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Articles from 2002 In July


TRACHTE ANNOUNCES PROMOTIONS, NEW HIRES

Article-TRACHTE ANNOUNCES PROMOTIONS, NEW HIRES

TRACHTE ANNOUNCES PROMOTIONS, NEW HIRES

Sun Prairie, Wis.-based Trachte Building Systems, a manufacturer and supplier of pre-engineered steel buildings to the self-storage industry, announced the following promotions:

  • Jeff Seefelt was appointed president and chief operating officer. Seefelt, who held the previous position of vice president of sales and marketing, joined Trachte in 1980 as a sales representative.
  • Don Ketelboeter accepted the position of production manager. He will direct the activities of the manufacturing floor as well as the traffic and receiving department. He has been with the company eight years.
  • Mike McCabe is now Trachte's supply-chain manager, responsible for maintaining proper inventory levels, working with vendors and supervising the purchasing department. He was previously the company's inventory analyst for four years.
  • Steve Plenty has been promoted to assistant controller. Hired in 2000 as a senior cost analyst, he will now be responsible for financial analysis, work-center analysis, budget preparation and maintenance of internal company audit.
  • Mike Larson accepted the position of assistant sales manager. He will supervise regional managers, handle customer-account strategy and carry out the company's policies and procedures. He maintains a sales territory of New York and New Jersey.
  • Laurie Dary was appointed pricing supervisor. She will carry out proposal and contract-generation procedures, coordinate the implementation of product improvements, generate reports and supervise the pricing department.

The company also hired Matt Skowronek and Mike Noroña as engineering technicians and Steve Hayden, it's newest employee, as a structural engineer. For more information, call 800.356.5824 or visit www.trachte.com.


Jeff Seefelt

Don Ketelboeter

Mike McCabe

Steve Plenty

Mike Larson

Laurie Dary

Steve Hayden
 

  U-HAUL CFO RESIGNS TO START NEW VENTURE


Donald W. Murney

Former chief financial officer for U-Haul International Inc., Donald W. Murney, resigned his position to become managing partner of Murney & Partners, a company specializing in providing capital and financial-structuring services for the self-storage industry worldwide. Murney and his partners, Robin J. Haldeman and Christopher R. Miller, both former U-Haul executives, bring significant strategic insight and financial expertise to the venture. Based in Scottsdale, Ariz., the company will attract debt and equity capital for clients while maximizing investment returns or mitigating taxes. The partners will work closely with owners to customize growth plans and create the financial products they need. For more information, call 480.951.0105.

BETCO PROMOTES LEATHERWOOD, REHIRES WRIGHT


Rob Wright

Jerry Leatherwood

BETCO Inc. of Statesville, N.C., promoted Jerry Leatherwood to the newly created position of vice president of engineering and technical services. In addition to his new responsibilities, he will take over the project-management department. Before joining BETCO, Leatherwood was director of R&D and engineering for American Buildings Co.

The company also rehired Rob Wright as its director of project management and construction. He previously spent three years with the company as a field superintendent and project manager. For more information, call 800.654.7813 or visit www.betcoinc.com.

NOAH'S GP ANNOUNCES EXECUTIVE VICE PRESIDENT

Noah's GP Inc. announced Jeff Eckols has been hired as the company's executive vice president. He will be responsible for all market and site-selection activities for the Noah's Ark Self Storage chain. As a veteran real estate attorney, part of Eckols' past experience includes handling the closing of most of the Noah's Ark properties to date. His experience will be valuable in the firm's continued development in the Southeast and Southwest. For more information, visit www.noahsgp.com.

If you would like to announce your company's new hires or promotions in "Movers and Shakers," e-mail [email protected] or fax to 480.941.2638.

Increase Productivity Through Computer Networks

Article-Increase Productivity Through Computer Networks

What if your staff could simultaneously answer questions, process payments and perform tenant move-ins? What if you could manage your payment specials, change rental rates and modify company policies from one centralized location?

The vast majority of self-storage facilities have two managers who share one computer. Managers quickly learn to rely on printed reports to keep the computer available. It becomes nothing more than a data-entry terminal, a mere fraction of its true potential. If this site had an office network and the managers understood the benefits, productivity would dramatically improve.

In business, a network is a group of interacting industry professionals and potential customers. But to technologists, a network describes computer stations interacting securely within a defined geographical region. The most common network configurations are the local area network (LAN) and the wide area network (WAN).

Local Area Network

A LAN is typically confined within an office or home. It allows several computers to instantly share data files, applications, printers and add-on equipment. Typical add-ons include a shared high-speed Internet access, privacy firewalls and remote-access software. Employees can collaborate on documents, and the accounting staff can review up-to-the-second site data. Each employee has his own password and security rights valid on all LAN computers. With a computer always available, your staff will fully benefit from your facility's management software; and because you need only one scanner or printer to service a very busy office, a LAN will save you time and money.

Configuring a basic LAN network is quite easy. Each computer is called a node and each node connects to the LAN using a data cable or wireless link. A basic network kit includes the router, network interface cards (NIC) and patch cables necessary to connect up to four office computers. These kits can completely integrate the busiest self-storage office. The simplest and least expensive LAN is the peer-to-peer network. With peer-to-peer, each computer is an equal partner within the network and defines which files and printers can be shared and by whom.

Expanding With WWW

The office LAN is a very private and secure network. By contrast, the Internet is a global network connecting millions of computers. Often referred to as the World Wide Web, the Internet is a chaotic blend of meaningful and useless information. Each computer on the Internet is independent and connects through an internet-service provider.

Several of this magazine's advertisers produce specialized software that uses the Internet to expand the boundaries of your LAN. By moving far beyond your local area, your network is now called a wide area network (WAN). In the self-storage industry, a WAN lets you run real-time reports and perform transactions from anywhere in the world using an ordinary phone line. You can use the WAN to instantly know the current vacancies at your other facilities. You can even complete a remote reservation without bothering another manager.

Even with an Internet-based Intranet, your company information is kept secure through data encryption. Because the Intranet software handles the communication, a web browser is never needed. This eliminates the risk of employees visiting questionable sites and downloading objectionable material. Thousands of self-storage facilities use a call-center and/or remote- delinquency software as their Intranet application.

A hybrid between the public Internet and a private Intranet is the Extranet. This is a private network with limited and secure public access. An Extranet allows customers to make secure rental payments over the Internet. Another example of an Extranet is the automatic-update feature offered by several software and security companies. This allows your software to automatically find and install free software updates as they become available.

LAN, Intranet and Extranets can be powerful extensions to your business model. They each have minimal book value but provide extraordinary marketing and efficiency value. If you want to increase your customer service, employee efficiency and business control, it is time to get connected.

Doug Carner is the vice president of marketing for QuikStor Security & Software, a California-based company specializing in access control, management software, video surveillance and call-center products for the self-storage industry. For more information, call 800.321.1987; e-mail [email protected]; visit www.quikstor.com.

The Northwest, Round Two

Article-The Northwest, Round Two

This month's travels take us to the Northwest United States, a fast-growing area of the country with an active self-storage market. Let's hear what our local experts have to say about their respective cities and regions. Joining us in this survey are our Northwest brokers: Richard Arnold, Arnold/Forcum & Associates, Portland, Ore.; Larry Hayes, Larry Hayes & Associates, Missoula, Mont.; and Marc Neumann, Wallace Properties, Bellevue, Wash. Because of the impact of the recession, I will also make some comments on the national market to provide contrast.

1. Is it a good time to sell self-storage?

Arnold: I believe it to be a good time to sell. Since I placed my last listing on the market, I've received two to four calls or e-mails per day, mostly from very interested and qualified parties. I could have written several backup offers had I chosen to do so.

Hayes: This is an ideal time to sell--interest rates are low, which allows an investor a higher after-debt return.

Neumann: It's a very good time to sell because interest rates have never been lower. Cap rates for self-storage are more attractive than other real estate investment vehicles at this time. However, in the state of Washington, there's little inventory for sale, possibly due to seller indecision as a result of the recent economy.

2. Is it a good time to buy self-storage?

Arnold: It is also a good time to buy self-storage. Returns on other types of properties have been reduced, while at the same time, interest rates have not been lower in recent history. This obviously increases cash flow for the investor.

Hayes: Yes. It's a good time to buy while interest rates are low.

Neumann: It's a good time to buy and lock in low interest rates. I wish I had more inventory to sell!

3. Do you believe other types of real estate are under-performing and attracting buyers to self-storage?

Arnold: In my area, other types of real estate are seeing move-outs, subleasing and high vacancy rates. To my knowledge, self-storage has been little affected.

Hayes: A surplus of money (much of it 1031-exchange money), low interest rates and a volatile stock market have driven prices up and returns down on most investment real estate, including self-storage.

Neumann: Other types of real estate investments, such as apartments, are selling at very low cap rates. Self-storage is a much better investment vehicle because the return on investment is higher. Other forms of real estate, such as office and industrial space, are not a good investment now due to high vacancy rates.

McCune: Self-storage continues to be the darling of the real estate business as occupancies and rates stay high. The consistency of the cash flow is attracting investors in these uncertain times. Ten or 11 percent cash-on-cash returns look very good compared to the stock market.

4. We've heard replacement costs are putting a cap on values. What has been your experience?

Arnold: For the most part, replacement costs do not take into consideration the blood, sweat and tears the owner expended filling up his existing property. It's an old appraisal axiom that a property is not worth more than its replacement cost. It's a rough guideline, but it will never replace the income approach to value. However, if there is a potential site nearby that looks promising, replacement cost can put a limit on pricing.

Hayes: If there's a strong demand for space, it is not difficult to sell at a premium to replacement cost. When lease-up has been long-term, a buyer can rationalize paying a little extra.

Neumann: Replacement costs for improvements are not much different today than in past years, but land is more expensive. Storage properties that are appropriately priced will sell in the marketplace. If they are priced too high for the market, they will languish.

5. Are you or your buyers having any difficulty getting loans for your self-storage sales and projects?

Arnold: The last property I sold had five lenders wanting to loan on the property. Not all wanted to loan the required amount, but they were all genuinely interested.

Hayes: No. Local lenders will loan on properties with a good operating history.

Neumann: Money is relatively available. To qualify, specific criteria must be met, so it's more difficult for the highly leveraged investor. If a buyer has 30 percent to put down with a good financial record, the money is easy to find.

McCune: Money is available across the country to good facilities, but lenders are a little more "picky" about quality and the consistency of the cash flow.

6. Having marketed self-storage properties for sale, what do you see as being the most important factor to successfully selling a facility?

Arnold: The most important factor is the price. It must be in line with current cap rates. But of almost equal importance is that the property appear to have been well constructed, maintained and managed.

Hayes: A strong, well-documented operating history with good management in place. The cash flow is what investors want, and they want to be sure it is there.

Neumann: Price and location probably top the list. National exposure to buyers and sellers also has a lot of value. The ability to e-mail a property package to a client definitely makes the process quicker and easier.

McCune: A good market also helps, and this market is a dandy!

Michael L. McCune has been actively involved in commerical 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 January 1994, he created the Argus Self Storage Real Estate Network, now the nation's largest network of independent commercial real estate brokers dedicated to the buying and selling of self-storage facilities. For more information, call 800.55.STORE or visit www.selfstorage.com.

First-Year Resources

Article-First-Year Resources

The first year of operations of your commercial records business is the most important to its ultimate success. Critical decisions will guide the business for several years to come. Design of an effective operating strategy, creation and implementation of a strategic marketing plan, and the adoption of measurable management principles are key components.

Industry observers suggest there may be a three- to five-year window of opportunity for new commercial records centers to position their businesses as market leaders and garner optimum market share. Opportunities like this do not come along often. To ensure maximum market share and high-yield records management, you must be fast afoot and savvy.

My assessment of the industry is there is still great opportunity but limited time for successful implementation. With that understanding as a backdrop, those entering the business must be diligent and single-minded. The ingredients of this focused approach must include the following components.

Effective Operating Strategy

We live in an era Peter Drucker, legendary management scientist, calls the Post-Capitalist Society. We have discovered world-class methods and practices that are tried and true, and we have proven they work if properly implemented. The question we should ask ourselves is how to use the tools and resources available to us. No longer are land, labor and capital the principle resources. As Drucker says, knowledge is the prime resource. The principle attribute of knowledge is it is infinite--unlike land, labor and capital, which are all finite.

How do we use knowledge in the development of our operating strategy? No one can be the best at everything. We have become a nation of specialists. For example, doctors find a practice area that is unique, such as pediatric ophthalmology. These are specialties within a specialization. This is the nature of the post-capital society. So, let's use it to our advantage.

If we are not the best at an activity, we should find out who is and let him handle that task. It is better and less expensive to search out those who add value and reduce cost to your company. Outsourcing and re-engineering are the mantras of our times. There are better, simpler and more effective ways to do everything. But outsourcing tasks and responsibilities are appropriate only when you can manage the outsourcer to the standards of performance you set.

Strategic Marketing Plan

Sales drive commercial records management. For decades, the industry has accepted a long sales cycle of six months or more. Why? Because "It has always been that way." It could be six months or longer if you do not control the sales cycle.

Get in control. Take charge of your marketing program. Manage your sales staff. Make it a 60-day sales cycle. The six-month sales cycle is a myth fostered by those who can't sell. The sales cycle must be managed and it must be structured. I recommend a seven-step sales cycle that ensures a 75 percent close rate at the end of step three. Don't waste your time on those who aren't buyers. A prospect is someone in a 60-day buying window, who has a need for your service and the money to pay for it. I want you to mine gold in a gold mine. Why endlessly prospect where there is no gold?

Measurable Management Principles

If you can't measure it, you can't manage it. The first principle of managing anything is understanding its nature. If you are going to be in the commercial records-management business, you should understand the business. You wouldn't consider going into the legal profession without knowledge of the law, or becoming a doctor without studying medicine. Yet I hear from folks every day they want to go into the records-management business without understanding the nature of business records. "Well, it's just storing boxes isn't it?" they ask. No, it is not!

There are three levels of understanding to consider. First, you need to understand the need of businesses to maintain appropriate business records. Second, you must understand the value of commercial records management to the marketplace. Finally, you need to understand the notion of process managing, setting standards and then benchmarking them.

In Managing in a Time of Great Change, Drucker insists we must constantly evolve and adapt to survive in today's business climate. Commercial records management, not unlike any other industry, must seek best practices, reduce operating costs, manage its assets and constantly strive for change--not for the sake of change, but to improve return on investment. Managing the bottom line is a process that includes managing people, process, technology and assets of a company.

The cornerstones of successful bottom-line improvement in a commercial records center are the principle of effective use of technology, the principle of personnel abatement, the principle of strategic outsourcing and the principle of batch processing. Last month we addressed these in detail. Developing, owning and operating a commercial records-management business requires hard work, diligence, attention to detail and a keen business focus. The rewards are great for those with the "right stuff."

Regular columnist Cary McGovern, CRM, is the principal of FileMan and FIRMS (FileMan Internet Records Management Services), which offer full-service records-management assistance for commercial records-storage start-ups in self-storage operations. For assistance in feasibility determination, operational implementation or marketing support, or for questions on the FIRMS Sales Manager, call 877.FILEMAN, e-mail [email protected]; www.fileman.com.

Shape-up Summer

Article-Shape-up Summer

Outdoors

The outside of your facility is where customers get their first impression. Here are a few guidelines to keeping your outdoor environment looking sharp.

Landscaping

Kill weeds with a commercial weed killer as soon as they appear, especially in cracks between the building pads and the pavement. Lawns should be cut weekly and fertilized periodically during the year. Consider having an irrigation system installed to automatically water the lawn and flowerbeds.

Gutters

Gutters should be checked frequently to ensure they are free of leaves and other debris. Give gutters a thorough cleaning every spring and fall. Also, make sure down spouts are draining water away from the building. If not, consider adding extenders.

Patch Repair

Rely on professionals to do this labor-intensive job, or consult your asphalt-maintenance contractor to determine how deep the pavement replacement should go. In general, the removal depth should be equal to 1.5 times the original pavement thickness.

Street Maintenance

Few things are more annoying--or potentially dangerous--than potholes. Whether you have a single pothole or several on your property, customers will notice these pesky craters.

Speed Bumps

Speed bumps will slow down customers and increase safety. Make sure speed bumps are the adequate size. The recommended size is 24 inches wide by three inches high and run the width of the road-striped with yellow or white reflective paint and seal coated.

The Roof

Regular inspections of the roof are crucial. A small leak could do serious damage. Look for any signs of leakage inside vacant units. You should also do regular inspections from the rooftop. If you have a built-up roof, look for bubbles or cracks in the asphalt topping and loose flashing attachments. When inspecting metal roofs, check for missing or loose screws, deteriorating rubber washes, separation of lap joints, and exposed sealants that have cracks or bubbles. With standing-seam metal roofs, you should be on the lookout for separation of panel laps, loose flashing fasteners and exposed sealants with cracks or bubbles. Also, consider hiring a professional to inspect the roof on the inside and out every two to three years.

Bollards

If you don't have guard posts, get them. They can protect sensitive areas such as the front office or corners. If you already have bollards, consider using a post sleeve rather than scraping and painting them regularly. Post sleeves eliminate the need for scraping or painting. The polyethylene thermoplastic sleeve easily slides over existing guard posts, withstands weather and traffic, and can be custom fit. While the standard color is yellow, custom colors, logos, safety warnings or symbols are also available.

Exterior Building

Regularly check for damage caused by people or nature. Look for cracks, rust and fading or peeling paint. Cracks should be filled to prevent water leakage into the units. Rust should be removed and the area repainted to prevent further deterioration.

Painting

Storage buildings, unit doors, bollards, keypad holders and the office should be repainted if they look "tired." Check with the manufacturer of metal buildings and doors for recommendations on what kind of surface preparation and paint should be used, otherwise you could end up with peeling paint.

Coating and Refinishing

Rather than painting worn surfaces, consider using a product that revives the original paint color. Coatings can restore paint to its previous luster while protecting it from future degradation. They also add a protective layer against exposure to outside elements such as salt, dirt, wind, heat, ultraviolet rays and acid rain. The products also have a temperature-reduction feature. Most coatings can restore any colored surface including doors, exterior buildings, metal gates, signage and gutters, and come with a guarantee against cracking, chipping, peeling, discoloration or loss of gloss.

Trash

Several times a day, check the grounds for litter, including natural refuse such as leaves, stones, twigs, etc., and man-made rubbish like paper, bottles, cans and cigarette butts. Haul boxes, mattresses or other furniture tenants leave behind to the dumpster.

Signage

Signs should be bright and easy to read. When signs begin to show wear such as faded lettering or graphics, replace them. Also, switch bulbs regularly. Signs that are missing letters are unattractive and unprofessional.

Asphalt Overlay

This is an affordable method to keeping your roadways clear of potholes and other asphalt problems. The overlay thickness should be a minimum of 1.5 inches, with a maximum of 2.5 inches. In addition, a seal coat should be applied to the pavement every three to five years. Seal coating will extend the life of the pavement.

Flowers, Trees and Shrubs

Pruning helps keep plants healthy. Shrubs should be pruned into an attractive shape. Flowers should be regularly fertilized and kept free of weeds and insects. Many types of flowers need regular pruning to accelerate growth. Flowers or shrubs that die should be removed immediately and replaced with new foliage. Trim tree branches that threaten power lines or are a threat to the building during severe weather. Large dead or dangling branches can also be a hazard and should be removed.

Security and Safety

Having security in place isn't enough. Cameras, door alarms and perimeter gates should be in good condition to deter crime and keep employees, tenants and their belongings safe.

Door Alarms

Wired door alarms should be inspected every time a unit becomes vacant to ensure the sensing device is working properly. Look for damage to the door switch or the magnet. Also, check wires for fraying or damage. Examine brackets for breakage or tampering. Batteries in wireless door alarms should be tested often and replaced as needed.

Cameras

The most important thing about cameras is keeping out dust and dirt. Dust or vacuum camera equipment, equipment area, the monitor and video recorder regularly. If needed, hire a professional to clean the video recorder heads. Inspect equipment weekly for broken or dusty lenses, split or frayed wires, and tampering. Also, make sure your cameras are focused and angled where you want them.

Lighting

Lighting is crucial to deter crime and keep customers safe. There should be enough fixtures to adequately illuminate all corridors, driveways and areas between buildings. Burned-out bulbs should be replaced as soon as they are discovered.

Doors

Doors are the hallmark of self-storage facilities. If a customer experiences difficulty when opening or closing his door every time he visits your facility, he'll be frustrated and unimpressed.

Door Numbers

Let's face it, door numbers will fade or crack over time. Instead of painting door numbers repeatedly, consider purchasing high-quality vinyl numbers. They are easy to read, easy to apply and will fade less than painted numbers.

Basic Maintenance

Every time a unit is vacated, take the opportunity to do some basic maintenance. Sweep out cobwebs and dust that gathers around the door. Make sure the door is securely attached to the wall. The screws may have backed out after continual use. Oil or lubricate the springs with a light coat of oil to reduce friction and rust. Also, check the tension and make any needed adjustments. Check pull cords for fraying. If a door is dented, consider purchasing a dent tool kit. Several door manufacturers offer these easy-to-do kits. Lastly, consider steam-cleaning all exterior doors once a year.

Keypads

Keypad maintenance should include periodically checking seals or gaskets for leaks. In humid climates, moisture can get inside and cause damage over time. Make sure sprinklers are not directed directly at the keypad. Once a year, open the keypad and inspect it. Any worn or corroded areas can be cleaned with alcohol and a toothbrush.

Safety

Have at least one smoke detector in the main office or lobby. Check the batteries often. Also, keep fire extinguishers handy and know how to use them. Emergency numbers should be kept nearby. Keep other nonemergency numbers easily accessible. This includes 24-hour plumbers, window-replacement professionals, electric and towing companies, and the local police and fire departments. Have a map of the property with exits highlighted hanging in the front office. Consider posting the map, along with a list of rules and regulations, inside each unit.

Gates

Slide gate chains should be lubricated and checked for tension. Sprockets, or gears, should be inspected for wear and replaced when needed. Caution should be exercised in opening the operator and removing the cover. Power to the operator should be shut off. Slide gate rollers should be checked for wiggle and replaced if wobbly. Vertical lift gates with belts should be checked for wear and tightness. The tighter, the better. Some vertical gate operators have bearings that need to be greased. The balance of the gate needs to be checked or adjusted once per quarter. The changes in seasonal temperature can affect this. The battery also should be checked. Generally, all safety devices should be tested. Loop detectors can be checked with the site golf cart. The safety sensor on a lift gate can be tested by hand. When pushed on it as it comes down, it should immediately go back up. Inspections inside the gate operator and around working parts of the gate should be done visually. Any repairs or adjustments should be referred to a professional.


Indoors

Once you have lured the customer into your office with your great curb appeal, maintain that good impression. That means your office should be sparkly clean from floor to ceiling.

The Office

Floors should be vacuumed, swept or mopped daily. Sundry-item displays should be dusted weekly and always kept well stocked. Dust windowsills, blinds, countertops and vents regularly. Empty wastebaskets daily. Make sure the area behind the counter, including the manager's desk, is neat and clean. Stacks of newspapers, magazines, coffee cups and fast-food wrappings are messy and unprofessional.

Carpets

If possible, stay away from light-colored carpets. Stains tend to show up more. Regardless of color, carpets should be cleaned about every six months. You can hire a professional or tackle the job yourself. However, keep in mind professional carpet cleaners, although more costly, use high-powered machines and chemicals you're not privy to when renting a cleaning machine. One alternative is to purchase one. This could save time and money in the long run, especially if your carpets dirty quickly.

The Public Restroom

Do a walk through a couple times a day to make sure it is clean and stocked with paper products and hand soap. Graffiti or vandalism should be taken care of immediately.

Windows

Windows should be washed at least three times a week with a good commercial cleaner. About once a month, remove screens and storm windows and wash windows inside and out with a commercial cleaner or vinegar-and-water solution.

Office Equipment

If you allow customers to use your fax machine, copier or phone, you need to ensure these items are working properly. Keep office equipment free of dust. Regularly inspect it to make sure ink and paper are stocked, and keep the manufacturer's number close by in case you need repairs. Outdated equipment should be replaced. Telephones should be wiped off several times a day with a disinfectant such as Lysol to reduce the spreading of germs.


Storage Units

Clean, dry units will keep customers happy. Every unit should get a thorough inspection once a tenant vacates.

Keep It Clean

When a unit becomes empty, grab a broom. It's time to do some basic maintenance. First, if anything was left behind, pitch it. Next, sweep out the unit. Swipe corners and walls for cobwebs, bugs, dust and grime. The floor may also need a good mopping. If the unit has an upleaseant odor, use a commercial deodorizer to freshen it. Check for insects or rodents. If there is a pest problem, take appropriate action: Hire an exterminator, use a commercial insect killer or set traps.

Ceilings

Look for water spots, stains or leakage. Run a duster or broom over the ceiling to get rid of dust and cobwebs.

Empty Units

Lock all vacant units with inexpensive yellow padlocks that are all keyed alike. This will keep out transients and criminals.

Sources: Tom Berlin, Pogoda Management Co.; Rick Dodge, Rib-Roof Metal Systems Inc.; Doug Paige, Camera Janitor; Bill Rice, Vivilon Coatings Inc.; Teresa Sedmak, Everbrite Inc.; Todd Slyngstad, Silicon Valley Paving Inc.; Daniel Webster, WHAM Security Systems; and previous Inside Self-Storage articles.


Resource Directory

Roofing
Aztex of Houston
713.941.8883

Duracool Inc.
www.duracoolinc.com

Roof Hugger Inc.
www.roofhugger.com

Rib-Roof Metal Systems Inc.
www.ribroof.com

Rooftech Inc.
800.635.5460

Target Sales
800.635.5460

Uniflex Professional Roof Coatings
www.uniflexroof.com

Coatings
Everbrite Inc.
www.renewmetal.com

United Coatings
www.unitedcoatings.com

Vivilon Coatings Inc.
www.restorefadedpaint.com

Bollards
Ideal Shield
www.idealshield.com

Signage
Fay & Sons Signs
877.333.7633

Sign Systems NW
www.doornumbers.com

Tag A Room
www.tagaroom.com

Doors
BDH Systems Inc.
www.bdhsystems.com

Doors & Building Components Inc.
(DBCI)
www.dbci.com

Janus International Corp.
www.janusintl.com

Quick SwitchTM LLC
866.784.2511

Roll Right Industries Inc.
800.848.8106

Trac-Rite Door Inc.
www.tracrite.com

U.S. Door & Building Components
www.usdoor.com

Wayne-Dalton Corp.--Door & Systems Division
www.wayne-dalton.com

Windsor Door
www.windsordoor.com

Door Numbers
Classic Design Awards Inc.
www.unitnumber.com

Quik # - Door Numbers
www.quiknumber.com

Sign Systems NW
www.doornumbers.com

Virginia Tag Service
804.261.7270

Security Hardware
Ark Automatic Gate Systems
www.arkgate.com

Autogate Inc.
www.autogate.com

Digitech International
www.digitech-intl.com

Flair Security Products
www.flairsecurity.com

PTI Integrated Systems
www.ptiaccess.com

Quikstor Software & Security
www.quikstor.com

Sentinel Systems Inc.
www.sentinelsystems.com

WHAM Security Systems Inc.
www.whamsystems.com

Cameras
Camera Janitor
623.561.2670

Crest Electronics Inc.
www.crestelectronics.com

Marketing Made Easy

Article-Marketing Made Easy

As an industry, self-storage has witnessed incredible growth in the last decade. This expansion has necessitated the need for more sophisticated marketing and sales/advertising plans to stay competitive. Without physically and strategically upgrading older, less-sophisticated stores--including marketing methods--these operations find it difficult to compete and keep market share. Even savvy, high-tech locations by first-time developers cannot compete and win without solid marketing programs in place prior to opening.

Large operators spend countless hours planning their marketing activities, hence their (generally) more successful incomes and sales numbers. Every facility, regardless of size, can successfully plan and execute basic marketing strategies. This article discusses the steps needed for successful marketing of today's self-storage operations:

Step 1: Understand the program goal

Step 2: Cover the basics

Step 3: Establish a budget

Step 4: Understand the unique cost per lease and set targets

Step 5: Assess the situation

Step 6: Learn to meet and greet

Step 7: Take action

Step 8: Measure results

Step 9: Compare performance

Step 10: Create awareness

Understand the Program Goal

The primary goal is to create marketing programs that accomplish the following:

  • Create total service-area awareness. This means defining on a map, based on traffic flows and boundaries, the store's service or market area. This is sometimes not a 3- or 5-mile ring, but an egg-shaped area due to major thoroughfares or natural boundaries. (Remember the customer perceives a 10-minute travel time convenient.)
  • You will want to know as much as possible about this target area: businesses, residences, single- or multifamily complexes, major employers, universities, military bases, etc. The goal is to target this area for your marketing messages and actions. This allows you to focus specifically on consumers most likely to use your service, and denotes the area of focus for advertising and marketing expenses. Note where competitors are on the same map.
  • Increase traffic and sales by targeting the above area. When the need for storage arises, you will be the one prospects choose to visit.
  • Create more accurate sourcing and demographic information by gathering specific data and accurately accounting for customers' buying patterns, sources, location, preferences, etc. Use the data to frequently update your marketing programs. This way, you'll be able to create programs and services that have maximum effectiveness.

Cover the Basics

When done correctly, the basics are responsible for the bulk of our rentals. These marketing basics are:

1. The attributes and location of the store

2. The salesmanship of the team or manager

3. Customer service and conveniences

4. Advertising and promotions

5. Friendly and motivated managers

6. A complete set of knowledge

The first thing you must realize is marketing is now a normal manager function and should be discussed in the hiring process. A facility manager or team should understands basic customer-service dynamics and how important the development of awareness and community participation is to the success of the store.

Advertising and marketing expenses are normally 3 percent to 6 percent of income for stabilized stores of average size, and will be needed pre-opening as a cost of start-up. Lack of planning has caused hardships for many managers and owners in the past. Plan adequately for marketing in your annual budget, which should address 16 key areas. These allocations are unique to each store location and market area.

1. Membership in your local chamber of commerce. Attend as many functions as possible on a regular basis, and use the membership list to send fliers, broadcast faxes or e-mails.

2. Membership in the national Self Storage Association. This is the voice of the industry and an important connection to industry activities and actions.

3. Membership in your state association. This is important for the obvious reasons of local involvement, legislative support and peer networking.

4. Subscriptions to industry publications.

5. Printed materials, such as brochures, fliers, invitations, postcards, business cards, referral cards, mailers or any other items needed to complete your plan.

6. Yellow Pages ad(s). Identify how many books you will want to be in for your market area and how large an ad is needed, along with the cost for color, etc., necessary to compete or gain attention.

7. Internet ads and/or website. There are several industry-specific providers of website design and online reservations and payments.

8.Uniforms/nametags. These are a must so you and your team members can always be identified. Rentals come from contacts made everywhere!

9. Promotional items. This could include anything from coffee mugs to nail files to candy jars or key chains with your facility name, phone number and website printed on them.

10. Postage. Include adequate postage to complete monthly and mass mailings.

11. Local events/sponsorships. Owners sometimes sponsor local school sports teams as part of their ongoing community participation and goodwill, or participate in community flea markets, carwashes, wine tastings, etc.

12. Referral programs. Referrals are the most sought after of all rentals--their cost is the lowest, they are presold before arriving, and they can account for a significant percentage of each month's rentals.

13. Curb appeal. Your curbside view needs to change weekly, as drive-by traffic ceases to notice the same old message. Consider balloons, street-side signs, curb paint, landscape changes, pennants, banners, etc.

14. On-site signage. Make sure your facility is easy and convenient to navigate. Consider keypad signs that welcome and instruct, gate signs with office and access hours, building numbers/letters, rules and regulations, marketing messages in models and restrooms, thank-you signs at the exit, etc.

15. Ongoing training and education of employees. This is often neglected, but it is critical. Hire for attitude, train for skill. Budget accordingly.

16. Miscellaneous. A well-thought plan, properly funded and staffed with motivated, knowledgeable employees is the goal. Miscelleanous items will, from time to time, be necessary. Keep these to a minimum and include any reoccurring items in next year's plan.

Establish a Budget

Usually, two six-month plans are easier than an annual plan and allow for updates from the prior period's results. Remember to include a six-month supply of promotional items, printing and postage in each plan. Allow for a nominal amount of "extras" in the budget and then stick to it. In addition, be sure you understand all the costs associated with each action or item, e.g., labor, cost for renting mailing list, etc. I suggest tracking not only what percentage of income is used for advertising and marketing, but also the cost-per-foot expenses. Involve managers in this process and provide them expense feedback.

Understand the Unique Cost Per Lease and Set Targets

This leads us to another of our goals: to have a lower cost per lease (CPL). I have frequently witnessed experienced operators who have no idea what they are paying for each lease. In many cases, they are unknowingly spending several hundred dollars for each rental. The CPL is found by dividing all leases into all advertising and promotions costs. An effective CPL in the Southeast, for example, would be $50 or less. At this rate, expenses would remain within normal parameters.

Compare your store with others and weigh the unique attributes of your location, drive-by traffic, percentage of repeats and referrals, etc. Set a goal, track the number and work to improve with continued lower costs each year. Technology is a great assistance in this goal.

Assess the Situation

Summarize your current situation. What are your best traffic sources now? Which programs are most effective? Drive-bys and the Yellow Pages are the two most common sources of prospect traffic. Ask yourself what percentage of your total traffic each source represents. What does each cost, in total and per lease?

Understand your team's effectiveness at converting callers to visits and visits to leases. Know who your best customers are and why, how they found you, and what products or services they like best. Gauge the effectiveness of each marketing program and team member, and define what skills and actions are needed to meet targets you've set for traffic, callers and leases. The resulting conversion numbers may indicate more training or traffic is needed.

Learn to Meet and Greet

Your facility's success starts with you. Know the difference between marketing and sales. Marketing is creating awareness, while sales is the actual production of or taking of an order.

Below are the steps for a successful marketing visit, one that allows you to leave customers feeling good about having met and interacted with you. This is the goal of any cold call. If you've made a good impression, you can begin developing a rapport and start to get referrals or direct business. You can accomplish 15 to 20 of these calls in an hour or two. If you are a single store manager without other team members, stop to make one call each day on the way to or from the bank or post office--by the end of the month, you will have visited 20 to 25 new prospects.

1. Prepare for success--have all materials planned and ready ahead of time. The goal is to have a well-groomed person with great attitude visiting a targeted group and distributing a clear message.

2. Before your hand touches the door, put a smile on your face.

3. Take the lead on each call. Go directly to the first person with whom you make eye contact.

4. State your business in specific terms: who you are, the company you represent, why you stopped by and what materials you brought with you.

5. Timing is everything, so plan who you'll visit (apartment managers, real estate agents, retailers, etc.) and when (time of day and day of week).

6. Make a favorable impression and leave. You should be in and out within a few minutes.

7. Follow up as agreed, then call, mail, visit and repeat on a consistent basis.

Take Action

Set specific goals and take action. I suggest using a personal marketing-goals form where results can be reported each month. Managers set their goals for a six-month period, indicating what actions are needed during each month. These include target numbers for personal visits, follow-up phone calls, marketing faxes, marketing e-mails, letters or fliers mailed, or any other type of marketing messages. The actual number achieved is measured against the goal number, and the percentage achieved is shown as the marketing-goal score for each month.

Some stores may not be able to e-mail or fax, but each store can and should take some action each month to assist in achieving a consistent marketing message at all times. Great, creative ideas and plans are nothing without action.

Measure Results

You can measure the traffic sources for all your rentals using a software program. Keep in mind, however, the information gained is only as accurate as the person providing the input. Be sure all marketing and advertising programs are listed as choices in the software; for example, if you are using ValPak mailers or a broadcast-fax program, make sure these choices are available. Set a goal number for each category and measure results. Inform all team members of each program and how you want to track the activity. Adjust each year's budget based on this information.

Compare Performance

Track the results and changes of your traffic sources. I suggest tracking six major areas: drive-bys, Yellow Pages, referrals, repeats, direct marketing and "other," which includes billboards, the Internet, hotlines, ValPak, etc. If you have multiple locations, you'll want to compare results within your group. You'll also want to compare with other industry data. The results will bear out the true effectiveness of each program and the changes made over time.

Create Awareness

Creating awareness is what marketing is all about. Make contact frequently and consistently to ensure your impact and success within your targeted market area. Managers need to be adept at meeting and greeting, and getting the word out about their unique stores and the services they offer. Follow these easy steps, create and implement a simple and effective plan, measure your success and have fun.

Anne Ballard is the founder and president of Universal Management Co. as well as the president and executive director of the Georgia Storage Owners Society. Universal manages more than 30 facilities in Georgia, North Carolina, South Carolina and Virginia. For more information, call 770.801.1888; visit www.universalmgmntco.com.

Thanks for a Job Well Done

Article-Thanks for a Job Well Done

I have been fortunate enough to write articles for Inside Self-Storage over the past several years, and this month I would like to use this column to acknowledge and praise a set of managers who work for me at Affordable Self Storage in Pacheco, Calif. Kevin and Louise Griffith have been with me for almost three years at this site, and in that time, they have had to deal with some very adverse conditions.

We had one company rent at this facility for almost 15 years and, during that time, it came to think of the facility as its own property with its own rules. For the first year or so of her employment, Louise had to put up with these people entering the property after hours, working on personal vehicles, using abusive language--just general mistreatment! She diligently worked with this company and "retrained" its employees.

This is also an older site with no door alarms or elevators (even though it has two stories). While there are video cameras on-site, we have experienced break-ins in the past; but due to Kevin and Louise's constant "eagle eye," the perpetrators were evicted or caught by the police.

Needless to say, this team has experienced some challenges in the management of the facility. The worst one to date happened in April. My office received a telephone call at 4:30 a.m., April 19, from Louise who frantically notified us there was a fire at the facility. When I finally reached her that afternoon, she told me the whole story.

Two days prior to this horrible incident, a tenant notified Kevin and Louise her unit had been broken into by the tenant next door. Since the facility was almost 20 years old, it was made of 2x4s, drywall and stucco and had no sprinkler system. A man had rented a unit in October and allowed his son access to it. The son, a young man in his late 20s, cut through the dry wall, robbed his neighbor, then replaced the dry wall and secured it.

When the victim reported her discovery, Kevin and Louise called the police. A report was filed and an incident report faxed to my home office. The thief's father was notified his son had burglarized a unit, and he made arrangements to come to the facility and remove his lock so police and the victim could identify any stolen goods. Early on the morning his father was to arrive, the tenant's son jumped the security fencing and started a fire in the building to destroy any evidence.

Louise woke at 4:30 a.m. to the smell of smoke. She then looked out her bedroom window and saw smoke curling up from under the roof of the building across from her apartment and office. She immediately called the fire department and, in her quick-wittedness, ran downstairs to the office and watched the surveillance tape. She saw the son enter and, a few minutes later, run from the building as smoke began to appear. Louise was able to identify the thief, give the tape to the police, and within two hours this man was under arrest for theft and arson.

Had Kevin and Louise not been the type of managers they are--fully aware of those coming and going on their site, knowing most tenants by name, acting in a professional manner and being quick-witted--damage to this facility could have been much greater. We're thankful there was no loss of life. This is certainly a good argument for having on-site living quarters.

After the fire and 190 damaged units, Kevin and Louise had to field irate tenants calls and deal with devastated tenants demanding to climb through the burnt remains and gather any items they could retrieve (which we obviously did not allow due to safety hazards). They also had to deal with insurance agents and notification of tenants out of the state or country. I went to the facility to go through the tenant files of all damaged units to ensure they had signed insurance addendums, as most of the tenants didn't recall ever being told about or offered the insurance.

We have had three different owners at this facility since it was built, and I am proud to say all our personal tenant files were very organized and complete. However, one of the previous owners had been one of the industry's top three operators, and I was appalled to see there was not one insurance addendum in his files. He just relied on the paragraph in his rental agreement that states the owner assumes no responsibility. To my relief, we had fewer than 10 tenants carried over from that company.

This tragedy brings a question to mind: Do you have an "eagle eye" at your facility? Are you aware of the people coming and going on your site, and would you have been able to handle a situation such as this one? Do you offer tenant-insurance forms and are they signed and in the tenant file?

I would like to say thank you, Kevin and Louise, for a fantastic job under adverse conditions.

Pamela Alton is the owner of Mini-Management®, a nationwide manager-placement service. Mini-Management also offers full-service and "operations-only" facility management, training manuals, inspections and audits, feasibility studies, consulting and training seminars. For more information, call 800.646.4648.

Janus International Corp.

Article-Janus International Corp.

Janus ~ Roman god of passage, of doorways (januae), archways (jani), and of beginnings and endings.

When searching for a name for his new company, David Curtis knew he wanted something different. "I wanted a name that meant something, a word that was translatable into every language," he recalls. He stumbled upon the name Janus, a mythological figure often depicted with two heads--one looking to the past, the other to the future. Janus, the god of doorways and new beginnings, was the perfect symbol for Curtis' new business venture on many levels.

It was a new beginning for Curtis, who, in 1989, founded Doors & Building Components Inc. (DBCI), an Atlanta-based manufacturer of roll-up doors. Although he sold the company in 1995, he stayed on as president until 2000. A two-year non-compete clause kept him from moving forward with a new company. When the clause expired in January 2002, Janus International Corp. opened its doors with a new product and a fresh outlook.

An Innovative Design

"I considered all the problems I knew that existed in the industry and tried to solve them with the new door," Curtis says. That includes damage done during transit, springs that rusted or failed, and lengthy, difficult installation times. What Curtis came up with is a design that incorporates the traditional look of the roll-up door but with a myriad of new features that addresses these problems.

The Model 650 uses the basic dead-axel design but with a few modifications. Rather than using one spring, Janus' door features a two-spring system, one on each side of the door. "That keeps the spring energy balanced across the width of the door so it won't pull to one side or the other," Curtis says. The springs are also pre-assembled on the door and are pre-lubed. This saves on installation time and money in the field, Curtis says. "Plus, you get a product that's made exactly the same way every time." This is especially important when the person installing the door is not always an expert.

Nonlubricated springs can lead to rust, which in turn, leads to spring failure. The dead axel allows the springs to be enclosed inside the door so they are not exposed to the elements. "This new door is going to be fast and easy to install," says Daniel Curtis, David's father and vice president of sales for Janus. "The operation of the doors is so much smoother," he adds.

Curtis also focused on reducing door damage during shipping. "That was a problem that plagued us, that plagues everybody," he says. A solid torque tube and a new tensioning system eliminate drum-wheel dents. "By having the dead-axel design, we're able to pre-install the springs, support brackets and the tension wheel. Because of that, we're able to use the brackets to suspend the doors on a skid, which keeps them from touching each other. The skid itself is what the truck driver puts the straps over," Curtis says. "We're shipping doors up to 1,500 miles from the plant and we're not seeing any damage, so we're real encouraged about the new packaging."

In an effort to protect his innovations, Curtis has four patents pending. "Instead of copying the other products, David has concentrated on innovations and creating a better design," Daniel Curtis says.

Looking to the Future

Janus set up headquarters in Temple, Ga., about 40 miles outside Atlanta. The company currently employs about 75 employees. "We're growing at a very rapid pace," Curtis says. "The customer acceptance of the new product has been very good." He has also assembled a team of well-known industry experts. "With the people on our team, we have probably more than 200 years of self-storage experience," Daniel Curtis says. "The company is not one person. The company is the sum of the talents of the all the people." Curtis also gives much credit to his employees. "I'm good at inventing and I'm good at a being a team leader, but I try to surround myself with people who can balance out my weaknesses."

Curtis hopes the combined expertise of his team will lead to rapid expansion, including internationally. While running DBCI, he continually worked the European market. "It was a real goal of mine to have--and maintain--a leadership status in Europe like we had in the United States," he recalls. He's hoping to do the same with Janus, and has already made some inroads. "I believe we will be successful because I'm dedicated to it," he says.

He's also counting on the new packaging concept to give Janus an edge over the competition. "We can get the stuff there and not have it be damaged. And we have the technical know-how to do a proper take-off on the job and get the materials to the jobsite," he says. Getting all the supplies needed--at a low cost--is a big frustration in European markets, Curtis says. "They get a shipment and it's wrong. Then they're seven weeks away from getting more stuff. People want to have that feeling of trust, that you know what you're doing, that you're going to take care of them and do a good job."

Curtis believes the pre-assembled door design will be attractive to the European market. "It's going to be a lot less expensive for these developers to install our products," he says. "In Europe, labor is very high in all the countries. If we can speed up the installation by half, we're saving them money and time."

In addition to shipping doors all over the United States, Janus already has footholds in Canada, Central and South America and Puerto Rico. Curtis hopes to further advance the company's European market by displaying a working model at Inside Self-Storage's London Expo in November.

One or two more operating plants in the United States, including one on the West Coast within the next year, are also on the horizon. "The self-storage business is continually evolving," Curtis says. "I try to evolve with it, to recognize the patterns and take advantage of them. I try to be a leader and not a follower."

For more information, contact Janus International Corp., 134 East Luke Road, Temple, GA 30179; phone 770.562.2850; www.janusintl.com.

Upscale in Tulsa

Article-Upscale in Tulsa

When asked by one of her customers why she doesn't retire, Nell Booher replied, "I am retired--I just get paid for it." She and her husband, Don, are the managers of South Tulsa Self Storage, a facility introducing a new concept to the industry in Tulsa, Okla.

Can you call it a mini-mall that also accommodates offices and storage? Or perhaps a self-storage facility with boutique shopping? And what about the coffeehouse that is part of the retail space? All these components are found in the new complex.

In February 1999, facility owners Rick and Karen Dodson and Danny and Paula Brumble entered the self-storage business. Home builders by trade, these visionaries selected a site that, at the time, was outside the hub of the city. In less than two years, however, it has been quickly surrounded by an upscale neighborhood. In response, they designed an elegant facility to complement its affluent neighborhood.

South Tulsa Self Storage opened its doors in April 1999 and was 100 percent full 14 months later, says Nell. The climate-controlled section was completed in October 2000, and an addition was finished in September 2001. Occupying a footprint of 56,150 square feet, the facility is in the heart of Tulsa's upscale South Side community. Its steel frame with attractive stucco exterior and clay-tile roofing resemble a fashionable condominium complex.

The South Tulsa structure includes eight retail spaces, six commercial offices, 189 climate-controlled and 298 standard units. The retail spaces are attached to the front of the climate-controlled building. Theses spaces, with amenities such as wooden floors, are occupied by an insurance company, beauty salon, hardwood-floor distributor, children's store, accessory business and a coffeehouse called Ounce By Ounce.

Situated on one of the busiest intersections in Tulsa, the facility has gate access seven days a week from 6 a.m. to 9 p.m. "We feel, for security reasons, these hours should be sufficient for our tenants," says Don. "But there are always exceptions, and we will work with the customer." In addition to customized hours for clients, freight deliveries are also accepted.

Ancillary products include boxes, packing supplies, sealing tape, padding, furniture covers, bubble wrap, pallets and locks. Customers can also purchase storage insurance. Security is maintained through the controlled access gate and CCTV monitors that record activities at several locations on the property. The facility is also a nonsmoking environment.

Primary marketing for the facility in past years was through the Yellow Pages; however, this year Nell has opted to discontinue their ad because they are so often full. The excellent location and word-of-mouth contribute to the more than 80 percent occupancy. But Nell maintains it is having a good attitude toward customers that keeps them coming back. "There isn't one of my customers I wouldn't ask over for dinner," she says.

Serving People

"The customers pay your bills," says Nell. "Driving up to a beautiful, clean, well-maintained structure is important, but the most essential thing in this business is how these customers are handled after entering." She maintains that not one person has ever said they were happy to be moving and needing to store their things. There are always problems--death, divorce, transfer, parents placed in assisted-living facilities. "You have to listen, console and give them the service needed to meet their individual needs," she says.

The Boohers bring lifetime careers in the service industry to their new profession. After graduating from Oklahoma A&M, Don went into sales and held regional and national positions in the apparel business for 20 years. "With this business here, you've got to sell," Nell says. "And that's something Don is very good at." Nell worked in a large oil company handling thousands of details in a high-stress position. "I could feel the pressure," Nell says. "Seems like each day someone would walk by and count my gray hairs," she jokes. They retired, but neither was ready for the sedate life. Then a friend in the self-storage business suggested it might be a good fit for them.

The first owners for whom they worked, Rick and Rudy Jones, hired them to open a new facility in Allen, Texas. The Boohers will be forever indebted for that start. "We started at the top and I just pray we stay there," says Nell.

When Brumble and Dodson decided to go into self-storage, they spoke with the Boohers, who wanted to move back to Oklahoma to be near their children, about managing their new facility. The owners realized quality of life is an important element in their managers' success. As an incentive, they gave a percentage of the business to the Boohers and stressed they wanted them to run it as if it were their own. In addition, a custom apartment was designed and constructed for the Boohers of which they are very proud. "The facility is beautiful and the amenities are wonderful," says Nell.

As for the division of duties, Nell takes care of the books and internal affairs and Don takes care of maintenance and external problems. "We make a great team," she says. "And we just love this business."

Premarketing Your Storage Facility

Article-Premarketing Your Storage Facility

You've invested a ton of money in your storage facility and it's going to open soon. "Soon" could be in the next 10, 30, 90 or even 120 days or more. What do you need to do to make sure your facility fills as quickly as possible when you do open?

About three years ago, a woman told me a very interesting story. She and her husband had put their life savings into building a storage facility. The idea was for him to manage and for her to handle the operations and "back office" functions. As bad luck would have it, her husband died of a heart attack about six weeks before the facility was due to open. Her oldest son, a senior in college, was called to help, and the two of them set about making the facility a success. They did everything I'll mention in this article and more. The net result? In less than five months they had rented 348 of 450 units. This is substantially faster than the average. How did it happen? It's very simple. They believed it to be the standard.

Many of you have been told it will take you anywhere from 18 to 24 months to get a facility 90 percent occupied. But no one communicated this to the woman in the above story. She told me that at the time, she thought the facility should be filled in 90 days. As far as she was concerned, she was doing a lousy job. The moral of the story? Make a commitment to get your facility filled in nine to 12 months. Adopt this mentality and make it happen. It can be done! Here are some of the things you need to do to jump-start your new facility:

Create a Plan

First, you'll need a written plan with some very specific numbers attached to it. If your goal is to be 90 percent rented in 12 months and you have a 500-unit facility, you'll need to rent about 40 units a month. Make this your quota. Don't let yourself go to sleep at night until you get there. Your written plan will also consist of many action steps you will take before your facility opens.

If you take the following advice, you'll have a surge of renters when you first open--but don't get complacent. If you rent 50 units your first month, don't tell yourself you only need to rent 30 the following month. Things will slow down on their own.

Locate Centers of Influence

A center of influence is anyone who has the ability to refer people to your facility. This would include apartment and condominium managers and any employees at real estate offices, truck-rental dealers, laundromats and marinas--anyone who might be asked by a prospective renter where he can go to rent a storage unit.

Take out your map and draw concentric circles around your facility. Start with one mile and go all the way to three or four miles. If you're in a rural community, double that distance. Start with people in the one-mile zone. Go to them right away, no matter how far away your opening is. And don't go there just once and think your job is done. Keep going back to them every month to keep them posted as to when they can start sending people your way.

Get to know these people and get them to like you. Each time, bring them something of modest value as a gift. More important, prepare a report for them to give people interested in renting. This "free report" should be in their hands anywhere from 30 to 60 days before you open and should be a fact-filled guide educating people on all aspects of storage. Keep it to a maximum of 32 pages. It should also contain a coupon good for $10 or $20 off A first-month's rent. The coupon should be coded so you know who sent this particular referral.

Where do you get the content for this report? Go online and find anything and everything you can. Remember, if you take one person's work and copy it, it's plagiarism; if you take five peoples' work and copy it, it's research! On a serious note, be sure to put things in your own words. People cannot copyright ideas, only the specific means and wording with which they express them.

When the people start coming to rent as a result of this marketing method, immediately go and thank the person who sent the renters your way. Thank them verbally and with some kind of a gift. Cash is great, but I prefer something with high perceived value they will keep. A good example is a nice picture frame, which can be used and kept on a desk as a constant reminder of your generosity.

Generate Publicity

Before you open, alert the media. Have the radio stations ready to do live remotes from your facility during opening week. Send out press releases to TV stations and local press well in advance of the opening date. Look for "hooks" in the news of which you can take advantage. For example, let's say you hear a story on the national news having to do with storage. You can call the local media to make a comment. News people are always looking for a local angle. Just make sure they know who you are, where your facility will be opening and when. You can visit www.radiopublicity.com for some tips.

Target and Visit Businesses in Your Area

Again, working in concentric circles outward from your location, visit the businesses in your area. Why? Commercial tenants are the best. They generally stay twice as long and tolerate price increases much better than residential customers.

Put together a brochure targeting the business owner. I'd recommend using one that can be customized for each business group you approach. An example would be to convert your "generic" business brochure to one geared toward the fast-food operators in the area. Another group might be retail stores. Research each group and discover its greatest need for storage. How? Visit them personally and ask. Do this anywhere from 60 to 120 days before you open. Again, keep in regular contact with these folks--once a month is best. Keep good notes on each place you visit.

Residential Surveys

Go around to all of the neighborhoods in your area and conduct a survey. Ask people questions about their storage needs. Afterward, give them a small gift. What would that be? The same gift you gave to the centers of influence to distribute: a free storage report with a coupon.

If you go around to the communities in your area, you'll learn a lot about your market. You'll learn more from completing this exercise than anything else you could possibly do. Why do you think politicians campaign door to door? Because retail campaigning works. If it works for them, it will work for you and your facility. When should you do this? Anywhere from 90 to 120 days before opening. Send people reminder postcards after you've talked to them.

Training

A staff that is properly trained using professional training material will have a big impact on your results. If you attract a lot of people to your facility but you have weak people answering the phones and giving tours, you've wasted your efforts. Instead, create a staff who will know exactly what to do when people call or walk in.

Is all this work? Yes. Is it a lot of work? Yes and no. If you think your facility will fill up on its own without any work, you live on the wrong planet. Even if you're in a "hot" market, you can still increase your rents faster than you thought you'd be able. If you fill up quickly, all it means is you'll be able to start charging more money. If your goal is to have an average facility, disregard this article. If your goal is to have a massively profitable facility as quickly as possible, you now have the tools!

Spend some time, energy and money premarketing your facility before opening and you'll fill up faster. About the woman I mentioned above: The word is her facility was filling up so quickly the size of her bank deposits raised suspicions at the bank. They called the authorities to alert them they thought some "funny business" might be going on! The only funny business was a woman with her back to the wall who had no idea how long it should take to fill up and was marketing the crud out of her facility. If she can do it, you can, too.

Fred Gleeck is a self-storage profit-maximization consultant who helps owners/operators during all phases of the business, from feasibility studies to creating an ongoing marketing plan. Mr. Gleeck is the author of Secrets of Self Storage Marketing Success--Revealed! as well as the producer of the only professional training videos on self-storage marketing. To receive a copy of his Seven-Day Self-Storage Marketing Course and storage marketing tips, send an e-mail to [email protected]. For more information, call 800.FGLEECK; e-mail [email protected].