Self-Storage Developer Asks Urbandale, IA, Council to Amend Fire Code

Aug 19, 2010

A self-storage developer in Urbandale, Iowa, has asked city council members to amend the fire code so he wouldn’t be required to install a sprinkler system at a proposed site.

The developer, Eric VanderLinden, told city council members installing a dry system sprinkler at his proposed site would cost $300,000.

In 2007, the city code was changed, requiring sprinkler systems for self-storage buildings from 6,000 square feet to 12,000 square feet. The code is similar to that of neighboring cities including Ankeny, Des Moines, Waukee and Windsor Heights. Any facilities built before 2007 was not required to add a sprinkler system.

Urbandale Fire Chief Jerry Holt recommended the council leave the code as it stands. The fire chief expressed concern the department wouldn’t have the equipment or manpower to battle a fire in a facility of that size.

Several council members were open to discussing changing the code at a future city council meeting.

Source: Des Moines Register, Developer Asks Urbandale City Council to Amend Fire Code

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Lending Improves for Small-Business Owners

Aug 19, 2010

A survey released Monday by the Federal Reserve shows big banks are beginning to ease up on stringent lending standards for small businesses. It’s the first time this has happened since late 2006.

Lending standards and terms slackened modestly from April to July in many categories of borrowing. However, the conditions are not as favorable as they were before the financial crisis.

The survey shows bout 14.5 percent of banks said they eased standards for small-business loans, while 5.5 percent tightened them, and the rest remained unchanged.

Smaller banks continue to remain more cautious about lending, according to the survey, which is based on responses from 57 domestic banks and 23 U.S. branches of foreign banks. The data was collected from July 13 to July 27.

Source: The Wall Street Journal, Big Banks Loosen Lending Standards

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ISS Blog

The Value of Self-Storage Networking

Aug 18, 2010

Everyone knows how important networking can be. Many of us find jobs, make friends, or even meet spouses through networking. In the business world, networking is often lauded as a must-have skill. For self-storage owners, it can be a boon on several levels.

First, a manager with superb networking skills is willing to go out into the community and meet other business owners, whether it be chamber of commerce members or the competition down the street.

You have the confidence and skills to walk into a room and introduce yourself to complete strangers. You make some small talk, then get to the “networking” part of the conversation—finding out how you can help one another. Ideally, this type of networking will lead to an increase in occupancy at your facility.

Second, networking can definitely enhance your career. It could come in the form of advice from another self-storage professional, an idea from a small-business owner or even information on a class or other educational opportunity. Plus, many jobs are found through networking or word-of-mouth advertising so you never know when a connection you’ve made could lead to your next job.

Some managers may shy from networking, worried they don’t have the skills to do it. A recent article on MSN.com advises you start off slow by creating your own networking opportunities. Try inviting friends or coworkers to lunch and ask them to bring someone new along. This allows you to get to know one person at a time, and ensures you’re not the center of attention.

However, the value of networking is no longer limited to face-to-face interactions. With blogs, e-mails and social media, you no longer have to meet people in person to make a connection. Using technology as a backdrop can ease people who are uncomfortable with networking into it.

For self-storage managers, there’s no better place than the official forum for ISS, Self-Storage Talk. With more than 3,000 members, the networking opportunities are endless. Forum members offer one another advice on everything from dealing with difficult customers to raising rents. Plus, there are areas for buying and selling self-storage, association information and even a job forum. You’ll find SST is the place for self-storage professionals to network.

Another great networking opportunity for self-storage professionals is just a few weeks away. The Inside Self-Storage World Expo in New Orleans, Sept. 29-Oct. 1 is another occasion for self-storage professionals to mingle, exchange ideas, find out about new products and learn more about the industry. The show even has four events designed specifically for networking. Learn more here.

Share how networking has enhanced your self-storage career by posting a comment below.

PODS Extends Special Discounts for Military-Exchange Customers

Aug 17, 2010

PODS Enterprises Inc., a moving and storage company that provides portable-storage containers, has seen explosive growth in its alliance with military-exchange customers.

PODS has a contract with the Navy Exchange Service Command, Army Air Force Exchange System and Marine Corps Community Services to bring the company’s portable-storage containers to U.S. military installations.

Military exchange customers receive up to a 10 percent discount on the first month of rental as well as discounted local delivery fees.
“When the program began, PODS provided service to 15 military installations,” said George Spowart, vice president of marketing. PODS now serves more than 100 U.S. military installations around the country including Hawaii.

Military personnel interested in taking advantage of the discounts can call the company’s toll-free number, or visit PODS.com/militaryexchange.

Founded in 1998, PODS currently provides moving and storage services to a population of more than 240 million consumers, in 48 U.S. states, Canada and Australia.

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Improving Your Retail Savvy: Self-Storage Manager Experiences Lead to Suggestions on Product Sales

Aug 17, 2010

A recent thread on Self-Storage Talk, the self-storage industry’s largest online community, sparked an interesting discussion among facility managers about retail-product sales. While their experiences vary—which box sizes are top sellers, for example—everyone seems to have some items on their shelves collecting dust. This article draws on forum members’ experiences, opinions and attitudes to offer up suggestions on improving your facility’s retail store.

Suggestion Becomes Reality

Participants on the forum couldn’t seem to agree on the most popular box size. Small, medium, even extra-large sizes had their advocates. While some managers claim to know which size sells best, the reality is they may be influencing that outcome.

Why would small boxes sell better in one location than in another? Are community preferences really that different? One manager said that after a price reduction, extra-large boxes “flew out the door.” Could a lower price pump up sales of bigger boxes? It could happen. Or maybe sales are being unconsciously steered.

Price-reduction signage can guide customers to buy certain box sizes. Even a manager expressing a personal preference can do it. In fact, you might be the reason folks buy the sizes that sell best! But if you can impact sales without thinking, why not do it consciously? Try asking customers what they’re packing. Teach them the “smaller boxes for heavy stuff, bigger boxes for lighter” rule, and you’ll sell more boxes in more sizes. Your customers will be happier and so will you.

Displaying Only Best-Sellers Results in No-Sellers

Some items sell slowly. Others don’t sell at all. Managers know this and often want to clear out the “dogs.” That makes sense. But it was encouraging that no forum participants wrote about just keeping the best sellers. That was a mindset encountered years ago. The idea was to buy and display only the best-selling retail items. In practice, average sales would nosedive.

Why? Try to imagine if your supermarket only stocked the top-selling cereal, canned soup, soda, and so on. Would all those empty shelves generate more sales or less? American shoppers like choices. That’s why every soup, cereal and soap company adds line extensions to its product display even though two or three items account for most of their sales volume.

Self-storage operators are also asking their suppliers to design their displays for free. Why not? After all, the more they sell, the more the supplier sells.

The Price Is Right, Right?

Sometimes, what a group doesn’t talk about can be significant. On the forum thread, there was very little mention of retail prices, for instance, and that’s a good sign.

It wasn’t long ago many managers swore they couldn’t sell boxes unless they had the lowest prices in town. They believed shoppers knew what a moving box should cost and wouldn’t pay a dime more. Guess what? Some self-storage operators conducted in-store tests and proved customers would pay a dime—even a quarter—more, and sales volume remained unchanged. Moreover, reducing prices below the lowest in town didn’t increase sales.

The bottom line is retail-savvy managers have learned two important lessons:

Customers will pay for convenience. You saved them another trip―charge for it.
Customers seldom buy boxes. If a price seems reasonable, it is.

Competing With Big-Box Stores

Overall, if the forum group is representative of managers in our industry, we should be optimistic that self-storage will continue to increase its retail presence. Some operators worry that huge retail chains will steal their retail-packaging sales. The bad news is chains could eventually teach the public that they stock inexpensive boxes.

The good news is consumers buy boxes so rarely, it will take them a while to overcome their own indifference on the subject. In the meantime, there are a few things managers can do to combat big-box stores:

Use attention-getting interior and exterior signage. Your supplier should have it.
Get listed in the Yellow Pages under “boxes” and “moving supplies.”
Write simple “Tips on How to Pack” stories for your local papers. Mention that you can supply materials and advice.

Finally, good self-storage managers are known for their personal selling skills. Learn everything you can about your retail products and become your area’s moving supplies expert.

Rob Kaminski is vice president and general manager of Supply Source One, a division of Schwarz Supply Source, which has been a national retail supplier for more than 100 years. With warehouses across the country, the company offers the self-storage industry a complete selection of retail products as well as office, maintenance and janitorial supplies. For more information, visit www.supplysourceone.com.

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NY Governor Signs Bill Allowing Self-Storage Insurance Licensing

Aug 16, 2010

This weekend New York Governor David Paterson signed into law Senate Bill 7118, which allows self-storage operators to obtain a specialty license so they can offer point-of-rent tenant insurance to customers.

The law marks a legislative victory for the self-storage industry in the state, as a similar bill was vetoed by Paterson last year. The last version of the bill raised concerns regarding consumer protection, which have since been remedied.

The license gives storage operators the legal authority to offer contents insurance to tenants, collect premiums, and be paid a commission by the insurance company. Unlicensed operators can display mail-order insurance brochures from authorized insurance companies at their facilities; however, they cannot collect sales commissions unless they hold a valid license.

Backed by the national Self Storage Association and supported by the New York Self Storage Association, the bill has been in progress for three years. The law will go into effect once the Department of Insurance develops regulations to govern the issuance of the limited licenses. The SSA expects this to happen in February, and then self-storage operators may begin to apply for the license.

Eleven other states have a law or policies that provide for similar specialty-insurance licensing.

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