Category Archives: Profit Center for Your Self Storage

Adding the 40+ profit centers available in Self Storage to increase your revenue and business.

Alternate Forms of Revenue: Opening a UPS Store

Posted on by
1

As an entrepreneur, chances are you’re looking for every medium possible that can help bring in extra money. Whether it’s adding on a coffee shop, putting in a vending machine, or becoming a certified UPS store, there are always ways to capitalize on your building’s space. Think of the first person to cram a Wendy’s or McDonalds into a gas station. It may have seemed like an unlikely combination at first, but by cutting back on overhead (using a single building) and increasing convenience (the “convenience” store), owners can significantly increase their profits.

One such venture is to turn your facility into a UPS store. This is a combination, unlike gasoline and hamburgers, that goes hand in hand. For example, UPS stores sell packing supplies, boxes, labels, etc. When customers are bringing in items to store, they have easy access to the supplies they will need. And, on the other side, those who come in to pick up or mail a package learn about your storage facility. Plus, you’ll be earning money from the store’s sales, only a fraction of which goes toward royalty and franchise fees.
Continue reading →

Offering Truck Rental Services at Your Storage Facility

Posted on by
Reply

As a self storage facility owner, you may wonder what connection truck rental companies can have with your business. Yes, you’re both in the same field, but generally it’s the customers who rent their own trucks, right? Not necessarily. By pairing with a rental truck service and pooling resources, you can not only make the moving process easier for customers, but can make money in the process. And since you’re offering an all-in-one-stop, renters are more likely to see your bundling services as a way to save time.

Whether you partner up with a specific truck rental company, or decide to offer advice and reviews on all available options, branching out to truck rentals is a great way to expand your business. One storage company in Columbus took the partnering route in order to join forces. Just a few weeks ago, Chatterton Self Storage announced they would be renting out U-Haul trucks to their customers. The trucks will be located on the premises to help reduce travel time and hassle for future movers.
Continue reading →

Don’t Overestimate the Self Storage Competition

Posted on by
Reply

Over the years I’ve seen and heard hundreds of excuses for people not starting their own self storage business. “There’s already too many facilities in our area.” “I wouldn’t know where to start.” Or, “My neighbor rents from such-and-such.” And while the excuses themselves may vary, they all have the same theme: overestimating the competition. Many of these startup businesses fall short before they can even launch due to lack of confidence. But, there are several reasons you should have faith in your abilities.

Why Certain Fears are Invalid

When I hear “There’s already too many facilities in our area,” I always ask for more info. How many facilities? Are there climate-controlled units? Individually alarmed? Business Centers…? More often than not, these questions can’t be answered. Just because there are “a lot” of self storage facilities doesn’t mean every market is covered. Many owners overestimate what their customers will want, offering services that are more than consumers are willing to spend. Others may have underestimated storage needs. The key is to find a gap in the market and take advantage of it.
Continue reading →

How to get into the Self Storage Business Part 4: Cashing in on your Networking Skills

Posted on by
Reply

In our past few blogs, we’ve talked about some of the essential skills one should have when starting a self storage business, or any property-ownership business for that matter. We’ve shared our expertise on the importance of learning to network, but now we’re going to take it a step further and show you how to capitalize on those connections. With solid networking skills and maintaing business relationships, you can help further your company in ways that, alone, would have never been possible.

First of all, it’s important to follow up with your connections. (Trust me, I would have gotten nowhere in this business without learning how to network.) Whether you’ve met a fellow property owner at a convention, through an online meeting, or while getting your oil changed, you should be sure to cash in on that relationship. So, what is a follow up? It’s a second chance to talk to a connection, remind them of who you are, and to discuss where you’d like your working relationship to go. It shouldn’t be too forward or intimidating, just a chance to say, “It was nice meeting with you; are you interested in working together in the future?”

Start off by reminding the connection how they met you, “We met on such-and-such day and talked about this-and-that.” (It’s best to follow up within 72 hours of meeting so faces and conversations haven’t been forgotten.) This will help the connection feel at ease and confident that you aren’t a telemarketer or a cold caller. For example, when I meet a new person, I make a point to talk about something interesting so they’ll be sure to remember the conversation. Ask them if they heard about that storage company selling their property for $1, or how do they feel about giving their customers stock options?

Then, once you’ve got them to remember you, it’s time to discuss your future plans. Is the connection a contractor who you’d like to work with? Are they looking for rental space, which you have to offer? Do you simply want to keep each other in mind if an opportunity should arise? It’s also a good idea to offer an incentive so they don’t feel as though you’re hunting for a sale/handout. “If you rent with me, I’ll offer you a six month discount,” or “Do you offer any construction deals for first time clients?”

Finally, now that your connection has been made, keep the relationship alive. Perhaps you ended up doing business together, or maybe you simply earned a space in the other’s rolodex. Either way, it’s a good idea to make yourself fresh in their mind – after all, what is it going to hurt if you send the occasional email? LinkedIn connections are also a great way to keep in touch, or if you have a company newsletter, add them to the mail out list.

With these networking tips, you’ll be sure to help stay on top of your connections, and manage to give yourself the upper hand in your new business venture.

Self Storage Business Expansions Prove Market is Stable

Posted on by
Reply
With the current strain that the economy has caused many businesses, it’s not hard to see why many have began to broaden their horizons.  In uncertain times, small business owners are the first to realize just how much a bum economy can affect their profits.  And as property owners, their services may be some of the first to be seen as “trimmed fat.”  However, rather than selling, jacking up their prices, or, just closing up shop, many self storage companies have chosen a different option: branching out.

In the past year we have seen a number of property investment companies not only join up their businesses, but begin to offer more for their current customers. A business that used to offer self storage services is now providing moving truck rentals — an all-in-one deal.  And a company that once focused on storing documents or other climate-controlled items, might now break into the real estate market and start its stint with property rentals.  Other businesses are simply partnering with one another to ensure shared patronage, an example of networking to the extreme.

These company expansions are a show of the self storage market’s willingness to adapt and change in order to continue its success.  It’s also proof that the storage business continues to thrive.  A failing company does not have the ability to expand its empire. The fact that storage company after truck rental business continues to do so shows they have the collateral to support it.  Seeing others expand should be reassuring to any small business owner.  It reassures that the self storage market, despite a down economy, is profitable and stable.

INSOMNIAC Kiosk Provides Immediate Results for OpenTech Customer

Posted on by
1

In Phoenix, Arizona, long-time family business partners are excited to report early success with their newest business venture—A+ East Mesa Storage in Las Cruces, New Mexico. Brian Hurd, his brother-in-law, Johnny Curry, and his father-in-law, John Curry, have partnered together on their most recent project, a storage facility consisting of 150 storage units on three acres of land in Las Cruces.

Hurd and his partners opened the new facility in May 2010. In a recent article, Hurd says that he owes a lot of credit to the INSOMNIAC 900 Kiosk for renting out an amazing 76 percent of the total units rented. Hurd said, “This kiosk concept makes perfect sense. Our facility is essentially run unmanned and is saving us money to help us add more units, and that is a beautiful thing.” Their plan is to reach their current occupancy goals, then move onto phase-two of their project—adding 150 additional units.

According to Hurd, he was at first concerned that his customers might be intimidated by the technology of the INSOMNIAC Kiosk, but the ability to review the digital recording of each transaction has been very valuable. Hurd said, “It’s all been positive. Having a kiosk is so convenient for my customers and for me.” Furthermore, the Kiosk has given A+ East Mesa Storage a competitive advantage, in that they are the only facility in the area offering this service.

A+ East Mesa Storage is strategically placed in an up-and-coming area of Las Cruces, about eight miles from the center of the city. Preoccupied with the construction process, Hurd admits that he has not been aggressively marketing the units. According to Hurd, “We are starting to have good luck with newspaper ads, our web site and running promotions on our banner outside the building.”

In addition to saving Hurd and his partners in significant overhead costs of running an office on-site, he believes the kiosk has given him a great competitive advantage over other storage facilities, and he used the following example to illustrate his point. He had a very challenging customer who was very pleased with his experience using the kiosk to contact the call center. When Hurd later called the customer to follow up about the video transaction, the customer had very positive feedback about the ease of the transaction, and the ability to speak with somebody live to assist him. The customer was shocked at the ease of the transaction; he said that all he had to do was sign his name, and they took care of the rest. Hurd is thrilled with the feedback, noting “My customers can rent units and pay bills any time of day or night.”

The INSOMNIAC Kiosks were developed by OpenTech Alliance, Inc., the leading developer of innovative self-storage solutions. The company produces seven models of INSOMNIAC Kiosks with a price range from $4,900 to $18,000 per unit. The Kiosk, the INSOMNIAC Live! call center services and network for online reservations, provide a unique convenience for your customers. In addition, OpenTech products reduce operating costs and increase revenues for self-storage facility owners.

We’ve been using Kiosks at our facilities since the technology was introduced. I know Bob and the rest of his team very well – back in the days when the President used to make sales calls. We have seen an increase in both rentals and a reduction in Late Pays since we have installed and implemented the kiosks . We’ve also been able to decrease our Manager’s hours at each location as a result. We have several case studies and our company has recorded webinars with the staff of Open Tech alliance that teaches our students the Benefit of using this technology.

About Editor:

Scott Meyers, CSSM is the owner and President of Alcatraz Storage® which operates several Self-storage Facilities in the Midwest. Scott is a Certified Self-storage Manager (CSSM©) through the National Self-storage Association and has been a real estate investor since 1993. He was an instructor of the Landlord 101 course through the University of Indianapolis and now Scott Speaks to Investor groups nationwide and has students around the world, but mostly enjoys spending time at home with his wife and 3 young children in Indianapolis, Indiana.

Prizes Instead of Price Drops

Posted on by
Reply

Sometimes you have enough empty units that you start thinking about lowering your prices, doing a sale of some kind, or a coupon to bring in enough business to cover your empty space. I have found that when I feel like lowering prices, what I really want is better cash flow.

One of the solutions I have developed and seen over the years is the idea of a giveaway instead of dropping prices. It works like this: depending on the season, put together a nice big gift basket of interesting items, ie. beach stuff for summer, gardening tools for spring. Put that basket right on your checkout counter and then take a trip to your local craft store and buy some raffle tickets. When you get back to your office, make up a sign that says something like, “Pay 2 Months Rent, Get Two Entries to Win”, or maybe, “12 Month Advance Pay Customers Receive 24 Chances to Win!”

You can even use this to bump up your referral program, as a deterrent for late payments, whatever you need to make more money at your facility.

When it is time to pick the winning ticket, have a new customer pull the winning ticket for you. That way, they’ll feel like they ought to pay for that year in advance, too.

We’ve seen these in-house giveaways generate thousands of dollars per month revenue.

Everyone loves a good give away…

Promotional Idea: Collect Cell Phones for Soldiers

Posted on by
Reply

Sometimes the best way to promote your facilities is to reach out to the community and help someone in need. I have always said that giving to charity is a very cheap form of marketing, but a good idea, especially right now, is collecting cell phones for soldiers.

The idea is to turn old phones in to prepaid calling cards through companies like RuCellular. The soldiers can then use the cards to call home.

According to the Daily Democrat, a facility in California is doing this right now.

AAA Self Storage at 226 Dr Claassen Way in Woodland, is participating in the cell phone recycling program, Cell Phones for Soldiers.
Stop by the office between 8 a.m. and 6 p.m. to drop off phones or call 666-6800.

http://www.dailydemocrat.com/news/ci_15993040

Remember, doing business isn’t always about how you can serve the public with your storage facility, it can also be about how you can give back to the community at large. It doesn’t hurt if the idea also brings more people in to your facility.