Archie Allen never imagined his love for sailing would lead to the construction of his own boat and RV storage facility. Although he owns a boat, Allen did not picture himself in the storage business until two years ago. The Hampton, Va., resident stored his boat at a dry-stack storage facility in Florida.

In the winter, we flew down each year to go sailing, says Allen. Storage cost about $500 a month. Later, he moved the boat to a facility where the owners towed clients boats to the water; the cost was considerably less only about $140 a month. He noticed this 6-acre facility, although not on the water, was always full.

At the time, extensive business commitments prevented Allen from using his boat. He moved it home, only to realize there were no boat-storage facilities in Hampton, even though watercraft are an integral part of the lifestyle. Allens entrepreneurial spirit quickly seized the unique opportunity.

The Venture

Allen began looking for a site in May 2001 and opened the gates of Hampton Boat & RV Storage in April 2002. Within three months, the facility was 110 percent full. Were parking them in the aisles, Allen kids.

How did he achieve this success in a town where the concept was so new even the zoning board did not have a classification for it? Allens own need coupled with a keen entrepreneurial sense made opening a boat/RV storage facility a natural choice. He knew the ideal site needed to be close to a public boating ramp, have good street visibility and be previously fenced and graveled.

Permitting, approval of site plans and site improvements took just under a year. During the permitting process, the city of Hampton asked him to pave and stripe the site, but Allen calculated this would limit the number of spaces he could use. He negotiated with the city to waive the paving and striping in lieu of a city-required 10-foot easement for landscaping in front of the facility. This compromise allowed him to increase the number of storage spaces from 57 to 88. The small amount of land he gave up for the street-side landscaping paid off with more spaces and higher revenue. If Id stuck with the original site plan, I wouldnt be where I am today, he says.

Allen leased a modular building for the office, and installed utilities and a handicapped parking pad. Customers can clean their boats at the facility, and a dump-station pipe is available for RVs. I had to build on a shoestring, he says. I didnt know how this would fly.

Compared to the Florida rates Allen paid, his own rental rates are reasonable. Based on a minimum 30- day stay, rates range from $20 to $35 month. RVs longer than 25 feet are charged by the foot. Discounts for multiple-month payments are offered. One customer from North Carolina wanted to come to Hampton for a weekend of fishing, Allen says. Although he only wanted a couple of days of storage, he realized he could get in a couple of weekends of fishing by leaving the boat for the month.

Promotions

Allen originally promoted his facility through radio, local newspapers, the Yellow Pages and local cable television. The cable contract included a crawl that runs during the local weather program, which turned out to be the most effective marketing tool. By the third month of advertising, Hampton Boat & RV was full, and Allen cancelled all cable ads except the weather crawl.

An incentive to store at Hampton Boat & RV involves personal tax savings. Hampton does not have a personal- property tax on boats, Allen says. Property tax is based on where the property is located. If the boat is stored in Hampton, owners do not pay tax, and RV personal-property tax is minimal compared to surrounding communities. Customers living in other areas save enough in personal-property tax to cover the cost of storing their boat or RV. Allen heavily promotes this advantage at regional boat and RV shows.

Because of demand for storage from potential customers, Allen is planning a second facility that will feature covered storage. Located on 3 acres, it will have more than 150 spaces and triple the number of storage spaces offered by the Hampton site. The new facility is expected to open by early 2004. Allen plans to market this facility through the cable-network weather crawl, newspapers and regional boat/RV shows.

Allen has a varied entrepreneurial background that ranges from several years as a car salesman to nearly 20 years in data processing. Several years ago, he purchased laundromats and dry-cleaning establishments. These varied experiences have one thing in commonservice to customers. And it is that experience on which Allen is capitalizing to successfully run his business. He may have started on a shoestring, but long hours, hard work and customer service have paid off. Now I can go out on my boat once in a while, he says.

For more information, call 757.726.0900; or visit www.hamptonboatandrv.com.

Much to the surprise of my family, I recently agreed to take a vacation in Florida. Ill admit it was a very special occasion: our granddaughters third birthday. Four days with Mickey Mouse, and I was not missing the telephone as much as I thought I would.

Typically, when I arrive at an airport, my subconscious automatically takes me to the Hertz Gold Counter. This time, our daughter told us about a car service she had discovered, and how easy it is to make a reservation on the companys website.

So before the trip, I found myself on the site for Tiffany Towncar Service of Orlando (www.tiffanytowncar.com). The site was simple, downloaded quickly, was easy to navigate, and answered every question I needed to complete my reservation request. Within six hours, I received an e-mail confirmation. The company had already exceeded my expectations with a 24-hour turnaround time guarantee and a fast confirmation delivery. This was certainly a good start.

When our flight arrived, we went to the baggage-claim area where we found our driver, who was wearing a neat, clean uniform and holding a sign that read Chiswell Party. Our drivers name was Hector. He offered to wait for us to carry our bags, or he would go and retrieve the car from the parking lot and meet us at the bottom of the stairswe had the option. Not wanting to waste any time, we agreed to meet him by the stairs.

Within minutes, we arrived at the loading area. Our black Towncar was waiting with the air-conditioning running at full blast to compensate for the 90-degree-plus temperaturesHector was obviously concerned about our comfort. Our ride from the airport was not rushed, and clearly, the driver knew his way. His polite questions about our visit made us all feel very much at ease.

When we arrived at our hotel, I was already a satisfied customer. What I did not know was it would be the return trip five days later that would prompt me to write these comments. We came out to the front of our hotel 20 minutes ahead of schedule to find our car already waiting for us. As an additional surprise, our driver was one of the companys owners, Keith Hinkle.

I discovered this a few minutes into our drive as he asked how our service had been on the day of our arrival. Hinkle said he tried to get out of the office as often as possible to drive and talk to his customers. He explained that in the past seven years, the three partners had worked hard to make customer service the hallmark of their business. It was paying big dividends, as they had grown to be one of the largest transportation providers in Orlando. He and I talked about our experience and the visions he had for the company.

What is the moral of this story for you as a self-storage manager or, especially, an owner? From the moment of my first point of contact with the companyits websiteit was working to exceed my expectations.

Is that the mission at your store? Is everyone in the organization working to exceed peoples expectations? The car we hired was clean inside and out. Can you say the same about your facility? And most important, when was the last time you spent time behind your own counter? Or walked the property on a Saturday just to say hello to people laboring at their units? I dont expect I would see many hands if we were all sitting in a room. Give it some thought. Not only would you surprise your customers, you would give your managers a pleasant shock as well.

Procrastination

I have been putting off writing about this topic. Get it?

In the May 12 edition of The Virginian-Pilot, the BizLinks column, compiled by Laura Laing, provided four great links to help my fellow procrastinators out there. I would like to pass them along with my recommendations. Each site has a slightly different take on a problem everyone faces at one time or another. I found some good suggestions, and I hope you will, too. Take a minute and at least write down these web addresses for future reference.

MIND TOOLS: www.mindtools.com/pages/main/newMN_HTE.htm EMPLOYER-EMPLOYEE.COM: www.employer-employee.com/procrastination.html DEXTERITY.COM: www.dexterity.com/articles/overcoming-procrastination.htm BUSINESS DYNAMICS NETWORKS: www.businessdynamics.com/resource_library/Business_Resources/171.html

Buy Me Some Peanuts and Crackerjacks...

At close of summer, this popular baseball refrain took on new meaning at some minor-league baseball parks across America, including the home of the Triple-A Buffalo Bisons. Buying food at any sports venue can be a trying and sometimes frustrating activity, especially when you miss that winning homerun or inning-ending double play.

Now, armed with your trusty cell phone, this problem has been eliminated forever by these innovative ballparks. All you have to do is dial a special telephone number, order your food and, within a few minutes, a runner delivers your selected delicacies directly to your seat. Getting people to eat more at a ballgame through the application of technology and increased convenience is a great way to overcome customer resistance to a buying opportunity.

It made me wonder if our industry is applying technology in such an inventive manner. I would be very interested to hear from owners and managers about how they are using technology to benefit their stores. Please take a minute to drop me an e-mail or fax. I will share the best of the best in a future column.

A Couple of Great Books

In one of my recent columns, I discussed the idea of creating a book club. I wanted to recommend two books I have enjoyed this summer. The first is The Da Vinci Code by Dan Brown. This fictional book has raised a number of issues involving real-world information the author included in his mystery adventure. I could not put the book down.

The second book is Charlie Wilsons War by George Crile. The book is a factual account of the methods used by Texas Congressman Charlie Wilson. It details his covert support for CIA operations in Afghanistan in support of the Mujahideens battle to expel the Russians from their country. The insights of this book have given me a new perspective on the battle against terrorism.  

Jim Chiswell is the owner of Chiswell & Associates LLC. Since 1990, his firm has provided feasibility studies, acquisition due diligence and customized manager training for the self-storage industry. In addition to contributing regularly to Inside Self-Storage, Mr. Chiswell is a frequent speaker at Inside Self-Storage Expos and various national and state association meetings. He has introduced the new LockCheckTM inventory data-collection system to the self-storage industry at www.lockcheck.com.  He can be reached at 434.589.4446; visit www.selfstorageconsulting.com. 

After working in the trailer-leasing industry, Mobile Attic Owner Pete Cash wanted to develop an attractive product he could offer customers, one they wouldn’t be ashamed to have delivered to their homes. At the time, he didn’t have many residential customers—old trailers were not something people enjoyed displaying in front of their yards.

This opened up a whole new market for Cash Brothers Leasing Inc., owned by brothers Pete and Russ Cash. In 2000, The Mobile Attic was incorporated and began operating as a separate entity from the previous leasing company. During that same year, it joined forces with National Security Group Inc., an insurance company based out of Elba, Ala., to assist with the financing for such a large undertaking.

In the past three years, the company has grown to 15 dealerships in three states: Alabama, Florida and Tennessee. It now offers franchise agreements to selfstorage operators nationwide.

“By offering this as a franchise arrangement to mini warehouse owners, they receive the expertise to operate in new markets without having to waste valuable time developing the product and service,” Cash says. “Customers in the storage industry are demanding a more convenient option, and we are proud to offer an innovative product that will complement self-storage owners’ current product line.”

A Special Product

The Mobile Attic offers four different standard portable-storage units: 8-by-8 feet, 8-by-16, 8-by-20 and 8-by-40. The company also has several custom units, including those with climate control and storage racks, as well as others made to customer specifications. For example, one company requested brown modular units to match the brick on its building!

Mobile Attic—or the franchisee— delivers, picks up and moves containers from an original to a new location or back to its own storage facility. It has a patented trailer to transport larger units from site to site. Smaller units are transported on a smaller truck. Neither vehicle requires the driver have a commercial driver’s license to operate.

What makes Mobile Attic units so exceptional? They do not leak, are very clean, and are much more attractive than the old ISO trailers. They feature ground-floor access, which is much safer than trailers up on wheels. Finally, portable storage works well in combination with self-storage, giving owners a new profit center and an advantage over competition.

A few other valuable features of the company and its product include:

• Mobile Attic offers a full line of imprinted packing supplies available at its various locations, including boxes, tape, bubble wrap, packing peanuts, etc.
• There has been a large demand for the product from insurance companies for clients who have experienced a loss and need temporary storage.
• Many residential customers use portable storage for renovation projects and relocating.

In the Attic’s Future

The Mobile Attic is currently expanding nationally through franchise locations. The company is in the process of building a new manufacturing facility to keep up with high demand from residential customers.

The addition will increase the company’s production space to more than 100,000 square feet, feature the latest RTM technology, and allow Mobile Attic to build more than 100 new units per day.

As an innovator in mobile-storage units, The Mobile Attic is achieving notoriety, respect and increased market share. The company brings the storage solution to the customer’s location, providing secure storage with immediate access. It will continue to grow by opening additional storage facilities and developing complementary products. For more information, visit www.mobileattic.com.

James Bartnick and Robert Lesko never imagined their love of motorcycle racing would spill over into their professional lives as project managers for Mako Steel Inc., an Encinitas, Calif.-based supplier and designer of steel buildings for the self-storage industry. But thats exactly what happened last year when their boss, company President Caesar Wright, took an interest in their off-the-clock hobby.

After Caesar went to his first race, he was intrigued with the size and competitiveness of the sport, Bartnick says. He immediately wanted to become involved and sponsor a race team.

The team enlisted three more ridersTim Filer from Carlsbad, Calif., John Kulkhen from San Diego and Mike Boyd from Temecula, Calif. With help from Temecula Motor Sports, a full-line motorcycle dealership in Murieta, Calif., that co-sponsors the Mako team, the guys were outfitted with gear and a Honda XR650.

The team began competing in the open sportsman class in the SCORE (Southern California Off Road Enthusiasts) series, which includes four races a year: the Baja 250, the 500, another 250 in the summer, and the Baja 1000, considered a world-renowned off-road race.

In 2002, Mako participated in four races, including the Baja 1000, which started in Ensenada, Mexico, and ran the entire Baja peninsula to the finish line in La Paz. The team finished the race in a respectable 25 hours and took second place overall in the sportsman class. So far this year, the team has won the 250 in March and the 500 in June. Mako chose to skip the third race over the summer, and instead, the racers are gearing up for the much-anticipated main event: the Baja 1000 on November 20.

It started off purely for fun the first season, Wright says. Then we realized we were pretty competitive in this class. The team hopes to win the next event and enter 2004 as a pro team.

Employee Perks

Putting competitiveness aside, Wrights original intention was to offer his employees a perk, not necessarily a pro racing team. Its kind of a way for all of us friends to get together a few times a year, he says.

Lesko agrees. As we get older, getting together with friends seems to be more difficult to do. Its not uncommon for us to head down to Mexico with a group of 20 to 30 people for a couple of days prior to the race to relax and have some fun.

But come race day, its all business, Wright says. We focus on the competition and give it 110 percent.

Racing has also led to additional business for Mako. Wright guesses two-thirds of the racers and fans are actually contractors. A lot of these guys in off-road racing are hands-on, which usually means they are a contractor of some sort, or a builder, he says. The company is even revamping its website to include information on the racing team. At a recent tradeshow, Mako displayed pictures of the guys racing in its exhibit, sparking comments and questions from many colleagues and attendees.

Still, the objective is fun, not profit, Bartnick says. With the continued support of Mako Steel, Temecula Motor Sports and friends, well continue riding fast and having fun.

Pick up any health or fitness magazine off the racks these days, and youll find pages littered with ads for this or that herbal supplement intended to increase metabolism or muscular performance. Retail chains such as General Nutrition Cos. Inc. and Hi-Health are reaping a fortune off the sale of vitamins and minerals, which are being touted as homeopathic remedies to a whole onslaught of ailmentsphysical and emotional. The American public has become increasingly leery of traditional healthcare and seeks unconventional methods, not only to cure ills, but to better individuals overall enjoyment of life.

Just as health supplements can complement and improve upon an already fit body, product and service enhancements can create progress for a self-storage business. Your facility neednt be sick to benefit from supplemental commerce, such as boat and RV storage, wine storage and the sale of retail products. These ancillaries can boost an already booming venture.

The trick is to use only the supplements you have the financial and human resources to provide, and the community demands. The addition of a service such as mobile storage may seem like a good idea, until you realize all the elements involved. Just as with those health products that promise rich rewards, some are toxic in large quantities; others have negative side effects. But many, when used in moderation and with sound judgment, can accomplish what every operator hopes they will: create a marketing advantage, attract and satisfy more customers and, ultimately, bolster a bottom line.

This issue is not comprehensive. The list of side services and multiuse businesses continues to expand as imaginationand budgetsallow. But it does touch on many of the basics: wine, mobile, records and vehicle storage. Keep in mind supplemental income can originate in other avenues, such as the sale of boxes and packing supplies; the rental of equipment such as steam-cleaners, moving dollies and water pumps; the provision of business services, including postal, fax and Internet; and the offering of complementary operations, such as car washes, shipping and freight, and truck rental.

Just keep it simple. Never mix too many supplements at a time. Never take them on an empty wallet. And use them as directed. Also remember: What works for another facility may not work for your particular business, so always do your research. With the right blend of supplemental services, you can improve the health of your self-storage business.

Salute,

Teri L. Lanza
Editorial Director
[email protected]

IN THIS DOG-EAT-DOG WORLD, Ive discovered the sale of ancillary storage services and products has been appreciated by my customers and profitable for my self-storage center. One successful niche has been the storage and management of hardcopy business recordsrecords managementwhich we started offering at my facility 10 years ago.

At the time, my father and I saw it as a way to maximize our return on upstairs storage space that just wasnt selling. Like most mini-storage places, we had our share of small- to medium-sized businesses that were storing their boxes in 10-by-10s and 10-by- 20s. We would see the muttering secretaries, harried managers and sweating executives lugging and going through boxes with varying degrees of urgency.

I began to research the feasibility of converting the upstairs units into warehouse space with 12-foot shelves, and creating a system to store and retrieve boxes for business customers. It was also about the time supermarket scanners and barcoded inventory labels became the norm technology that could easily be used to locate and track boxes.

No Bones About It

Thats how what Ive come to call the Cocker Spaniel approach to records management began. Spaniels are expert hunting, retrieving and tracking dogs. That became the focus of our records-management servicesfinding the boxes on our shelves, retrieving them for customers when needed, and tracking their delivery and return to our facility.

To accomplish this, we hired an independent software developer to write a basic records-management program that was tied into our billing system. We created a separate name for the records-management side of the business, and contracted with a telemarketing service to spread the word to companies in our growing city.

We took 24 boxes here and 500 boxes there. We established a system for checking out, delivering, picking up and returning boxes to storage. Soon, we offered file-pulling services, too; and later, we began selling high-quality records-storage boxes. Like the Spaniel, we were bold, keen to work for our customers, cheerful in handling their needs, and excellent watchdogs for their confidential and critical business information.

Another Breed

All that working like a dog paid off. In 10 years, weve only had three accounts leave our care, and these were due to an out-of-town move, a business merger and a bankruptcy. Our theory: Success breeds more success. So this year we launched into our Golden Retriever approach to records management, the one we recommend to self-storage colleagues who might consider barking up the records-management tree.

The Golden Retriever is a cross-breed that combines the best characteristics of Spaniels, Retrievers and Bloodhounds. This means they are good-natured and extremely obedient, but also superior watchdogs with sharp hunting, tracking and retrieving abilities. And they can swim and do tricks!

Matching and melding all of these top qualities and transitioning our facility into a state-of-the-art, full-service commercial records center was no accident, and it didnt occur overnight. We spent three years planning and nearly a year building a new warehouse, specifically to hold business records. This phase included careful research on everything from appropriate racking and a specially designed fire suppression system to meeting earthquake and other building-safety codes.

Next, we completed a thorough review of the industrys most sophisticated commercial records-tracking and inventory-control software, and we engaged a consultant for our entire start-up and implementation of the new system. We also made the commitment to hire a professional operations manager and salesperson whose training includes understanding the emotional and intellectual reasons businesses choose to outsource recordsmanagement storage and services.

Now, like the Retriever, we can excel in efficiently and profitably providing baseline- controlled, managed storage services. And we can do tricks: We are positioned to handle records destruction and certification, index records, offer scan-on-demand services and moreall tied into our tracking and billing system. Its a golden opportunity for us and our customers.

Theyre not muttering or sweating anymore. They e-mail us, and we fetch. It just goes to show, old dogs can learn new tricks.

This months guest columnist, Jay Sundher, is owner/general manager of Fortress Records Management, a division of Hollywood Storage Center, in Newbury Park, Calif. He is a client of regular columnist Cary F. McGovern, principal of FileMan LLC. Hollywood Storage Center has been in continuous operation under the same family ownership since 1982. For more information, visit www.hollywoodstoragecenter.com.  For more information on records-storage consulting, visit www.fileman.com. 

Insights From Fortress Records Management Self-storage facilities lend themselves well to records management because space and security can be leveraged for higher returns. Records management can be profitable, even in small to medium-sized markets. Hiring consultants with experience and integrity in the beginning will save significant costs and headaches in the future. Selling records-management storage and services involves educating potential customers about the value and benefits of outsourcing these functions.

Construction Corner is a Q&A column committed to answering reader-submitted questions regarding construction and development. Inquiries may be sent to [email protected]. 

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Q. What kind of lighting control would you suggest that would be energy efficient?
Josh in Hillsboro, Ore .

A. Lighting is a great way to secure your facility and add convenience for tenants. To keep energy costs down, consider using motion detectors in hallways and elevator lobbies. This will make tenants feel safe and give them a well-lit area to access their units 24 hours a day.

Try to avoid wall timers in units and interior hallways; often it is hard for tenants to find the knobs and leaves the possibility for accidents during the times when lights are off. They also have the unfortunate habit of turning off at the least convenient time, like when your arms are full of boxes.

Outside lighting should be on a photocell (an electronic eye that turns on lighting when it becomes dark). The benefit this method has over a timer is no one has to remember to change the clock for Daylight Savings Time. It also ensures the lights always come on in minimal-light situations, such as rainy or cloudy days.

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Q. Our company recently ordered access keypads for two of our sites and will be installing them next month. We live in a lightning-prone area and would like to take all steps available to safeguard our access system. What would you suggest?
Allison in Baton Rouge, La.

A. I am glad to hear you are thinking of this prior to installation. Your access-system supplier should have surge-suppression products available for your keypads. Another step for prevention would be to have your installer or electrician install a copper grounding rod at each outside keypad.

Here is an example of a grounding-rod installation: Drive a 1/2-inch-by-10-foot or 5/8-inch-by-8-foot Copperweld grounding rod vertically into the earth so only the top 6 inches to 8 inches protrudes above ground level. Near the top of the rod, securely attach a two-piece bronze ground clamp. Place the grounding rod so a No. 12 solid-copper wire will travel less than 8 feet from the clamp to your keypad.

Keep in mind there is no 100 percent prevention against lightning, but taking these stepsas well as any others your supplier offerscould greatly reduce costs and downtime due to lightning.

Tony Gardner is a licensed contractor and installation manager for QuikStor, a provider of self-storage security and software since 1987. For more information, visit www.quikstor.com. 

When mobile storage emerged a few years ago, it seemed like the next big thing. Sometimes called portable storage, it was convenient, expanded a self-storage operators market beyond the typical 5-mile radius, and enabled self-storage to compete with moving and storage companies. Now, some companies, including big guys Shurgard Storage Centers and Public Storage, are re-evaluating their commitment to mobile storage. And many have found mobile storage isnt as easy or convenient as they imagined. This begs the questionis mobile storage a viable business?

To be fair, mobile storage is still in its infancy. Emerging on the market less than a decade ago, it is often likened to pizza delivery. Simply put, a mobile-storage company delivers a box-like container; the customer fills it and locks it. The storage company picks it up and returns it to the facility, earning a profit on the pick-up and delivery and the monthly rental of the storage container. Mobile storage essentially cuts out the moving middle man.

Every self-storage customer has a need for transportation, says Randy Weissman, president of Storage Banc. The St. Louis, Mo.-based storage company offers four types of storage, including mobile storage. Why not solve that need? If we make it easy to get things into storage, maybe we will attract the fringe customer who would love to clean out the basement, garage or attic, but doesnt want to hassle with renting a truck to get their belongings into storage, he says.

It is this concept that drew many companies to mobile storage. It was a new market, a niche, and seemed to go hand-in-hand with self-storage. The attraction drew Tim Riley from his post as director of marketing for Shurgard. He launched Door To Door Storage in 1996. With the slogan You pack it up. We pick it up, Door To Door set out to revolutionize the mobile-storage delivery service. To date, the Kent, Wash.-based company services 3,000 towns and cities nationwide.

Around the same time Riley founded Door To Door, Shurgard and Public Storage jumped on the mobile bandwagon. Shurgard opened five Shurgard To Go warehouses, primarily on the West Coast, investing an estimated $21 million. Public Storage expanded its mobilestorage operation rapidly, reaching 55 facilities in 14 states. In the past year, both companies have pulled back, closing facilities, and essentially putting the kibosh on future mobile-storage expansion. We have backed off certain cities because we are still trying to make the business model work, says Steve Tyler, Shurgards senior vice president of operations for sales and marketing. The Seattle-based company closed two of five facilities in 2002 after a huge loss in 2001. We have not found a business model that works, Tyler says. Maybe someone else can. On paper, I still believe mobile storage makes sense. Some day, someone will figure out a way to make it work.

Riley, Weissman and others are unwavering in their quest to make mobile storage a profitable business. Coming from my years in selfstorage leadership, it is a surprisingly difficult business for many who have tried and failed, but it can and does work, says Riley. Further, many people dont want to work that hard to make money, and this is a business that you have to manage on a minute-by-minute basis.

Bump in the Road

Many liken the challenges mobile storage faces today to the same ones self-storage overcame in its early days. Lack of customer awareness, an unproven business model, expensive start-up costs and operating expenses, are just a few. As an entrepreneur, we always tend to think the last person who tried this business was an idiot, or that we know what the real problem is and have the ëkiller answer to solve it, Riley says. Unfortunately, this business quickly chews up and spits out people with that type of attitude.

I dont think some of the people who have tried mobile storage understand what is involved, agrees Weissman. Ive talked to so many people who just dont have a clue about what it takes to be successful in this business. Weissman gives the example of one operator who purchased the equipmentcontainers, roughly 20 tarps, a truck and forkliftand was hoping to rent out all 100 containers over Memorial Day weekend. He didnt think about the fact that his one truck held only five containers, he points out. If he averaged one hour per stop and two containers per customer, he could put out 16 containers per day. By the second stop on day two, he would run out of tarps. That doesnt account for stops to pick up any full or empty containers.

For Shurgard, the lack of success boils down to one issue: economics. Our customer base does not value the delivery-service portion enough to be willing to pay for it. That, in a nutshell, is the biggest issue, Tyler says. They directly compare the price of pick-up and delivery to our self-storage, and the vast number of customers sticks with self-storage when they do the comparison.

Another problem is lack of awareness of what the product is. Awareness of the service is very low, but growing, Riley says. It is certainly a factor limiting the growth of the industry today. In many ways, it suffers the awareness problem that mini-storage had in the early 70s.

One of the barriers to success in mobile moving and storage is cooperation among independent operators, says Henry Cox, president of South Carolina-based Box Trotters Inc. If a local mobilestorage operator is set up for local moving and storage only, it places great limitations on the business ability to grow, and on the operators ability and resources to serve the largest segment of consumers possible, he says.

A final oversight mobile-storage operators seem to make is in the capital investment in equipment, Cox adds. Many seem to be following the pack, and they are selling the business or liquidating the assets. Whereas, others seem to be making prudent, wise investments in equipment that is long-lasting, requires minimal maintenance and is internationally standardized. For operators investing in nonstandardized equipment, it can be the deathblow from the beginning.

Riley spent several years partnering with Seattle-Tacoma Box Co. inventing just the right container. The mobile storage containers are 5 feet wide by 8 feet long and 7 feet tall, which is generally accepted as the industry standard.

Smooth Ride

So what does it take to make mobile storage work? I have been at this business 24 hours a day, seven days a week, 365 days a year for more than seven years, and that answer is still changing, and changing rapidly, Riley says.

However, Riley has gleaned some insight over the years. It is a very different business than traditional storage and needs to be a separately run and managed entity, he says. Also, a good amount of capital is vital. Mobile-storage operators need containers, tarps, flatbed trucks, forklifts and much more on a grand scale. Start-up costs vary but can reach as high $2 million and are largely undefined in this market.

Many have grossly underestimated the operating expenses to run the business because many of the operating expenses are tiny, little soft costs that add up to one of the largest numbers on my P&Ls, Riley says. Many believe they can make the business work on a small scale with less than 2,000 containers, and that gets them. Some operators think they can get away with shoddy or no customer service, and that kills them.

Another fundamental: pricing the service high enough to cover expenses. Many think they can price the service low or give away the pick-up and delivery, Riley says. Charging double the rental rate of self-storage is not uncommon.

As with self-storage, location is a key factor, Weissman says. One reason some companies fail in this business is they dont believe the location of their warehouse is important because product is delivered. We believe location is important. Just because we deliver a mobile vault to a customer doesnt mean he doesnt want it stored reasonably close to where he lives or he wont come to your location to pay the bill or access his goods, he says. Operating out of an old, dirty warehouse in a questionable part of town because the rent is inexpensive may not be the best way to set up shop. We also air-condition our pick-up and delivery warehouse. We sell the service as a safe, secure way to store your goods.

Another way mobile-storage operators are hoping to ensure the success of this struggling industry is through an alliance. Aptly named The Mobile Storage Alliance, the group began with a core group of operators, including Weissman, Riley, Hal Spradling from All Canadian Self Storage, and Steve Wilson from Hide-Away Storage Services. The Alliance has since grown. In March, a meeting in Sarasota, Fla., drew nearly 30 companies to mull over three major issues: vault shipping, marketing and legal concerns.

The primary focus of the Alliance is to facilitate interstate shipment of self-storage containers between operators. The group is also considering joint purchase of transportation and logistic equipment, insurance, tarps, containers and software. Our Alliance has introduced operators to one another and helped facilitate relationships, Weissman says.

Despite the hard work and long odds, some believe theyve uncovered the secrets to the success of mobile storage. As long as American consumers want to save time, labor, money, and have convenience, the demand for container moving and storage will grow, along with the service providers who are stepping up to serve their needs, Cox says. The service providers that will invest in operating knowledge and training, and network and co-op with other parties with like interests, will flourish and grow value and wealth.

Out of the Box An easier way to go mobile For self-storage operators unwilling or unable to invest in mobile storage, Box Trotters Inc. offers an alternative. Storage operators can become a cooperative network member, sales agent, service agent or any combination of these titles. Here are some of the benefits: EQUIPMENT AND ASSET INVESTMENTBox Trotters sponsors capital equipment purchases that enable cooperative purchases to be made, resulting in larger orders and reduced investment. COOPERATIVE ADVERTISINGIn select areas, Box Trotters will participate in cooperative advertising campaigns and shared advertising investment. BROCHURES AND PROMOTIONAL MATERIALSBox Trotters provides free promotional materials to its associates. SERVICE-AGENCY SHIPMENTSBox Trotters will authorize service agents who pick-up and deliver container moves in certain areas. SALES-AGENCY SHIPMENTSBox Trotters pays generous commissions to self-storage operators who sell Box Trotters long-distance container moving and storage service. This is an excellent way for independent selfstorage operators to generate added revenue without having to spend the time required to manage a truck-rental agency. WEBSITE BENEFITSBox Trotters encourages those who want to be affiliated to sign up at the website. The company gives sales, service and cooperative members access to a large variety of moving and storage leads.

The single most important marketing tool you have in the storage business is your manager. The problem is, frequently, the wrong people are selected for this job. Understand the concepts in this article, and youll make better choices and end up with the right person behind your counter.

As I travel around the country, I go into self-storage facilities to see how people run their storage businesses. The difference in the quality of managers I find is amazing. There are people who are so incompetent, you wouldnt believe they have the job of running such a lucrative business. There are other places where I am so impressed, I want to hire the person myself.

Here are some basic DOs and DONTs for finding the right manager:

DO...
Look for someone with sales experience. The job of storage-facility manager is a retail-sales job. Dont let anyone tell you differently. Its a unique sales job, but a sales job nonetheless.

That being the case, look for someone who has sold in a retail environmentit is irrelevant what they have sold. One of the better managers I ever saw used to sell shoes at a large department store. On the other end of the spectrum, Ive seen managers who seemed insulted by being asked to do anything other than babysit a facility. They felt they were doing a great job by just being there when people came in to rent or ask questions. You do not need a caretaker, you need an active participant in your business who has sales in his blood.

Find someone who has owned his own business or has general business experience. These people understand basic business principles and will be able to understand what you need them to do. At a minimum, find someone who has business experience of some kind. Those who dont will take longer to train.

Fire quickly when youve made the wrong choice. I like the old adage, Hire slowly and fire quickly. Take the time to find the right person; but if you realize youve made the wrong decision, cut your losses. Youre not doing an ill-fitted manager any favors by keeping him around when he isnt a good match.

Talk to your lawyers about drawing up a temporary employment contract. This kind of a document will allow you 90 days (or thereabouts) for you to let an employee go without any major legal repercussions. Youll know quickly if you have the wrong person. If you do, make the change immediately.

Pay managers well and give them incentives based on results. Ive overheard storage owners brag about how little they are paying their managers. This is absurd! Yes, a managers salary is one of your larger components of overheadbut a very worthwhile investment. The additional occupancy rates that can be achieved are well worth paying for.

Give your managers a decent base salary and then give them incentives based on the results you want them to achieve. All operators want more profits. This comes from a combination of higher occupancy rates and more sales of ancillary products and services.

Structure your compensation to allow a manager to make as much as 50 percent over his base pay for hitting certain net-profit targets. The key here is net. I wouldnt give incentives based solely on gross receipts. All this does is encourage sloppy spending. A manager who is not motivated by cash incentives is clearly not the right person. And as an owner, thats what you want; so make sure youve got someone who thinks similarly.

Hire for attitude and intelligence, train for skills. That being said, it is always easier to train someone on the specifics of the storage business than to change his attitude or demeanor. Find someone who is smart and has a coachable nature. Youll be much better off than with someone with experience and bad habits.

I suggest you visit www.kolbe.com. It contains certain tools that will allow you to determine whether youve got the right person for the job. After you narrow your choices to two or three, give them the tests this website provides to see if your gut feelings are accurate. Owners I know who have used this have said its one of the most useful tools they have found for hiring employees of all kinds.

Provide your own training. Youve got to have your system for running a facility. That being the case, youve got to have a training system established to make this happen.

Have specific training materials for the storage industry to distribute to people you hire. Over time, youll create a procedure manual you can have for any new or part-time employees. A good manager will be anxious to help you create one, because it will make it easier for him when he needs time off.

DONT...
Hire someone based on storage experience alone. Many managers who have worked at storage facilities in the past have developed bad habits. The fact someone has previous experience in this business should raise a red flag. It is certainly possible to find a good manager who has storage experience, but I have found it to be rare.

The biggest obstacle is getting someone to do things your way rather than the way theyve done it for the last eight years with someone else. As we all know, the average age of a storage-facility manager is 50 (or older). There are many (but certainly not all) who bristle at the idea of changing the way they have done things in the past.

Micromanage your facility. If you hire the right person, give him the freedom to make decisions. Ive seen managers who have to call the boss for the pettiest issues. Hire the right person and give him the ability to run your business as if it is his own. After all, thats why you hired him!

Your manager should have the ability to raise or lower prices. Naturally, he should know when to do it. He should also have the ability to negotiate issues where less than X number of dollars is involved. When he first gets started, X might be $100. As you get to know him, you can raise that number to whatever amount makes you comfortable.

Assume good paperwork skills make a good manager. Ive seen managers who have great administrative skills, but are weak managers. Just because someone can keep his files color-coded, doesnt mean he is the right person to run your facility. Id prefer to have someone with great sales and business skills who is lousy at paperwork than vice versa.

Youll find that these two sets of skills seldom occur with equal strength in the same person. You either get someone who is a great salesperson or one who is a great administrator. If you must sacrifice one, opt for the business and sales acumen.

Expect all managers to be motivated by the same things. Having spoken about how important it is to have a manager who is motivated, let me give you this caution. Some managers will be as motivated by other things than cash, such as time off. Understand what it is your manager wants, and structure your arrangement with him so he can earn it.

If your manager really wants more time off, find a part-time person who can fill in for him when he hits the targets you mutually set. Its really just another form of compensation, since you have to pay those individuals in his absence. Make sure your manager is responsible for training those people and the results they achieve.

In addition to cash, virtually every manager wants to be recognized for his great work. Surprise him with the occasional free dinner or weekend trip to an exotic location. You cant over-compensate great work.

Hire Mr./Ms. Smiley-Face. Ive seen a lot of fake managersyou know, the kind who have the plastered-on smile and a perpetual state of positivism. Dont get me wrong, I want someone who has a good attitude; but I want someone who is real. Just as with politicians, customers can see through someone who is a poser. Find an individual who comes off as authentic and believable. He will better resonate with you and your customers.

Conclusion

Getting the right person to run your storage facility can have a dramatic impact on your bottom line. Ive seen facilities that have been turned around with a great manager and others that have been decimated by the wrong one.

The complaint I most often hear is good managers are tough to find in this job market. Thats true. But you need to be willing to pay good people for good work, and be prepared to break stereotypes youve learned when hiring the right person. Select the best candidate and youll not only make more money, youll be able to take that trip to Europeand not even have to call in once to find out how things are going. Isnt that worth paying for?  

Fred Gleeck is a self-storage profitmaximization 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 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]. 

Records management has become a dynamic revenue producer in self-storage. Technology, competitive advantage, access to clients, simple solutions and low entry cost all add up to big bucks for operators willing to add this service. This article focuses on why 2003 may be the year to consider it. There is no better time than now to add records management to your existing self-storage operationfor several very important reasons. This article attempts to provide the advantages of building or operating a joint self-storage and records-management operation within the same facility.

Over the past seven years, I have written a monthly column on records management for Inside Self-Storage. And in that time, I have touched briefly on many of the considerations for building a commercial records-storage business in self-storage. At first, many people were skeptical because the two do not seem compatible.

Yes, it is true records-management services require active participation with clients business records. Yes, it is quite different from self-storage. Nonetheless, records storage can be a maximum provider of ancillary revenue if you approach it with your eyes open and a focused business strategy.

There are two primary records-management strategies that can be implemented. Each has several potential tactics that can be employed. Lets take a look at the two and how they differ.

Nontraditional Strategy

This strategy has the lowest cost and is the easiest to implement. Although its certain to work in others, it succeeds in four business types that most often extend themselves into records storage:

• Self-storage
• Moving and storage
• Courier services
• Document-destruction services

Each of these business types has its own advantages, but they all have one thing in common: Their customer base includes businesses that need records-storage services. Self-storage facilities have a huge advantage over the other three. They already have records in passive storage in some percentage of their existing storage units.

I estimate between 5 percent and 10 percent of the selfstorage units in North America are already storing some business records. If we do the math for the number of potential boxes, we find between 40 million and 60 million boxes in self-storage. That number accounts for between 75 million and 100 million billable cubic feet of storage sitting idly.

There are two key advantages to converting clients from passive self-storage to records management. First, you convert your existing billable space from the square foot to the cubic foot. In effect, you now can rent the air space in your units. Second, you convert a very tenuous 30-day lease to a permanent one.

Nontraditional records management is aptly described by its name. It is simply a different way to build a recordsmanagement business. It is not at all like traditional records management. This strategy uses technology and unique operating methods that have been developed over the years in similar industries but have rarely been applied to a traditional records-management model. The nontraditional model uses a vastly different selling method as well. Lets look at the components of the nontraditional method and discuss why it is so unique:

1. FACILITYIf you currently own a facility, leverage your existing assets. One of the first questions most operators ask is, How much space do I need? The answer is, as long as you have existing space or the ability to add more, use whatever you have. Yes, there is an optimum facility size, but it doesnt seem to matter at the beginning. Using what you have gets you by the start-up process with very little new cost.
2. SHELVINGBuy only what you need when you need it. Of course, there are cost breaks and freight factors to consider in the decision, but the main ingredient is shelf design. Use only the proper shelving that will maximize storage your current space.
3. SOFTWAREAll three of the major recordsmanagement software companies have a small-business edition that includes one PDT (portable data terminal) barcode scanner, training and support for the first year.
4. TRAINING AND SUPPORTThis is available from consultants in the records-management industry. It is important your training be repeatable and simple. Your work processes must be limited to only a handful.
5. COURIER SERVICESOutsourced courier services reduce the need for vehicles, personnel and all the associated fuel and maintenance items. A model already exists to control and manage outsourced resources.
6. LABORThere are 16 roles and responsibilities in a records-center operation. Of those 16, 14 can be outsourced. The secret to outsourcing any administrative function is to manage the outsourcer to the contract terms. It should act as you would and be invisible to your client as an outsourced resource. There are four ways to staff any business: full time, part time, temporary or outsourced. Outsourcing activities can give you more control and cost management than the others. It is essential to have specific measurable terms to the outsourcing agreement.
7. SALESSelling in a nontraditional facility must be done in incremental steps. You and only you will draw the line at the level of sales you will use. Suffice it to say, the more levels of selling you entertain, the more sales you make.

Having a full-time sales person delineates the difference between nontraditional and traditional records-management sales. Lets look at the nontraditional selling model:

LEVEL 1EXISTING RECORDS-STORAGE CLIENTS

Every self-storage company stores business records in passive storage units. It is likely, depending on the location of your facility, between 5 percent and 10 percent of your existing clients have business records stored in your facility. You probably already know who they are. If you do not know, this is always the place to begin.

LEVEL 2ALL OTHER EXISTING BUSINESS CLIENTS

All businesses have records. Therefore, your current business clients are your first target for sales. They have business records somewhere that are probably problematic for them. Records take the lowest level of importance in a businessuntil they take the highest level. There is an old saying in the industry, Records go from the basement to the boardroom overnight.

LEVEL 3OVER-THE-COUNTER SALES

You have a captive audience as soon as contact is made at your service counteryou simply need a strategy. Years ago, in the banking industry, management began to understand that, nine out of 10 times, the teller was the primary contact for each customer. What a marvelous sales opportunity! But tellers are transaction-oriented people, not salespeople.

The banks then devised methods to assist their tellers in using simple repeatable selling methods. The CIF (customer-information file) was born. When the teller encountered the customer, his computer terminal looked at the transaction, determined the best sell, and flashed a message on the tellers screen, such as Give the customer a consumer- loan brochure. It took the thought process away from a transaction-oriented person. The same can be true at your sales counter.

You must have a selling strategy, a way of identifying prospects, a script, a cost benefit and a closing process right there at the counter in a simple, repeatable method. The counter employee must be trained, and the method must become second nature to him. It has to be simple and take little effort. It should be repeatable, because you certainly will have others who will be trained to use the method over years.

LEVEL 4OTHER LOCAL SELF-STORAGE CLIENTS

Perhaps the biggest trick of all is attracting accounts from existing self-storage competition. This level takes thought and strategy. It is fertile ground. Many clients records volume grows in self-storage until it becomes too large to control. Then it becomes fodder for the local commercial records-center operation or your self-storage competition they will try to take it away from you. And it is easy for them to do so because of your simple 30-day lease, during which you have had little or no interaction with the client.

The first sign you are losing an account is a truck coming to pick up the spoils of its sales. Self-storage has been considered helpless in the past because its 30-day lease has no penalties. Records-management contracts require a term of one or more years, an evergreen (self-renewable contract), a retrieval fee, plus a permanent retrieval fee to exit the facility. These are considered permanent leases because of how difficult it is to get out of them. You can attract the local self-storage records client base and keep it forever at three to five times the yield of square footage in self-storage.

LEVEL 5AGENT SALES

As a businessperson and entrepreneur, you are likely connected to other peer business owners in your community. Operators of office-supply and equipment stores, filing-system products, imaging services, computer-support companies and many others are in the field working with business clients. You can give them an incentive to become an agent for you by paying them a commission for leads or closed agreements. This is a simple and workable method to root out small, under-the-minimum accounts that are generally not worth a full sales effort. The model for training and a commission structure already exists and is proven to work.

LEVEL 6PART-TIME SALES

Owners, equity partners and managers can become valuable part-time sales agents for your company. Part-time selling requires a process just as full-time selling does. Some operators employ part-time sales representatives who are compensated on a commission basis and set their own work schedule. Outsourcing sales can be an inexpensive and valuable practice; but you must train the sales staff and manage the sales process for it to be effective.

LEVEL 7FULL-TIME SALES

This is first of the two components that separate nontraditional from traditional records management.

Traditional Strategy

As I mentioned earlier, traditional commercial records management is how it has always been done. Easily 95 percent of the industry got started this way. It takes more capital and much more time, and it does not use the leverage of another business to launch. It requires a commitment of a facility, usually 10,000 to 20,000 square feet, a full-time operations manager and a full-time salesperson to start. It takes a minimum of two to three years to get to a breakeven point. Although this has proven to be a sound business model over the 50 years of this industry, it is certainly time for a fresh new look.

A nontraditional records-center operation can easily vault itself into a traditional one by shoehorning into a traditional model. As I mentioned earlier, there are two major differences between nontraditional and traditional records management:

Facility Size. Is there an optimum facility size with which to start? I have come to some conclusions on this question, and I admit they are arguable. I prefer a first building of 10,000 square feet with a 30-foot ceiling. I will use this size as the basis of an example calculation.

A nontraditional records-center operation can easily vault itself into a traditional one by shoehorning into a traditional model. Using an industry standard, 300,000 square feet of overall cubic feet is reduced by 45 percent. This will approximate the yield of billable box positions. Every warehouse varies, and the actual yield may be between 40 percent and 52 percent. This variable exists because of roof slant, internal columns, warehouse and office-space configuration. But for planning purposes, the 45 percent factor is a good rule of thumb.

This example yields 135,000 box positions. A box position is a standard 1.2 cubic foot letter/ legal records-storage container. Using industry averages of 25 cents per cube and 65 percent additional service revenue, the annual gross yield for this space when full is $801,900. Self-storage facilities can reap a much higher per-unit yield, and traditional records centers can move the service-to-storage ratio to 1:1 or greater.

Full-Time Sales Effort. A full-time sales effort is required because you need to fill your facility as quickly as possible to get to the break even point. Full-time sales efforts require three components to be part of the process:

• Qualified and well-trained sales representatives.
• A proven selling method.
• A sales-management process that is measurable and manageable.

A realistic sales goal is 100,000 cubic feet of billable storage within 30 months, which is achievablealbeit difficultif you employ the three components. Using thesealong with a capital structure that can support themyou can develop a profitable traditional records-management business quicker than the industry average.

Back to the Original Premise

What makes this the right time to strike out your course in commercial records management? The factors abound, particularly if you have a self-storage facility or are considering one. You do have several choices to make right from the start:

• Do I start with a nontraditional facility within the walls of my existing or planned facility?
• Do I build a traditional facility within the walls of my existing or planned facility?
• Do I begin with nontraditional and leverage my existing assets until I can shoehorn my records business into a traditional one?
• Do I begin nontraditional and remain in it while, focusing on only a high-yield, low-volume, low-retrieval sector of the business?

You really do not have to make the decision yet. You can begin with the low-cost nontraditional model first and move step-by-step up the sophistication levels until you decide to stop. The industry is adding more new service providers every year. The market is expanding and doesnt seem to be slowing.

The need for records management is greater now than ever, and you already have a facility and records to start your business. You can join the hundreds of self-storage operators who have made the commitment and followed proven paths to successful operations.

Regular columnist Cary McGovern, CRM, is the principal of FileMan Records Management, which offers full-service records-management assistance for commercial records-storage startups, marketing assistance, and sales training in commercial records-management operations. For assistance in feasibility determination, operational implementation or marketing support, call 877.FILEMAN; e-mail [email protected]; www.fileman.com.