and better equipment has emerged in the VRC arena, making lifts safer and easier to use. If you have an older lift that needs upgrading or want to install a new lift, consider the new-generation gate/door interlock. The latest versions include upgrades such as stainless-steel slide-bolt mechanisms. One lift manufacturer has made additional changes to the internal electronics, fastening the slide bolt and receiver with tamper-resistant mounting hardware and a new service lock.

Another new item is the National Electrical Manufacturers Association (NEMA)12-rated push-button control, which is water- and dust-proof and meets the strictest electrical codes. While some lift manufacturers will settle for a lower quality NEMA 3R- or 4-rated control, the NEMA 12 uses UL-rated elevator wire and is hard-piped with rigid EMT (electrical metallic tubing).

Thanks to feedback from storage owners and customers, new automatic lift doors are also on the market, which are easier to open and close than the previous manual, roll-up versions. Now, when a customer opens the outer gate or door, the inner car door automatically rises. No more manual raising, lowering and latching of the roll-up door on every use! New installations generally include automatic doors, and conversion packages are available for older lifts.

Another new feature is the automatic roof-mounted car light, which is integrated with the lift door. When the lift arrives at a landing and the interlock is released, the light automatically turns on, providing illumination for safety. This is particularly important, as hallway light timers will sometimes turn off lights while customers are still loading or unloading a lift.

Finally, a non-skid diamond floor plate provides a safer transitioning surface for tenants, especially when rain, snow or icy conditions exist. Polished aluminum plate flooring also provides additional reflective light.

Self-storage lifts are a key aspect of any multistory operation. When serviced regularly by qualified technicians and loaded with the newest, safest features, they enhance the customers storage experience. And happy customers mean better business.

Randy Vander Hill is the owner of Placentia, Calif.-based Ajay Equipment Corp., which sells and installs vertical reciprocating conveyors designed for the self-storage industry. He is a 33-year veteran in the field of hydraulic equipment and a licensed California elevator contractor. For more information, call 800.521.2529; visit www.ajaystoragelifts.com.

On the Surface

Article-On the Surface

A storage facilitys maintenance program can range from comprehensive to none at all. But your choice of preservation plan for metal buildings and doors will affect the satisfaction of your customers and staff and, ultimately, your bottom line.

A well-maintained facility attracts more customers, operates more efficiently and has a higher market value. Tenants get frustrated when dealing with doors that are difficult to open or close or that soil them with chalk or dirt every time they access their units. By exercising proper upkeep on your buildings and doors, youll inevitably decrease operating costs and turnover, which will increase your profit.

Identifying Issues

The best preventive maintenance involves quarterly or semi-annual inspections of metal doors and buildings to identify and solve problems as they occur. Check for signs of faded or aging paint, salt corrosion and acid rain. Once these problems begin, deterioration will accelerate at a startling rate, becoming more labor-intensive and expensive to fix.

An easy way to check for sun damage or fading of a painted metal surface is to observe it when moist. Wipe an area with a wet cloth or sponge. If theres a noticeable difference in color or gloss, consider applying a quality clear-coat, which will not only restore luster but protect the metal and paint from additional damage. Doors that flex when they roll up commonly require refinishing. A proper application of coating will expand and contract with the door, keeping it covered. Block, wood and concrete surfaces cans simply be repainted.

Salt-air corrosion will feel rough and bumpy on metal. It will normally be worse at the bottoms of doors, where moist salt air sits for a longer time before it dries. Even if you are miles from salt water, your metal buildings and doors can suffer salt-air corrosion, especially if you use salt for snow and ice control. Again , a coating formulated for this type of application will ward off further damage.

Acid rain can wreak havoc on metal doors and buildings, even if youre not in an area known for refineries, factories or power plants. Acid rain creates dark, permanently etched streaks on metal. This damage cannot be reversed, but it can be prevented.

Regularly clean all surfaces of dirt, grime and bird droppings, which can be particularly corrosive to paint. Washing with a neutral-PH cleaner and water is great, but even just rinsing off the dust will help.

Be careful not to aim water directly into units. Do not rinse the metal in direct sunlight or you may get hard-to-remove water spots, especially if you have hard water. A filter can help soften hard water, but its still best to rinse doors and buildings when in the shade.

Tenants may inadvertently run into corners of buildings with their moving trucks, so check these frequently for damage. Repair and repaint any broken corners on stucco or block walls, and simply replace smashed corners on metal buildings. Bollards can be placed near the corners of your buildings to protect them. These should be repainted when necessary or covered with plastic bumper-post sleeves.

Door Maintenance

While roll-up doors generally require little upkeep, according to several door manufacturers, one of the most important maintenance tasks is keeping doors and their mechanisms clean. An ideal time to perform routine checks is when a unit is vacated. Here are several procedures to ensure your doors remain in good working order:

  • When you sweep a unit, remove any cobwebs and dirt from the door guides, as they can interfere with the doors smooth operation. You can wipe the guides with a rag, but dont use grease or WD-40, as it will only attract dirt and grime and gum up the rollers.
  • Clean all dirt and debris from the floor guides.
  • Ensure the door is secured to the wall. The screws may have backed out after excessive use, and sometimes none of the screws is in place.
  • Lubricate the springs with a very light coat of oil to reduce friction and prevent rust. A silicone-based lubricant can also be used.
  • Doors that are difficult to open and close may require re-tensioning, especially older doors or those that get a lot of use. Check the tension, and adjust it according to the manufacturers directions. Newer doors have simple tensioning devices and can be easily adjusted. It doesnt pay to have a tenant injure himself due to a poorly maintained door.
  • Check the pull cord, especially if its on the outside of the door, as it can quickly wear. Nylon rope is a good choice, particularly in colder areas where routine winter maintenance (i.e., snow-blowing) can damage cords. The ends can be melted or singed so they wont fray.
  • Inspect the unit for signs of leakage, and replace worn weather seals as necessary. The seals should also be kept clean. One door manufacturer recommends applying a thin coat of Vaseline to prevent rot.
  • If your doors are dented, get a tool kit from your manufacturer to fix them.

The outward appearance of your facility projects your image to the public. Preservation costs very little but can earn you a lot in new business. Use preventive maintenance to ensure smooth door operation, glossy building facades, and happy tenants and employees. Facility upkeep is not really an option when it comes to maintaining a profit.

Teresa Sedmak is the president of Everbrite Inc., which manufactures and markets Everbrite Protective Coating, and Pacific Pride Products Inc., Everbrites contracting division. She is also a licensed painting contractor with extensive experience and knowledge of protective coatings. For more information, call 800.304.0566; e-mail [email protected]; visit www.everbrite.net.

Give Them an Experience!

Article-Give Them an Experience!

I'm a washaholicthat is, I love being in the carwash business. Every year, I and my fellow washaholics get together at the annual meeting of the International Car Wash Association (ICA) to discuss our trade. Those unfamiliar with the industry are sometimes astounded to learn its actually big enough to support an annual conference, but lets look at the facts: There are more than 90,000 car washes in the United States, with annual receipts of more than $32 billion. Car-washing is big business and getting bigger all the time.

This years convention in San Antonio was spectacular, with more than 120,000 square feet of exhibits and 9,000 participants. I even spoiled myself. Rather than stand in my booth to extol the latest money-making ideas to attendees, I roamed the floor and went to as many educational events as possible. I wasnt disappointed. What an eye-opener it was to listen to the best professionals in the business as they addressed ideas, challenges and solutions for our industry. From all the fantastic presentations, I came away with one idea so incredible I couldnt wait to get home, pass the news to my partner, and implement a strategy I know will separate us from competitors.

The Experience Economy

James H. Gilmore, co-author of The Experience Economy with B. Joseph Pine II, was the conventions keynote speaker. He was a powerhouse of ideas! His book is based on the idea that Work is theatre, and every business is a stage, claiming that in todays economy, simply offering great service is not enough. Companies must design memorable events for which they charge admission, the authors say. In their estimation, successful businesses use goods as props and services as the stage, engaging customers in experiences that are unique and personal.

From Gilmore and Pines standpoint, every product follows a particular cycle: It starts as a commodity, then becomes a good, then a service and finally an experience. Gilmore used the coffee industry as an example. As a commodity, a cup of coffee is only worth about 6 to 10 cents. As it becomes a good, its value increases to 15 to 20 cents. When you add the service aspect, its value jumps to 80 cents, which isnt bad. But when you toss in a lasting impression with a great experience, the price skyrockets to $4.50! If you think Gilmore is whacky, just take a look at Starbucks.

Now put on your car-washing or self-storage hat and think what you can do to increase the value of your product and set yourself apart from competition. Beefing up service helps, but everyone knows how to do that. So whats the next level? Creating a complete, memorable customer experience.

A Car-Wash Experience

From a car-wash perspective, I see a large number of in-bay automatics and express exterior tunnels being built. The prices they charge are similar, regardless of the amount of investment behind them. A wash at a $350,000 in-bay costs roughly the same as one at a $1 million tunnel wash. Why? Theyre both just exterior washes as far as motorists are concerned. Overall, theres very little to differentiate them.

Now consider the pricing of hair cuts. If you go to a barber shop, you might pay $8. But if you go to a boutique style salon, the price goes up to $35. Whats the difference? Its the experience!

As a business owner, I would rather gross $20 for a car wash by creating a memorable experience for customers than competing with all the other guys who operate in the $8 range. How would I do this? First, I would establish a theme for my business and carry it throughout the entire site: exterior design, uniforms, signage, interior displays, advertising, etc. Take a look at Disney, the masters of theme development and experience. This is what customers want.

During his presentation, Gilmore quoted J.D. Power and Associates, a global marketing information firm that conducts independent and unbiased surveys of customer satisfaction, product quality and buyer behavior: When we measure satisfaction, what we are really measuring is the difference between what the customer expects and what he perceives he gets. Gilmore takes the idea a step further, saying, Designing for the average is the root cause of customer sacrifice.

The bottom line is if we are to be successful, stave off competition and leave a measurable, long-lasting, favorable impression that brings us economic rewards, it is the experience that counts. We are part of the experience economy. Thanks to the ICA for introducing me into the most exciting way to look at the car-wash business. I cant wait to dream up fun ways to outwit my competitors!

Fred Grauer is the vice president, distributor network, for MarkVII Equipment LLC, a car-wash equipment manufacturer in Arvada, Colo. He has made a lifelong career of designing, selling, building and operating car washes. He can be reached at [email protected].

The Art of 48 Square Feet

Article-The Art of 48 Square Feet

Sure, you know the rentable square footage and occupancy rate of your self-storage property. After all, you want to maximize your return on investment. You also know retail sales represent an opportunity for additional profit. But did you know these sales could amount to anywhere from $12,000 to $24,000 annually? All you need is an 8-by-6- foot floor space or 48 square feet of wall and a properly designed display.

Most self-storage businesses already stock and sell retail products. But stacking a mess of locks, boxes and other items in a corner of the office just doesnt cut it in todays competitive market. The more marketing-driven chains are building facilities with well-designed retail areas that use all the tricks of the trade. How can your established storage sites compete?

First, stop thinking of your reception area as an office. Offices are perceived by most people as serious, stressful environments. Thats why banks and similar service businesses use interior design to soften their images and put customers at ease. You should do the same.

Enter your facilitys front door and attempt to view the space as customers do. Is the area neat and well-lit? Are the colors bright and upbeat? Do your counters make it easy for staff to see and greet customers when they enter? Is there wall décor rather than Thou Shalt Not signage? Do your displays and merchandise look fresh and new? If the answer to any of these questions is no, you have work to do.

Retail Artistry

Get some graph paper, a tape measure, and some retail-merchandise catalogs that feature product-display units. Use the graph paper to draw a diagram of your current reception area. Be sure to indicate the placement of doors, windows and other permanent fixtures. If you feel your lighting isnt up to par, include it as well. Now make several copies of your drawing, get a cup of coffee, and dive into those catalogs.

Look for displays that hold all the products you carry as well as new ones you might consider. (You are planning to offer more items, arent you?) To give your retail area a professional look, use one source for all your displays and merchandise. Look for plan-o-grams. These suggestions, based on retail experience, advise you as to what to stock and where it should go on a display. Make note of the displays you like and their footprint (dimensions).

Now sketch out the space the displays will occupy on one of your drawings. Allow ample room for aisles, if necessary. If the displays are to be positioned against walls, note their height to determine whether there will be space for merchandising posters or other sales graphics and signage. You dont have to settle for your first plan. Experiment with different layouts to see what works best.

Make It Pretty

With your layout finalized, contact your retail supplier and see what ideas it can contribute. Ask whether it provides marketing materials. For example, posters, header cards and other signage not only brighten your retail space, they trigger impulse buys. At this point, you may want to consider whether your sales space needs a new coat of paint, improved lighting, plants or other décor.

If this all seems like a lot of work for a small (though profitable) part of your business, consider this: The sales of moving, packing and storage supplies made by truck-rental firms, office-product superstores, parcel-service centers and self-storage facilities is fast approaching three-quarters of a billion dollars annually. Dont you want your share?

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

Check That: Beauty Lies Within

Article-Check That: Beauty Lies Within

Theres an old adage about tackling daunting chores: If you have to swallow a frog, dont stare at it too long. If you have to swallow two frogs, swallow the biggest one first. When it comes to maintaining an attractive office and facility interior, the preferred plan is to swallow a bunch of tadpoles every day, thereby never having to choke down a bulky adult amphibian at all.

Sticking to a list of regularly performed duties is the best way to keep the job manageable, advises Thomas Berlin, vice president of operations for Pogoda Management Co. in Farmington Hills, Mich. Maintenance is a daily task, from picking up trash in the store to cleaning fingerprints off the front window. The only way to stay on top of it is to do it every single day. If it gets away from you, it can really become overwhelming.

In todays highly competitive self-storage marketplace, first impressions have never been more important. A temptation to procrastinate with the mop and broom could lead to lost leases. A prospective customer may walk into the office and not even consciously think, This place is dirty. But he may get a feeling of unease because the retail area is disorganized, a light is burnt out, or a Big Gulp cup is abandoned on a dusty display.

I think customers notice everything, even things managers dont, because the managers are looking at them every single day, Berlin says. The trick is to look at things with a fresh eye, the way customers do.

Building a List

Maintenance checklists are a frog-hating employees best friend. Every management company uses them, structuring them in various ways. Susan Head of North Carolina-based S&W Property Management uses daily, weekly, monthly, annual and preventive lists. She suggests a checklist arrangement that includes tasks to complete, the date they are completed, whether the tasks are D, W, Q or S (daily, weekly, quarterly or seasonal), and managers comments.

Ray McRae of Arizona Mini Storage Management Co. also uses seasonal checklists to cover air-conditioning and evaporative cooling in the springtime, and weed abatement after the rainy season. McRae says the important thing about developing an effective list is to incorporate what you learn during the inspection process, adding and subtracting tasks as necessary. (Please see the accompanying sample checklist compiled from several management companies, which may offer new ideas for your own maintenance roster.)

Front Office

The front office should project a warm, welcoming and orderly image. Donna May of Texas-based Joshua Management Corp. likes to use air-fresheners in the office and entryways to appeal to a tenants senses. Berlin has discovered that carpeting enhances a customers experience while facilitating maintenance. We found hard surfaces far more difficult to take care of because they get wet and dirty, and you have to use a cleaning agent and water on them. With carpeting, all you have to do is run a vacuum once a day, plus it looks better.

Dusting and stocking retail areas, displays and office equipment are routine parts of the job. One thing that sometimes gets overlooked is signage. Dont forget to periodically inspect office, corridor and unit signs for wear, stains or outdated information, and replace them when necessary, Berlin advises. Aside from watching for burnt-out bulbs in the office, check lighting at night to ensure signs and the entrance are casting the right impression.

Computer maintenance has become a required task as well. Many facilities produce a separate checklist for computers, which includes backing up data and regularly updating virus software. Piped-in music, used to dispel eeriness in often empty buildings, is emerging as a customerpleasing amenityand represents more equipment for managers to monitor. Include the PA system on your list of office equipment.

Corridors

To prevent dust buildup, periodically wipe down hallways and doors, at least every quarter but preferably monthly. White walls reflect more light and brighten interior hallways, says May. But if there is exposed Galvalume, hallways can be damaged by oils from peoples hands. This is called white rust. Regular cleaning is a great preventive measure.

Mel Holsinger, president of Arizona-based Professional Self Storage Management, recommends using music and air-fresheners in hallways, and having trashcans available for customers smaller refuse.

Corridor and unit floors in climate-controlled buildings should be sealed, using a product that is 22 percent solids, says May. The solids fill the pores in the concrete so the sealant stays on top. Concrete should be resealed about every five years.

While May recommends mopping floors at least monthly, Berlin suggests minimizing the use of water near units to reduce the risk of it seeping under doors. Employees at Pogoda properties use a floor polisher for hallways and simply sweep and spot-clean unit interiors, whereas staff at McRaes facilities actually wax concrete hallways. It adds a nice, impressive and clean feel to any project, he says.

Vacated Units

When a tenant vacates a unit, managers should spring into action, inspecting and readying it for quick re-rental. If possible, the manager should go over the unit with the vacating customer to get his feedback on its condition and spot any problems, Holsinger says.

Naturally, basic cleaning is required, as well as ensuring doors and latches operate smoothly. When sweeping units, Head says managers should take a broom to the walls, ceiling and doors. A task managers sometimes overlook is checking the ceilings for damage, leaks and cobwebs, she says. McRae agrees, noting the vacate inspection should include a search for torn insulation or any light shining through the ceiling, which could indicate a leak. Also keep a close eye on areas that may need paint touchup, Head says. Customers notice these things, but may not say anything.

Pests should also be addressed at vacate time. While pest control should always be in effect, a good maintenance plan includes spraying units each time they are emptied. A professional company is the best option, Berlin says. Managers responsibility is to do as much as they can to educate tenants about not keeping or throwing away food items in the facility, and to keep an eye on what tenants move into their units, he says.

Onsite Residence

Heads company thoroughly reviews guidelines for apartment maintenance with its managers from the get-go. We do surprise walk-throughs during our monthly audits, she says. Commonly, maintenance expectations are written into the managers lease.

Pogodas agreement calls for no unusual wear and tear and insists the apartment be well-maintained. Residences are inspected periodically, but Berlin acknowledges the issue of privacy. Its a fine line you walk, he says.

Holsinger believes management should have the right to inspect and direct the maintenance needs of apartments regularly. I recommend this be done monthly with a supervisor, he says.

Restrooms

Few (if any) facility employees would cite bathroom cleaning as the favorite part of their day, but there are ways to make the job easier and more effective. McRae suggests keeping a maintenance log on the bathroom door, along with a sign that reads, If this restroom is not up to standards, please report it to the manager. Its a good way to keep messes in check, he says.

Since most of Pogodas facilities allow restroom use after office hours, switching to electronic equipment proved helpful. We put in electric hand-dryers instead of paper towels, which cut down on problems of people trying to flush towels, Berlin says. Toilets that flush automatically and timed faucets also help. The main thing is to stay on top of maintenance so its not a big deal at any point.

The restrooms level of sanitation is a reflection of a facilitys overall cleanliness, Head points out. Anytime an employee of a facility goes in the restroom, theres always something he can do to help keep things under control.


click here to view Interior Maintenance Checklist

Got Cameras?

Article-Got Cameras?

Obvious reasons for investing in a video-surveillance system include rising crime rates, legal-liability issues and homeland security. While these are all valid, they arent the most important motivation for making an investment in security. What is? Competition.

If you dont offer the security features your customers expect, they will take their business elsewhere. In this age, youre probably no longer the only game in town. Chances are theres a brand-new facility in the area or an existing one that has completed a fancy retrofit. In either case, theyve likely got state-of-the-art security with all the bells and whistlesand they let your potential customers know it.

Most people want to store their valuables at a clean, secure facility. You can tell customers all about your door alarms, electronic gate access and onsite manager, but having a video-surveillance system with a highly visible display in your front office shows them youre serious about security. While the primary function of the surveillance system is to deter and (when necessary) catch thieves, its secondary function it to capture new business. So lets consider the components of a quality camera setup.

Video Cameras

Always choose brand-name cameras with day/night capabilities and a resolution of at least 480 lines. This will provide you with a clear, crisp image on your monitor, even when light is minimal. In addition, use an auto-iris varifocal lens. This type of lens automatically adjusts for different lighting conditions, and the varifocal feature enables you to focus on exactly what you want to see in an image.

Digital Video Recorders (DVRs)

There are two types of security-related DVRs: PC-based and proprietary. Both can be configured to allow remote video monitoring, which offers tremendous advantages, including off-site video storage and the ability to monitor activities in multiple locations from a distance.

A PC-based DVR is similar to a personal computer. It receives video input through a video-capture card and records the images to a hard disk. PC-based systems are priced comparably to proprietary DVRs but have been shown to be less reliable and user-friendly.

Proprietary DVRs are self-contained units dedicated to providing video surveillance and recording. Most of their functions, such as the compression and encoding of video, are performed by exclusive processors incorporated for each specific process. This type of system uses embedded operating systems, which ensure high reliability, noise reduction and superior image quality.

Installation

A video-surveillance system (or any security system, for that matter) is only as good as its installation. Any wiring exposed to the elements should be installed in an approved raceway, i.e., conduit, PVC or wire mold. Any splices in the wiring should be soldered and taped, and those splices should be kept to a minimum. Additionally, all wiring should be UL-listed and properly shielded, which protects it from voltage spikes. Of course, only use a licensed security contractor with verifiable references.

It can be daunting to choose a surveillance system that properly meets your security and budget needs. Hiring a competent and knowledgeable contractor can streamline the process, assuring you the very best combination of quality and affordability. Remember, bad equipment and professional installation is no better than quality equipment and bad installation.

Display

Your customers wont likely notice the kind of cameras youre using, but theyll certainly notice the quality of your video display. A plasma or LCD monitor will leave a positive impression. Alternately, a poor-quality display is likely to make them lose confidence in your site. While theres nothing wrong with saving money, be aware of the potential pitfalls of doing things on the cheapit can end up costing you more in the long run. As they say in the restaurant industry, Make it nice, or make it twice.

A high-quality, professionally installed video-surveillance system will create a good impression with your current and future customers. Indeed, its better save your money than to install a system that performs poorly. By investing in a superior system up front, youll win new business, face fewer reliability issues, and enjoy a system that provides years of trouble-free use.

Matthew Nattenberg is the owner of Pacific Rim Security in the San Francisco Bay area. Nattenberg has been a licensed security and alarm contractor for more than 14 years. For more information, call 925.962.1699; visit www.pacificrimsecurity.com.

Selling Promise-Free Security

Article-Selling Promise-Free Security

Do you believe that to attract more tenants and justify your rents you have to offer ancillary services and other amenities? If so, security is likely high on the list of items you market to customers.

Most storage-use surveys show that safety and security are among the top factors tenants consider when choosing a storage site. Yet, you cant promise these things for fear of liability, as your lawyer will tell you. While you cant guarantee a tenants safety or the security of his belongings on your premises, you can create the perception of these things. In short, you want to sell safety and security as features of your facility without making implied or actual promises about their existence.

This may sound like an impossible task, but consider television commercials for any type of medicine. They often show a happy couple dancing or cuddling on a beach somewhere, with a voiceover about how much happier and fulfilled they are thanks to whatever miraculous drug theyre taking. Then come the disclaimers: The cost of this happiness is one potentially horrible side effect or another. Yet companies campaign the dickens out of these products, and people demand them from their doctors.

In a past column, I addressed the practice of selling your facilitys worst feature first (Inside Self-Storage, February 2005). In a sense, potential danger or damage to your tenants person or his belongings is the worst feature of your site. By the same token, your access gates, surveillance cameras, unit alarms, etc., are some of its best facets. So how do you sell your worst and best characteristicswithout making any assurances that could lead to trouble down the road?

Fancy Mouthwork

Here are some ways to sell the safety and security features of your storage facility without making or implying a guarantee:

1. When explaining your sites security features, use phrases like so that and which means to couple features with benefits.

For example, We have an easy-to-use access-control gate, which means only our tenants can come and go with their pass codes, or Here at ABC Storage, we have surveillance cameras stationed at regular intervals, so that our managers can keep a better eye on the property. Coupling features with benefits by using these phrases helps tenants visualize how things work and understand what your features mean to them. They make it easier for you to paint a picture of your facility during the sales presentation.

2. Refer to security features as elements of convenience, not safety.

The picture we painted above of the access-control gate focused on its ease of use. It also happened to mention limited access, but didnt sell the feature on that principle. Similarly, the comment about cameras said they made surveillance easier for managers. It may suggested security without belaboring the point.

3. Talk about peace of mind over security.

For example, you might say something like, We offer individual unit alarms to give you extra peace of mind. What youre selling here is a good feeling, not a promise. You offer certain features to put tenants more at ease, but youre not guaranteeing an end result.

4. Ask a closing question that allows the prospect to think about your security features without you drawing his conclusions.

For instance, after saying, We offer individual unit alarms to give you extra peace of mind, follow up by asking, How does that sound? You could also try a less open-ended question, like You can see weve invested in making this a great place to store, right? or Does that sound good to you?

If your prospect agrees the feature is appealing, not only is he thinking about it, but hes likely bought into your suggestion of security. In soliciting positive reinforcement regarding the safety of your site, youve allowed the prospect to justify the cost of rent in his mind and believe you offer something more than empty space. And you never promised a thing!

Dont be shy about selling your security features. You can paint them as a convenience. You can market the peace of mind they create. In either case, leverage the emotional power they createwith nary a guarantee.

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 him at [email protected].

How Service Serves You

Article-How Service Serves You

I frequently hear stories from self-storage owners about managers who are natural-born salespeople. Ive heard tales about the imaginative use of merchandising displays and signage to trigger impulse sales, as well as the clever packaging of related retail products into all-in-one kits. But the story that really got my attention had little to do with selling.

It was the end of a particularly hectic day. The manager was looking forward to a little downtime as he walked through the parking lot to pick up any trash or debris. Thats when he found the pink diaper bag. Inside were diapers, bottles of formula, a pacifier, even a small teddy bearbut no identification of any kind. He was about to toss it in the lost and found when he remembered how his little girl couldnt sleep without her pacifier. So with a sigh, he took out the days receipts.

After a little detective work and a few phone calls, he managed to contact the relieved parents. A little while later, crying baby in tow, they returned to claim the bag, and thanked him profusely. After a week or so passed, his boss showed him a nice letter the young couple had written about his good deed. Over the next few months, there were more than a few new customers who asked for the manager by name. It seems the grateful parents hadnt stopped talking about him.

The point is, while we can measure the effects of direct sales, we cant measure the long-term effects of outstanding service. We dont know how many new customers we earn by providing customer-oriented service or how much our business image improves each time we go out of our way to be helpful and friendly. We do know, however, that its worthwhile to teach and encourage employees to give outstanding customer care.

Creating a Service Culture

Great service begins with the creation of a service-oriented work culture. Visitors to your facility should be welcomed in a friendly, polite manner and addressed formally. Thank you and please still go a long way toward creating a positive impression. Although managers should cross-sell, they should also remember that customers needs are always their first consideration. Show customers how to save money, and theyll remember you for what you didnt sell them.

Another way to create a service culture is to make use of an Employee of the Month or similar incentive program. Invite customer feedback by displaying self-addressed, postage-paid postcards on the counter or including them with monthly statements. These cards can use check the box questions on service, site cleanliness, etc., as well as space to write personal commentary. Encourage customer participation by entering every reply in a monthly drawing for a modest prize, and reward employees based on who receives the most favorable responses.

If a manager gets a compliment, make a big to-do. Take the manager out to lunch, and post notices around your site. Consider putting the managers picture in your next ad or newsletter.

The idea is to encourage a service culture by teaching and rewarding customer-oriented behavior. Remember: Service starts at the top. The more service-minded you are, the more service-minded your employees will be. Not only will it add to your bottom line in the long term, its the right thing to do in the short term. That alone makes service worthwhile.

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.