5 things you must do to thrive in 2011 & beyond

5 Things You Must Do To Thrive in

2011 and Beyond

WE ARE HERE TO HELP EACH OTHER

MARKETING

Additional ways of marketing in

this economic environment

Yellow Pages & Internet Marketing

• Yellow Pages- Because of the decrease in

usage, most reps will give you much cheaper

pricing than past years. The difference you

save in your yellow page budget should be save in your yellow page budget should be

moved over to optimizing your internet

listings.

• Internet- Plain & Simple. If you’re not on it,

and optimized, you’re losing rentals!

Affiliates

• Be sure to offer a referral commission

• Local Businesses

• Moving Companies

• Apartment & Condo Complexes• Apartment & Condo Complexes

• Realtors

• Competition!

Referral Programs

• A common program that works is a $25 credit

for the referrer (current tenant) and a free

month for the referral (new tenant).

• Mail your current tenants once every 3 • Mail your current tenants once every 3

months with a referral letter and referral

cards.

• Give referral cards to all new move ins and

keep a stack on your office counter.

Other Creative Marketing

• Online Radio Spots- Many people listen to

online radio at work. Cheap sponsored video

links are available via “listen live” button on

radio station websites.radio station websites.

• Bus Benches- Place advertisement on bus

benches surrounding competition. Provides

cheap permanent signage.

• Neighborhood school buses w/ signage.

Bus Bench Advertising

School Bus Advertising

Power of Viral Media

• Remember

• A happy customer will tell 3 people about the

experience at your store. An Angry Customer

will tell 16…...16,000 (Youtube, Twitter, etc..)will tell 16…...16,000 (Youtube, Twitter, etc..)

• * The Power of Viral Media: Angry Customers

Armed with New Weapons : Teri Lanza: Inside

Self Storage.com

CUSTOMER SERVICE

Who Uses Storage

2009 Almanac• Residential 74.4 % of all rentals and stay 13.7 months

• Commercial are 20.8% and stay 22.5 months

• Military are 2.9% and stay 11.8 months

• Students are 1.9% and stay 4.5 months

*Ten years ago Commercial users were only 10% of the market

and had an average stay of 24 months however Residential

users only stayed 4-6 months.

Stanford University Study

• 17% of customers will choose the highest

price for any service.

• 13% of customers will choose the lowest price

for any service.for any service.

• 70% of customers choose a service based on

something more than price!!!!

* Stanford University Study (Mini Storage Messenger, July 2009, Does it Pay to Discount?)

Services To Offer

• PO Box area, Conference room.

• Wireless internet.• Wireless internet.

• Coffee, Hot Chocolate, Water.

• Accept deliveries.

• Garage sales.

• Select a local charity.

PRESENTING YOUR PRODUCTS

Stand Out !

COMPARE YOURSELF TO

COMPETITION

• The latest statistics show there are an average of 7

competitors within a 5-miles radius.

• What does their office look like? Spacious, clean…

• What does their merchandise area look like?• What does their merchandise area look like?

• How does it smell?

• What are the managers like? Knowledgable, professional…

• What is their CLASS (A,B or C)? Any competitor that is less

than a Class C do NOT include as competition.

Class Types of Properties

• Class A Properties: Properties featuring above-average design and

construction quality. Offer a Retail Area and have a Security System along

with Computerized Access. Typically have an On-Site Manager.

Command the higher rental rates and have a superior location in terms of

desirability or accessibility.

• Class B Properties: Properties with adequate design and construction • Class B Properties: Properties with adequate design and construction

quality. Have Computerized Access along with an On-Site Manager. These

typically command average rental rates and are generally well-maintained

and desirable to most tenants.

• Class C Properties: Properties offer adequate functionality but few

amenities. The physical condition is acceptable but may have some

deferred maintenance. Command below-average rental rates and are in a

less desirable location.

Office Area

• Large office area room for merchandise.

• Managers in uniform or dressed

professionally.

• PO Box area, Conference room.

• Wireless internet.

• Security monitors visible.

• Coffee, Hot Chocolate, Water.

Property

• Unit with no garbage & swept clean.

• Clean golf cart for customer to ride on.

• On cart have water and sealed locks.• On cart have water and sealed locks.

• Signs pointing out security. Cameras,

Alarms.

• Temperature controlled building

connected to office.

• Does facility need painting?

Visibility

• Landscaping crisp and clean.

• Signage…electronic reader board,

banners, wind socks.

• Windows on a multi-story building.

• Can roll up doors be seen when driving

by?

Manager Support & Training

Where to Find Information?

LegislationWHAT HAS CHANGED?

• Review Trade Magazines Monthly: ISS, Mini

Storage Messenger, SSA, State Association

Publications

• National and State Association Trade Shows: • National and State Association Trade Shows:

Each trade show typically has information in

relation to the changes in legislation

• Legislative Work Shops: Typically 4 - 8 hours

in length

• Attorney: Have attorney review statutes

Technology

SMART PHONES, IPADS, FACEBOOK, TWITTER,

ONLINE SOFTWARE, KIOSKS, SEO WEBSITES

WE ARE NOT IN KANSAS ANYMORE….

• Review Trade Magazines Monthly: ISS, Mini • Review Trade Magazines Monthly: ISS, Mini

Storage Messenger, SSA, State Association

Publications

• Internet: Review technology related sites and

blogs

• Test: Go to Trade Shows, Best Buy, etc. and try

items out, see if it works and will it help NOI.

Management Techniques &

Operational Methods

• Consult Industry Experts: Management

Companies or Industry Consultants

• National and State Association Trade Shows:

Workshops and Speeches are a great way to Workshops and Speeches are a great way to

keep on up updates in techniques and

methods.

• Read: Industry Trade Magazines, Success

Magazine, Entrepreneur Magazine, browse

Barnes & Noble and Amazon.com for

Train & Implement

• After you have done your research decide the

time line for training and implementation.

• Training, depending on the extent of the

project, should be done onsite. Written

Instructions & Procedures should be provided Instructions & Procedures should be provided

• Smaller projects will implement quickly:

Phone System, Online Software, Social Media.

• Larger projects will implement on a longer

time table: SEO Websites, Kiosks, Paperless

Transition.

Follow Up

• Implementation without Follow Up is

worthless.

• Never leave a project to chance. After

Training and Implementation make sure your

Regional Managers and Facility Managers are Regional Managers and Facility Managers are

comfortable with the new items. If not,

consider additional training.

• Is the project having a positive effect on NOI.

MANAGING REVENUE

Cut Expenses

Expenses

• Reduce size of Yellow Pages.

• Internet presence. (free sites pay per click)

• Eliminate security deposit go to Admin. Fee.

• Discount pre paid units.• Discount pre paid units.

• Shop credit card processing companies.

• Invoice by e-mail.

• Up collection call.

Expenses

• Appeal Property Taxes.

• If climate controlled resent thermostat settings.

• Install energy efficient bulbs and ballasts.• Install energy efficient bulbs and ballasts.

• Install motion sensors.

• Possibility of solar panels.

• Switching phone service provider.

• Remove dumpsters.

Expenses

• Insurance

1. Increase deductibles.

2. Membership through certain types of

organizations.organizations.

3. Reduction when grouped with other sites.

4. SHOP THE POLICY.

Payroll

• Approximately 81% have implemented a

hiring freeze or staff reductions.

• Reduce benefits…Medical Insurance, vacation

and sick time.and sick time.

• Prohibit overtime.

• Cross Train - sharing employees between

multiple sites.

Payroll

• Cutting office hours. Example from 8 hours

business days to 6 hour business days.

• DO NOT make managers subcontractors.• DO NOT make managers subcontractors.

YES! Raise Rates

Why We Raise Rates:

1. Raising rates is normal, expected and NEEDED!

2. For a facility to stay profitable we must increase

rates to counter the increase of expenses.

3. If you are 100% occupied you are losing 3. If you are 100% occupied you are losing

customers.

4. Operating Expenses increase every

year…PAYROLL!

Making Increases Easier!

• Involve manager on what reasons why, how

much to raise and authority to handle any

customers who have a concern.

• Get tenants on auto pay credit card!• Get tenants on auto pay credit card!

• If multi story higher floors less likely to move

out.

When To Increase.

• Any time any given size is over 95% occupied. (RENT PUSH)

• Any time you add anything of value to the facility...facility...

1. New Security Features.

2. Maintenance such as painting of building or doors, new asphalt…

3. Opening of new units.

When To Increase.

• Opening of new competition.

• Extremely HOT months!

• Extremely COLD months!• Extremely COLD months!

• When competition does.

Why 2 Increases A Year:

According to the 2009 Self-Storage Almanac in 2008:• Average residential stay is 13.7 months a 11% gain from 2006.

• Average commercial stay is 22.5 months a 8.3% gain from 2006.

• Average Military stay is 11.8 months a 8.6% gain from 2006.

• Even students average a 4.5 month stay in 2007.

• If we increase 2 times a year when the average tenant receives the second increase and calls. We tell them because they are a GREAT tenant we will cut the second increase in half. The facility still achieves a 10% increase, the tenant loves us and may stay longer than the average because we worked with them.

.

Example On Increase.

• If we have 100 tenants paying $100 each and you raise 2 times at 7% at the end of a year the unit is $114.

• Before increase 100 X $100 = $10,000.• Before increase 100 X $100 = $10,000.

• If lose 10% because of increase collect 90 X $114 = $10,260.

• This is an increase of $260 per month plus you now have 10 units to rent at $114 per month.

WHY IS A FEASIBILITY STUDY

NEEDED

• IF YOU DO NOT PLAN CORRECTLY NOTHING WILL MAKE A

POOR LOCATION GREAT!

• Most lending institutions REQUIRE a feasibility study prior to

applying for financing.applying for financing.

• To determine if you are paying too much for the land.

• Is there enough demand for storage in the area?

• What is the quality of competition in the area?

• What is the proper unit mix for this area?

• What type of return you can expect at this location.

7711 South Main Street Midvale, Utah 840477711 South Main Street Midvale, Utah 84047

801.273.1267 801.208.0431 FAX

1-866-970-EDGE (3343)

www.cuttingedgeselfstorage.com