Your security gate is your first line of defense against break-ins. Its also the first security device your customers encounter, and one of the most used mechanisms on your property. So the gate has to work, plain and simple, 24/7/365.

If your site has 300 units, your gate will open an average of 50 times on a slow day. Thats 18,200 times a year. And over the expected seven-year lifespan of your gate operator, it will open an impressive 127,400 times. A quick look at your access log for any given month will show you just how reliable your gate really is.

But if Ive learned anything in my years of working in self-storage, its that if a gate is going to break, it will do so at 5:05 p.m. on a Friday before a long weekend. Ive also learned that if a few simple guidelines are followed on a regular basis, 80 percent of the problems owners experience with their gates and gate operators can be foreseen or avoided entirely.

Safety First

Before I go any further, let me emphasize that safety must come first. Before doing any inspection or work on a gate or gate operator, turn off the power. Then check to make sure the power is off. If there are any other employees on site, let them know you have turned off the power and not to turn it back on until you say so. It may sound silly, but I know of one manager who wishes he had notified his wife in this regard. Its funny now, but it wasnt so funny then.

Gate Inspection

All slide gates have two things in common: a set of rollers and a drive mechanism. If your gate is like most, the drive mechanism is a chain attached to the gate that runs through the operator. The drive mechanism is where most gate problems can be avoided.

For smooth operation, the chain must be kept tight and lubricated. Be careful not to over-tighten it, but dont allow more than 1 inch of drop. This will cause undue pressure on the gears and chain, causing them to wear out. Use a spray lubricant, which can be purchased at any motorcycle or industrial supply store, and lube the chain monthly. This is an easy maintenance item that can be done in less than five minutes.

Check rollers monthly for wear and replace them as soon as deterioration starts to show, as the problem will only get worse over time. You wont save money by ignoring the issue. If a roller shows wear on the outside, it has the same corrosion inside.

If your gate uses V-track rollers, you can check for wear by looking at the rollers edge. There should be a flat spot on either side of the groove. If there is no flat spot, you need to replace your roller. This same rule applies to pipe-type rollers, which have a half-moon cut on the edge with a small flat spot on either side. Also check for cracks, chips or other noticeable erosion.

In addition to wear, check rollers for play along the axel. (To do so, you need to have the weight of the gate off the roller, so it may be wise to let a professional handle this task.) The rollers should be tight on the axel and mounting brackets. If they can be tilted from side to side or up and down, theres damage to the bearings, brackets or axels, and repairs or replacement are necessary. Repairs should only be done by a qualified service technician, as mistakes in this area will cause other problems.

Two good indicators that something is wrong with your gate or gate operator are strange noises or metal shavings on and around the gate, operator and track. These may also appear as gray dust. In both cases, you need to investigate for problems.

Gate Operators

The most overlooked aspects of a gate operator are the drive belt and drive gears. In areas with little moisture, drive belts will crack and start slipping. In humid areas, the belts can rot, which also causes them to slip. Check the belts just as you would on your vehicle. Some operators are designed to allow the belt to slip in the event the gate strikes an object. This is why I dont recommend the use of belt dressings. If the operator is working properly, the belt should not slip.

Check the gears over which the chain runs. If they have sharp points, the sides are undercut, or they seem loose on the axels, they need to be replaced or serviced. Worn gears will wear out the chain. If a gear is not tight on the axel, it can cause the chain to come off or bind. Either situation can mean an expensive fix.

Some gate operators use a plastic roller instead of an idler or guide sprockets. The roller will show wear from the chain, but this is normal. By checking the rollers regularly, you can tell when they need to be replaced.

Safety Devices

By code, all gate operators must have safety devices, which are either primary or secondary. A primary device is what users (your tenants) will encounter first, while a secondary is used as a backup. All safety devices should be checked often; if not daily, then weekly.

Safety loops are the most common safety devices. They are either embedded into the driveway or cut into the drive. To check the safety loops, open the gate and wait for it to start closing. As it closes, slowly drive a vehicle toward it, taking care not to hit it. If the loops are working properly, the gate should stop and reverse to the open position. You should have a safety loop on the inside and outside of the gate, so test both. If your loops have been cut into the drive, youll need to reseal them annually.

Some gates use a photo beam as a secondary safety device. The beam should work the same as the safety loops. When testing, simply place your hand in front of the beam as the gate closes. Again, the gate should stop and reverse.

Sensitivity or mechanical reversing devices are set at the factory and dont usually require any adjustments. They reverse the gate in the event it strikes an object, so make sure your gate operator has them (almost all products manufactured after 2000 do). To check these devices, the gate must be stopped by an object while opening or closing. Only qualified professionals should perform this test or make adjustments.

Safety edgesrubber boots attached to the end of the gate, gate post and other areas of entrapmentare easy to install and make a great secondary device. They consist of three parts: the rubber boot, a transmitter attached to the rubber boot, and a receiver wired to the gate operator. They can be checked by simply striking the rubber boot with your hand as its moving, which should make the gate stop or reverse. If the safety edge doesnt work, check the battery inside the transmitter. If it still doesnt work, you'l need to have it serviced.

An Ounce of Prevention

When a gate or operator needs repair, theres often more than one item in need of fixing. Generally, one central problem will cause others. For example, if the gears are worn, then the chain gets worn, which causes the gate to jerk, which puts strain on the motor and gear box, which causes the drive belt to get hot and crack, and on and on.

You dont have to be a gate expert to foresee and prevent problems. If youre not sure, ask your installer or service tech to show you common items of upkeep. Gates and operators are not overly complicated, and almost anyone can handle simple maintenance and inspections. Refer to your owners manual for items unique to your products. If you cant find your manual, find a copy online or request one from your vendor.

As a rule, all safety devices should be checked at least weekly, and adjustments, lubrications and inspections performed monthly. Keep a log of all repairs and maintenance. This will allow you to see patterns as they develop and learn to identify and prevent problems. The log will also help your service company determine what issues need to be resolved and what has already been done. This will speed repairs and save you money.

Chester A. Gilliam works for Centennial, Colo.-based Wizard Works Security Systems Inc. and has been involved with self-storage security systems for the past 19 years. For more information, call 303.798.5337; e-mail [email protected].

Every business has tools to manage revenue and operations, such as cash registers, computers, kiosks, security equipment, software, etc. These are nonnegotiable. But there are elective items that affect profitability, too. In the car-wash business, they include revenue- generators like vacuums, vending machines, signage, detailing services, windshield repair and concessions. There are also environmental systems to consider such as water treatment, reclamation, energy-efficient lighting, insulated doors and heating. They arent significant to the wash process, but theyre important nonetheless.

When you embark on the startup of a car-wash business, its easy to become so overwhelmed with the intensity of the project that you overlook the minor players. Lets take a look at how and when these ancillary items come into play.

The Planning Stage

Assuming you are building a ground-up project, your first encounter with the issue of ancillaries comes with your initial visit to the city engineer and planning offices. Officials will bombard you with questions, many of which will require an answer before you can obtain approval. Every department plays a role and has an agenda. In the end, some of the things you thought were optional add-ons will be mandatory.

Most local governments are knowledgeable about commercial car washes and the overall impact they have on a community, and theyll usually expect some sort of quid pro quo. One way a municipality deals with the stress and strain of its budgets is to impose an impact fee, also called a development fee, which is levied on a project developer as compensation for the otherwise unmitigated effects the project will create (i.e., environmental). The fee can be daunting. Ive recently heard of fees in excess of $250,000 to connect into a citys water and sanitation system.

After you recover from the initial shock, you think, There must be a way to minimize this! Fortunately, there are a number of companies that specialize in water-recycling or reclamation systems. Depending on their complexity and size, commercial systems fall in the range of $25,000 to $60,000. The investment should cut your impact fee by two-thirds, lower your water and sewer costs, allow you to operate in times of drought, and position your business as a green neighbor within the community.

Even if youre purchasing an existing car-wash site, you could face a situation in which water and sewer bills are through the roof or drought conditions prevail. The addition of a water-recycling system could be worthwhile, depending on the site. The benchmark is: If the investment will pay for itself within three to five years, its sensible.

There are several good water-treatment systems out there. You can find more information online or through your car-wash supplier. A couple of good websites to visit are www.carcarecentral.com and www.autocareforum.com.

A water-treatment system produced by AquaChem Inc.

Operation Time

Once youre up and running, youll find there are a number of revenue-generators that are not part of the wash process but are integral to the success of your business. Ancillary items will vary, depending on the type of car wash you build.

You can almost always add coin- or credit-activated vacuum cleaners. These simple devices are the unsung heroes of car-wash sites. They always report to work, they pay for themselves in less than a year, and theyre available to customers 24/7.

An Ultra 6-in-1 station by J.E. Adams Industries Ltd.

Other popular ancillaries include vending machines, signage and retail merchandise. These items capitalize on your commercial space to create profit. If your car wash is attended, there are numerous other amenities that will drive business and enhance your customers experience, such as food or coffee carts, body and windshield repair, express detailing, gasoline, quick lube, and countless others. The bottom line is ancillary services are great as long as they add income without complicating or compromising margins.

Vending and change machines make for customer convenience.

Frogs Express Wash offers a complete array of ancillary products and services.

Some Added Twists

Some new twists have been added to the carwash offering. One attracting a lot of attention these days is the express-exterior concept in which the customer drives into the property and uses an automatic tellerusing cash or credit before proceeding to an exterior wash. Generally, these are tunnel washes with a conveyor. The customer is pulled through a series of wash, rinse and drying arches. Once that is completed, he can proceed to a free vacuum area or exit the site.

Express-exterior washes have really benefited from technology. Without the availability of computer cash-management and control systems, they wouldnt have become as attractive an offering. The addition of new vacuum equipment, secure vending, remote diagnostics, security, and off-site management has also helped launch them to the status of site necessity.

Exterior-express tunnels are the latest twist to the car-wash offering.

I have singled out the express-exterior wash, but the fact is every car wash can benefit from these ancillary developments. Consider in-bay or rollover car washes. There are so many of these facilities in most markets that they need ancillaries to create a competitive edge. For example, one of the things motorists most often wish for is a better way to clean their wheels and rid their bumpers of bugs. Voila! Now there are products that meet these needs, HubScrub and BugBuster. Do they meet our criteria for adding value while improving the bottom line? Yep. So, are they a necessity? You bet!

HubScrub rids wheels of dirt and grime.

For a Better Tomorrow

Every business operator must ask himself, What can I do better tomorrow than I am doing today? The ancillary avenue will always offer up ways to improve. But when choosing products and services to add to your site, be deliberate. Each item should meet these general criteria:

1. Can the ancillary be depreciated and capitalized?
2. Does it add value for customers?
3. Does it enable you to manage your business more effectively?
4. Will it pay for itself in less than five years?
5. Will you gain a competitive advantage by incorporating it into your project?
6. Will it help ensure future business?

There is a plethora of items you could add to the list of offerings. In fact, there is still much to learn and explore in the ancillary field. The trick is to dedicate some time to research, choose the right suppliers, ask for help when you need it, and dont leave ancillaries for last. If a product or service adds value to your business, you definitely need it.

Fred Grauer is the president of Grauer Associates and the vice president of investor services for Mark VII Equipment LLC. He can be reached at [email protected].

The Payment Advisor is a monthly Q&A column to which readers can submit questions about card transaction systems, electronic funds transfer, check acceptance and processing, wireless transactions, international funds transfer, and other payment issues. To participate, e-mail questions to [email protected]. Also watch for quarterly articles on related topics.

I am asked one payment question over and over again by inquirers to this column, so this month I will answer it in depth. The question is: How do I know if I am getting a good rate with my payment processor? The answer is multifaceted. In todays financial environment, you must concern yourself with issues of security, compliance and risk as well as rate.

To determine if you will have an equitable relationship with your provider, get the following critical information in writing:

1. A detailed copy of the providers resume

2. References for the provider from people in your industry

3. A complete copy of the service contract

4. A complete list of definitions (terms vary among processors)

5. A clear indication of the length of the contract and all termination conditions and fees

6. A specific list of all rates

7. A specific list of all fees

8. A specific list of all equipment costs

9. An outline of who provides customer service

10. Copies of all documents related to payment-association compliance

Before choosing a payment processor, obtain at least three written bids to compare these important items. This will help you set a benchmark against which to measure.

Ross Federgreen is a co-founder of CSRSI, which provides an integrated approach to the analysis, design, implementation, deployment and management of electronic transaction services and systems. Since 1999, the company has helped more than 350 public and private institutions reduce the cost of acquiring money and minimize the liability exposure related to payment transactions and customer data. For more information, call 866.462.7774, ext. 1; e-mail [email protected]; visit www.csrsi.com.

Once all available storage space is rented and the possible retail sales made, what more can you do to increase revenue? Its time to think outside the boxes!

For new growth, you need to step beyond simple products and sell service. You already carry cartons, packing materials, labels, tape and other products. The next logical step is to offer parcel-shipping services. Arranging for regular pick-ups with major carriers is easy enough, so why not turn your office into a shipping center? Provide customers with a one-stop shop and youll increase walk-in traffic and sales.

Stop and Shop

There are several advantages to broadening the offerings of your facility. First and foremost is the increased profitability of what was once just office space. Another is crossover salesyour shipping-only customers will likely think of you first if a need for storage does arise. This better-than-free advertising generates awareness and business.

The more shoppers you attract, the more products you can sell them. With shipping come opportunities to sell holiday-related items such as decorative gift packaging. You can even run seasonal specials. In other words, you can gradually turn your facility into a shopping destination as well as a neighborhood shipping and storage center.

Package Promotion

Before you an enjoy the benefits of offering parcel shipping, youll need to promote your service to the public. Heres how:

Make the service visible in your store. Gather all your shipping products into an attractive Shipping Center. Ideally, it should have room for all the materials customers need, room for them to pack cartons, plus conveniences like tape dispensers and magic markers. If you dont want to design and build the center yourself, ask your retail-products supplier for a free-standing kiosk.

Advertise your service. Let prospects know what youve got! Begin inside the store and work your way out. Use interior signage, such as counter cards, employee buttons and posters, and exterior signage like window banners, tent signs and door notices.

You may want to add Parcel Shipping to your Yellow Pages ad when it comes due for renewal, and consider a second listing under Shipping Services. Thatll put you in the company of established shipping professionals. If you run newspaper ads, include a reference to your new service there, too. Its not a bad idea to create a separate ad to target non-storage prospects.

Reach out to current customers. Post fliers on storage units and send them with invoices. Consider offering a limited-time coupon to current and past tenants. Use colorful stickers on all correspondence that reads, W e now offer parcel shipping.

Target commercial accounts. Compose an announcement letter or mailer for your current commercial customers. Suggest your shipping service as a convenient way to send samples, ship small orders and return product. This may be especially appealing to businesses that keep inventory at your facility. Attracting them may be a bit more challenging, but the business you gain will be long-term and predictable.

As you market to these clients, ask some basic marketing questions. What businesses are they in? What special needs do they have? Are there more businesses like them nearby? Once youve done your homework, you can use the information to go after new accounts.

Create a mailing list from phone and industrial directories (available at your public library), or buy a list from a local mailing service. Then send a professional mailer to those businesses that fit your profile. Let them know about your unique combination of offerings and emphasize how this will save them time and money. Include testimonials from current patrons, and consider making a new customer offer.

Unless your mailing list is extremely large, plan to follow up with a phone call. To make it easier to do this promptly, send out mailers in small batches once a week. Convince prospects to visit your facility. Once they re in the office, you can use a short, concise PowerPoint presentation to help explain your services and their benefits.

Think long term. Once youve made a plan and put it into effect, be patient. Even an avalanche begins with just a few pebbles. It takes a while for the public to accept familiar companies in a new role. The beauty of this new venture is it involves a minimal investment and requires no re-training of your staff. Thats why you can afford to wait.

Getting Help With Getting Started

When you start to seriously consider parcel-shipping services, youll want all the help you can get to make things go smoothly. Begin with your retail supplier. Ask if it has any experience in the parcel-shipping industry and if it can provide a free-standing shipping center. Does it carry materials that meet U.S. postal requirements as well as those of leading parcel services? What about signage, merchandising and marketing?

If you like the answers you receive, then get started. If not, shop around for a supplier who can help you take that new direction for growth. Its time to ship out.

Roy Katz is the president of Supply Side, which distributes shipping packaging as well as moving and storage supplies. The company has developed merchandising programs for many leading companies including the U.S. Postal Service, The UPS Stores, Kinkos, Mail Boxes Etc., Uncle Bobs Self Storage and Storage USA. For more information, visit www.suplyside.com.

The right of Americans to own property is no longer assured, thanks to a recent ruling by the U.S. Supreme Court. In the name of economic development, the government can seize land from a private owner and give it to someone else who will personally profit. On June 23, the Supreme Court ruled that a Connecticut city could use eminent domain to seize homes and turn them over to a private developer.

Eminent domain is the government's power to confiscate private property against the wishes of the owner, who is paid according to a government assessment of the lands value. "This power is exercised not only by elected officials, but by those who have no incentive to listen to the voice of the voters, such as redevelopment agencies, utility companies and even private developers," says Robert Thomas, the managing attorney for the Pacific Legal Foundation's Hawaii Center in Honolulu. "The ability to protect your property from forced sale to the highest bidder under government cover is an issue that everyoneregardless of means or political persuasioncan and should get behind."

In Kelo v. City of New London, Connecticut officials used eminent domain to seize several homes in a working-class neighborhood for the development of a fashionable hotel, health club and marina to support the pharmaceutical company, Pfizer. The state purchased a portion of the residences from willing participants, but several owners refused to sell. Thats when the state exercised its power. The homeowners brought a state-court action claiming inter alia, that the taking of their properties would violate the "public use" restriction.

But the Connecticut Supreme Court, then the U.S. Supreme Court, upheld the citys right of seizure. In her stinging dissent of the court's ruling, Justice Sandra Day O'Connor said, "The specter of condemnation hangs over all property. Nothing is to prevent the state from replacing any Motel 6 with a Ritz- Carlton, any home with a shopping mall, or any farm with a factory."

Storage Owners Stay Alert

"The decision of the U.S. Supreme Court should be of great concern to self-storage operators, owners and investors," says Jeffrey Greenberger of the law firm Katz, Greenberger & Norton LLP in Cincinnati. "We have now seen several cases, including the Supreme Court case, of a government entity taking private land for what the local regime deems to be an improvement or upgrade, but not just for blight removal or public improvement."

Unfortunately, these days, the issue of improvement is not about whether the existing property is dilapidated and should be razed, but if the property can represent better tax revenue for the city, township or county, Greenberger says. For example, a self-storage facility might be in excellent condition and be a good neighbor but generate very little sales tax and, with only a few employees, little wage tax. A city can replace that facility with a shiny new shopping center or office building that creates more jobs and generates more tax. The Supreme Court decision confirms this as acceptable grounds for using eminent domain.

Storage operators must therefore remain vigilant in their involvement with local government, Greenberger says. Its more important than ever to keep close ties with officials and consistently monitor city economic and zoning plans to make sure one's facility is not in a target zone.

Still Some Safety

At least its not easy for a city to take property by eminent domain, Greenberger says. These matters, if contested, are often litigated for many years at great expense to the self-storage operator and the entity trying to take the property. The Supreme Court decision does not give the government carte blanche to take anything it wants, whenever it wants.

"The taking cannot be a vendetta," says Greenberger. The court in the Connecticut case found the city had a "carefully formulated" economic-development plan leading to appreciable benefits to the community. There is still a system of checks and balances in place. "Unfortunately, the balances, given the Supreme Court's recent decision, are not as absolute to a landowner as they used to be."

"The words of Justice O'Connor are all too true, and every citizen should be alarmed about the wrong turn the Supreme Court has suddenly taken," says Chris McGrath, president of the New York Self Storage Association. Landowners will find little comfort in turning to state legislators for relief either, he adds. "Many states already have legislative provisions in place that recognize the development or redevelopment of economically blighted areas as a public purpose and public use.

McGrath advises self-storage associations to join others in the real estate industry who are petitioning state lawmakers for stricter definitions of these so-called public purposes and uses. "If we don't take this path and exercise our political will, well only have ourselves to blame when the government comes knocking on self-storage doors to condemn these properties for the economic benefit of others," he says.

McGrath already sees this happening in New York City, where Columbia University is effecting the condemnation of several self-storage propertiesincluding some of the city s first facilitiesfor the benefit of a private educational institution. "The Kelo case only gives aid and encouragement to real estate developers throughout the country to covet their neighbor's lands," he warns.

"As with every Supreme Court decision, this one is still open to interpretation, which can stretch it in either direction," Greenberger says. "If a self-storage operator even begins to sense that a city or township is looking at his property as a new development, it is vital he get the best possible legal counsel involved immediately."

Not many companies can boast more than 400 percent growth in less than a decade. But Uncle Bobs Self Storage is one of the fortunate few, expanding from 66 to 283 stores since 1995. Sovran Self Storage Inc. operates the facilities, and is a success story in its own right.

Founded as a financial-planning firm in 1982, Buffalo, N.Y.-based Sovran offered a variety of investment opportunities for its clients. In 1985, the company invested in its first self-storage property. From that point forward, our only focus was on acquiring self-storage, says Diane Piegza, vice president of investor relations and corporation communications.

An Uncle Bobs facility in Phoenix.

By the mid-90s, Sovran had reached a crossroads. With 66 Uncle Bobs facilities, the company faced limited growth potential. We had three choices: continue operating as a small, private company, sell, or take the company public and continue to grow, Piegza says. The company opted for expansion and went public in 1995. Since then, it has acquired more than 200 sites throughout Arizona, the East Coast and Texas.

Our facilities are typically located in first-tier suburbs of large metropolitan markets, says David Rogers, chief financial officer. We prefer to acquire stores with a presencethat is, highly visible with ease of ingress and egress.

Uncle Bob on the Move

As part of its mission, Uncle Bobs provides clean, safe and innovative storage solutions. But the companys principal advantage is the spectrum of moving and storage options at each location, says Chris Laczi, advertising director. Naturally, we intend to provide the best possible storage for our customers needs, but we also strive to provide the tools and assistance they need for moving, he says. The company has a fleet of 14-foot rental trucks with features like ramp access, air-conditioning and automatic transmission. If a customer rents a space, he can use a truck for free.

Uncle Bobs also sells a full line of packing supplies including boxes, tape, furniture and mattress covers, packing filler, and more. Through a partnership with BoxesDirect.com, the company enables customers to buy boxes online, though the bulk of its sales are still at the store level, Laczi says.

Uncle Bobs offers free use of a 14-foot moving truck to any customer who rents a unit.

Uncle Bob Builds to Order

The average Uncle Bobs facility has about 58,000 rentable square feet of space and 565 units. What size space does the company offer? Well, that depends on the customer. Thanks to Flex-a-Space technology, tenants are not limited to conventional dimensions. When it comes to storage, weve learned that one space does not fit all, Laczi says. Using a patent-pending design, each unit features an adjustable wall to fit each customers needsand budget.

The process of unit selection has been simplified with the creation of an office demonstration unit, which can be changed to simulate all the different options. This eliminates the need for a facility tour. When a customer calls or walks in the door, our first question is not What size would you like? says Laczi. Were more interested in what items he will be storing, with the intention of matching them with the best possible space.

Uncle Bob Keeps His Cool

At Uncle Bobs, customers can choose from four storage environments: traditional; climate control, in which the temperature is maintained between 50 and 80 degrees; humidity control, which uses the companys patented Dri-Guard system; and a combination of temperature and humidity control, which uses Dri-Guard Plus.

Dri-Guard technology maintains a units relative humidity at less than 50 percent.

Dri-Guard came to Uncle Bobs through the efforts of Sovrans late Richard Sinnott and Logis-Tech, a developer of humidity-control equipment for government, military and museum applications. The Dri-Guard central-air processing engine is built into one of a buildings units or just outside the climate-controlled space. Each unit is then fitted with a ventilation system and sensors connected to the engine, which maintains relative humidity below 50 percent. At higher levels, mold and mildew can grow, metal can corrode, wood begins to warp, and dust mites can flourish.

Dri-Guard spaces are ideal for customers storing valuables such as furniture, clothing, files, and any other metal, wood, fabric and paper, Laczi says. Each unit is monitored by software that immediately knows if the humidity level has become unsafe and corrects it. If a customer leaves his unit door open, for example, Dri-Guard can return the space to appropriate levels within 30 minutes.

In the Trenches

Sovran considers its managers and customer-care representatives to be its most important assets, Piegza says, and personality and attitude are key factors in the hiring process. We can train for the operations side. Additionally, we empower our managers to make decisions based on the guidelines provided, so we look for an entrepreneurial spirit.

New hires participate in an intensive week-long program at Uncle Bobs state-of-the-art training center.

New managers receive on-the-job training prior to attending an intensive, week-long program at the companys state-of-the-art training center. After schooling, managers and assistants attend periodic roundtable meetings where they learn about company goals and discuss and implement new sales and marketing strategies. An employee-only website and bimonthly newsletter helps keep everyone current on company affairs and recognize top performers.

Uncle Bob Sees the Future

Sovran will continue to purchase properties in existing and new markets as the opportunities arise, says Rogers. We have committed up to $40 million to expanding and enhancing our current portfolio over the next three years.

Because self-storage customers are consistently more sophisticated in their desires, the company also plans to enhance the construction quality, appearance and accessibility of its facilities, offering more amenities and attractions for residential and commercial clients. Distribution networks and off-line retail storage will be a strong component of any operators rent roll, Rogers says.

In addition, technology will play a bigger role at Uncle Bobs. State-of-the-art security and climate-control systems are already the norm, but online rentals and payments as well as a call-center service are also on the horizon. Rogers looks forward to kiosk-attended stores and refined pricing matrixes and marketing techniques.

We are proud of our growth and accomplishments and are looking forward to our next 20 years in the industry, concludes Piegza. For more information, call 800.242.1715; visit www.unclebobs.com.

As RV and boat storage develops an identity independent of traditional self-storage, its important for developers to educate themselves on the design and construction issues specific to this exciting product. Sit down at a design kick-off meeting, and several hot topics are sure to surface: access and drive-aisle width, site slope, dump stations, wash bays and shielding.

Aisle Width and Access

First, consider the size of recreational vehicles. They can be 55 feet long, 8 feet wide (not including the 16-inch mirrors on each side), and more than 10 feet tall (not including satellite dishes, ladders and air-conditioners). You have acquired a parcel of land on which you want to cram as many of these behemoth machines as possible. How do you accomplish this?

There are some rules of thumb to guarantee drivers easy access to spaces while allowing maximum land usage. The first question that must be asked is whether the facility owner prefers 90-degree access to the units or angled access is acceptable, says Tony Cooper, vice president of T2 Architectural Group. Most owners recognize the benefit of angled access and will choose that option. With 90-degree access, you need a 55-foot-wide drive aisle to properly enter and exit the spaces. If spaces are angled at 30 to 45 degrees, the drive-aisle width can be reduced to 35 feet and still allow ease of access, even for the largest RVs.

The second major consideration is the turn radius built into the site. Most fire departments require a minimum turning radius for their trucks that meets or exceeds the turning requirements of an RV. If youre in an area with no restrictions, a 35-degree inside, 45-degree middle and 55-degree outside turning radius should be sufficient.

Standard industry clear height for boat/RV units is 14 feet. This will accommodate even the most tricked out vehicles. For enclosed units, a 10- to 12-foot door width is safe, but doors are often designed at 14 feet wide.

Site Slope

Slopes and hills on a site can present challenges. If your boat/RV storage is not enclosedmeaning you offer uncovered or canopy-covered parking onlyslopes can be easy to handle because parking areas can match the slope, and no stepping is required. But if your site includes enclosed units, its critical to use the most level site available.

For example, consider Eagle Storage & Development LLC, a fully enclosed RV facility under construction in Lake Havasu City, Ariz. The property slopes more than 40 feet from one end to the other. With only 13 inches of ground clearance on the largest RVs, the civil engineer who designed the elevations had to consider the risk of vehicles bottoming out.

The problem was addressed by stepping each unit a maximum of 9 inches. This circumvented the issue of needing the drive aisle to accommodate large steps in the slabs. Using so many steps was costly but necessary in this case. Another option to minimize the negative effects of grade is sloping the slab, which is helpful only on sites with very gradual inclines. That maximum slab slope should be 0.5 percent; anything greater could cause roll-up doors to bind.

Dump Stations and Wash Bays

Site owners like to include dump stations and wash bays with their boat/RV storage to increase marketability and add income. Unfortunately, these ancillaries are often neglected until late in construction, causing delays. The systems require underground work, which must be addressed early in the project. Owners should urge their civil engineers to account for these uses as early in the design phase as possible.

Dump stations are not allowed in some municipalities. Where they are permitted, they can be easy to buildor quite messy, depending on the city and the efforts of the civil engineer. In most cases, a station comprises a 5- to 6-foot-wide concrete catch, curbed at the edges and sloped to the middle, where a brass cap and flange provide access to a sewer pipe. The engineers challenge is to decide where the pipe leads. It may run directly to a sewer, a P-trap linked to a sewer, a holding tank or a septic tank.

Its equally critical to address wash bays early in the design process. Most cities require interceptors for grease and sand because they can clog sewers and cause problems for local residents; but interceptors can be difficult to find. They are typically expensive and need to be ordered in advance and placed in the right spot. A wash bay also requires a removable grate system so it can be cleaned.

Shielding

Finally, storage owners need to consider zoning stipulations. Some require RVs to be completely shielded from view, especially in the case of canopy or uncovered storage. This can be especially challenging if theres a subdivision on a hill above the project. Building high earth berms with 8- to 12-foot walls is how most developers choose to deal with the issue.

The development of RV and boat storage can be very rewarding. A knowledgeable team of architects, engineers and general contractors can navigate the details of design and construction, ensuring a successful project.

Tarik Williams is the vice president of TLW Construction Inc., a self-storage and RV-storage general-contracting specialist for the Western states. Mr. Williams is a member of the Arizona, California, and Texas self-storage associations and a regular speaker at conferences of the Arizona Mini Storage Association. He holds degrees in construction and business, is a licensed real estate broker, and has formed investment groups for real estate acquisition and self-storage development. For more information, call 877.392.1656; e-mail [email protected].

Since then, all aspects of the industry have evolved. The profitability of the trade has created an unprecedented swell in competing storage complexesand a heightened industry standard. Facility quality, design and location are all immensely improved. While self-storage may once have been an easy way to make money, todays market is complicated and competitive.

Tremendous opportunity still exists for those willing to complete the proper due diligence: Examine 20 or more potential locations; find the one worthy site; struggle with difficult agencies and neighbors; and, finally, provide the most convenient, visible, attractive facility in the target market. In this regard, the mixed-use development (or planned development) has become a common, often essential vehicle used by self-storage developers to get ahead.

In the MUD

The technical definition of a mixed-use development (MUD) may vary from one jurisdiction to the next. For the purposes of this article, it is defined as a specified property tract that is master planned by the developer and approved by the local planning and zoning authorityto allow specific land uses.

For example, a 100-acre MUD on a major arterial street might allot the rear 70 acres for single-family development, another 15 acres for multifamily, and the prime 15 acres of frontage for retail. The tracts that comprise the MUD may be given a generic zoning classification, such as C-1 Retail, to designate allowed uses; or the developer and planning/ zoning board may approve a list of specific uses, such as restaurant, convenience store or self-storage.

A MUD lets planning and zoning staff closely monitor and control the type and quality of each development while allowing builders to secure approval for otherwise restricted uses. For example, in seeking endorsement, a developer may consent to deny taverns and automotive sales but permit self-storage or a car wash. This give and take eliminates controversial uses, satisfying the city's requirements, but opens the doors for businesses that normally fall outside generic zoning classifications. The savvy storage developer should be aware of this opportunity, particularly in major urban markets.

A Slice of MUD Pie

Although smaller developers may only be interested in self-storage and not up to the task of a MUD, they can still benefit. One strategy is to monitor newspapers and business journals for MUD developers and contact them about carving out a location for a storage site. By getting involved in the project early on, the small developer has a chance to negotiate the purchase of leftover parcels that are perfect for storage and the MUD developer can sell at an affordable price.

In restrictive urban areas, this newly created self-storage site may be the only entitled one in the immediate market. This tactic reduces lease-up risk and creates an outstanding long-term location that will be valued at a premium. As self-storage advances to a widespread product type, the advantage of a captured market cannot be understated. Researching and collaborating with MUD developers may be more tedious than finding an average property already zoned for storage. But the higher property value and profit potential as well as the reduced risk are worth the effort.

The MUD Makes Money, Honey

For the developer with extensive capabilities and financing, a MUD can create some exciting financial potential. Consider this hypothetical opportunity: A developer finds a 10-acre corner parcel on a major arterial for $2.18 million ($5 per square foot). The land is not currently zoned for self-storage; its zoned half for Office and half for Retail. The site has secondary frontage on a road leading to residential developments and adjacent property consisting of office condos. The current owner will not subdivide or will only do it for a premium.

To capitalize on the prospect at hand, the developer can rezone the property as a MUD to achieve several win-win outcomes. Lets suppose he is primarily interested in self-storage. The most cost-effective location is a flag-shaped site farthest from the hard corner with a modest amount of frontage (perhaps 150 feet). To garner the support of neighbors and zoning staff, the developer should meet with each party individually, presenting the positive attributes of the storage development:

• An attractive leasing office and building facades near the frontage area
• Fortress-style development insulating the office-condo project and single-family neighbors
• All doors facing the interior of the project
• Low, wall-mounted lighting
• Landscape buffers
• Low traffic impact

The remaining portion of the MUD would include C-1 Retail useswith any required exclusions based on negotiations. Of course, the office-condo neighbor will be thrilled there wont be a competitor next door!

The parcels might include, for example, a 1-acre hard corner bank site, a 1.5-acre restaurant pad and a 3.5-acre shopping center, with the conceded benefits to the neighbors/zoning board of increased landscape buffers, cross access and parking mandates for the entire lot. There may be minor increased requisites for aesthetics, landscaping, etc. However, the developer can now build his self-storage project in a first-class location and sell (or develop) the remaining parcels.

Lets take a look at how the economics might look if he decides to sell. Assume the following sale prices:

• $522,720 for the 1-acre bank site ($12 per square foot)
• $653,400 for the 1.5-acre restaurant pad ($10 per square foot)
• $914,760 for the 3.5-acre retail strip parcel ($6 per square foot)

Subtract those amounts from the $2.18 million cost of the original 10-acre parcel, and youre left with an $87,120 price tag for the self-storage project. Thats not bad when you consider the fair market value of an entitled self-storage site of that size is $800,000 to $1 million.

Although the exact numbers will vary, this opportunity is available in most major markets across the country. In fact, its often easier to find an attractively priced 10- to 15-acre MUD in a prime location than it is to find a suitable 4-acre site properly zoned for self-storage. Now thats how you have fun playing in the MUD!

Jeff Eckols is a veteran real estate attorney and president of San Antonio-based Maverick Investments, which handles land and property acquisition, sales and development. He has been involved in the development of 16 Noah's Ark Self Storage locations and facilitated the sale of 10 storage complexes in the last three years. For more information, call 210.477.1707.

Mike Parham is the founder and president of San Antonio-based Noahs Ark Development, which executes market analysis, preliminary site review, site development and land contracting. Parham launched his career in self-storage more than 20 years ago as the owners of NDS Construction, where he serves as CEO. NDS is a full-service design/build construction company responsible for the completion of more 300 self-storage projects. For information, call 210.477.1220; visit www.noahsarkselfstorage.com. 

In what can only be described as a significant and defining victory for the self-storage industry, Guardian Self Storage of New York won a discrimination complaint filed by a potential customer with the New York State Division of Human Rights. The facts and background of the case were detailed in the May issue of Whats in Store, the member newsletter of the New York Self Storage Association (NYSSA).

A customer attempted to rent a unit at one of Guardians 12 facilities. When the manager requested identification, the customer offered only a copy of a Jamaican passport and a disconnected cell-phone number. She claimed to have no Social Security number, and no other photo ID or verifiable information. Following the Know Your Customer protocols developed by the NYSSA and Guardians standard rental procedures, the manager refused to rent to her.

Claiming to have been discriminated against, the customer filed a complaint, seeking $5,000 in damages. The Division of Human Rights launched an investigation to determine the facts of the situation. On April 19, it released its decision:

If the Complainant had provided Respondent (Guardian) with proper forms of identification , Respondent would have rented a storage facility to Complainant. Respondent properly followed its own lawful policies in denying Complainant the rental of a storage facility when Complainant could neither produce valid forms of identification, nor did she have a valid address or operable phone number. The Respondent has advanced a non-discriminatory, business reason for the treatment of Complainant. This reason was not found to be a pretext to discriminate. The complaint is therefore ordered dismissed and the file is closed.

NYSSA President Chris McGrath explained that even though this is not an Appellate Court decision, it is significant. It confirms that businesses in which proper verifiable identification is a critical element of the written contractaffecting an interest in real propertymust have the right to verify the ID of the party to be charged with responsibility under the contract.

We are delighted by the determination rendered in our favor, said Kelley Redl- Hardisty, CEO of Guardian Self Storage. Since 9/11, we have received informational notices from the FBI and the New York State Office of Public Safety that stress the importance of being sensitive to measures that will help prevent violence and attack. At Guardian, our managers are the first line to ensure safety and security. Our manager carefully followed our own policies in refusing to rent a unit to a person without proper, verifiable ID. Fortunately, the Human Rights Commission was not swayed by the attempt to allege discrimination.

The lesson for all self-storage owners and managers is the importance of following rental procedures. I know there are times when a prospective customer seems desperate for your help, but you should never violate your companys policies. If you dont have a set of written guidelines, ask your state self-storage association or a fellow operator for help with putting some in place.

Every owner across the country should join me in congratulating the Guardian management team for defending their business and the entire industry against unfounded charges. I hope their experience encourages you to review your rental procedures for consistency.

Weeding Out Weeds

All of us struggle to keep up with weeds on our properties. My home in Virginia is surrounded with wood mulch instead of grass, and despite diligent efforts to remove weeds, some are very stubborn indeed, particularly the poison ivy that grows near the woods.

I live on a water recharge area, and any chemicals I use on the lawn end up in the lake. While looking for an all-natural product online, I stumbled across a local company, St. Gabriel Laboratories, a commercial research lab founded by the Reuter Co. in 1986. It produces a full line of natural products designed to eliminate weeds forever. I was skeptical until I started reading the ingredients: clove oil, sodium lauryl sulfate, vinegar, citric acid, mineral oil, lecithin and water.

I ordered two products, Burn Out and Poison Ivy Defoliant; and like a kid with a new toy, I got out my liquid sprayer and started on the weed patch. To my pleasant surprise, the product started having an effect within an hour. After about four hours, I saw a remarkable change. By the following morning, all of the weeds had been killed. Armed with those results, I attacked the poison ivy. Once again, I saw great results within a couple of hours and, by morning, all of the leaves and plant stocks had withered.

I dont want to mislead you into believing you can use these products carelessly. The companys mandatory Material Safety Data Sheets disclose serious consequences that can result from direct contact with the skin or prolonged breathing of the vapors. But you cant beat the results. If you want to eliminate the weeds and unwanted grasses at your facility, give them a try. Visit www.milkyspore.com for more information.

ISS Miami Expo 2005

I urge owners and managers to attend the Inside Self-Storage Expo at the Hyatt-Regency in Miami, Oct. 26-29, which promises an outstanding line up. The event kicks off with a developers seminar hosted by the Florida Self Storage Association, which got rave reviews at last years show, and a keynote presentation by Gayle Carson, author of Winning Ways: How to Get to the Top and Stay There.

The expos educational programs are well-balanced between development and management issues. Whether youre new to the industry or a veteran, youll find new ideas awaiting you on this years agenda. Owners should consider sending their employees to the managers workshop taught by industry expert Joe Niemczyk, president of Executive Self Storage Associates Inc. His entertaining, enlightening full-day seminar has helped thousands of managers improve their bottom-line performance.

As always, the tradeshow will feature a wide selection of premier self-storage suppliers. If you dont have time to attend the entire show, exhibits-only registration is available. I am honored to again be a speaker at the ISS expo, and I hope to see you in Miami!

Jim Chiswell is the owner of Chiswell & Associates LLC, which has provided feasibility studies, acquisition due diligence and customized manager training for the self-storage industry since 1990. In addition to being a member of the Inside Self-Storage Editorial Advisory Board, Mr. Chiswell contributes regularly to the magazine and is a frequent speaker at ISS expos and other industry events. For more information, call 434.589.4446; visit www.selfstorageconsulting.com.

A decade ago, there seemed to be an aversion for records storage within a self-storage environment, mostly because of simple ignorance of the product. My daddy once told me, Son, theres a difference between ignorance and stupidity. All of us are ignorant of something, and theres nothing wrong with that. The stupid people are those who dont understand theyre ignorant.

Thankfully, times have changed. Records storage often finds a home in self-storage, even though one requires lots of active participation with customers and the other is a fairly passive business. How do you reconcile these diverse models? By taking advantage of the technology, techniques and management styles currently available. But first, lets look at the different types of records storage.

Traditional Records Storage

In the past, traditional records storage was a stand-alone business with demanding requirements for capital, personnel and outside sales. The owner of a traditional records center came from industries like moving and storage, warehousing or transportation. Because the operation was usually undercapitalized, the owner had to wear many hats, including that of salesperson. This meant the business grew very slowly.

Today, traditional records storage involves a new entity: private equity. There are now about 10 private-equity groups buying commercial records centers with the single goal of purchasing market share. These companies look at the industry as a way to achieve permanent return on their investments. Their profit model relies on the annuity revenue of storage volume plus annual creep (record growth minus record destruction).

The good news is this model gives the industry an attractive investment strategy. Revenue always increases because of the permanency of storage along with the built-in growth factor and annual rate hikes. The bad news is the cost of buying mature records centers is high, and there are only so many good ones to acquire. There are about 100 peak performers worldwide, and theyre not for sale because theyre cash cows. They have millions of boxes in storage in the worlds largest marketsHong Kong, London, Los Angeles, New York, San Francisco, Singapore, Sydney, etc.

Nontraditional Records Storage

Now lets get to the heart of the matter: Nontraditional records storage has become more prominent in the last decade. Its very different from traditional storage in its form, content, services, operations, management, marketing and sales. Best of all, it has distinct advantages.

Nontraditional records storage generally emerges within the walls of an existing business with an established client base. Its most lucrative when coupled with self-storage. Why? Self-storage has certain attributes other businesses lack, such as rentable storage space, a local base of business clients, personnel, a storefront and a need for ancillary services.

Rentable storage space. Self-storage always has space to rent. The only difference between self-storage and records storage is square vs. cubic footage. With records storage, you get to charge for height as well as width and depth.

Local client base. Self-storage customers usually come from the surrounding neighborhood, which almost always contains small businesses. This is a great advantage to records-storage operations, which thrive on this target market.

Personnel. No additional employees are necessary to operate nontraditional records storage. Outsourcing and current staff can handle the load.

Storefront. As a self-storage operator, you have something your traditional competitors dont have: walk-in traffic. Hundreds or thousands of prospects may walk through your door every year, and some of them will represent small businesses that need records storage.

Need for ancillary services. In todays business environment, storage facilities must diversify their services to compete. Options include post and shipping, truck rentals, wine storage, boat and RV storage, etc. Records storage adds extraordinary value for business clients, as youll read later.

Working Without Exception

The most illogical myth about records storage is it only works in small markets where self-storage is overbuilt. Nothing could be further from the truth. Here are four real-life examples to demonstrate the success of records storage in diverse markets.

Our first example is an eight-facility self-storage operator in a top-five U.S. market with a population of more than 5 million. Each facility is owned separately but managed by the same company. Their business plan has included the sale of records storage to walk-in traffic for nearly 10 years. It also contains two key ingredients: a training program and a compensation program for office personnel. Over the past decade, the facilities have amassed thousands of records-storage boxes. Last year, the operator built a full-service, traditional facility and employed its first full-time salesperson. It continues to operate nontraditional storage out of its storefronts.

Example No. 2 is a single self-storage facility in a fast-growing suburb of a large regional market. It is a showcase facility in look and style and has more than 1,800 units. The owners understood the need for hiring qualified office staff who could cross sell their various high-end services. They began their records-storage business more than 10 years ago and have collected several hundred thousand boxes. Two years ago, they built a new warehouse on their property and transitioned to a traditional records center with a full-time general manager and salesperson.

Our third case is a facility in a small market of less than 100,000 people. The owner decided early on that he wanted only customers who would have little or no need for services such as retrieval (known as under the minimum accounts). In about seven years, he has achieved 35,000 boxes at an average yield of 75 cents per cubic foot. He offers very little by the way of extras but generates great cash flow.

The last example is a downtown self-storage facility in a city of about 500,000 people. The multistory building has a first floor with 16-foot ceilings and convenient drive-in bays. The shelving was constructed with a catwalk and accommodates about 60,000 boxes. The facility has been full for years. Every year, rates go up, and the owner manages his growth by firing the worst-paying client and allowing a more reliable customer to fill the space. He serves only the downtown market with bicycle and foot-courier service.

The list of success stories goes on and on. Dont let anyone tell you records storage doesnt work in self-storageit simply isnt true. It works in large, medium or small facilities in huge or even the tiniest markets. The only caveat is it requires a sound strategy for marketing and implementation.

The Service Model

As part of your business plan, you must know what your offering will mean to the local market, i.e., your service strategy. There are roughly 37 services commercial records centers can offer. You define your business via those you have the desire, capital and resources to provide. Keep in mind that all services require:

• PeopleThere are four staffing models: full-time, part-time, temporary and outsourced. None are inherently good or bad. You choose the option that best fits your operation.
• ProcessYou must have policies and procedures for providing services, i.e., an operating manual. Policies define the limits of a service, and procedures outline the steps to a predetermined result.
• TechnologyOne of the best things about technology is it allows us to do more with less. Choosing the right tools can reduce personnel requirements and increase profit margins.
• ManagementRegardless of the role technology plays, you need management to achieve your objectives. Resources can be automated to a great degree, but only managers can provide supervision.

The Profit Model

In records storage, theres a big difference between price and yield. This is perhaps the most misunderstood aspect of the business. Your price list may show a specific figure, but your yield per unit of storage may be twice or three times that number. This is not magic. It requires you to carefully construct your services, contract and pricing to optimize yield.

In traditional records storage, its common for price and yield to be identical or to vary within 10 percent of each other. In nontraditional records storage, there are a dozen or more factors that raise yield while keeping overall costs low. (For more details about how this works, read Price and Yield Differences in the May 2003 issue of Inside Self-Storage, also available in the archive at www.insideselfstorage.com.)

The Value Model

Value is defined by the client, not the vendor. To understand value of any service, you must know what is important to your customers. Space is never the issue in records storage. Business customers can get that anywhere. The real issues are convenience (ease of use plus expediency) and compliance.

Compliance is indeed king of the hill. It has been driven by regulation, litigation, malicious behavior on behalf of employees, and terrorism. People want to keep their records safe and confidential, maintaining documents integrity and ensuring they will not be lost or mistreated. The provision of that service is far more important than storage itself. As Forrest Gump might say, Value is as value does.

Success Model

When it comes to nontraditional records storage, success is not the result of a single factor but several. When it comes down to it, youre the one who determines the scope of your operation. The business potential is constrained only by desire, capital and resources. Records storage can work in even the simplest model in the smallest facility.

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