Vanette and Gary Christensen, owners of Club Wet Boat & RV Storage in Overton, Nev., have had ample time to mastermind their project. Due to water-pipe installation problems during early construction and eleventh-hour finance changes, the facilitys opening has been postponed more than two years.

Despite delays, 160 would-be tenants are faithfully waiting for spots, and no wonder: The Christensens plan to offer the slew of dream amenities they craved as customers. Of course, selecting a site just 13 miles from Lake Mead didnt hurt either. Vanette shares her insights and inspiration regarding the development process.

Describe your facility and the Lake Mead area.

Our community seasonally attracts flocks of snowbirds who need RV and boat services. The local marina is restricted because Lake Mead is a national park. It has only 50 dry-storage spaces, most of which are filled with trailers from boats in marina slips. Nothing is covered locally, so vacationers are eager for quality covered storage and services.

All of our units are enclosed, with oversized roll-up doors for individual security and access. Driveways are much wider than the norm for easy entry. Our buildings are designed to accommodate larger units: 12-by-30 up to 14-by-70 drive-thrus. Due to extreme summer weather, we opted to build with masonry block instead of metal for better insulation. This also provides more security than simple awning-type coverage, an attractive benefit for long-distance customers.

Whats your business philosophy?

As avid boaters and RVers, my husband and I wanted to fix all the things that bothered us as consumers. Because we offer services that make our customers experience as easy and convenient as possible, they can spend more valuable vacation time doing what they want to be doingenjoying themselves.

What amenities are on the menu?

Club Wet offers boat launch and retrieval, airport-shuttle pick-up and delivery, business services for tenants who fly their personal planes into the regional airport, and engine and cleaning services. Our on-site supply store will be like Camping World on a smaller scale, with fishing supplies, boat-related items, towels, sunglasses, hats, and RV products such as repair parts, shower curtains, tools, etc.

Being the lady in the family, I was especially determined we would offer clean restrooms and showers. Also, a lot of people travel with their dogs, so we plan on having a pet-walk area. Im surprised more facilities dont offer ityou can put in a 5-foot-wide strip with a box in it and a little grass. People really appreciate simple things like that.

How did you decide which services to include?

We sat down at Lake Mead as customers ourselves and talked to fellow boaters and campers. We also looked at the competition, and there really werent any services or recreation-based retail outlets for 70 miles. If someone needed engine servicing or RV and boat supplies, where were they going to go? Regardless of location, facility owners should identify their areas needs and incorporate them into a customer-service plan.

Tell us more about launch and retrieval.

Tenants can call ahead, and well have their boat in the water, ready to go, when they arrive. Well also pick it up and transport it back to storage at a prescribed time. I know a facilitys insurance goes up for this kind of service, but you would be amazed at how many people want it, especially families. It allows them to drive directly to the lake and start having fun.

How can you be sure tenants will buy the service?

W e asked them. People were complaining about how far they were driving and towing, and most were asking for launch and retrieval. We live in a society that is service-based, and whatever makes it more convenient for the consumer makes your facility that much more appealing.

How did you develop your marketing plan?

We identified our target audience by looking at license plates at local RV parks and marinas. That told us how far people would be willing to drive to use us. Top target areas turned out to be Salt Lake City, and Orange and Riverside counties in California. Only two of my customers are local, so Yellow Pages advertising wouldnt be a sound investment. The biggest thing we decided to do was advertise on billboards, in and out of the lake area. People who are towing past our signs have just spent an average of five hours getting here and often would rather not tow back.

How did you calculate pricing?

We evaluated prevailing prices at similar facilities around the Las Vegas/Boulder City/ Lake Mead area. Our storage prices are competitive with the market. Engine-servicing prices are based on those found in the Las Vegas area. Launch and retrieval charges are based on a set round-trip charge based on per foot of boat length; the fee is added to the tenants monthly bill along with other services, such as boat or RV cleaning, supply-store purchases, etc.

How difficult was it to secure financial backing?

Initially, it was extremely difficult for us to find funding because banks traditionally use a formula for storage projects based on mini-storage statistics; the equation uses proposed square footage vs. number of people residing in the area. Although we had highly positive appraisals and feasibility studies, the fact that this is a small, rural town worked against us. We had to show lenders that our customer base is the entire Southwest. If you are storing an RV or boat, especially with rising fuel costs, you want to store close to where you use it. Our current lender understood this concept and has worked diligently, even with rising building costs, to swiftly move our project forward.

Since we are primarily a service-based business that also has storage, weve successfully progressed through the Small Business Administration criteria. The SBA doesnt usually fund storage, but were creating 15 service jobs in a rural area.

Do you have any advice for landlocked marina owners looking to expand their businesses?

Look for property in town and expand to a separate facility. Definitely offer the launch and retrieval service. People jump at it. You want customers to store with you instead of someone up the road, so figure out what you can offer that the competition doesnt. Most things are pretty simple. For example, if Im charging the same price for service as a mechanic in Las Vegas, why would a tenant not use me to save time and mileage? Common sense and great customer servicetheyre dying arts.

When do you expect to open?

We hope to begin construction this year and open for our tenants in the first part of 2006. Now were in the midst of final financing paperwork and, once again, completing the arduous process of forward planning required in Clark County, Nev.

For more information, call 866.CLUB.WET; e-mail [email protected]; visit www.clubwetstorage.com.

Most storage facilities have some security practices in common, but each site may differ in terms of the level of defense it requires. To determine your facilitys needs, analyze your market and decide what you want to accomplish with your security system. Start by asking the following questions. The answers will help determine what you need as well as extras it might be wise to include.

• Who is my competition, and what security do they offer?
• Am I in a high-crime area?
• Will security be key a marketing point for my site?
• Does the facilitys physical layout add to site security?

Basic Components

Site security is becoming more sophisticated and consumers have increasingly greater expectations, especially when it comes to valuables like wine, vehicles and records. At a minimum, youll need to incorporate proper lighting and physical barriers into your site. Lighting creates a safe environment, assists the manager with sufficient visibility, and makes video surveillance more effective. Physical security can include building layout, fencing and access control.

For drive-up and exterior units, such as those used for boat/RV storage, a high perimeter fence is a necessity. You can increase its effectiveness by placing razor wire around the top, but only if its legal in your areacheck with your local zoning department. For even tighter security, consider infrared perimeter beams that integrate with the alarm system.

Access control allows you to manage who enters and exits the facility at any time. Typically operated using keypads and individually assigned codes, an access system will allow you to lock out unauthorized or delinquent parties. It will also allow you to run reports and track who was on site and when. Using these records, you can quickly determine who was on the premises during the time of a theft or other crime.

Use coded entry to ensure tenants can only go into areas for which they have access. Keypads can be used to control exterior gates, hallways, doors and even individual units. Elevator restriction is another great application of access control. If you have a multilevel building with interior units, you can restrict tenants to certain floors, minimizing the snoop factor.

Unit Alarms

Access control allows you to keep unauthorized parties off the property, but how do protect units from inside theft, i.e., that committed by tenants? This is where individual unit alarms come into play. A wireless motion sensor inside a unit door can sound an alarm and alert the authorities. The sensor is only disarmed when the rightful tenant enters his access code at the facility entrance. There are wireless door alarms to fit units of all sizes, even large spaces used for boats, RVs and records.

Digital Video Surveillance

An excellent way to keep a facility secure is a digital surveillance system. Due to the popularity of this equipment, prices have dropped to a very affordable level. The amount of gear you need depends on your site layout as well as the types of storage you offer. Work with an experienced vendor who can suggest optimal camera locations based on your particular operation.

For RV/boat storage, your main focus is to track movement around the units. Be sure to cover all main traffic areas as well as long runs and driveways. At the entrance, have a camera focused to capture license-plate numbers. For storage of high-end items such as wine and furs, aim a camera at each designated area, ensuring visibility of every unit door.

Consider offering remote-viewing capability in conjunction with your video - surveillance system. For a premium, tenants can have a video camera aimed specifically at their units, and they can access the view of that camera anytime, anywhere through a web browser. Some facilities charge up to $5 per month for this option.

Office Security

Office security is a necessity for all storage facilities. Consider installing motion sensors, glass-break sensors and door sensors to the office or even the managers apartment. Some systems will actually talk instead of making a siren noise. You can even record your own verbal alert, which tricks the culprit into thinking theres someone watching him in real time on camera. What a great way to stop theft!

Software

To tie your entire security system together, you need software. There are many companies that offer software specifically for self-storage management. Many of the programs provide the tools necessary for specialized storage types, but only a few offer packages that completely integrate with a facilitys security hardware. Shop around for the package that will best suit the needs of your site.

Software can range from basic to sophisticated. For example, some programs include graphical interface and web access. Graphical programs provide a 2-D or 3-D representation of a facility, which can be displayed on monitors in the office. This works as an excellent marketing tool, promoting your security and vigilance to customers. A web-access system allows tenants to pay their bills online, creating convenience and value and streamlining business processes.

There are several security providers in the market today, so research each company and make sure its stable. Youll want your vendor around in the future should your system need maintenance, service or upgrades. Though security has not traditionally been used as a profit-maker, youll find it provides returns in lower insurance costs, minimized risk and increased site marketability, especially when it comes to specialized storage.

Owen Runnals is an account representative with QuikStor Security & Software, a California-based company specializing in access control, management software, digital video surveillance, kiosk and corporate products for the self-storage industry. For more information, call 800.321.1987; e-mail [email protected]; visit www.quikstor.com.

Art too is just a way of living, and however one lives, one can, without knowing, prepare for it; in everything real one is closer to it, more its neighbor, than in the unreal half-artistic professions, which, while they pretend to be close to art, in practice deny and attack the existence of all art

~ Rainer Maria Rilke, Letters to a Young Poet, Paris, December 26, 1908

Is ours one of those unreal half-artistic professions that do violence to the world of creative aspiration? That depends on your perspective, I suppose. And the theme, and style, and the medium you choose.

Self-storage is about serious things like interest rates and cap rates and due diligence and demographics. It is also about fairly mundane things like metal buildings, roll-up doors, access gates and rental agreements. But when all is said and done, a facility's success isn't about any of those things at all. It's about service. And the more diverse your palette of offerings, the more market share you're likely to capturewith all its chiaroscuro and color. This issue examines a few hues on the spectrum:

• Boat and RV storage
• Wine storage
• Records storage
• Post and parcel services
• Retail products

The better you master your technique, the closer you are to ancillary artistryor rather, the skill of sculpting revenue out of raw potential. The market is your canvas and service your brush. What kind of future do you wish to paint for your business?

Keep in mind, most artists can't work in all media; and not all storage operators meet success with every amenity. Whether you offer specialized storage, business services or a wide array of retail product, thoroughly research your commission pool before beginning. Is there a need for the talent you propose? Will patrons be receptive? Have others decked the halls of possibility before you, or will your ancillary be completely original?

Heres another pose to ponder: Some techniques can be learned later in a facilitys life, while others must be incorporated from the start. Its relatively simple to expand a retail area, add postal services or convert traditional self-storage to space for records; whereas more complex offerings such as wine and boat/RV storage require finesse. With wine, a delicate balance must be achieved between temperature, humidity, security and service. The business of big toys involves detail to construction and legal issues.

You dont have to be Michelangelo to make more money. Simply ask yourself: Does the concept of greater profit inspire me? If you are so moved, first examine your subject. Determine its strengths, weaknesses and fine points. Then, if the light is right, begin perhaps slowly at first, with just an outline, a sketch. As you gain confidence, make bold strokes from your palette, keeping taste and suitability at the forefront of vision. In time, your ancillary endeavor may turn out to be a masterpiece after all.

Best wishes to storage artists everywhere,
 
Teri L. Lanza
Editorial Director
[email protected]

Therefore, leave nothing to guesswork. Do your homework and shop around. The software you purchase should deliver results, cut costs and be supported by superior service. Its important to filter through the marketing hype and understand the various feature sets. W ith a multitude of options from which to choose, how to you decide on the best provider for the long term? Just as in marriage, you and your partner will have to work together as one. So ask these 10 key questions before you say I do.

1. On what platform is the solution built?

Once upon a time, records storage was simple. But that was before the explosion of technology. With all software, change is inevitable. You cant expect to use yesterdays tools to meet the challenges of today and be in business tomorrow. Your software must be flexible.

You need a solution that will stand the test of time, adapt and allow you to grow, one built with industry-standard platforms and languages, such as Microsoft SQL Server and the new .NET technology. Its your insurance against obsolescence. If a software package uses outdated or inappropriate technology, move on to another candidate.

2. Is technical support included?

Some software companies offer optional support while others build it into your contract. Support is like insuranceit should never be optional. Ensure that support fees are included, so you know exactly what youre paying for every year and what services youre entitled to under your agreement.

Ideally, support should include 24-hour assistance, trained technicians, help with installation and ongoing advice. It should also include an up-to-date website with resources such as technical and other updates, tutorials, manuals, data sheets, user meetings/forums, online training, newsletters and responsive account managers. These services help streamline your implementation, upgrade processes and increase the likelihood of your success, with the added benefit of a higher return on investment.

3. What support services are available, and how do they work?

Technology is ever-changing and complex, so ongoing support is just as crucial as the initial purchase. You wont become an expert in the software overnight, so you need to know theres help when you need it. If it isnt available, you risk losing productivity and datawhich translates to lost profit. The best software in the world is worthless if it isnt backed with experienced, round-the-clock support.

Before getting hitched to any software company, determine the kind of service it offers by asking pointed questions:

• Where is your office located? Is on-site assistance possible?
• What hours is technical support available? If there are off hours, what is the standard response time and method?
• What methods can I use to reach the support teamphone, e-mail, live chat, etc.?
• Who answers when I have a question, a software expert or a salesperson?
• W ill your staff understand my questions? Are they familiar with the ins and outs of a records-storage operation?
• What if I have an emergency?
• What about a warranty and scheduled upgrades?

Getting answers to these questions will give you peace of mind, especially in the event of an urgent situation. Its not a bad idea to contact the support staff several times during the learning process to test service levels for yourself.

Is the software scalable?

Software that is adjustable in design can grow with your business at minimal cost to you. It changes to meet your business needs without becoming outdated or obsolete. Scalability is particularly important for small businesses, because they tend to be dynamic. With record centers averaging more than 10 percent growth per year, this is not a point to be overlooked.

Watch out for software whose various editions are built on different platforms. You need to grow your operation without worrying about new databases, new hardware, data conversion, customization and retraining. In short, any upgrading should be seamlessyou shouldnt have to replace your software as you expand. Remember this motto: Buy your last system first.

Will I be notified about updates and other issues?

Your software needs regular updates. Some providers wait to be contacted by a customer with a problem before notifying him of an available update. Others are more proactive, keeping customers informed of changes and improvements. If your provider has a mailing list for these items, make sure youre on it. You need to know when each release is due, as well as when you can expect to see the detailed notes to support it.

Did you know all software has bugs? Unfortunately, its true. Expect regular release notes from your partner to help you fix as many issues as possible. The more customers using a product, the more likely bugs will be found and rectified. With software, there really is safety in numbers.

How often is the product updated, and what kinds of changes can I expect?

A progressive software company is always enhancing its product. Most new features are derived from customer requests. By asking your supplier about the kinds of improvements its implementing, you can better plan for your business.

First, you can notify your customers about changes in advance, minimizing hassles. Second, your records-storage reps can include the new features in their sales presentations to potential customers. Finally, these items will give you an indication of the direction the software company is going. Are the changes relatively minor, or is there a clear strategic path that will help you save or make money?

Does the software help to automate my business?

This may seem like a strange question. All software automates your business, right? Wrong! Although packages may contain similar features, their operation can be fundamentally different. These days, the disparity is most painfully obvious in the area of mobile computing.

Early hand-held devices, known as data capture devices, simply collected a list of scanned barcodes. Today, advanced software can turn your hand-held into an extension of your primary software, with intelligence built right in. Live lookups and automatic updates save time previously wasted re-entering data. Automation means you do it once and right the first time, with no risk of lost revenue.

If I have a problem, how quickly can I recover my data?

If youre in the records-storage business, youre part of your customers disaster-recovery plan. So make sure you can recover from your own catastrophes! The software you use should incorporate the latest database developments, such as up-to-date data recovery.

Older software backs up once a day when all users are off the system (usually in the middle of the night). If you experience a failure, you can restore your system, but you lose any data entered since the backup was made, which can be significant. You need a database that recovers all data right up to the point of the problem. Theres a reason Microsoft introduced SQL Server, and this is just one of them. Data recovery is an essential part of any records-storage software.

Does the software offer advanced features?

Advanced features should be available for all software packages, not only deluxe editions. Features to watch for include controllable web access, automatic monitoring, wireless capabilities, signature capture, receipt printing, job scheduling, etc. When you purchase your software, make sure you get all of it.

What do I want the technology to do for me?

Now youre ready to ask yourself what you want the software to accomplish. What do you want the package to handle? Invoicing? Scheduling? Monitoring and reporting? Remote access? Wireless capabilities? Portable computing? There are countless tasks involved in records management, and each has a software feature designed to handle it. The key is to define your goals and find a solution that covers all your desired functions.

As in most industries, things change quickly in the records-storage business. Your software and supplier need to be flexible. When it comes to new technology or business expansion, your partner should grow with you. If you get satisfactory answers to the above questions, youre ready to take the relationship to the next level: software demonstrations, and a walk down profit aisle.

Ian Thomas is the vice president of business development for ONeil Software Inc., which has more than 25 years of experience in providing records-storage software solutions. More than 850 companies in almost 60 countries use its RS-SQL product. For  more information, call 949.458.1234; visit www.oneilsoft.com.

On-site retail sales can be a windfall for a storage operator. If youre developing a new project or want to revamp current inventory, consider products that complement boat and RV use. Theres a huge range of merchandise from which to choose, and quick catalog ordering makes it easy to offer more goods than your retail space actually holds.

RV Retail Revenue

Some $14.9 billion worth of RV-related services and products were sold in 2002, says Philip Ingrassia, vice president of communications for the National RV Dealers Association, pointing out that RVs require many standard household items. While in the past it was common for retailers to offer replacement parts, the new trend is to sell accessories such as winterizing and de-winterizing products, which range in price from $2 to $40.

Because tanks must be flushed before a vehicle is placed in storage, related items are popular, says George Grengs, president of Mission Hills, Calif.-based Valterra Products Inc. With a catalog price of $7.12, the companys Master Blaster tank wand and power nozzle is an economical cleaning device. Flushing products are another good candidate for retail sales. Ranging in price from $8 to $27, these include valve caps and adapters, pump-converter kits, plastic hand pumps, and blow-out plugs. Valterra even offers merchandise displays that require minimum space while showcasing a complete selection of items.

Consumable products are always a winner, according to Susan Carpenter, co-owner of New York-based JR Products Inc. All RV owners use toilet paper, chemicals, replacement towing pins, antifreeze, water fresheners, cleaners and dehumidifiers. JRs best sellers are door hardware and replacement hatches, small enough to be stocked in a compact retail area; and its stainless-steel party-light hangers and low-profile rocker switches are just hitting the market.

Proper use of plan-o-grams and freestanding displays is the best way for a facility to exhibit merchandise. Make sure the plan-o-grams are geared toward your store and not what the supplier wants to sell you, Carpenter advises. If you have a small store, stock the most popular items and discard those that are obsolete. A retail center should earn a 35 percent to 50 percent margin. In reality, its the profit that drives the facility owner to create the store, Carpenter says. But making customers happy brings them back.

Theres even more money to be had by offering services in addition to products, Carpenter says. If youre already storing RVs, you can definitely boost profits by offering to winterize and de-winterize them for customers.

Dry-Dock Dollars

Fall lay-up of his boat is possibly the most important maintenance duty a boater will perform, says Steve Tadd, director of Discover Boating programs for the National Marine Manufacturers Association. Proper winterization will prevent costly damage that can result from freezing, dormancy, corrosion and moisture, and will allow for a smooth launch come springtime. Three or four hours of work and some inexpensive maintenance materials and tools can get the job done right, Tadd says.

Items boat owners should add to their shopping list include winterizing products that contain rust inhibitors; cleaners such as No Damp or another form of mildew control; gear-case lubricant; propylene glycol antifreeze (-200 antifreeze is best for engines); flushing kits; and oil and oil filters. Winterizing items will vary depending on the region or climate, says Marc Malkin, manager of public relations and communications for Ritz Interactive Inc., the e-commerce network that owns and operates marine-specialty online retailer BoatersWorld.com.

The first line of defense for a boat and its equipment is adequate preparation. Items such as shrink-wrap installation are necessary for protection. Engines and other moving parts containing fluids should be drained or stabilized to prevent freezing. Related products include fuel stabilizer, crankcase-oil stabilizer, fogging oil, engine grease/lube, engine flusher, electric dehumidifiers and water absorbers. Top sellers carried by Boaters World retail centers include Camco W inter Ban 50, a marine antifreeze; Sta-Bil Fuel Stabilizer, which flushes out the engine; and CRC Engine Storage Fogging Fluid. The companys newest line is Valvtect, which includes marine fogging oil and stabilizer.

The boat trailer shouldnt be overlooked, says Malkin. The smart retailer will stock trailer couplers, balls, hitch receivers, winches, winch cables, jacks, hitch/coupler locks, tie-downs/ bungee cords, wheel chocks, replacement lights, fuses, tool kits and spare-tire covers.

Savvy business owners from coast to coast have already realized the profit potential of boat and RV storage. Now well-planned and stocked retail centers provide convenience for boat/RV users while creating ancillary income for the facility. These babies do have needs, and an on-site store is the way to meet them.

---

Sources for Boat/RV Products and Accessories

Boaters World Marine Centers
301.419.0000
www.boatersworld.com

Camco Manufacturing
336.668.7661
www.camco.net

Camping World Inc.
800.626.6189
www.campingworld.com

JR Products
800.269.7622
www.jrprvinc.com 

Thetford Corporation
800.521.3032
www.thetford.com

Valterra Products Inc.
818.898.1671
www.valterra.com

In a day and age when unit options, retail products and truck rentals are the norm for self-storage operations, facilities tend to all look the same to consumers. Its differentiation that sets a site above the competition, and amenities are the key. In an aggressive business landscape, you need to build your ancillary products and services and make the market aware of your offerings. This article discusses some items that can take your company to the next level.

Swings and Strokes

Ancillaries are add-ons that benefit customers. They can include simple things like fresh popcorn, a complimentary beverage, a place for the kids to play, a room for customers to conduct meetings, shipping/ receiving services, Internet access, and fax/photocopy services. All these add up to a comprehensive package that sets you apart from the facility down the street.

Every market is unique and will respond to different products. But here are some tactics to try:

• Provide extra lighting, shelving and carpeting for individual units for a fee.
• In addition to offering truck rental and a wide array of packing productscorrugated and plastic boxes, moving bundles, peanut pack, tapeconsider a package deal that includes a truck with all the necessary moving materials already inside.
• Offer packing and shipping services including U.S. Postal Service, UPS, DHL, P.O. boxes, etc. A USPS store only requires about 100 square feet of space and can add 100 visits to your site per day from potential customers.
• In more affluent markets, wine storage can be very profitable if a business plan and budget are successfully implemented.
• Vault storage, a special high-security option, can also be profitable if the customer base has a need to store valuable collections such as art and antiques.

What Do You Win?

So what does the addition of ancillaries mean to a storage business? The exercise is only worthwhile if profit is realized and risk mitigated. You serve a product and, hopefully, the market volleys with more revenue. Lets take a look at potential returns:

• Unit lighting, shelving and carpeting are profit centers yielding 100 percent on cost.
• Boxes and related products also carry a 100 percent mark-up.
• Good truck-rental contracts with operators like U-Haul, Budget and Penske provide storage partners a commission of 16 percent to 24 percent of gross revenue.
• Packing and shipping services can yield $12,000 to $50,000 in annual profit. A USPS contract station can produce $25,000 to $200,000 per year. P.O. boxes add between $3,600 and $10,000 annually.
• Annual revenue on 10,000 square feet of wine storage is approximately $50,000.

Take It to the Net

Ancillary products and services are essential to remaining viable and profitable in a competitive self-storage environment. Every operator should do what he can to make his facility newer, better and different from others. Gone are the days when you can sit idly by and watch rents and occupancy miraculously rise. Give some thought to what your market is asking of you. Take your business to the net and shoot a winner!

Gregory A. Call is the president and CEO of Irvine, Calif.-based Self StorageWorks, a management, consulting and development firm that provides feasibility studies, startup services, design, unit-mix planning, staff hiring and training, facility management, marketing plans and brokerage. For more information, call 800.779.6797; e-mail [email protected]; visit www.selfstorageworks.com.

Many self-storage owners are misinformed when it comes to the subject of replacement cost. This vital part of your insurance policy protects you in the event of catastrophe. Knowing the benefits and options makes for smart business.

Simply put, replacement-cost coverage ensures you can replace damaged property with comparable items. Actual-cash-value insurance, on the other hand, covers the replacement cost minus depreciation since the date of purchase. If premiums are reasonable and affordable, replacement-cost coverage is the wiser choice.

Unlike personal property that depreciates with time, business property appreciates. As a self-storage owner, you can expect a slight increase in your premium, generally 4 percent to 8 percent per year, which reflects the increased value of your facility. Your carrier is not trying to over insure you. The companys aim is to give you coverage that would allow you to comparably rebuild in the event of a loss.

Whats Covered?

Business-property coverage can include anything considered to be part of facility construction, from the foundation to the roof. Depending on your policy, covered structures can comprise fences, retaining walls, roadways, patios or other paved surfaces, underground pipes, flues or drains. Business-personal property includes anything used for daily operation, such as computers, maintenance equipment and office furniture. Items generally not covered are the land on which the facility sits, motor vehicles, and tenants stored goods.

Insurance policies and coverages vary from carrier to carrier, so ask how your insurer can best meet your needs. The supplier will base your premium on information you provide, using an estimator that draws on building-cost data and methodology to determine replacement costs and depreciation values. Other factors that might affect your premium are:

• Distance to the nearest fire station and hydrant
• Construction quality of the facility
• Sprinkler systems
• Site security
• Geographic location

Large buildings renovated or converted for self-storage usually carry a higher premium. This is because in the event of a calamitous incident, the probable loss on a single big building vs. several smaller buildings is 100 percent.

Fair Value

What is the best way to get a fair, correct number when determining 100 percent replacement value for your facility? An appraiser can best conclude actual property value on your behalf, or your insurance company can create an appraisal using commercial estimators such as Marshall & Swift or E.H. Boeckh. You should not attempt to appraise the buildings yourself, as the necessary knowledge is beyond the scope of the average facility owner.

While insurance companies encourage owners to insure their properties for full value, some policies may contain a coinsurance clause, a provision that only requires the policyholder to maintain coverage equal to at least 80 percent of the propertys actual replacement cost. Because partial losses are more common than total losses, some insureds take the gamble. Coinsurance can provide a reduction in premium, but penalties can apply, and a settlement will be merely a percentage of full contract reimbursement.

A qualified company that specializes in self-storage insurance is your best bet for obtaining the replacement coverage to satisfy your facilitys needs. It takes an agent familiar with the industry to truly help you protect your business.

John Roark is part of Universal Insurance Facilities Ltd., which offers a comprehensive package of coverages specifically designed to meet the needs of the self-storage industry. For more information, a free copy of your states lien laws, or a quick, no-obligation quote, call 800.844.2101; e-mail [email protected]; visit www.universalinsuranceltd.com.

Many of you think youre in the RV and boat-storage business. In fact, youre in the sales business. What you sell is space, support and service.

Some businesses are lucky or smart enough to establish themselves in a great location where customers will come to them. And some owners and managers are just naturally good at dealing with people. Those of you who fall into these categories have been successful regardless of your sales approach. You also have the most to gain from teaching sales skills to your staff because youre in an excellent starting position. Those who dont have a prime locale or innate people skills must learn to sellor risk being squeezed out of business by competitors.

Feel the Love

To many people, sales is a dirty word. Weve all encountered salespeople or approaches we didnt like. The following is also true: People love to be sold. When we make a purchase, if the salesperson isnt enthused or doesnt help us leave with everything we want or need, we feel unfulfilled.

Dont let your customers go away dissatisfied. Learn to sell. Selling is no different than any other skill; you just need to know some basics. Following is a sales outline geared toward the boat- and RV-storage sector. It includes just five steps:

1. Introduce yourself.
2. Ask discovery questions.
3. Build agreement on issues.
4. Create urgency.
5. Close the deal.

Introduce Yourself

You have to introduce yourself to customers and potential clients. They need to perceive you as friendly and inviting. If you share a smile, whether in person or on the phone, you get to do business. Let them see you as knowledgeable and helpful. Answer their questions with authority and caring. If they say, I think I bent my prop shaft because Im feeling a weird vibration, answer, Sure, I can help you with that. Actually, thats a good answer for just about any question, dont you think?

Ask Discovery Questions

Questions are a great way to learn and listen. The answers tell you about customers needs and wants and something of their personalities, which is important. Most people ask you a question to start a conversation, not because they know what they need. If someone asks how much your RV parking spaces cost, hes really saying, I need help storing and maintaining my RV. So let him understand how you can assist.

Good questions help you raise important issues customers may not have considered. There are a lot of details involved in caring for boats and RVs. To be of maximum assistance, you need to be informative. You keep up with best practices, dont you? Share these with your customers so they can benefit.

Finally, questions help qualify customers based on when they need help, how much they have budgeted, how they think they will be best served, what they already know about boats and RVs, and how they feel about your offerings. Develop some great discovery questions and use them often. Share them with your staff members and have them make the pitch. Youll see increases in revenues, referrals and return business.

Build Agreement on Issues

In a way, you cant actually sell anyone anything. They have to talk themselves into doing business with you. And they will do that if you break down the transaction into issues on which you can agree. Many relate to the who, what, where, when and how questions discussed earlier. The most important items to establish are: How soon will they need to store? What size space will be best? How much are they looking to spend?

Create Urgency

Its always better for the customer to make a decision while he is talking to you. If he doesnt make a decision then, he may get distracted, take on another project, spend his money on something else or become interested in one of your competitors.

Create urgency by letting him know space is limited and availability is fleeting. Tell him that once you have a space open, it goes fast, so its best to reserve now. If his vehicle requires service, it should be scheduled at this moment, because your staff gets busy and convenient appointments are not guaranteed. The last thing you want is someone becoming disappointed because a space rented before he would commit or services were booked.

Close the Deal

To close means to get a yes and a time frame for fulfillment. Closing is not saying, Thanks for calling. We hope to see you soon. You ask a confirming question, and write the action on the calendar. You ask, Will Monday be good, or will Tuesday be better? The customer says, Tuesday is good. You both write it in for Tuesday.

Art of the Close

Nailing the close is the most important and, for some people, difficult part of making a sale. Dont be intimidatedsealing a deal isnt that hard. Here are some examples of classic closes with a few scripted phrases. Try them out and see which work best for you:

The Alternate-Choice Close. This close asks the customer a question and provides two options. A yes to either choice means he will buy from you.

Is Monday good for you, or is Tuesday more convenient?

Would you like the covered space or the enclosed space?

Will you need 24-hour access, or will 7 a.m. to 9 p.m. be sufficient?

Close on the Minor Issues. In this close, you get the customer to make small decisions. Saying yes to a small decision means he will make the big purchase.

When did you want to take delivery of the new boat?

How often will you be taking your RV out of storage?

Did you want us to clean your RV while we have it here?

The Puppy-Dog Close. I love this one because I used to sell puppies. This is where you let the customer take the puppy home for a week before paying. He only brings it back if he doesnt want to keep it. How many puppies come back? None.

Your first month of storage is free with no obligation to continue.

The first use of the dump station is free to people who rent a parking space.

Boat-prep service is free for the first-time user.

The Order-Blank Close. If you start filling out the order and the prospect doesnt stop you, you have a sale. Take out whatever form you use to write up sales or service, and start writing. Get a name, address, phone number, make and model of the vehicle, date you are scheduling service, etc. When you have everything filled out, pass the form to the customer and show him where to sign. Presto! The deal is sealed.

The Straight Question. This is a great way to move a customer to a decision after you have talked enough about the subject and agreed on some minor issues. Youre pretty sure what you have to offer is the persons best option, and the prospect doesnt seem to have any objections. You need to move along and close the deal, so you ask something like:

Does that sound good to you

Is that what youd like?

Can we get started today?

Are you ready to go ahead?

The Tag Close. This technique allows you to tell the customer you are ready to do business, and then ask for the sale by tagging on an affirmative.

Lets go ahead and get started, OK?

Just pull it in here and well get started, OK?

So then, well get you in on Tuesday, right? OK?

Listen Closely

Sharp listening skills will help you succeed in every step of becoming a sales wizard. Paying attention may be a challenge when youre busy, or when its your 15th time answering the same question about fuel filters or seasonal hours in a day. Bite your lip, hold your tongue. Allow people to finish their sentences. They will see you as a rude know-it-all if you dont listen before you answer.

Heres a valuable tip to hone your listening skills: Paraphrase what your customer says. Repeat it for clarification. If he says it once, it might have been just a thought. If you repeat it and he confirms it, then its fact. This leads to a solid sale. Say something like, If I understand you correctly, then ... or So, if I hear you right ....

Once youve gotten comfortable with the basics of a smiling introduction, some great discovery questions, and the ability to create urgency and close the sale, there are lots of ways to fine tune these skills and add more. Its a little like learning to hit in baseball camp. When you can hit the fastball and the curveball, you can start working on the slider and the change-up. Good luck, and good selling.

Tron Jordheim is the director of PhoneSmart, an off-site sales force that helps storage owners rent to more people through its call center, secret-shopping service, sales-training programs and Want2Store.com facility locator. You can read what he is up to at www.selfstorageblog.com. For more information, e-mail [email protected].

After 15 years of expansion, the French market is still in its infancy. There are 118 storage facilities serving the country’s population of 62 million. Compare these figures with those of the United Kingdom, which has about the same population and more than 400 facilities. Though the potential seems huge, France has already encountered temporary oversupply in markets like Lyon, its second-largest city.

Growth is steady but undeniably slow. Every day, we see evidence of mounting public awareness; yet studies show that where facilities are open, only 5 percent of the population knows what self-storage is. The classic Catch-22 applies in France: We need more facilities to promote self-storage, but more facilities can mean oversupply and slow rent-up.

The years 2000 to 2002 saw strong expansion mainly fuelled by U.K./U.S. companies. But growth slowed in 2003 and 2004 after most of the largest corporations stopped development. Some are only adjusting their expansion plans, but others are paying a steep price for common mistakes: choosing the wrong location; copying the U.S. self-storage model too closely; developing a business plan based on U.S. ratios and figures; opening or buying facilities just to fulfill promises made to investors; opening facilities to grab fees from investors; or all of the above.

Lots of entrepreneurs are interested in developing self-storage in France, but for every dozen projects on the drawing board, only one comes to fruition. Most new entrants have difficulty finding sites, insurance and, most of all, financing. Obviously, the financial institutions need to accept the industry.

The lack of access to capital has contributed to a situation in which the majority of established facilities are in the hands of large, publicly traded companies. This is just the opposite of the United States, where independents own most of the sites. As self-storage gains wider acceptance from financial communities, the trend should shift. This year, for the first time in the short history of France self-storage, French companies have opened more new facilities than U.K./U.S. ones.

Today, the United Kingdom is still five years ahead of France in self-storage development. When you look at how the U.K. market evolved, you can be reasonably optimistic about the future of the French market. This year, three positive presentations of self-storage have appeared on TV news in prime time. This is a clear sign that the concept is gaining momentum.

There are 31 self-storage companies in France. However, 64 percent of the market is controlled by only three corporations: Homebox, Shurgard and Une Piéce en Plus. The market is also geographically concentrated, with 54 percent of facilities in the Paris area.

Introducing the Old Players

Access. Current-day Access, wholly owned by Security Capital Realty, was formed in 1998 when it merged with Acorn, Abacus and Abri- Stock. Because its 17 facilities came from four different companies, site quality and design vary. When GE Capital acquired Security Capital Realty in 2001, Access France was in a wait-and-see mode. In April 2005, Une Piéce en Plus bought all its French facilities for an undisclosed amount.

Devon Self Storage. Devon’s three facilities are in Lyon, Marseille and Toulouse. The company’s expansion has ceased, and its sites are managed by Archon, a subsidiary of Goldman Sachs.

Homebox. Homebox has 15 facilities throughout France’s largest cities. Its owners, the Rousselet family, essentially financed the company’s growth with equity. Homebox hasn’t opened any new facilities in the past two years and doesn’t plan to expand in the future. The company is going through some heavy change. It hopes to reduce its operating costs and reach a breakeven point this year.

Shurgard. Shurgard boasts 36 facilities in France, making it the largest operator in the country. It develops well-located, expensive sites. Though it had early plans to build 20 sites annually, the trend has been about five. This is due to difficulties in finding ideal locations and getting building authorization. Shurgard spends an average of 200,000 in marketing when it opens a new facility, improving awareness of self-storage and benefiting the industry as a whole. Due to high construction costs, a large staff, and fees paid to Shurgard Europe, its breakeven point is the highest in the industry.

Une Piéce en Plus. Une Piéce en Plus (UPP) was created by private property developers who focus their expansion in Paris. Now the second-largest operator in France, UPP owns 20 facilities in the Paris area, three in Lyon and one in Nice. It also manages seven leasehold facilities, plus the 17 Access stores.

The company’s ownership has been erratic. First, it was taken over by Mentmore Abbey, a U.K. self-storage operator, which was subsequently purchased by Safestore, another U.K. company, in a cash deal worth 209 million. Safestore was then bought by Bridgepoint, a private-equity firm, in August 2004. The new owner had development plans for UPP that triggered the deal with Access and the construction of two new facilities in Paris this year.

New Entrants

Annexx SAS. Annexx was created two years ago by three Toulouse entrepreneurs with heavy experience in real estate and construction. The team planned to develop self-storage in the southwest of France. They own three facilities in Toulouse, and have bought three lots with full authorization to construct third-generation facilities in the coming year.

BoxAvenue. BoxAvenue, which builds only conversions, has three Paris sites. The company was joined by a large French investor three years ago, which allowed it to expand to nine sites across France.

Time to Grow

France has a huge potential market for self-storage. Even if it only grows to one-third the size of the U.S. market, another 2,400 facilities could be built in the next 15 years. The business will not blossom quickly, as it will take time for the level of product awareness to build.

In the meantime, storage companies will have to adapt their cost structure to survive and expand. Urbanism is a challenge in France, and prime locations are scarce. But one day, those who leaped into the marketplace will reap rich profits, while those who hesitated will be stuck with third-rate sites.

Philippe Peyrot is president of Annexx SAS, a self-storage company based in South France, and founder of Self-Stockage.info, an online magazine focusing on self-storage in Europe. For more information, visit www.annexx.com.

The self-storage industry has undergone many changes over the past 20 years, evolving from a core group of small, mom-and-pop operations to a large, powerful organization of professional business people. The rapid growth of the industry has further created a variety of challenging new issues, many of which we are just coming to terms with.

When the self-storage industry was young, so were the buildings. Most had secure new roofs that did not leak, factory-fresh doors that properly sealed the units, and a lower amount of crime at facilities compared to today. This environment was very attractive to insurance companies, several of which developed products specifically for the self-storage industry. These specialty insurers provided much better coverage than what was generally available at the time, and many offered significantly reduced premiums for substantial savings.

During the late '80s, while the self-storage industry was maturing, so were its buildings. Due to various issues experienced at the time--primarily the recession--maintenance was deferred in many facilities. Additionally, the criminal element found self-storage an ideal place to conduct their activities. These developments caused losses in the industry and helped insurance costs rise.

One of the areas with a dramatic increase in claims activity has been customers' goods. Customers' goods legal liability is an important coverage specific to the self-storage industry. The basic premise of self-storage is that owners act as landlords, not warehouseman: Landlords never take possession of customers' goods. Therefore, owners are not responsible for those goods since they are simply renting space. However, there are certain situations that can create legal liability for the owner if damage occurs to your customers' goods. For example, by providing a building to store items, owners represent protection against the elements. If a customer's goods are damaged by water or some other form of the elements, he may feel that the facility operator is somehow negligent in honoring that representation.

If you, the owner, are found legally liable for damage to customers' stored items, your customers' goods legal liability insurance coverage will pay the claim. Just as importantly, it provides defense costs even if a claim is found to be groundless, false or fraudulent. It also includes coverage for damage done to customers' goods stored in the open, should you be found legally liable for that damage.

Customers' goods legal liability coverage is not normally available in the standard insurance market and cannot normally be added to the standard business-owner's package policy. It is coverage that is available through specialty markets for self-storage insurance.

With the recession well behind us, most facility owners have their deferred maintenance schedules under control. This new emphasis on routine maintenance is helping to contain losses in the area of our customers' goods. Aside from completely re-roofing a facility, there are many new products available for sealing aging roofs. There are also companies that sell maintenance products, such as unit-door threshold seals, that provide cost-effective alternatives to more expensive repairs. And facility operators have kept busy implementing new ideas of their own to help contain losses, such as providing pallets in each storage locker. The pallets keep their customers' belongings a few inches off the floor, helping to keep them dry in the event of surface water accumulation.

Security is also a major concern, and a tremendous number of vendors are in the business of providing various types of security equipment. A growing number of facilities today are equipped with door alarms, computer-controlled entry gates and high-tech surveillance equipment. These products, accompanied by a good resident manager, can help control crime.

Although sad to say, the days are long gone when we can rent a unit to new customers and turn our back on their activities in our facilities. Many operators today routinely photograph customers, and others even obtain their fingerprints. This may seem a little drastic, but it has become a necessary practice in some areas. Some operators argue that this type of intrusion will chase off customers; however, if it is done in a manner that expresses concern for their property, very few honest people will mind the extra care taken for their security. The customer that it does chase off might be a criminal, and lost revenue on a criminal is essentially money in the bank.

Another good crime-prevention procedure falls under the heading of follow-up marketing. For example, mailing a new customer a thank-you card the day he rents the unit is not only good marketing, but can help you discover a problem sooner than if no contact was made until the customer became delinquent. You can also include referral cards with the thank-you note for customer's friends and neighbors. When a prospective tenant presents the referral card, the referring customer gets a gift or a discount. This creates good customer relations and helps reduce the likelihood of crime in your facility.

New construction and proper maintenance of buildings, combined with hands-on management, attention to security and the prevention of crime, are creating safer and more secure places for customers to store their goods. Combine these efforts with good customer relations and it will help keep insurance costs for the self-storage industry at a very affordable level.

David Wilhite is the marketing manager of Universal Insurance Facilities Inc. Universal offers a complete package of coverages specifically designed to meet the needs of the self-storage industry, including loss of income, employee dishonesty, comprehensive business liability, hazardous-contents removal and customer storage. For more information, contact Universal at Box 40079, Phoenix, AZ 85067-0079; phone (800) 844-2101; fax (602) 970-6240; Web: www.vpico.com/universal.