IN A RECENT ARTICLE, I WROTE ABOUT THE EUROPEAN SELF-STORAGE ENTREPRENEUR'S DREAM or probable reason for investing in self-storage—to build it up and sell it. In September, Norman Galbraith and Alistair Jack realized their dream with the sale of their nine-site self-storage operation, Aardvark Self Storage Ltd., to Mentmore PLC for $46.5 million (£30 million), including assumed debt.

In the past three years, Galbraith and Jack turned their two-site operation into the largest privately owned self-storage business in the United Kingdom. There are a number of key reasons they managed to pull off this deal and turn a small independent operation into a business worth $46.5 million:

1. They raised finance in the cash-starved European self-storage arena to fund their expansion plans.

2. They acquired a number of good-quality buildings that were suitable for multistory mezzanine conversions.

3. They refurbished these buildings to the required standards and fitted them out to five-star standards.

4. With good position, signage and marketing, they filled the facilities faster than the current U.K. fill-rate benchmark of about 1,200 square feet per month.

5. They had the vision and determination to grasp the opportunities they created.

6. They worked hard—I mean bloody hard.

7. Because they worked so hard, they had a bit of good luck along the way.

A $46.5 million sale may not seem such a big deal on the U.S. side of the pond, but in the United Kingdom and Europe, it is one of the biggest deals of this decade. Over here, self-storage development of a small, first- generation operation to a chain is hard work and generally takes a long time—organically grown or not.

It is well known that lack of funding and suitable buildings impede the growth of self-storage in the United Kingdom and Europe. However, the funding is gradually becoming available, in part due to people like Galbraith and Jack, who turned something small into a multisite operation bought by a major PLC.

The buildings, however, are another story. Notice I say "buildings" and not "sites"; 95 percent of all U.K. operations are conversions. There is no such thing as just going out and purchasing a piece of land on a main road and knocking up some units. Here, it's a fight to obtain the freehold or the leasehold of a building that meets the standard criteria of urban main-road frontage and sufficient height for one or two mezzanines to make it pay. Competition is not only with other self-storage operators, but also retailers, motor dealer or other businesses.

But things are slowly changing. There appears to be more than 10 percent market awareness of self-storage in areas of London, a five- to ten-fold increase within the last five years. All of these facts reinforce what a fantastic result Galbraith and Jack's disposal deal is for our U.K. and European marketplace. The more deals there are like this, the better for everyone in self-storage. Everyone wins—the operator, vendor, purchaser and supplier.

Andrew Donaldson is the founder and chief executive of Active Supply & Design (CMD) Ltd. of Cheshire, England. He is also the founder of the Self Storage Sentinel newsletter, Rent-A-Space Ltd. and selfstorage.uk.net. For more information, e-mail [email protected]; visit www.askactive.com.

GOOD MARKETING, AS EVERYONE KNOWS, IS ABOUT IDENTIFYING CUSTOMER NEEDS AND WANTS. However, if we examine this notion a little more closely, we begin to see that recognizing a need may be a whole lot simpler than distinguishing a want. Identifying wants is often what gives a business a leadership position in the marketplace as well as permits it to sustain higher gross profit margins. It is certainly an enviable position.

A recent experience is a case in point. I decided to go to the movies and arrived at the theatre a half-hour early. Since I had time to kill, I went into the Starbucks next to the theatre. I ordered my usual: a medium latté. The extremely polite server asked, "Oh, you mean a grande?" I said yes, I wanted a latté grande (which, I can proudly report, I pronounced correctly).

Interestingly, when I used spell-check to confirm the spelling of the word for this article, it stopped at "latte" and indicated the correct spelling was latté, with an accent mark over the "e." My point is, would latté have been in my spell-checker if it weren't for Starbucks? The whole experience reinforced just how important and financially rewarding it can be for a business to correctly identify a consumer want that had previously gone undetected.

Most of us have occasional need for a good cup of coffee, and any restaurant or fast-food establishment can easily recognize and fulfill that need. But how many knew, years ago, that consumers also had a need for a caffé latté, caffé mocha, espresso, café au lait, cappuccino, and probably 10 other teas or coffee drinks? Better yet, how many consumers knew they would willingly part with $3 or more for a cup of coffee?

Imagine you were a potential investor and Howard Schultz, the founder of Starbucks, explained in terms of needs, not wants, why you should invest in his company. I think your proposal would sound something like this: "Look, I've got this great idea. I mean a really great idea. I want to sell coffee and coffee concoctions nobody has ever heard of for $3 a cup. I want to open up stores nationally. In fact, I'd really like to open a couple thousand of them and maybe even more. So what do you think? Any chance of getting some money here?"

I think we all know what the answer would be--if, in fact, an answer was ever given before the guy was shown the door or nearest psychiatric hospital. So why is Starbucks so wildly successful? The answer is simple as well as profound: The company identified consumer wants that existed but no other business was perceptive enough to see or understand. What were those wants? People wanted a neighborhood place with attractive surroundings where they could go to talk. They wanted a place where they didn't feel pressured to eat and leave. Starbucks knew, too, that the general population was becoming better educated and well-travelled, believing itself to be more sophisticated and, therefore, willing and anxious to try a $3 caffe latté.

Guess what? The public liked the latté and, with more discretionary income available, saw nothing unreasonable about paying $3. I wince a little when I do, but my two sons don't bat an eye. To them, that's just what it costs. There's no doubt I've oversimplified Starbucks' success. Howard, please accept my apology. I am one of your biggest fans, especially because of your marketing genius!

Well, what does this have to do with the self-storage industry? A lot really. If you are in business and only identify customer needs, you're basically in the commodity business. You may not know this, but as competition increases, you soon will. Using the Starbucks scenario as an example, what consumer wants can you identify in your market? What are the wants of the pharmaceutical rep, businessperson or "soccer mom"--your prospective customers? Remember a want is not necessarily the actual product or service, but rather the benefit obtained from that service. In other words, it's not coffee, it's a nice place to sit and talk.

What do your storage customers want? They may want convenience; therefore, offering package-shipping services makes sense. They want security, so a more profitable disk lock is the thing to promote. Does the "soccer mom" want peace of mind when she enters her storage area? If so, advertise that you have extensive windows or lighting. Your customers' wants go on and on if you take the time to identify them.

Once you've identified these wants, you'll need to market them by creating unique products and services, and then telling your current and potential customers all about them. That's what good marketing and communication is all about. If done successfully, your facility will stand out from the crowd.

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, Kinko's and Mail Boxes Etc. For more information, call 800.284.7357 or 216.738.1200.

However, there are legal and insurance factors associated with wine storage that must be addressed before you make the first facility change. A meeting with your own counsel can shed light on the legal issues. And you will want your insurance agent to examine your policy.

"Every state has different liquor-control laws," says Jeffrey Greenberger with Cincinnati-based Katz, Greenberger & Norton LLP. "It is important to get with your counsel to make sure you are in full compliance."

Although liquor laws vary from state to state, there are some general precautions a new owner should consider. It is illegal in most states to sell wine unless you have a permit to do so, Greenberger cautions. "You want to be careful and make sure there is no sale of wine from your premises. Make sure you don't have an unusual volume of traffic of people through your premises," he says. "People may be selling wine, either bottle by bottle or case by case." Being caught selling wine is more of a problem for the tenant, but an owner doesn't want the bad press.

He also advises prohibiting all wine consumption on the premises. "You are not a wine seller, you're in wine storage," Greenberger says. "If you are going to allow wine-tasting on the premises, you need to check with your state attorney's office to make sure you have the necessary permits."

Wine has to be kept in a climate-controlled area with very narrow margins for temperature and humidity. It is important owners to do their best to exculpate themselves from liability in case something catastrophic happens to cause climate-control systems to fail. "If you're going to get into this business, you're pretty much on the hook for some of the damages."

Redundant air-conditioning and humidity systems are necessary and should be hooked up to a generator. But that doesn't mean total security. "We had a tornado come through my area a few years ago that knocked out the gas and electricity," Greenberger says. "The generators could not run at all." Although owners can try to provide for every contingency, there are some events over which they have no control. He stressed owners check their insurance policies for coverage on major catastrophies, such as tornadoes or hurricanes.

"I am a big believer in declared values in self-storage," Greenberger says. "It's one thing to store 100 cases of a well-known wine, but it's another thing to store very rare, expensive wines. I think you need to know if someone is doing that, because there's no amount of rent that could replace a bottle of wine like that." Owners may want to put a provision in their rental agreement that says tenants agree the sum total of the value items they are storing at any time in your space will not exceed a certain figure.

"I warn owners about allowing people to store very rare bottles in self-storage; those belong in your personal wine cellar." He feels self-storage is best served by catering to customers who wish to store wines that aren't quite so rare such as restaurateurs who store their excess inventory until it is needed.

Wine storage is an exciting method for bringing in customers who may not ordinarily consider self-storage for their goods. The upscale image of wine can do nothing but increase the presence of the facility in the neighborhood and draw a new group of clients. Just ensure your own safety by taking precautions to limit liability.

For more detailed information on wine storage, see "Ripening on the Vine," October 2001, Inside Self Storage.

A good first step is to look at some of the technology trends driving the communications revolution, then detail a few of the current offerings and their capabilities. A reasonable third step would be an attempt to dispel the the marketing hype surrounding the possible options, differentiators and costs between the competing technologies.

Analog vs. Digital

While the technology behind data communications may be fairly complex, the forces causing the business community to push for improvements in this area are very simple. It is significant that in the five years since the arrival of the (then unparalleled and only theoretical) 56K dialup modem, enough other technologies have appeared on the radar screen that most businesses scoff at the idea of using one. Businesses are moving more data as part of their daily routine and require ever increasing transmission speeds. This revolution has been accompanied by a reduction in the price of communication services, resulting in a "more speed for less money" mentality.

What are the main options you have when ordering data-communications services? Before getting to the list, it's important to understand the difference between analog and digital. We are all familiar with the original analog service: the plain old telephone system. Many of the commonly used tools for communicating between two locations, such as modem (non-wireless models) and facsimile, are based on analog technology and operate via the phone system.

Analog signals, while plenty reliable for voice communications, have some significant drawbacks when it comes to moving data. As an analog signal is transmitted over long distances, it has a tendency to weaken in strength--a characteristic known as attenuation--and pick up noise, such as the static you hear in telephone calls. There is no way to rebuild the signal, but it is possible to boost it. The problem with boosting the signal is you also increase the noise level, thus degrading the overall quality of the transmission over longer distances.

On the other hand, a digital signal can actually be rebuilt and the noise dropped out, producing a stronger, clearer duplicate than can be achieved with analog transmissions. The move from analog to digital signaling has provided cleaner transmissions and improved error-checking capabilities. As a result of the improved connectivity, digital technologies allow telecommunications networks to carry multiple types of communications on the same circuit (data, voice and video) while lowering the error rates on transmissions.

Connectivity Options

Now we'll move on to your connection options. I am intentionally staying away from discussing any third- or fourth-generation wireless products, since the industry and standards are in a state of flux and anything discussed today will undoubtedly be outdated tomorrow. The five main contenders for your communications dollars are: the analog dialup modem, the integrated services digital network (ISDN), the digital subscriber line (DSL), the digital cable modem and the digital two-way satellite system.

So what are the differences between the contenders in our list? Do the offerings really achieve the speeds splashed across the endless advertisements we see? What are the expected reliability/dependability parameters? What is the cost vs. performance, or what do you really get for the money? Before attempting to draw the bottom line on the contending options, let's look at their general characteristics, connectivity speeds and costs.

The Modem

The modem (MOdulator/DEModulator) is a device that converts the digital signal from your PC into the appropriate frequency to send over the analog telephone lines. The top advertised speed for a dialup modem is 56,000 bits per second, or 56K bps, which places the modem at the slowest transmission rate of the five offerings. A note of caution: You will often hear the terms "cable modem" and "DSL modem." While the nomenclature can be confusing, these modems do not function the same way a dialup modem does.

There are several notes of caution when dealing with modems. First, the connection is determined by the lowest common denominator, meaning your connection speed may very well be dictated by a slower-speed modem on the receiving end. Modem connectivity is known to be noisy due to attenuation and other traffic. It is also unreliable to some degree in first-time connection rate and holding open a connection for extended periods of time. Each time a transmission period is over, the modem disconnects from the network or Internet service provider (ISP). This means each time a new session needs to be established, the modem has to reconnect, which can take up to several minutes.

On the upside, once you have established an ISP account, you can connect to the Internet from any hotel, airport, etc., by simply using your laptop over a commercial telephone line. Modems are also inexpensive, roughly $30 to $50, and are usually provided as a bundled component on any new PC or laptop purchase. Services provided by a local ISP will run approximately $20 per month.

Integrated Services Digital Network

An ISDN is a WAN-oriented (wide-area network), data-communication service provided by telephone companies. ISDN is unique among WAN services in that it has two separate lines/channels that can be combined to send data only, or data and voice separately. Each of the ISDN channels provides a digital 64K connection that can be joined so data can be sent and received at a maximum of 128K bps.

One-time ISDN hardware and installation charges run in the vicinity of $300, but the monthly charges are usually steep. It is not uncommon for ISDN use to cost at least $110 per month. On the subject of charges, be very careful when ordering ISDN. Many of the service providers will advertise 20 to 30 hours of connectivity per month and charge an additional 2 cents or more per minute above those base hours. The quoted monthly charges are also exclusive of any long-distance charges that may apply, so it is important your ISP be qualified as a local call. If you operate an office or facility that needs constant connectivity or the call to your ISP is long-distance, you will definitely suffer sticker shock when your first monthly bill arrives. If you think your usage will be above the bundled price levels, request a quote for a flat-rate charge that includes unlimited connection time. Also ask if ISP services are included in the price or whether you must obtain these separately.

Digital Subscriber Line

DSL technology provides a dedicated digital circuit between a business or residence and the telephone company's central office, allowing high-speed data transmission over existing telephone lines. DSL modems attached to the telephone lines usually transmit from 256K bps to 8M bps to the customer, and from 512K bps to 1M bps back to the phone company's main switch, depending on the customer's distance from the central office. Most DSL users connect at speeds of less than 1.5M bps.

There are strict distance limitations on DSL service, with an invisible boundary at about 18,000 feet from the central office. This distance limitation is not "as the crow flies," but as the cables are snaked under/over the streets, thus changing the straight-line distance to the phone company drastically.

There are also many flavors of DSL available on the market--ADSL, IDSL, SDSL, etc.--so question your sales representative closely about the capabilities of his service offerings. DSL is very affordable, with one-time install and hardware costs usually around $400; but most providers will waive some or all of that cost for new subscribers. The monthly connection and ISP fees should fall in the $50-to-$60 range. While there are numerous horror stories circulating on DSL install lag times and service quality, it seems the service providers are getting much better at placing the equipment in a timely manner and keeping the service up and running.

Digital Cable Modem

The digital cable modem is a device that attaches between your PC and an analog cable-TV system. The cable modem changes the digital signal from the computer to an analog signal for the cable TV, much the same as any other modem. This device allows cable companies to provide data-transmission capabilities to customers over their existing infrastructure (cable under the streets).

Cable modems are very fast when compared to the other competitors, transferring data at a rate of 1.5M bps. For sheer Internet surfing power, it's not a bad way to go. Currently, there are more digital-cable subscribers than DSL customers. One-time hardware and installation costs will run approximately $200, and monthly service charges will be in the $50 range.

There is a possible drawback involved with the use of a cable modem, since it is a shared resource. Everyone taking advantage of digital cable within a neighborhood loop could possibly compete for the same finite bandwidth. Of course, digital-cable service is only available in areas that already provide digital cable TV. One last hitch is although a community may have digital cable-TV service, there is no guarantee the service provider has enabled the system to carry cable-modem signals.

Two-Way Satellite

The last option on the list is two-way satellite service. Brought to you by the same folks that provide satellite television, this relatively new offering's greatest selling point is there are no distance limitations, no cable runs necessary, and no mass, neighborhood-rollout requirements. What you basically need is an unobstructed view of the southern sky (for you folks in the northern hemisphere).

The drawback is those satellites are more than 22,000 miles above the earth, and electronic signals do have a speed limit imposed by physics. So what, you ask? The signal takes a long time to get from you to an ISP to the distant end and then make its trip back (a long time in the realm of light speed, anyway). This lag is known as latency, and comparing the approximate 900-millisecond roundtrip via satellite to the 25- to 50-millisecond roundtrip via DSL or cable modem is like traveling cross-country in a Conestoga wagon vs. an airplane. Also, acts of nature, such as heavy rains and snowfall, have a tendency to block the signal altogether; but if you don't qualify for DSL or cable service, the satellite may be the only game in town. The major competitors in this service--Hughes' DirecWay being the largest--provide hardware and installation for about $600 and monthly service for approximately $70.

These are several of the common options you have for data connectivity from your business or home to the outside world. Which solution is best? There is no good answer to that question, since so much depends on region, availability, cost and personal preference. The way to determine the solution for you is to get feedback from local people using the various options. Calculate how much connection time you require and make a realistic estimation of how much speed you need to work effectively.

Bill Hoban is the chief executive officer of Centershift Inc. Centershift, based in Salt Lake City, is a provider of hosted application and online rental-management services for the self-storage and other lease-based industries. For more information, call 800.9CHIFT; e-mail [email protected]; visit www.centershift.com.

Dear Boss,
I would like to make some recommendations regarding additional services for our customers and how they might impact our bottom line. Although our original intent was to provide upscale facilities where all these services would be included, we have not been able to justify this through higher standard pricing. At no charge, these services provide no competitive edge in attracting new tenants, as the majority of our customers do not anticipate the need for them or see their advantage.

On the other hand, there would be no negative impact on the sentiments of our existing customers if we were to charge for offering additional services. The majority are willing and expect to pay a nominal fee for them, and providing them would create a positive impression of our facility. Although the fees are minimal, the overall economic impact could be substantial.

As I shopped our competition to get a feel for the services they offer, it quickly became apparent they are not treating small, additional services as amenities, which are expected and included in the standard rental rate. For example, all of our competitors have a fenced-in lot and computer-controlled gate access, but 24-hour access through the gate is not offered as a standard. A charge applies for anyone who would like this feature on a regular basis. I have seen this fee as high as $30.

I realize we advertise 24-hour access and view this as a competitive advantage; but I think we can charge a nominal fee ($10 to $20 per month) for individuals or commercial customers who need this feature regularly. To satisfy those who argue we offer 24-hour access in our ads, our system allows a manager to offer this feature free of charge for a finite period of time to anyone who requests it. Therefore, the only customers charged would be those who are aware of, and willing to pay for, the option of permanent 24-hour access.

Many of the services we offer for free on an as-needed basis can have a nominal charge attached to them. For example, cutting a lock can require a $5 to $15 charge depending on the type of lock and whether it must be cut or drilled. After all, we incur the cost of labor plus eventual replacement of the tools, whether it is new jaws for the bolt cutters or new drill bits. We should be able to recover these costs from customers without alienating them.

We currently do monthly billing for a select number of customers who must be billed for us to get paid. If a customer would like to receive a bill on a monthly, quarterly, semi-annual or yearly basis, there should be a charge of $2 or $3 to cover the cost of materials, postage and labor.

It is not often customers leave our units in broom-swept condition upon vacating. Since we do not require a security deposit, this could be a service we offer at the time of vacating. They can simply pay the $5 cleaning charge and leave our facility in perfect compliance with the rental agreement--and with a clean conscience. This particular service would be an easy sell, and we would then get paid for something we are currently doing for free.

Many customers have asked to use the external electrical outlets on an occasional basis, and although we frown on this as a policy, exceptions have been made for temporary use. This would be another prime candidate for a nominal fee, and could easily be controlled through sound policy-making and follow-through (as well as locking the electrical outlets when not in use).

I also would like to explore the possibility of creating new services, such as water use for our RV customers, whether it be for potable purposes, rinsing dirty objects from a trip or even washing their vehicles. For car-storage customers, we should have jumper packs on hand to be used for dead batteries. We should also have an air tank or small compressor for these same customers. We could look into providing a battery-charging service as someone in our company has previously suggested.

Taken individually, these items may seem insignificant in terms of scope and revenue-generation. However, by implementing and using these many services in our day-to-day operations and promoting them through ongoing sales techniques, they can add to the bottom line and give us a long-term competitive advantage over competitors.

Sincerely,
Your Manager

David and Tina Fleming are an award-winning management team with Premier Self Storage Inc. of Western New York. David has more than 10 years of experience in the self-storage industry, having managed facilities in three states. He is currently a corporate trainer and senior site manager overseeing five locations. He and Tina work as full-time resident managers of Premier Self Storage in Amherst, N.Y. To contact the Flemings, call 716.688.8000; fax 716.688.6459; e-mail [email protected].

SELF-STORAGE IN THE UNITED KINGDOM AND EUROPE is so new that many prospective customers have yet to hear of it. And as progressive as U.K. and European self-storage entrepreneurs are, they are still trying to convey the message to the public of alternatives to storing their goods besides a shed or garage. It is not surprising, therefore, that while self-storage is growing, the facilities are not marketing specialty storage as an additional service.

A case in point is storing boats or RVs during off-peak use. Although in the United Kingdom, there is nowhere near the number of RVs, boats, etc., as compared to the United States, people do have caravans, 10- to 20-foot campers that are towed by a car. Judging by the number of caravans causing traffic jams in the middle of summer, half the U.K. population must own one.

But where do they keep recreational vehicles when not towing them along highways or parking them at a beach or holiday camp? Rather than in the kind of secure storage found at many U.S. self-storage facilities, the U.K. public parks them in their driveways or a nearby farmer's field. Year round, these fields can be seen full of caravans ready for families' summer vacations.

One of the main reasons this type of specialty storage will not take off in the United Kingdom or Europe is the tremendously high cost of land. A facility operator pays top dollar for a site in a preferred location and is under pressure to maximize the available storage to make the project financially viable. The amount of additional space required to house recreational toys would increase the size of the site and obviously impact the site cost.

There is, however, one type of specialty-storage service not requiring site increases: specialist-document storage. Quite often at these facilities, access is restricted to employees only. Customers who require their material request it by box/consignment number, and a facility employee recovers it from storage for the customer.

Not allowing public access gives the facility advantages. It is partly due to public access that U.K. fire regulations are so strict. By prohibiting public access, construction methods can differ quite considerably. Before designing a new facility, the prospective owner may want to examine who his customers are, what options for present and future expansion exist, and what savings may be built into the design.

Graham Lomax is a founding director of Rabco Europe Ltd., based in Essex, England. Rabco Europe opened in August 2001 to expand The Rabco Corp.'s Orlando, Fla.-based operation into the European market. For more information, visit www.rabcoeurope.com.

This Nationwide Self Storage facility updated its look with new landscaping, gates, signs, painted bollards and refinished metal.

If you operate a facility where you have built in phases, do all your customers want to be in the new section? Are you losing customers to the newer facility that just moved into your neighborhood? Have you even considered giving discounts to keep your facility filled?

The way to overcome these challenges is to make the older parts of your facility as desirable as the new areas. Create continuity throughout your property so differences between the newer and older phases are not so apparent to tenants. When adding phases to your facility, the goal is to update the original units so the whole facility gets a facelift.

The following ideas can also be used to upgrade your facility if competition moves in. If you choose to add some modern buildings, you can add many of the same components to the older ones. There are a number of ways to do this, ranging from simple and inexpensive to more complex and costly. General clean-up--such as washing buildings and doors and cleaning windows and store fronts--will conquer a number of your aesthetic issues, but sometimes more is necessary. Here are some suggestions:

Gates and Fencing

First impressions are extremely important. When tenants see an old, chainlink fence or rusty wrought-iron gates before they even enter the facility, what will they expect from the rest of the property? Consider replacing old chainlink fencing at the entry with an aesthetically pleasing lift gate. If your wrought-iron gate is rusty, coat with rust-inhibiting paint.

Landscaping

Landscaping should be spruced up. Replace overgrown or older plants with new shrubs or flowers. Use the same type of flora in all sections of your facility. If you have a landscaping theme in your older section, it should be continued in the newer one. There should be absolutely no weeds. Flowerbeds can be mulched to prevent weeds and cut down on watering needs.

Repairs

Repair corners of buildings where tenants may have done damage with moving trucks. Also repair or replace broken or bent gutters, metal trim or downspouts, which can be very unsightly. This is not expensive, but very effective.

If your asphalt is cracked or faded, you can make it look new again. Fill the cracks with a blacktop filler and sealcoat the entire property at one time to create uniformity. If you are going to refinish any metal or paint other surfaces, do so first so the oxidation or paint drips do not end up on the newly sealed driveways.

Repainting and Refinishing

Maintaining a color scheme is the best way to keep continuity between new and older phases of buildings. Most door manufacturers continue to offer the same colors as in the past, which makes it easy. You may find your older doors--five to 15 years old--have started to chalk or fade or are a slightly different color from the newer versions. Refinishing metal doors and buildings with a quality clear-coat can make the older metal look new again and will protect it from oxidation, corrosion, salt air and other damaging elements. Dull, faded window extrusions, air-conditioning units or gate boxes should also be refinished.

A protective clear-coat makes old, worn doors look new again.

Repaint stucco, wood or block buildings the same color throughout the facility. This should be done after refinishing the metal so any paint overspray or smudges that accidentally get on the metal can be cleaned without hurting the door finish.

Repaint curbs and bollards. Painting curbs can make a huge improvement in the first impression of your property and should be done in the same color scheme throughout the facility. Bollard covers are another way to create hassle-free continuity and are available for less than $50 each. If you use orange cones, replace them if they are faded or dinged.

Signs and Numbers

Some dull or faded signs can be refinished, but any that are cracked or peeling should be replaced. Check the lighting on your signs to ensure some parts are not burning more brightly or better lit than others. Replace any burnt-out bulbs.

It is also important to maintain continuity in your numbering systems. If your numbers are cracked or peeling, consider replacing them with quality vinyl numbers. There are pre-spaced numbers that are easy to reapply and will last for many years.

Building Exteriors

You can update the exterior of older buildings with exterior insulation and finish systems, known as EFIS. You can make them as fancy as you like with decorated block, scrolled faces, arches, columns, small details and bumpouts, or even change the lines of your buildings. They can be painted or finished to look just like stucco or stone.

Another way to update older buildings is to add a mansard roof or façade to update boxy buildings and give them a more substantial look. This could be added to the entire facility or just the visible roof lines to tie the entire facility together.

The Office

Don't forget the office. New paint and rearranging furniture and displays can give the office a whole new look and feel. Another way to present a new image to prospective customers and current tenants is to have new furniture, such as a desk, instead of the older counter.

Once all of your improvements have been made, consider having a grand re-opening or anniverary celebration. This is a good reason to invite the local businesspeople and the neighborhood "centers of influence" to a coffee-and-donut or wine-and-cheese party. You can show off all your hard work, and tenants can see your dedication to maintainance and upgrades. As long as you give older buildings their due, tenants will not be eager to abandon them for newer space.

Teresa Sedmak is the president and co-owner of Everbrite Inc., which manufactures Everbrite^TM Protective Coating. She is also a licensed painting contractor with extensive experience and knowledge of protective coatings. For more information, visit www.renewstorage.com or www.renew-and-protect.com; call 800.897.9629; e-mail [email protected].

The author would like to thank the following individuals for their contributions to the above article: Lolita Bader, Quik # - Door Numbers; Jim Chiswell, Chiswell & Associates; Rick Dodge, Rib Roof Metals Inc.; David Edward, Golden State Self Storage; David Eldred, A Storage Place; Mark Henderson, Shorewood Mini Storage; Eric Hermes, Hermes Construction Co.; Ken Snyder, Capital Self Storage; and Caesar Wright, Mako Steel Inc.

I RECENTLY BOUGHT A NEW RECREATIONAL VEHICLE (RV). Afterward, I set out to rent storage spaces in both cities where I have homes: Las Vegas and New York. I thought I had a pretty good idea of what worked from my discussions with self-storage operators who offer RV storage, but seeing it first-hand gave me additional insights worth sharing.

For many of you building or considering building self-storage, renting RV spaces may be a temporary means of generating revenue as you phase in your project with actual buildings. Whether that is the case or you rent an RV space yourself, this information will be extremely valuable.

People make their decision whether to rent an RV space based on very specific criteria: security, proximity, competence, cleanliness, specialization and price. Each of these categories holds a different level of importance for individual renters. Most people who own RVs tend to not be as concerned about price. Generally speaking, if they can afford the RV, they can afford to store it safely and properly. The order in which I ranked the criteria is based on the average renter. Each individual might prioritize them differently.

Security

For me, security was the most important element. I am certain it is in the top two for everyone who rents an RV space. If I'm going to trust someone with my RV, I'm going to make sure the place is secure. I don't want to come back and find it broken into or vandalized. I paid more than twice as much to rent from a place that had security cameras and high fences with barbed wire on top. The other place I considered was completely exposed and didn't even have a fence.

The majority of RV owners I have spoken with treat their RVs like a member of the family. They are very concerned about someone being able to break into their vehicle and are willing to pay a premium to minimize the chances of this happening. So what do you, a storage provider, need?

First, you must have good lighting. From a customer standpoint, it makes it easy to get around after the sun goes down. From the standpoint of a potential crook, it makes the facility a less appealing target. Video cameras are also very helpful. At the facility where I rent, the cameras are positioned in such a way that my RV can be seen by management. The savvy manager also pointed out the actual monitor on which they could see my space. Think about it: A customer really only cares about his own vehicle.

Proximity

If your facility is already up and running, proximity is something you have little control over. Everything else being equal, people will rent from a facility closer to where they live. In the case of my house in Las Vegas, my RV facility is just two miles away.

This was not the case in the New York City area, where I had to rent at a place 15 miles further away than another I considered. Why? Because security, competence and cleanliness were more important to me than proximity. This will be true with your customers as well. If you happen to be in a great location, capitalize on it. If you aren't, don't worry. Make it up in other areas.

Competence

Competence of the facility manager (or other employee who shows a prospect the space) will be one of the criteria customers will use to evaluate you. Competence, in the mind of the potential renter, will be based on two things: first, your knowledge of the product. If you're going to rent RV storage, you've got to understand RVs. If you're not interested or don't think it's important, you won't be nearly as successful at renting spaces.

How do you acquire this knowledge? Any manager who rents RV spaces should visit a place where these vehicles are sold. This will give him the opportunity to understand the different types of models out there and learn a bit of the language. Understanding some key RV terms will make you seem like a genius when people call on the phone or visit in person. It's very much like speaking another language. If you "speak RV," your chances of getting prospects to visit your facility and rent increase substantially. There are a number of RV websites and publications that can assist in this area as well.

The second area of competence is what I'd call "general" competence. People are more apt to rent from someone who is articulate and intelligent. This is something that can't be learned. Hire the right manager and you'll be way ahead of the game.

Cleanliness

Keeping your storage facility clean is important regardless of whether you rent vehicle storage. However, the RV owner will take cleanliness into serious consideration. It may not be the most important reason he rents from you, but lack of cleanliness is a deal-breaker for most potential RV customers. Even if a prospect likes your prices and feels good about your security, an unkempt facility or parking area will hurt your chances.

At least once or twice a day, the RV area must be inspected for loose trash left by renters. You'll also need to sweep the area at least a couple times a week. Parking spaces should be painted whenever necessary to look good and keep vehicles within the bounds of their assigned spaces.

You should have strict guidelines outlining how you expect a vehicle to be stored. I've seen storage places where people let their vehicles look like something about to be retrieved by the junkyard. Make renters sign a specific document that details what you expect from them if they are storing with you. This should list all your do's and don'ts, so there is absolutely no confusion when you call them to task for an item. Remind offenders promptly and ask them to fix problems immediately. Not doing so will tell them you aren't really concerned with enforcing the rules.

At the facility I chose in the Las Vegas area, I bumped into some renters who told me about a facility down the road that was "filthy." They said even though the prices were lower, they preferred to stay at the place we had both selected. To customers, lack of cleanliness means a lack of concern about security as well. Although this may not be true, in the mind of your renters, perception is reality.

Specialization

You must look like a specialist in renting RV spaces, even if you're not. How do you appear like a specialist? First, you'll need a brochure and a section on your website that specifically addresses RV customers. Will this cost a little money? Yes. Will it substantially increase your closing ratio with those who come to rent an RV space? Absolutely.

The second point overlaps an earlier one. You'll have to understand the language and be able to talk to people. The more you seem to know, the better your chances of renting. This point was driven home to me by a self-storage manager who had, at one point, spent four years on the road with his wife in their RV. He was able to rent a space to any RV prospect who walked through the door. Why? He knew the market inside and out. He was clearly a specialist. If you're just getting started and rent RV spaces exclusively, hire a manager who has retail and RV experience.

Everything else being equal, RV owners will rent from a storage facility that specializes in RV storage. If you have two facilities and one is exclusively for vehicle storage, it will have an advantage. If you're reading this article, chances are you don't rent only RV spaces. That's fine. You can still appear to be a specialist by doing the things mentioned above. The key is to give people the impression you know what you're talking about.

Price

Many people think price is the primary criteria people use to make a decision to rent. This is not true! For the average renter, prices aren't nearly as important as some of the other criteria. For people who have older-model RVs, price will most likely be the primary concern. They figure their chances of getting broken into are slim to none. For those with newer models, price will not likely be the big issue. They will be much more concerned about other criteria, such as security.

Pricing policy is an area where I discovered a lot of problems during my research. I called four or five facilities in the Las Vegas area that said they were full. This is crazy. Your pricing policy should reflect demand. If you have 100 RV spaces, and they are all one size and rent for $100, when you get 88 of them filled up, you should raise your price to $109. If you then get all but seven spaces rented, increase your prices again to $119. Increase your prices based on demand to make sure you at least have two or three spaces to rent at all times.

Many operators and managers prefer to be 100 percent occupied at lower prices. This philosophy will not only lose you money but invite competition. Don't do it. You can always lower the prices if necessary to keep customers or attract them back. A manager who thinks price is the only criteria to sell RV spaces isn't doing his homework. Concentrate on the other criteria and let price be set by market demand.

Closing on the Phone

There are really six keys to successfully marketing an RV-storage facility. All the above elements need to be seen by the prospective renter for him to be able to evaluate your particular facility. This being the case, your first responsibility--and the sixth key--is to get him to visit your facility before making a decision.

If someone phones, use your standard telephone-closing techniques, but make sure to add this item: Remind people that with such an expensive investment, it would be foolish to make a decision before seeing all the options. Demonstrate your knowledge of RVs by throwing out some words that let them know you're a specialist. This will substantially increase your chances they will visit.

If you're considering adding RV rentals to your present storage offerings or are dissatisfied with your current results, you need to make some changes. Review the five elements above and see how you can improve in each area. Even if you were to get marginally better in each area, the overall change would be substantial. Start working on each and watch your occupancy rates and profitability soar.

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].

WHO WILL ARRIVE TO RESCUE YOUR SITE WHEN THIEVES BEGIN TO BREAK INTO STORAGE UNITS? What evidence can your security system provide for police detectives and insurance investigators? Can your security system defend your site and stop the criminal?

A classic cliché states a chain is only as strong as its weakest link. This is especially true when it comes to securing your business. What thieves lack in morals, they replace with street smarts and an intuition for exploiting opportunity. Hidden sections of your perimeter fence and burnt-out flood lights provide an invitation to test the limits of your site's security.

In past columns, I have covered methods to strengthen a site's security. However, even the most impenetrable perimeter can't stop the "inside job": a tenant who rents a storage unit for the sole purpose of cutting the locks on neighboring units. The thief moves the stolen items into his unit and replaces the cut locks with ones of his own. Fencing and security dogs can't stop this type of crime, but you can catch the thief in the act and automatically summon help.

The best prevention is to install a door alarm on every unit. Any attempt to open an unauthorized unit activates the site's alarm response. The problem is, the typical alarm response is severely inadequate. By default, security systems are preconfigured to sound a single siren. Any thief can silence that siren by cutting the connecting wires or filling the cone with foam sealant. After that, his burglary can occur without notice. Even an on-site manager may be too far away to hear the thief's activities.

Newer alarm controllers boast of artificial intelligence that can modify the alarm response to match the alarm event. However, many of these systems fall short of their "intelligence" claim. For example, a break-in on the second floor of a climate-controlled building should also disable the elevator call button on that floor. Forcing a thief to take the stairs dramatically reduces what he can carry and which escape route he can use. Furthermore, the site's alarm controller should instruct every surveillance camera to record at the highest quality and at the fastest frame rate. Most controllers cannot do this.

It is important to understand all alarm controllers are actually small computers. The features available are determined by the sophistication of the software programs they use. Some companies offer the minimal feature set on an imbedded computer chip. That may be fine for an apartment building, but it falls painfully short for the unique needs of self-storage. You need flexibility and years of maintenance-free service. The best alarm controllers include components to automatically detect and repair issues before they can disrupt your security.

Once you have decided which alarm controllers offer the best quality, it is time to determine the features that match your business needs. The decision of which alarm response to use is determined by which door event just occurred. For example, there is no benefit to activating all of your interior hallway lighting as a reaction to an exterior unit being invaded. Furthermore, you may not want to sound the siren on floor two when something happens on floor one. A truly intelligent controller will allow you to customize the automatic response to match your needs on a per-door basis. For example:

1. Which sirens should sound? All, some, one, or is this a silent event?

2. Which lights should turn on? All, some or one?

3. Which doors, gates and elevators should become inoperative until the alarm event is over?

4. Which phone/pager dialers should activate their pre-arranged messages?

5. Can the system summon an armed response?

6. Which surveillance cameras should begin hyper-recording?

7. Which surveillance cameras should send real-time video to an off-site e-mail address and/or remote monitoring company?

8. What audio message should broadcast over your site's paging system?

9. Should your alarm system summon an armed response service?

10. What reaction should occur when a vacant unit or stairway door is opened?

Your security system needs to be stable and easy to use, and have the ability to expand with your future growth. Define which features you need today plus those you may want in the future. If one security vendor cannot satisfy your needs, thank them for their time and call the next company on your list.

Be aware the trade names and true usefulness of certain features can be quite confusing. There is no consumer agency that oversees the world of custom security controllers, and your neighboring storage sites can only recommend their personal security solutions. Your alarm controller is the brain of your entire site's security. It will define your tenant's security experience and should be the showcase of what is unique about your facility. That distinction can command higher occupancy and increased rental rates.

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.

AS THE ONSITE MANAGER AT A STORAGE FACILITY, YOUR MAIN GOAL is to rent those units. You should be prepared to lease the units in an orderly, timely fashion. That means having all your paperwork in order and at your fingertips. Following is a list of all the items that should be included in your rental package.

The Rental Agreement. We all know the rental package must have a legally binding rental agreement. More specifically, you should use a carbonless, three-part lease that is sequentially numbered. The top, original copy will be kept in the tenant file. There will also be a copy for the tenant to keep and a copy for your owner, area manager or head office to check on a monthly basis. These leases should be numbered. If you make a mistake on one, never throw it away. Keep voided leases with the written leases for each month.

If your software program automatically prints your lease, have the tenant fill out an information sheet covering the items at on the top portion of the agreement. This way, the information given is in the tenant's own handwriting and may protect you if there is ever a legal issue related to that information in the future. You can then input the information and print the completed form. This information sheet could also contain facts such as the tenant's distance from the facility, how he heard about you, the types of items he is storing, etc. Read your rental agreement and understand all its meaning so you can explain it to your tenants. Don't forget to sign it, and have the tenant sign and initial all necessary sections.

Rules and Regulations. You should also have a rules-and-regulations sheet. This is not an addendum to your rental agreement. Instead, it covers such things as office and gate hours, your policy regarding pets on the premises, your vacate policy, late fees and due dates, etc. Have the tenant sign this sheet and give him a copy.

Illegal Items. Consider having a sheet that lists items that are illegal to store, such as food, illegal drugs or stolen goods, dead or live animals, explosives, hazardous waste, etc. You should also have this list, framed in poster format, in plain view in your office. It's not a bad idea to tape copies of the rules-and-regulations and illegal-items sheets on the inside of a unit each time it is rented.

Storage Tips. It's a good idea to hand out professional brochures that show tenants how to pack and store their items. These are nice to give new tenants or those that stopped by to check the facility and prices. (Never let a prospective tenant leave your facility without something to take with him, such as a brochure, price list, key chain, magnet, pen--at the very least, a business card.) You can design your own brochure or a simple sheet titled "How to pack and store your goods." This sheet should include tips such as packing goods in boxes and marking what is in them, covering mattresses and furniture with plastic, oiling tools, etc. When you give a tenant a brochure, it is a perfect time to sell him items from your facility's retail profit center!

Return Envelopes or Labels. Many people appreciate a reminder of when their rent is due. Including self-addressed facility envelopes with your rental package helps people make timely payments. Or you could give out address labels or an address stamp. Because a vast majority of people store longer than they initially anticipated, give them at least two more envelopes or labels than they anticipate needing.

Insurance Brochure and Addendum. Last, but certainly not least, your rental package should include an insurance brochure and addendum. There are several companies that offer tenant insurance. It doesn't matter which you use, or if you collect the insurance premiums personally, but you must offer insurance to each tenant. Have the brochures displayed on your counter. Offer a brochure and explain you do not insure the tenant's goods, the insurance company does. Often, a homeowners- or renters-insurance policy will cover tenant goods while in storage, but it is the tenant's responsibility to confirm this. The tenant must sign or initial your insurance addendum--whether he accepts or rejects coverage--and a copy is placed in his file. Do not rely solely on the paragraph in your rental agreement that covers your insurance responsibilities.

If you are in an area where a language other than English is spoken, make a copy of all the above forms in the alternate language. Have them laminated and keep them available so tenants can read forms in their own language before signing.

The paperwork portion of your rental process should now be complete. The tenant should have a copy of the rental agreement, rules-and-regulations sheet, illegal-items sheet, the storing-tips sheet or brochure, mail-back envelopes and insurance brochure/addendum. Put these all in a large envelope printed with your company contact information, hours of operation, and spaces to write in the unit number, and rent due date and amount. Some companies even give out canvas bags with pens, key chains or magnets to tenants when they rent a unit.

After the tenant leaves your office, mail him a welcome letter or postcard. This should thank him for renting with you and include your office and gate hours and a reminder of when rent is due. You do this as a courtesy and to reinforce this information in the tenant's mind, but also to verify the tenant's address. If the letter is returned, it should raise a red flag. You'll want to contact the tenant and obtain a correct mailing address.

No matter how you file your tenant information--by last name or unit number--staple all paperwork together so the files are neat and orderly. Have all blank paperwork together in handy packets for when you begin a new rental. This keeps you organized and makes the rental process pleasurable for you and the tenant.

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.