Lackland Self Storage is once again a finalist for The New Jersey Family Business of the Year Award. The Middlesex-based company was selected from dozens of large family-run businesses in recognition of its contributions to the community and state economy. The winner of the award will be announced this month.

Established in 1977, Lackland Self Storage was New Jersey’s first storage facility and today has 24 locations in the state. Michael Lackland, president and CEO, says the company strives to combine community outreach with excellent customer service at all of its sites. To meet this goal, the management team of each facility annually chooses a local charity or organization to sponsor. Selections include first-aid squads, fi re departments, Little League, Pop Warner and various school programs.

“Participating in community activities and supporting local organizations is the Lackland Self Storage way of saying ‘thank you.’ We want to help ensure our customers’ communities are a vital place for all who live and work there,” Michael says. “It’s important to be part of our communities rather than just being in them.”

Good Feelings

Like many community-minded businesses, Lackland encourages staff members to get involved in charitable endeavors. This month, the company once again sponsors the New Jersey Race for the Cure to benefit the Susan G. Komen Breast Cancer Foundation. Hosted by the Breast Cancer Resource Center of the YWCA Princeton, the event is the 11th annual run in which thousands of walkers, runners, volunteers and spectators are expected to participate. Race for the Cure entry forms will be available at most Lackland locations.

Earlier this year, Lackland took part in the Shannon Daley Memorial Golf Tournament Fund, established to help financially strapped Flemington-area families with children battling serious illness. The event benefited the Bennett family of Raritan Township. Their children, Conor, 12, and Lucie, 9, are both suffering from Batten Disease, a degenerative condition for which there is no cure.

Such efforts have had a positive effect on the Lackland staff, which enjoys the intangible benefits of doing the right thing. “It’s easy to take what a community has to offer, but it’s far more gratifying to put back into organizations that keep it alive,” Michael says. “There are few better feelings than knowing an act of giving will lead to the growth, success and happiness of the community. That’s the feeling our local facility staffers get when they become involved, and it has a fantastic, positive impact on morale. You can’t buy that kind of motivation.”

We Are Family

In another ongoing project, Lackland Self Storage assists charities by providing free space for critical storage needs. Free storage is reserved for the Valerie Fund, a charity dedicated to finding housing for families with children undergoing cancer treatment. The organization needed a place to store furniture that will later be placed into homes for Valerie Fund families.

Lackland also provides storage to Providence House, a division of Catholic Charities that works to improve the quality of life of domestic-abuse victims. Lackland facilities are used to store clothing and furniture crucial to recipients’ future efforts to relocate to safe, new places to live. Space and support are also provided to PTAs and their various student-enrichment programs.

Today, four family members hold key positions in the company: Michael; Bruce Lackland, vice president and director or operations; Fred Lackland, vice president and director of construction; and Alex von Thaden, vice president and director of marketing. Michael affirms Lackland’s position as a family company has influenced its attitude toward community contributions.

“Family members treat one another differently than your average person on the street will generally treat a stranger—with the kind of respect that would otherwise take years to nurture,” he says. “Without our family and friends, we have nothing. That’s the approach we take with everyone—from staff and customers to those in the communities where our facilities are located. When you feel that way about your community, it’s only going to inspire greater contribution at the local level.”

On the business side, Lackland Self Storage plans to unveil four new sites in coming months as well as move its corporate headquarters to a bigger, better facility. With state-of-the-art climate control and security features, the company has been serving New Jersey’s self-storage needs for more than 25 years. For more information, visit www.lacklandselfstorage.com. Spanish-speaking readers should visit www.lacklandesp.com. 

By Rob Perry

Would you like to have a side business you can run in just a few hours per week and will bring in a couple thousand dollars per month? Records storage is that kind of enterprise. It can be as big or as small as you want it to be. If you live in a large enough market and have the resources, you can grow the business to 50-plus clients, hire a staff and purchase a fleet of vehicles. Or you can limit yourself to 10 clients who can be successfully serviced by part-time personnel.

The key to successful records storage is service. You have to deliver what clients request within a reasonable time frame. The good news is you get to set the schedule. For a part-time business, it might be next-day delivery. For example, any requests received by 3 p.m. get delivered by noon the following business day. Every day at 3 p.m., you know exactly what your workload is for the following morning. Typically, you will average one request per day for every 10 clients.

Processing Service Requests

When a service call is received, you locate the records requested and prepare a delivery document for the customer to sign. If you use a records-storage software program, this whole process can take five to 15 minutes depending on where the records are stored. The system tells you the exact location of the boxwhich spot on which shelf in which unit. A good tracking system will also print a delivery receipt and keep a history of all activity for items going in or out.

The next step is delivery, which can be handled in several ways. One is to deliver the items personally. Another is to hire a courier service to make deliveries for you. A third option is to hire someone to make deliveries on a part-time basis. Retirees, college students and nonworking parents whose children are in school all day are great candidates. On rare occasion, a client will need a rush delivery, which is typically made in less than two hours. With 10 clients, this will probably occur once every couple of months. Have a contingency plan in place for these instances.

Picking up boxes is another step to consider. This can be addressed with the same solutions as delivery, except for the initial box pick-up for each of your clients, which is likely to be intense. Consider hiring a couple of temps and renting a truck for this first phase. Depending on the level of service each client requires, the temps may be able to handle the trip alone or you may have to supervise. Couriers dont generally like to move large numbers of boxes, but a moving company can be of assistance. Finally, the client may be willing to bring his boxes to you, particularly if you charge for pick-up.

After the first drop, clients will only send boxes to storage a couple of times per year and in much smaller quantities. These subsequent pickups can be scheduled to fit your time and vehicle availability.

Doing the Math

So how do 10 clients earn you thousands of dollars each month? An average records-storage customer will be charged about $200 a month. Of course, this can vary widely depending on the client. A business with 5,000 boxes could have a monthly invoice of $2,000, while a small brokerage firm might only have 50 boxes and a $40 monthly bill.

For the part-time records center, the best clients are small to medium-size law firms and medical practices. A typical law firm with five attorneys might have 400-plus boxes and two or three service requests per month, while a doctors office might have 200 boxes and two or three requests per week. A good mix of clients will result in service revenue equal to about 50 percent of storage revenue. If you have $1,300 in monthly storage revenue, you would have an average of $650 in service revenue and about $50 in box sales for a total of $2,000. More active clients drive your service percentage higher.

Determining Space Requirements

How much space do you need? One 10-by-20 unit can hold 750 letter/ legal boxes. At typical storage rates (which vary by market), it would take 3,750 boxes or five units to earn $1,300 in monthly storage revenue. Considering the service ratio cited above. If you have more space and less time, target less active clients. If you have less space and more time, go after clients that require more service.

A benefit to records storage is it allows you to make use of the units that are least attractive to customers. Every operator seems to have a few units that are dif- fi cult to rent because of their location or size. As long as you can install racks to store boxes, you can use these units for records storage.

So the next time a small-business client calls and asks if you have space for records storage, dont just rent him an empty unitoffer enhanced service. If he declines, you can still sell him space; but if he accepts, you are on the way to a successful, part-time records-storage business.

Rob Perry is a certified records manager who has helped numerous companies start part- and full-time records-storage businesses. He created The Records Center Manager, a software package for records centers, and wrote a manual titled How to Start and Operate a Records Center. He recently launched The File Depot, a chain with available licensing opportunities nationwide. For more information, visit www.tigrs.com or www.thefiledepot.com.

Thirty-four years ago, when I started as an agent with a large mutual-insurance company, the secret to success was indeed the mystery. I was told it was the law of large numbers. If you made 100 sales a year, you could not fail. One hundred seemed like a lot, but when my general manager broke it down to two sales per week, it seemed much more attainable.

He further explained only one in four people would buy from me, since I was just starting out; so to get my two sales, I needed eight face-to-face appointments per week. To get one appointment, I needed about 20 contacts or phone calls. So I had to dial the phone 160 times to get the eight appointments I needed to make two sales. Being a farm kid from North Dakota selling insurance in the Philadelphia market, I didnt know any better, and thats exactly what I did.

Within a very short time, I was asked by other agents, Whats the secret? These guys attended countless hours of training classes and endless seminars, yet only one of 10 was financially successful. Why? Because they didnt take initiative and do what was necessary. They werent willing to pay the price.

Is there a secret to having a successful car wash? Every business starts with a good location. Then you have to hire the right people and train them well. Next, you have to install the right equipment and find the best chemicals to clean customers cars and provide a superior product. You must also provide customers a positive, welcoming experiencean immaculate site and lobby and friendly, enthusiastic employees. Most important is consistency, day in and day out. This might win you loyal, repeat customers.

This advice is an over-simplification, but its a start. So lets take a look at each of these areas and how successful car washes approach them.

The Importance of Hiring

At successful locations, owners spend significant time finding good managers. They they invest even more time and money training them to do the things necessary to be successful. If they cant get training done in-house, they are not afraid to hire an industry consultant to school managers properly. Once managers are trained, the next challenge is to hire a good crew and coach them equally as well. It doesnt stop there, as good employees are always learning new things.

Less-than-successful car washes are lucky to have a manager. If they do, he generally is neither well-trained nor interested in doing what it takes to be profitable. This bad attitude carries through to underling employees.

Buying the Right Equipment

When it comes to equipment, successful car washes are constantly striving to give customers the best. They are always in some state of upgrading or improvement. They look for ways to wash cars better and faster to improve their labor costs. At unsuccessful locations, the equipment is often dirty, run down or not working at all. Is there really any question as to who will turn out a shiny, clean car and get customers to return?

Site Presentation

On to one of my favorite topics: maintaining site cleanliness and creating a pleasant wash experience. There will always be operators who succeed in spite of themselves; but most customers prefer to take their cars to a nice, clean, bright, attractive car wash, a place where they can use the bathroom without revulsion and the windows and floors sparkle.

Customers would like to think car-wash operators really care when they turn over their prides and joys to be cleaned. When they see their cars coming down the conveyor in a bright, clean, attractive tunnel, it helps reinforce their thinking about the kind of a job being done and whether theyre getting what they paid for. Again, successful car washes provide this experience consistently and the others dont.

The secret to success is there is no secret. The car-wash business is very entrepreneurial its up to you. If you want to be average, you can be. If you want to be the best, you can be that, too. All the information you need to succeed is out there, whether in trade magazines, conventions or industry consultants. The real question is, what will you do with it?

Pete Altringer is owner of Main Line Autowash in Strafford, Pa. He can be reached via e-mail at [email protected].

Do Your Homework

First, take your time and do the research. Attend your local and national conventions and listen to your peers. As you walk the floor at industry shows, visit all of the major vendors, such as chemical companies, tunnel manufacturers, software providers, finance and insurance providers, and lobby merchandisers. Also, most car-wash owners love what they do and truly enjoy talking about and sharing their experiences.

Dont be afraid to ask questions and listen to what experienced operators have to say about the industry. One of the most valuable relationships I developed was with my equipment distributor. He was able to provide services including site selection, site layout, blueprint samples, pro forma projections, supplier recommendations and startup. Without this wealth of knowledge, I might still be planning.

Plan Your Model

As you develop your model, determine what is going to make your wash different from competitors and make sure it is what the market wants. I came across numerous concepts during this period, many of which I determined the climate or market would not support. Your total model will come together slowly. If you have done the research, you will have all the confidence you need to make the financial commitment required to open a successful car wash.

Allow for and plan for contingencies in your modeleverything from slower-than-expected growth numbers to poor weather conditions whatever your market and climate may throw at you. Every year, some phenomenon will adversely affect your business. The more prepared you are and the more foresight you have, the more successful you will be.

Stick to your guns and give your model the chance it needs to be a success. And dont cave in to the newest, latest and greatest concept every salesperson pitches. Be flexible and open-minded when approached. Listen, learn, and rely on the research you developed from the onset. Also, as you learn new things in the industry, make small changes so you can accurately gauge the results.

Focus on Customer Service

Six months after opening my first location, I purchased a second car wash. I quickly learned it is important to set customer expectations and work hard at exceeding them at all times. This can be accomplished through consistent quality and customer service. Not only will you have more satisfied patrons, you will develop a loyal customer base over the long haul.

There is no better advertising than positive word of mouth, and there is nothing worse than negative references. Its important to determine what a long-term, loyal customer is worth to you, given not only his business but the referrals he generates. When a problem arises with a customer, keep that value in your head and negotiate an equitable solution to the problem. Nine times out of 10, you can reach common ground, keep a happy customer, and avoid negative referrals.

Educate the Public

Another important responsibility you have is to the industry itself. Take the time and effort to educate your customers on your wash process and the benefits of added services, and continue to develop a positive image of professional car-washing.

One aspect of the business I have spent a lot of time educating customers about is environmental issues. Depending on your location and climate, chemical runoff and conservation may be a big issue. I ran an entire campaign that included table tents, bathroom posters and print ads, explaining my reclaim system and water use in my tunnel. Not only does this type of effort add value to your business, it allows customers to feel good about their wash in times of drought. The more continuous work you do to educate the public and local political representatives, the less chance of drastic restrictions being placed on your wash and others across the country.

Enjoy Yourself

Finally, and most important, have fun. This business can provide a lifetime of experiences andif planned and run appropriatelyfinancial security. If you are looking to get into this industry or to expand, do your research, keep an open mind, plan for contingencies, believe in your plan, and be good to the industry. In turn, you will be rewarded with complete job satisfaction.

Greg Hart is the owner of Carolina Springs Autospa in Morresville, N.C. He can be e-mailed at [email protected].

By Sara Cooper

Contrary to the popular saying, If you build it, they will come, a successful car-wash site requires a lot more than construction to draw customers. First and foremost, you have to make the right decisions during the planning process. This requires an understanding of site selection, building materials, financial commitment and city regulations.

Craig Eilers, western regional sales manager for the Jim Coleman Co. in Yakima, Wash., has spent more than a decade operating self-serve car washes. In his more than 25 years in the industry, he has seen a lot of operations come and go. He hates to see operators who, failing to gain proper guidance, end up spending a years time and $15,000 to $20,000, only to end up right where they started, empty-handed.

Talking Numbers

The two top questions asked by new car-wash operators are: What will the business cost me? and How much profit will I make? Of course, every car wash will vary, depending on location, number of bays, price of land and numerous other variables. But knowing the highs and lows of the game will at least keep an operator from being pummeled by excess zeroes.

Bill Sartor, operator of Quality Car Wash Inc. in San Antonio, Texas, says while $50,000 per bay is the cost that has been quoted in the industry for years, it hasnt quite cut it for the quality of facility he works toward. He says operators in todays market should consider spending $80,000 to $90,000 for a fi rst-class facility that will be competitive with other washes.

Bob Ivory, owner and manager of five self-serve car washes in Arizona and Utah, says a basic facility, consisting of six self-serve bays and an in-bay automatic wash, will cost around $600,000 ($300,000 for equipment and $300,000 for the building) plus the cost of land. Including an automatic wash alters costs considerably.

Eilers points out an operator can easily spend $15,000 to $20,000 just in the initial planning, before bids are confirmed and permits are in place. For a four- to five-bay self-serve wash, operators are looking at a minimum of $500,000. For a quality facility with eight self-serve bays and two automatics, costs can total as much as $1.5 million. Those operating in colder climates should add an additional 10 percent to the construction budget for floor heat, doors on automatic bays, water-heating systems and other winterizing necessities.

There are a number of business-expense studies prospective operators can obtain from consulting firms, equipment companies or trade associations to help them create their construction budgets. These groups can also assist in determining how much profit to expect from a car-wash venue, including income from coin-operated vacuums, vending machines and self-serve bays.

Eilers has seen several car-wash sites break even in five to six years. At an average site, however, operators can expect to be successful within eight to 10 years. Sartor is hoping to have his most recent site paid off within seven years, but says it could be closer to eight or nine depending on the economy and interest rates.

Every operator will approach the business a little differently, depending on his ultimate goal. Some will simply wait for the business to recoup the cost of land, then demolish the facility and lease or resell the property. Most, however, are looking to build a permanent, high-end site.

Site Selection

Finding an affordable, properly zoned site in the right demographic area can be a challenge. An operator needs to decide what area would be the most accommodating for his customer base. Eilers suggests choosing a location close to middle-to upper-income residential neighborhoods. Also look for areas with condominiums or apartments, as typically, it is blue-collar workers who use self-serve washes.

It is not necessarily in an operators best interest to be on the busiest street in town. Medians and numerous traffic lanes can make it difficult for customers to enter the facility. It is important, however, to have good exposure. Eilers says only about 25 percent to 30 percent of the motoring public uses car washes. Building in an area where a facility will be noticed can attract customers who never considered using a self-serve site before.

Ivory looks for sites near convenience stores and gas stations, because visitors to these businesses are many of the same customers who will use a car wash. Plus, they are usually on corner lots, which get a lot of traffic. While property in these areas is expensive, one of the biggest mistakes an operator can make is to skimp on land, Ivory says. Cities will often require a certain amount of stack room on the property, and the last thing an operator wants is traffic jams that frustrate customers who cannot adequately maneuver around the site.

Eilers suggests purchasing 5,000 square feet of land per bay as a rule of thumb. A car wash with four to eight self-serve bays and one to two automatics will require anywhere from 20,000 to 50,000 square feet. You may have to purchase a larger piece of property to keep the cost per square foot at a reasonable rate. You can then develop additional plans for the property, such as adding a profit center or leasing out part of the site to another business.

Building materials

Building materials should be sturdy and aesthetic. One of the first decisions that will need to be made is whether to pave the lot with concrete or asphalt. Both can make be attractive, and costs vary by region. Concrete will usually last longer20 to 25 yearsif mixed and laid correctly. Asphalt typically needs to be overlaid every eight to 10 years. In northern climates, asphalt is most common, because it tends to be less expensive in these areas. Eilers says a site can still maintain an upscale appearance with asphalt, as long as it is sealed properly and kept clean.

Brick and block are durable materials for car-wash building. Eilers has had good luck with glazed CMU blocks, which are easy to keep clean. Because blocks can be expensive, a lot of operators will use them to construct the wash-bay walls only, then use more traditional materials for the building exterior.

Some companies use vinyl or fiberglass prefabricated wall sections that are snapped together and filled with concrete. According to Eilers, this type of car wash is quick to erect, and provides for a durable, weather-resistant finish that requires cleaning about every six months. While the materials for this type of construction can be expensive, overall costs will be about the same as other options because of savings in labor.

New operators should visit other car-wash sites in their areas to get an idea of what materials hold up best in the climate. Too many get into the business hoping to rush through planning and make a quick buck. Eilers cant overemphasize the importance of researching the industry and talking to as many operators and equipment manufacturers as possible before making important construction decisions.

Sartor adds that operators should get competitive bids on everything from equipment to architects. Well-planned construction is crucial to making a car-wash dream a reality.

By Steve Cooper

Running your business is supposed to include fun and profit, right? Somewhere, amid all the considerations facing you as a business owner, evaluate how your security plan is helping you do just thatrun your facility for fun and profit.

A risk-management strategy that includes a healthy dose of security measures will improve your peace of mind, boost business and assure investors. It's a no-brainer that as competition increases, security features are a differentiating factor for customers. Not sure where to start? Use a business approach to evaluate your need for change and determine where to intelligently invest to meet market demands. First, based on your experience or what you learn from others, consider the likelihood some threat will harm an asset or individual on your property. Second, determine the steps you can take to reduce the risk and minimize the results from any intrusion for intended harm.

Proceed Carefully

It's as easy as A, B, C, but it will take a little time and effort to think it through and write out your thoughts. Attack your assignment systematically. A: Do a risk assessment. B: Conduct a vulnerability evaluation. C: Decide which threats are critical and which vulnerabilities you can cover. You may want to consult with your local law-enforcement officials, bring in a management consultant who has specific experience, or call on the expertise of a professional in the security business.

With or without help, step A is to complete a thorough risk assessment. Safety and security go hand-in-hand. You already know what your business is worth and what might result from fire or natural disaster, and you have insurance and a protection plan in place. How about your reputationwhat is it worth? If someone's new boat walked off your lot or someone's boat motor disappeared, what would that mean in terms of harmful word of mouth in the community?

Theft, vandalism and even casual damage from traffic on the property can be harmful to your business. No matter how much you remind tenants of their responsibility to protect their own property and provide checklists, boat owners will expect your assistance in keeping their property secure. What effect is that having on your business as you grow?

Don't forget to consider new regulations in many areas of the country and how they will affect your business. The Maritime Transportation Security Act of 2002, signed on Nov. 25, 2002, by President Bush, is a landmark piece of legislation designed to protect the nation's ports and waterways from terrorist attack. On July 1, 2003, the U.S. Coast Guard published new maritime security regulations that implement significant portions of the act, requiring sectors of the maritime industry to complete security assessments, develop security plans, and implement security measures and procedures.

Many trade associations and organizations have struggled to get the word out, but it is your responsibility to know how you'll be affected. Some operators will be required to file formal security plans with authorities. But even if you don't fall under those requirements, it's not a bad idea to see how a systematic approach to measuring the risks for your business can help you.

It Takes a Thief

Each marina and service facility is unique, an important factor to remember when carrying out step B of your strategy. To evaluate your marina's vulnerability, take a walk around the facility with a digital camera and think like a thief. Assess your weaknesses in perimeter security and access to the property. Take note of lax attitudes in your staff and operations that can be exploited by someone determined to cause harm through theft, vandalism or a rules violation. Use the camera to create a record of your thoughts and use the reminders as you write a plan.

More and more people are taking to the water. Anywhere you find more people, you have a threat of more unwanted incidents. That can mean a greater need for fencing and protection from neighbors. Yacht clubs and urban centers have had the need for years, but industry changes may require even more measures. Here are some examples:

• A lakeside marina in Arizona more than doubles its capacity from 75 slips to accommodate 158 boats. The owner says, "I used to be able to keep up with everybody coming and going. I can't do it now. And besides that, I'm tired of having to swing the gate open every morning and then lock it up at night. I'm investing in automatic gates that give me a computer record of who's on site."
• A yacht club on the Chicago River is bringing a multistory dry-stack storage building on line later this year. In planning, managers realized it will change the traffic flow significantly. "With that much more storage," says the operations manager, "we need to make sure only the people who need to have access can get into the building and to the loading area." Three code-controlled automatic gates are being added.
• With the tight quarters in the bustling harbor at Annapolis, Md., a marina owner has just secured a new piece of property across the street that will be dedicated to short-and long-term tenant parking. A security company has been hired to provide gated security that fully integrates with the dockside pier gates. "We'll have a complete record of who's coming and going, which will help us in case we do have an incident. It may even help us serve our customers better through our marketing program," the owner says.

Once you see your facility with a fresh view, you will be able to list those areas where an improvement is in order. Controlling access, improving sightlines from the marina office, upgrading lighting, enhancing video surveillance with new CCTV systems, and other answers will become obvious to you.

Critical List

Now comes step C, your assessment of how critical particular threats can be to your business. The major ones are obvious. For example, if the government is imposing change on you, you have no choice. But some threats are more subtlethings your customers and prospects notice, items that will make or break your ability to earn new leases and retain customers. Complete your list of threats. Put a business value on each suspected vulnerability you spotted in your photos. The exercise will lead you, step by step, to the best business answers for your operation.

Security experts speak about "hardening the target." Thieves and others bent on harmful activities can be deterred rather easily:

• Take away their access. Fences, automatic gates, and access systems that require specific pre-registration will prevent all casual negative activity.
• Take away their ability to be sneaky. Intrusion alarms alert you or authorities to unwanted guests.
• Take away their cover from darkness. More light will deter crime. In some cases, lighting systems tied to intrusion alarm systems can flood areas when suspicious activity is alerted, so you get the effect without full-bore lighting levels chewing up overhead.

A wide variety of security solutions at a spectrum of costs will help you solve the problems you identify in your risk assessment. Manufacturers that specialize in facility security can provide options from simple to highly complex integrated systems. Security and access-control companies can give you local expertise in planning, installing, and servicing the systems you need to meet your goals.

Shopping Around

In what should you invest? Consider intrusion alarms, automated access control, tailored video-surveillance systems, and even on-site communications such as integrated intercoms and sound systems. With your list of critical threats in hand, go shopping for the systems that meet your most critical needs first.

Start with your office. Are your business assets protected by adequate locks, motion-sensing alarms and smoke detectors? Do you have strong policies and checks and balances about who can handle funds and how they account for it? Is your retail area under surveillance by personnel, cameras or both? Do you have regulations and enforcement that protect your repair facility from unauthorized personnel?

Consider outdoor threats. Do you have adequate fencing to keep unwanted guests from wandering through the property? Do you have code-operated automatic gates for parking and storage areas to help you control access and collect delinquent rents? Do you have "eye in the sky" cameras keeping watch over general activities throughout the facility? Do you have cameras placed strategically to show who is entering various areas of the facility? Does the surveillance system give you quick review and image-download capabilities in case you have an incident? Is the video-surveillance system Internet-ready so you or your monitoring center can see camera views from virtually anywhere in the world?

Security Stardom

Location, location, locationif you have a corner on the best bend in the river, you'll be more successful in your business. If you don't command prime property on the lake, anything you do to help make your facility stand out will bring you more business. People like the warm and fuzzy feeling they get when they know their property is being better protected. Improvements in your security system may be your ticket to more successful marketing.

Basic business-management practice says you must measure your strengths, weaknesses, threats and opportunities. Fortunately, opportunity is frequently found hiding on the flipside of a threat. Each step you take in improving the security levels in your facility will pay a dividend. Your appeal to prospects increases while your peace of mindand facilitygrow.

Use the systematic approach to think through your business one more time. You'll find the best ways to meet the imposition of new regulations as well as help your customers become more vigilant citizens. Better security systems will bring you positive word of mouth, the best marketing you can get. At the end of your analysis and the implementation of smarter security systems, you may find you are closer to the reality of running your business for more fun and profit.

Steve Cooper serves as part of the marketing team for Digitech International Inc., a manufacturer and distributor of security systems for more than two decades. For more information, call 800.523.9504; visit www.digitech-intl.com.

By Steven J. Hyman

Marketing is one of the most important aspects of a successful records-management business. As in any other industry, developing and implementing a sales program takes active effort. The most important elements of a good marketing campaign are:

• Fundamental knowledge of the records-management business.
• Knowledge of the market and competitors.
• A professionally designed website and marketing materials.
• Effective advertising.
• Sales appointments, lead tracking and referrals.
• Tradeshows and participation in associations.

Fundamental Knowledge of the Business

Understand and clearly define the services you offer. To successfully market records management and command the best prices, you must know your clients needs, even if they do not. Sell management, not just storage. Records should be organized, indexed in a software program, bar-coded for tracking, and categorized for retention. Once they have been properly cataloged, clients will know what they have and be able to easily locate and request documents.

State-of-the-art features such as web access and digital imaging can dramatically increase sales. Imagine how using these management tools compares to simply storing hundreds or thousands of boxes in a self-storage unit, forcing the client to search through stacks of files. Even when a file is found, there is no way to know if other files contain relevant information.

Be prepared to explain to clients how you can save them money and streamline their operations. Most do not take the time to analyze how much they spend on storing recordsor what they lose in time hunting for them. Knowing the benefits of your business will allow you to demonstrate how records management can greatly improve their businesses without significant increase in cost.

Knowledge of the Market and Competitors

Know what your competition offers. The best way to do this is to survey competitors about their services and prices. You do not have to precisely emulate them, but be aware what information clients are getting when they call around for services in your area. Whenever possible, differentiate yourself by offering services and programs your competitors do not.

A Professional Website and Marketing Materials

If you expect potential clients to perceive you as a quality organization, you must have professional marketing materials. When you contact unfamiliar prospects, they will request information about your company and its offerings. Usually, they want to be directed to your website. Your marketing materials are the first impression a client has of your organization, so they should put you in a positive light and clearly identify how your services benefit customers.

Effective Advertising

Advertising can be an important source of leads, but many companies rely too heavily on the Yellow Pages. While phone directories are a good option, keep in mind most people who fi nd you in a phone book will also be contacting other vendors. Your vehicle signage is actually a great way to drum up business. Some companies have reported success with targeted direct-mail campaigns. Do not overspend on print advertising. Save your funds for more efficient applications.

One of the most effective ways to promote records management is telemarketing. To implement a program, the first step is to identify a list of candidates. Hire a company with a good reputation for obtaining qualified leads, in this case, a list of individuals responsible for handling business records. Your telemarketing company should also have a sound understanding of records-management services and their key benefits.

Sales Appointments, Lead Tracking and Referrals

Once qualified appointments have been scheduled by the telemarketing process, a knowledgeable salesperson meets with prospects and discusses the benefits of a professional records-management program. It is important for the salesperson to understand the scope of work required to satisfy the clients needs. After the meeting, he will submit a proposal that demonstrates his knowledge of the clients requirements and outlines the specific benefits the company can offer.

In almost all cases, the records-management company can show cost savings and improved services. Develop a strong, well-designed template that can be used as a starting point for your proposals. This will ensure a professional, comprehensive proposal can be rapidly submitted to interested parties. Follow up consistently and frequently with leads in a professional manner.

A successful sales program requires a plan and organization, so use a good lead-tracking software. It should be intuitive and easy to use. While some programs will offer lots of bells and whistles, a simple, straightforward program will be used with greater confidence and efficiency.

One of the best places to seek new leads is existing clients. Do not overlook referrals as a great source for new business. Spend time building relationships with customers, and do not fail to express gratitude to those who help you. Consider incentives or a similar reward-based program.

Tradeshows and Participation in Associations

Two potential sources for leads, information and advice are local tradeshows that target businesses and governmental agencies, and trade organizations dedicated to records-management professionals. Most major metropolitan areas have a local chapter for ARMA International, an association for professional records managers. Other popular organizations include PRISM (Professional Records and Information Services Management) International, the Institute of Certified Records Managers and AIIM (Association for Information and Image Management) International.

This article covers the basic concepts of establishing a well-planned records-management marketing program. These concepts can strengthen your sales efforts. A professionally executed strategy can go a long way toward guaranteeing success.

Steven J. Hyman is president of DHS Worldwide, which provides software solutions, including sales and lead tracking, to the global records-management industry. Mr. Hyman has assisted hundreds of companies in developing and implementing records-management operations. He is a frequent speaker at national tradeshows and has published articles in leading trade publications. He can be reached at 904.213.0448 or [email protected].

By Roy Katz

Some travelers seek out gourmet restaurants. Others hunt for historic sites. But when I travel on business, I visit self-storage facilities. I like talking shop with owners and managers. I've learned a lot about self-storage from them and, I hope, given them some good ideas on how to improve their retail sales.

There was a time I would have had to convince operators that carrying retail products made sense. It's been a long time since I visited a facility that didn't stock at least some merchandise, but some do a far better job of profiting from it than others. So I'd like to give a few pointers to those who a) think they can improve their retail business or b) think their sales can't be improved.

Retail and Returns

Self-storage professionals who are good at retailing have figured out what it adds to their bottom line. An 8-by-6-foot area48 square feet of wall space and less than 16 square feet of floor spacecan earn you anywhere from $12,000 to $24,000 a year. If a piece of real estate sells for 10 times its earnings (at a 10 percent cap rate), $24,000 in annual retail sales translates into nearly a quarter of a million dollars in added market value. The sales of moving and packaging supplies by truck-rental firms, office-product superstores, parcel- service centers and self-storage facilities is fast approaching $750 million a year, and smart operators are out to get their share.

If the retail business has taught us anything, it is consumers decide which companies succeed. The retailer who can define consumers' needs can redefine the marketplace. What the successful self-storage operation of tomorrow will be like is anyone's guess, but it's easy to predict its retail sales will play a major role in satisfying customer needs, altering consumers' perception of the business, and improving profitability.

If you're like the vast majority of operators, you're already doing some retailing. But are you doing all you can? Following are eight rules to help you maximize your merchandising.

Rule 1:
Use Your Planning Skills

Many self-storage owners are timid in their approach to merchandising because they feel it is unfamiliar territory. Retailing is not difficult if you apply the same skills you used when developing your property and creating its success strategy. So begin with some planning and research. Get to know your clientele, your neighboring market area, and your competitionnot just other self-storage businesses but any selling similar products. If in doubt, seek sound professional advice.

Rule 2:
Make a Good First Impression

Your office and retail area tells your customers what they can expect from you by way of service and security. If it doesn't convey the right image, you might not even rent them space let alone sell them retail goods. So don't be afraid to redesign your office and retail space or ask a supplier who specializes in merchandising for advice.

Retail is all about presentation. In your layout, keep all products grouped together. This will increase regular as well as impulse sales. Merchandise your supplies so they are easily seen and logically organized. For instance, build box slots into a wall or counter or use attractive box-bin fixtures. Moving and storage boxes are large and take up a great deal of space. A well-designed display eliminates clutter and makes selection easy.

Rule 3:
Give Them a Sign

Signage is like the "icing" of your sales programyou may have a delicious cake, but no one is going to try it if it doesn't look appealing. Your signage communicates vital information about the quality of your business, so it should look professional. A primitive-looking sign or poorly designed retail area is actually worse than nothing at all. Why create the wrong impression?

A sign hung over your moving and storage supplies frames them and creates a supply department. A signs that reads "Pack your cherished belongings the professional way" expresses a previously unrecognized need. Signs can also build incremental sales, for example, "Buy five boxes and receive a free economy-size roll of bubble-wrap." Finally, signage helps customers make decisions. Signs hung over box slots can indicate sizes, removing the guesswork from product selection and eliminating the need to have boxes assembled on the floor.

Rule 4:
Pick Products That Sell Themselves

Your retail customer is attracted to products that are easy to understand and use. That's why the best packaging does most of the selling for you through the use of dynamic graphics, demonstrational photography and helpful copy.

Good retailers know an informed customer is more likely to make a purchase or even multiple purchases. If he doesn't know what a cell kit is, or that larger diameter bubble-wrap is better for packing heavier products, or that disk padlocks provide a greater level of security, how will he learn? The average customer usually won't ask. Instead, he relies on the packaging to educate him. Package design is as important as price to your customersand should be to you, too.

Rule 5:
Discover a Brand-New Way to Brand

In today's competitive self-storage world, a successful owner knows his brand is more than a name or logo on a sign. It is everything that defines who you are to your customers and differentiates you from your competition. In short, branding is far more than exterior signage.

Do you want customers to understand your facility is professionally managed? Keep your property and office area looking well-maintained and merchandised. That's branding. Customer perceptions are influenced by the smallest details, so training employees to serve them better and more professionally is branding, too. But did you know you can use well-known brands to build your own?

Consider your top-end retail stores. While they may have a house brand, they're known for the other high-quality brands they offer. Why do well-known names sell and lend prestige of those who carry them? For years, these companies have invested a great deal into advertising to build their products and create sales momentum. Feature recognizable, trusted brands on your displays. Your retail sales and image can only benefit.

Rule 6:
Keep Your Eye on the Donut

Just about now, some of you are thinking, "The guy down the street has cheaper locks or boxes," or "He has his own brand," or "His margins are bigger on private-label retail products." And I'm reminded of the sign in the donut shop that reads, "In life, keep your eye on the donut, not the hole." Here's what I've learned from successful self-storage businesses:

• Customers may shop around for the best rental rates, but once they've chosen a facility, a few cents more or less on locks, boxes, etc., won't faze them. They're as close to a captive audience as you could want, so cheaper retail prices won't really improve your sales performance.
• Customers really do associate name brands with a quality. What are they going to think about Crazy Irv-brand locks at Crazy Irv's Self Storage? Is that better margin worth the risk? You bank dollars not margins. Would you rather have 50 percent profit on a cheap $3 lock or 40 percent profit on a $5 brand-name lock? Always determine the actual dollars you'll netit's an eye-opener.

Rule 7:
Sell What They Need Not Just What They Want

A recent trade-magazine article featured a self-storage owner who thought it was a good idea to "save" money by stocking only the best-selling retail items. It made me think of something I once read, that of all the varieties of Campbell's soup in the supermarket, the bulk of sales comes from just three kinds. The reason the company continues to make so many "loser" soups is simple: First, the shopper expects the leading brand to offer more variety and, second, all those red and white cans act as a display that attracts shoppers.

So if you're only prepared to meet customer wants (the three most popular sizes of packing boxes), you're basically in the commodity business. You may not know this now, but as competition increases, you soon will.

The answer is to borrow a page from the retailer's playbook. Your goal is one-stop convenience. Stock all the markers, tape, labels, box cutters, and other odds and ends your customer will need once he sees them, not just the boxes he wants. If you don't know what to stock, ask the advice of a company that offers turnkey merchandising programs with displays and layouts (called plan-o-grams) based on sales experience. Though these displays are designed for self-service, with a little employee training, you can find yourself making more money on what customers suddenly need than on what they think they want.

Rule 8:
Provide Super Service vs. Self Service

While a good retail program should be designed to sell itself, there is no substitute for one-on-one selling. When customers enter your retail area and see a comprehensive selection of products on sharp, modern displays, the sale is more than half made. Add to that a greeting by cheerful, well-informed personnel and they may be your customers for life.

One manager I know always keeps a disk, brass and laminated padlock on his mobile cart. He demonstrates the benefits of each lock when he takes customers to their storage units for the first time. He says his success rate in selling locks is about 95 percent. Another manager asks questions so she can recommend retail products. If she learns a customer has a lot of china, she shows boxes to properly pack it. Once the customer is sold on the box, she recommends partition kits and foam pouches. Next, tape and bubble-wrap are easily sold because she now is a trusted advisor. Most of her tenants spend an average of $50 or more on supplies.

One item that usually sells well for facilities are moving kits, which are pre-packed with various sizes of boxes, rolls of bubble-wrap, tape and a marker. One manager created a display with every item in the kit, assembling all the boxes and adding a sign that read, "You can get all of this for only $39.99." As a result, his sales increased threefold.

A professional image is one way to help rent units, and good merchandising is part of that image. It doesn't only increase retail sales, it gives customers confidence in doing business with your organization. Once selfstorage owners understand merchandising is an important piece of the marketing puzzle, they understand it's not just about selling moving supplies.

Getting Started or Getting Better

Self-storage facilities are nontraditional retailers. Your primary enterprise is not the retailing of products, but rather the sale of a serviceunit rentals. The self-storage industry has prospered beyond many owners' wildest dreams. However, for some, this very success has been an obstacle to developing a retail plan that pushes supply sales to an obtainable 5 percent of gross sales. In some cases, the attitude is, "I'm already successful. Why bother with something I really don't understand? I'll just keep doing what I've been doing."

The self-storage industry is going through a transition. As it matures, facilities will encounter changing customer demographics. Some of your best customers are businesspeople, and the college-educated, "soccer mom" is steadily making more of the storage-rental decisions. This means your current or future customers soon will have increased market expectations.

So how do you improve your retail-sales profits? First, as you would with any other business endeavor, take it seriously. Make a plan and follow it through. Second, take advantage of all the professional help available. Choose a supplier who can help you lay out or redesign your retail area, provide you with brand-name products, and help train your employees. After that, the rest is easy.

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, Mail Boxes Etc. and The UPS Stores. For more information, visit www.suplyside.com.

Ferris Solomon can hardly believe the success of the boat and RV storage business his family started just two years ago in Jacksonville, Fla. The Solomons were well known around town for their other businesses, primarily freight salvage. Over the years, theyd also invested in various land parcels. The idea of launching a storage facility was virtually an afterthought.

Wed been operating our freight business out of a 75,000-squarefoot building on 6 acres wed bought on Beach Boulevard here in Jacksonville, Ferris explains. Some adjacent property came up on the market a few years ago, and we bought another 7 acres. The property was kind of wooded, and kind of just sitting there. I said, You know, we ought to be able to come up with something to do with this property that would at least pay for the property taxes.

A friend who owned a flourishing marina casually mentioned to Ferris how busy he was, and how he needed a place to refer customers with boat trailers and RVs to store. It was like a light bulb coming on, Ferris recalls. I thought, daggumit, this would be a great location.

Getting Started

The Solomon trioFerris, his brother, George, and nephew, Douglaslooked into costs and, armed with a few issues of Inside Self- Storage for guidance, jumped into the storage business. Ferris assessment of the property as a great location turned out to be an understatement. The parcel was on a main road in a high-growth area, close to the inter-coastal waterway, a major public ramp and the interstate.

Ferris believed offering both RV and boat storage would be the fastest way to fill up. Several marinas were in the area and an RV dealer operated down the road. We were really new to it, Ferris says. We thought we could get by with a grass lot, and found out quickly that wasnt going to workwe got tired of calling wreckers to pull the RVs out of the sand.

Crushcrete, a byproduct of concrete, solved the surface problem. The Solomons enclosed all 14 acres of the storage area with an 8-foot, welded-steel fence from a German manufacturer. Ample lighting and video-surveillance cameras were added, along with an area for customers to wash their boats and vehicles. Having pulled a boat in the past, Ferris knew the difficulty of backing up boats and RVs, and decided to sacrifice some storage space to include wide roads in the design.

Before beginning their storage project, the Solomons had to win the proper zoning. In a public hearing, nearby homeowners voiced concerns over the possibility of viewing unsightly broken-down trailers and boats from their backyards. They were pacified with promises to construct an attractive 50-foot berm, heavily landscaped to screen the area. Everyone was very pleased and happy with what we did, Ferris says.

Solomons RV & Boat Storage features 400 units, nearly all uncovered. Monthly rates vary according to size. The $100 spot is 40-feet deep and allows renters the luxury of driving through. Cost for a 40- foot space requiring drivers to exercise their parking skills is $75. Interior spaces, which are 12-by-25 feet, go for $69 per month.

Actually, in this area, those rates are a little bit below market, Ferris says. Im sure we could get more money, but I like the lot being full. We stay 100-percent leased out, and I have a list with 10 to 12 names on it. As soon as somebody moves out, we get on the phone and have people waiting to get in.

Rewards Rain Down

Fate did its part to help push Solomons RV & Boat Storage to success. In booming Jacksonville, marinas are fast being snatched up by developers who replace them with high-dollar condominiums. Though a few of the condos are including wet slips, average boat owners are increasingly priced out of the market and left with nowhere affordable to store their watercraft. Also, decades-old ordinances prohibiting homeowners from parking boats and RVs in their front yards suddenly began to be enforcedsix months after Solomons opened its doors.

That generated a little bit of traffic, Ferris says. Weve always had a good reputation in our other businesses, so we knew a few people in boat and RV sales who sent us customers too.

Creative leasing of other parts of the expansive property provided even more storage income. Boat King, a boat retailer, leased 30,000 square feet for operations and reserved some rental spaces as well. As they sell boats to people, those who dont live on the water or have access to a marina are also storing their boats with us, Ferris says. We have a lot going for us.

Another chunk of the former freight-business headquarters is leased to World Gym. Ferris estimates 25,000 square feet of warehouse space is left; the family plans to convert it to a climate-controlled, records-storage facility next year.

Future enhancements include the addition of covered boat/RV units. Ferris research indicates the metal, three-sided covers will cost $4,500 each. If the right contractor is found, the Solomons would like to construct 20 to 50 in the near future. In the meantime, Ferris has conceived an economical way to slowly make improvements. Tenants who desire covers may erect them at their own expense, with the caveat they meet all city specifications on wind load, etc. The structure stays with Solomons, and in exchange, the tenant receives a free years rent.

It enables me to get some covered storage without having to pay for it, and at the same time get future higher rents, Ferris says. Seven patrons have participated in the offer so far.

New Marina

With storage-space rentals thriving, the Solomons could have sat back and taken it easy for once. Ferris says he figures its not in their blood. Now in the works are plans to develop a waterfront marina in nearby Palm Valley with boat storage, a bait and tackle shop, and a small restaurant. Again, the family will exploit a piece of speculative property that has been sitting idle, this time for 10 years.

The county is building a boat ramp next door, so we thought it would be an ideal situation for us down there, Ferris says. The biggest problem is zoningwere going to have to get it changed or file a PUD. Hopefully, everything will go well. If not, well have to change our plans and look at something else.

Once zoning is procured, other requisite hoop-jumping will comecourtesy of the Army Corps of Engineers and other governmental departmentsregarding offsets, retention ponds, etc. Ferris is optimistic the family can once again mine gold from boat storage. I like to crawl before I walk, so well start off with open storage, expand into dry storage and then some wet slips, depending on what the corps allows us to do.

A small home will be built on the property for an on-site manager, so Ferris wont have to be there every day. Even at the Beach Boulevard property, the Solomons have enjoyed running an enterprise that is far less labor-intensive and time-consuming than past endeavors. Ferris says the storage business has vastly exceeded his expectations. Most important, the reliable income stream and light workload motivated him to make a major lifestyle change.

I was hoping this would just bring in enough money to pay taxes on the property, but its allowed me to semi-retire with the freight salvage business weve been in for 30 years, Ferris says. Now, instead of working 10 hours a day, six days a week, Im down to six hours a day, five days a week. Im taking some time off and doing things with my wife and family I should have been doing years ago, but couldnt. Its really worked out well. Ive been very fortunate. For more information on Solomons RV & Boat Storage, call 904.223.0888; e-mail [email protected]; visit www.solomons.net.

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: I am looking to remodel my management of. ce and would like to build a security console to house my access and surveillance system. Any suggestions on what to include?

Russell in Victorville, Calif.

A: A well-built security console can be the centerpiece to any management office. Though some companies offer prefabricated consoles, it is almost always better to have one built by your cabinetmaker. It will be better constructed and have a more integrated look.

The standard for such a structure is to have a couple of cut-outs near the top for your surveillance monitors and/or site graphics. Depending on your surveillance system, you may also want to have a cut-out for a time-lapse or decoy VCR. You should have locks on the lower cabinet doors to prevent theft and prevent your relief managers from changing important settings.

Q: I have heard a lot of buzz about elevator control, but I dont really understand how it works. I would like to implement it at my four-story property. Could you give me some more information, including pros and cons?

Wendy in Phoenix

A: In its simplest form, elevator control is the restriction of unauthorized access to the upper floors of a building. This is usually achieved by the use of an access keypad at the elevator bank. A tenant with a unit on the second floor will call the elevator, enter his code at the keypad, and press the second-floor button inside the elevator car. If he tries to press one of the other floor keys, the button will not light up and the elevator will not go anywhere.

The technical part of this is handled by relays that interface between the keypad and elevator controllers. Your security software determines if the code entered allows upstairs access and to which floor. It then closes the relay for that floor and grants access.

The pro to this configuration is a more secure site. It keeps tenants only on the floors on which they need to be and provides for tighter control over your site. The only con is tenant confusion. That can almost always be eliminated by good signage and managers providing instruction during the rental process.

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.