This last week, I was talking to Diana Johnson, trainer for Watson & Taylor Management, and she was talking about the concept of the 3 C's of Appeal for Storage, that she had heard about from Bob Copper of Storage101. Our conversation got me to thinking that over the years I have been involved with several types of service industries from the full service gas station to restaurants and retail to Self Storage. Every successful organization I was involved with preached the basics that comprise the three C's of Appeal. It will help any business to draw and retain customers.
CURB appeal is the first of the 3 C's. What a potential customer sees from the outside forms their first impression. Everything from a green trimmed lawn with the proper amount of flowers and greenery to add color and personality. The parking spaces need to be swept clean with no stray cigarette butts floating about. When the striping starts to fade... refresh it. When the sun and wind fades signage... refresh it. Day in and day out your curb appeal is your Billboard to the general public.
COUNTER appeal is the second of the 3 C's. The area that you greet and wait on customers should be inviting and kept spotless. Do not have it littered with post it notes and piles of paperwork. Computer equipment should be kept dusted and cleaned, including the back side of the monitor that your customer gets to look at. You should clean the counter top where customers lean as oil, sweat and dirt builds up quickly. The front of the counter where customers shoes make contact, needs to be cleaned often. Even though the title is counter appeal, the rest of the office or customer area is included. Be sure and keep retail items dusted as well as those window ledges.
"CAN" appeal is the third of the 3 C's. It does not matter what business you are in, if a potential customer or client goes to use your restroom, and it shows neglect... It speaks volumes about everyone working there. Being on the road several thousand mile a month, a restroom affects my purchasing decision. If it is a restaurant, and the restroom is a shambles, I can only imagine what the kitchen looks like. My second thought is how does the staff get their hands clean in a dirty environment, especially if there is no soap or towels in the restroom. When stopping at convenient stores, their restroom cleanliness helps determine whether I trust the soda and ice machine to be clean as well as the freshness of the stores products. The cleanliness of your restroom is a direct reflection of You and your business! This is as true in the Self Storage business as any other. If your restroom is filthy, I can only imagine what your units look like... there will be dirt in the corners by the door rails.
As you can tell there is one "C" that is a common denominator among the 3 C's of Appeal... CLEAN! If you have time to Lean you have time to Clean. Rather than catching up on your personal Facebook account while at work, grab a rag, broom or mop... and start attracting Customers.
Smile... It is Contagious!
Sunday, September 23, 2012
Tuesday, September 4, 2012
Are You Leaving Money On The Table?
In the past several weeks, I have been asked by many in the storage industry, have you started doing rate increases again? My standard reply is "I never stopped over the last 5 years." This normally brings the reply, "But the recession?" What I end up explaining to them and will now tell you; we are running a business that must stay profitable to remain in business. The business is similar to a clock with several gears that make it operate. Rate management is one of those key gears that must be maintained properly and continually.
Let's start with our street rates. In large metropolitan areas, the average market rate changes daily depending upon various aspects and conditions. These rate changes are influenced by the REIT's as their algorithms and unit counts change. Did you notice a drop in rates among certain attribute sizes as college students vacated their units, returning to dorm life recently? Other factors such as storms can affect rates both up and down. One competitor that lost their roofs during a storm helped raise rates in a market as their tenants scrambled for new space. Now that the roofs are fixed and they are starving for occupancy, they are running units at 60% off street rate. Since this affected only one attribute size for them, we found the most undesirable units in the same attribute size and reduced rates on those units. These undesirables are the odd shaped rooms, support pole in middle of unit, end of an aisle or even an odd size door. Not only did we remain competitive, but we rented units that had remained vacant forever and weren't making zip for us. If you are in a large market, you need to be doing competitive analysis at least every 2 weeks (daily for some stores) or you will be missing trends that are stealing prospective tenants from you. With today's consumer trends, this info is easily available on the Internet. (Another reason your web site needs to be functional and trending towards customer shopping trends; including smartPhone friendly sites.)
In smaller markets, I still recommend doing competition shops at least twice a month. Talk to your competitor. You may be competitors, but you are both in business to make money. When you communicate, not only are rates more consistent, but basic operation and ancillary income ideas can be learned and shared. Also with open communications, when there are those problem customers or scammers working in an area dumping waste in your units... these things can be stopped sooner or even prevented.
Now that you have your competitors rates...what do you do with them? First I compare them to mine to see where I stand in the market. I then look at the occupancy rate of that particular attribute. Is my occupancy low and my rate the highest in the market or vice verse; high occupancy and lowest rate... then it is time to adjust. Are there certain areas in a building that aren't renting... down a long hall, etc... time to discount. Have a unit attribute that as soon as you vacate one it rents... raise the rate.
Once you have adjusted rates... time to monitor. If you had a high vacancy rate on a particular attribute and reduced the rate to a Hot Rate, be sure to watch that attribute and as those units start to fill, adjust the rate up according to occupancy standards that you predetermine. If you have an attribute that you continue to raise rates on, due to high demand... make sure that once the unit rental starts to stall... you adjust the rate.
On to the Guts... current tenant rate increases. First lets talk about timing and frequency. We have used various cycles and formulas over the years. Once a year is about as frequent as you want to issue increases. Then depending on where you are in the market, an average increase should be between 4-12%. I do not raise people above my current street rate... I even try to leave them a dollar or two below street rate.
You have to use logic and weigh your options. Lets start with the long term tenant. He moved in six years ago on a $50 rate. The current Market rate on the unit is $75. You have a steady occupancy of 82-87% on that particular attribute, a 10% or $5 rate increase is more than reasonable. If the tenant leaves due to increase, your probability for release at a higher rate is in your favor. Second Scenario; tenant moved in a year ago and the street rate is $2 above his current rate. You have a 60% occupancy on that particular attribute size, the advice is to let sleeping dogs lie. Scenario number three; The tenant moved in a year ago on a "Hot Rate" due to low occupancy. You now have reached peak occupancy levels for that attribute. The tenant rate is $60 and the current street rate is $100; then my recommendation is around a 30% increase to $78.
As you can see... the competitors info is important for both exercises. Plus it gives you an opportunity to "KNOW" your competition.
Managers ask why we have to raise rates on good paying long term tenants. Because every tenant expects roofs to be fixed, A/C's to be replaced when needed, trash removed from the property and the lawn cut and kept. In the last eight months, 96% of my vendors have raised rates on the services they provide my facilities. You're not getting rich raising rates, you are simply covering ever expanding costs.
I am a Business not a Charity, although there is nothing wrong with being charitable to a degree. We all have a unit or two that we donate to some worthy organization or charity. While you are reviewing the rent rate variance list... these units will most likely stand out. It is a good time to evaluate if you are getting any return for your donation. Several of these spaces are donated with the promise of; mention in programs, website links, publications, newsletters etc. This is a good opportunity to follow up on those agreements, and even possibly suggest other marketing ideas to help spread your name in their organization.
Now just a little math for you. Back during the Twenties and Thirties, you could buy a 12oz. Coke for .05 cents. Yesterday, I bought a 12 oz. bottle of coke at the convenient store and it was $2.19. That is about a 5% price increase for each year over almost eighty years.
SMILE...... It is Contagious!
Let's start with our street rates. In large metropolitan areas, the average market rate changes daily depending upon various aspects and conditions. These rate changes are influenced by the REIT's as their algorithms and unit counts change. Did you notice a drop in rates among certain attribute sizes as college students vacated their units, returning to dorm life recently? Other factors such as storms can affect rates both up and down. One competitor that lost their roofs during a storm helped raise rates in a market as their tenants scrambled for new space. Now that the roofs are fixed and they are starving for occupancy, they are running units at 60% off street rate. Since this affected only one attribute size for them, we found the most undesirable units in the same attribute size and reduced rates on those units. These undesirables are the odd shaped rooms, support pole in middle of unit, end of an aisle or even an odd size door. Not only did we remain competitive, but we rented units that had remained vacant forever and weren't making zip for us. If you are in a large market, you need to be doing competitive analysis at least every 2 weeks (daily for some stores) or you will be missing trends that are stealing prospective tenants from you. With today's consumer trends, this info is easily available on the Internet. (Another reason your web site needs to be functional and trending towards customer shopping trends; including smartPhone friendly sites.)
In smaller markets, I still recommend doing competition shops at least twice a month. Talk to your competitor. You may be competitors, but you are both in business to make money. When you communicate, not only are rates more consistent, but basic operation and ancillary income ideas can be learned and shared. Also with open communications, when there are those problem customers or scammers working in an area dumping waste in your units... these things can be stopped sooner or even prevented.
Now that you have your competitors rates...what do you do with them? First I compare them to mine to see where I stand in the market. I then look at the occupancy rate of that particular attribute. Is my occupancy low and my rate the highest in the market or vice verse; high occupancy and lowest rate... then it is time to adjust. Are there certain areas in a building that aren't renting... down a long hall, etc... time to discount. Have a unit attribute that as soon as you vacate one it rents... raise the rate.
Once you have adjusted rates... time to monitor. If you had a high vacancy rate on a particular attribute and reduced the rate to a Hot Rate, be sure to watch that attribute and as those units start to fill, adjust the rate up according to occupancy standards that you predetermine. If you have an attribute that you continue to raise rates on, due to high demand... make sure that once the unit rental starts to stall... you adjust the rate.
On to the Guts... current tenant rate increases. First lets talk about timing and frequency. We have used various cycles and formulas over the years. Once a year is about as frequent as you want to issue increases. Then depending on where you are in the market, an average increase should be between 4-12%. I do not raise people above my current street rate... I even try to leave them a dollar or two below street rate.
You have to use logic and weigh your options. Lets start with the long term tenant. He moved in six years ago on a $50 rate. The current Market rate on the unit is $75. You have a steady occupancy of 82-87% on that particular attribute, a 10% or $5 rate increase is more than reasonable. If the tenant leaves due to increase, your probability for release at a higher rate is in your favor. Second Scenario; tenant moved in a year ago and the street rate is $2 above his current rate. You have a 60% occupancy on that particular attribute size, the advice is to let sleeping dogs lie. Scenario number three; The tenant moved in a year ago on a "Hot Rate" due to low occupancy. You now have reached peak occupancy levels for that attribute. The tenant rate is $60 and the current street rate is $100; then my recommendation is around a 30% increase to $78.
As you can see... the competitors info is important for both exercises. Plus it gives you an opportunity to "KNOW" your competition.
Managers ask why we have to raise rates on good paying long term tenants. Because every tenant expects roofs to be fixed, A/C's to be replaced when needed, trash removed from the property and the lawn cut and kept. In the last eight months, 96% of my vendors have raised rates on the services they provide my facilities. You're not getting rich raising rates, you are simply covering ever expanding costs.
I am a Business not a Charity, although there is nothing wrong with being charitable to a degree. We all have a unit or two that we donate to some worthy organization or charity. While you are reviewing the rent rate variance list... these units will most likely stand out. It is a good time to evaluate if you are getting any return for your donation. Several of these spaces are donated with the promise of; mention in programs, website links, publications, newsletters etc. This is a good opportunity to follow up on those agreements, and even possibly suggest other marketing ideas to help spread your name in their organization.
Now just a little math for you. Back during the Twenties and Thirties, you could buy a 12oz. Coke for .05 cents. Yesterday, I bought a 12 oz. bottle of coke at the convenient store and it was $2.19. That is about a 5% price increase for each year over almost eighty years.
SMILE...... It is Contagious!
Sunday, August 12, 2012
The Two most important Aspects of your Job
This last week, I was involved in a little exercise that was interesting. One of our auditors was speaking to a group of storage facility managers and their supervisors and support staff. He asked everyone to pull out a piece of paper and to write down anonymously what they thought were the 2 most important aspects of their jobs. There were several answers of various sorts. One of the most prevailing answer in some form or the other was "Customer Service".
After everyone turned in their answers, less than 20%, had written down one of the two answers he was seeking. Customer service was not the answer... the most important aspect of any employee is to increase a facilities income. Increasing income to continue to cover the ever rising costs of operations is crucial to a facilities success. With a facility that is aging, there are continuing maintenance expenses that must continue to be paid for. Even if you are 95% occupied, there are opportunities to increase the facilities income through rate management and various ancillary income opportunities. Although renting space is your main source of income, it is those pennies and nickels from ancillary sources that can actually make a facility profitable. Truck rentals, selling boxes and packing supplies, storage insurance, carpet cleaning machine rentals and lottery sales are some of the most common profit centers. In smaller markets, you may want to do as a friend of mine has done at her location Coker Creek Storage in Tennessee. She lives in a small community, and her storage office also doubles as a Country Store and gift shop.
The second most important aspect of a storage facility employee is to maintain and grow occupancy. During the recession, we found that loss of occupancy by holding our street rates steady affected our profit margins more than keeping a higher occupancy at discounted move in rates. Even though these discounts affected our immediate income, they were filling space that would normally be left empty and bringing in NO income. If you are using the leases that are available through your state self storage associations, there are clauses that provide for rate increases with proper notification. Using fair rate management guidelines, a customer will remain a loyal customer, as most find the cost of moving more expensive than a moderate increase. Especially, if their rate remains below the current asking street rates.
As occupancies increase or decrease, rate management of available units as well as occupied units, are as important to increasing income, as well as maintaining occupancy. You must be continually gathering market data to remain competitive. At Watson & Taylor Self Storage we gather competitive information twice a month to stay competitive in all markets. Each attribute is looked at for every facility to best determine current rates.
Now don't get me wrong.... to help maintain those occupancies and asking rates, customer service is an important element of our job. So remember.... Smile it is Contagious!
After everyone turned in their answers, less than 20%, had written down one of the two answers he was seeking. Customer service was not the answer... the most important aspect of any employee is to increase a facilities income. Increasing income to continue to cover the ever rising costs of operations is crucial to a facilities success. With a facility that is aging, there are continuing maintenance expenses that must continue to be paid for. Even if you are 95% occupied, there are opportunities to increase the facilities income through rate management and various ancillary income opportunities. Although renting space is your main source of income, it is those pennies and nickels from ancillary sources that can actually make a facility profitable. Truck rentals, selling boxes and packing supplies, storage insurance, carpet cleaning machine rentals and lottery sales are some of the most common profit centers. In smaller markets, you may want to do as a friend of mine has done at her location Coker Creek Storage in Tennessee. She lives in a small community, and her storage office also doubles as a Country Store and gift shop.
The second most important aspect of a storage facility employee is to maintain and grow occupancy. During the recession, we found that loss of occupancy by holding our street rates steady affected our profit margins more than keeping a higher occupancy at discounted move in rates. Even though these discounts affected our immediate income, they were filling space that would normally be left empty and bringing in NO income. If you are using the leases that are available through your state self storage associations, there are clauses that provide for rate increases with proper notification. Using fair rate management guidelines, a customer will remain a loyal customer, as most find the cost of moving more expensive than a moderate increase. Especially, if their rate remains below the current asking street rates.
As occupancies increase or decrease, rate management of available units as well as occupied units, are as important to increasing income, as well as maintaining occupancy. You must be continually gathering market data to remain competitive. At Watson & Taylor Self Storage we gather competitive information twice a month to stay competitive in all markets. Each attribute is looked at for every facility to best determine current rates.
Now don't get me wrong.... to help maintain those occupancies and asking rates, customer service is an important element of our job. So remember.... Smile it is Contagious!
Sunday, July 15, 2012
Make your Site more than a Cardboard Sign
Each day continues to amaze me on the advances that are made with the Internet and how the uses continue to morph for all industries. It is not only important, knowing that the tools are there for you to use, but being able to utilize those tools effectively. Many small business owners have heard over the years, 'you have to have a Web site.' What many have failed to realize, is that a web site is like any marketing campaign... it takes work and commitment.
You must remember that your site has to be inviting and pleasing to the eye. It needs to have a call to action and be filled with easy to access information. The site has to be more than just a stagnant page with your Name, Address and Phone number on it. That is like having a cardboard sign on a highway full of the new electronic billboards. Look at your competitor... what does their site look like and how do they function? Where does it appear in the generic searches?
As you fill your web page with content, utilize those keywords for your market area. Google analytics can help you discover this information. Using local landmarks and information in your directions and descriptions will help increase your SEO. You should also use the link device in descriptions to help direct customers to information pages. On each of our facility pages, if you go to our tab marked "About Us", you will find links to our lien sale schedule and a link to write a review. Word of mouth has always been, and will continue to be, an integral part of any marketing campaign. This is as important in the Internet world. Google + Local implemented a scoring system and averages for businesses with ten or more reviews. Be sure to encourage your customer base to leave reviews for your business.
Today's consumer wants instant gratification, so make your rates and prices available. Give the customer several options to contact you, and make sure you monitor all of these contact points. A growing population of Internet users use their smartphones as their main form of computer usage. Are you making maneuverability easy with QR codes? Make sure that your artwork and printed material used to direct your customers to your various sites, looks professional. Make sure that all personnel are properly educated to answer the novice Internet users questions.
Then just when you think you have it all running smoothly... technology advances... stay educated. Does your storage facility web site need a tune up, facility audit, or Third party management?... contact Watson & Taylor Management for value add ideas.
Smile... It is Contagious!
You must remember that your site has to be inviting and pleasing to the eye. It needs to have a call to action and be filled with easy to access information. The site has to be more than just a stagnant page with your Name, Address and Phone number on it. That is like having a cardboard sign on a highway full of the new electronic billboards. Look at your competitor... what does their site look like and how do they function? Where does it appear in the generic searches?
As you fill your web page with content, utilize those keywords for your market area. Google analytics can help you discover this information. Using local landmarks and information in your directions and descriptions will help increase your SEO. You should also use the link device in descriptions to help direct customers to information pages. On each of our facility pages, if you go to our tab marked "About Us", you will find links to our lien sale schedule and a link to write a review. Word of mouth has always been, and will continue to be, an integral part of any marketing campaign. This is as important in the Internet world. Google + Local implemented a scoring system and averages for businesses with ten or more reviews. Be sure to encourage your customer base to leave reviews for your business.
Today's consumer wants instant gratification, so make your rates and prices available. Give the customer several options to contact you, and make sure you monitor all of these contact points. A growing population of Internet users use their smartphones as their main form of computer usage. Are you making maneuverability easy with QR codes? Make sure that your artwork and printed material used to direct your customers to your various sites, looks professional. Make sure that all personnel are properly educated to answer the novice Internet users questions.
Then just when you think you have it all running smoothly... technology advances... stay educated. Does your storage facility web site need a tune up, facility audit, or Third party management?... contact Watson & Taylor Management for value add ideas.
Smile... It is Contagious!
Sunday, July 1, 2012
If You Want Customer Service...Take A Cruise
By the second day of the cruise, the guest had been greeted with so many smiles and hello's that they were relaxed and began extending the courtesy in the passageways. You would go to dinner and there were at least three waiters taking care of all your needs... including having that second lobster tail or steak or a different meal because you didn't like your first choice. Each night your bed would be turned down, towels replaced, and towel scultures that would leave a smile on your face. Can't sleep and a little hungry?... call room service. If you walked up to a service counter, and a crew member was seated, the crew member would immediately stand to greet you. Their every action was service oriented enriched with a smile. This included the crew members that did nothing but wipe, sweep and mop their section of the ship to maintain that pristine look.
Cruise Ships use the simple rules of customer service and fantastic Curb appeal to deliver a great product. Their philosophy is supported by smiling, respectful customer service representatives to conquer the seas. Are you using these techniques to cruise into profits?
Wednesday, June 27, 2012
If You Want the Job... Act Like It
The past few weeks I have been interviewing for several
openings we have had available in our facilities. I find it amazing at how people apply for
jobs. I have seen everything from applicants that do not follow directions in
the advertisement, provide useless resumes without viable information, to the
way they dress for an interview. If you are currently looking for a job, take
note.
When reading the advertisement, make note of whether they
ask for a cover letter along with a resume. I ask for a cover letter for
several reasons. The first, of course, is to see if the applicant can follow directions.
Secondly, it gives me a general idea of the applicants writing and grammar
skills. Thirdly, I can spot the lazy applicants that use a form cover letter
with their resume. Most of the time I automatically discard these as it shows
they are applying for anything and everything with a particular title. Also, I take
consideration of an applicant that takes a moment to customize a cover letter
to the job description. I feel that
these job hunters are truly interested in the position that has been posted. I also suggest that if the company name is
available, you do as much research on that company as possible to be familiar
with their product and history. Take your time in writing the cover letter. Be
brief, precise, and make sure the information provided is correct, along with
proper spelling, grammar and punctuation.
If an applicant makes it through the initial process of
having a proper cover letter, I then look at the contents of the resume. There
are several things that I look for when reviewing resumes. Is the information
up to date? I have had several resumes, that when I tried to contact the people
by phone, the number was no longer valid. The next thing I look at is the job
history. In the job description, I am looking for what you accomplished
in the position more than what duties you performed. A manager’s duties
are basically the same from industry to industry. What you were able to
accomplish for your past employers and what you can do for my company is what I
am interested in. Keep it brief… one page is preferable.
If an applicant makes it through the above criteria, the
next step is a phone interview. This process is normally a short call to determine
the applicant’s ability to think quickly on their feet. Initially, I am
interested in their phone skills, as our positions require phone sales. I give
the applicant up to 3 minutes to sell themselves to me. I am looking for more
than “I am a people person”… I am looking for the applicant that will give me
career accomplishments and goals, as well as life accomplishments and goals. If
the applicant makes it past this process, a face to face interview is
scheduled.
It is in the face to face that I have been the most
surprised. I have been shocked at the number of applicants that show up for
their interview dressed in shorts, jeans, t-shirts and flip flops. I wonder if
their mother ever told them that they only have one chance to make a first
impression. So dress to impress…
To recap… read the ad carefully and follow the instructions.
Do not use a form cover letter if one is requested. Use your resume to
highlight your abilities and accomplishments. Once you have applied for a
position, be prepared for a phone interview out of the blue. When going in for
a face to face interview, remember a first impression is made in the first 6
seconds of meeting so dress to impress.
If you want the job… Act like it.
Smile… It is contagious!
A Tribute to My Father
Over the Memorial Day weekend, my father, Curt Johnson,
passed away. It has been difficult for me to put pen to paper to add to my
blog. Every time I started to write, memories would fill my brain and the words
failed to come forward. My dad was an adventurer and story teller. He did many
extraordinary things throughout his life from becoming the youngest licensed
auctioneer in Missouri before he was twelve, to travelling around the world and
befriending Princes and Sheiks.
He volunteered for over 40 years with the Delaware Pow-Wow
from helping in the concession stand to serving on the Pow-Wow committee. Even
though he was part Cherokee and Choctaw, the Delaware gave him his Indian name
that he was most proud of… Opieihum or White Eagle.
He was proud to call Hogshooter Oklahoma, his home. Over the
years, he explored the various caverns, caves and canyons that outlaws had used
for hideouts around the area he lived. He went on to write a book on the
history of outlaws in Oklahoma, from the James gang to the gangsters of the
early 1900’s. He also wrote a weekly column for a couple of local papers, The
Nowata Star and ****** *****, called the Hogshooter Philosopher. He wrote about
everything from his adventures around the world to his point of view of what
was happening in the world that affected daily living.
My dad never met a stranger. He
would talk to anyone and could tell you their life story after a simple fifteen
minute conversation. I always found this unique trait fascinating. Over the
years the number of people I have met through my own travels that knew my
father left me speechless more than once. It is amazing the number of people my
father touched, helped and inspired. I was proud to receive an email containing
this tribute to him from a friend he never met;
I thank Mr. Hoover for his kind words. Dad would have been
happy to open his door and invite you in for a cup of coffee and a good conversation.
Dad was a talented artist that was accomplished in painting,
wood carving to sculpting. Some of my favorite memories are those from when he
was working on his projects. The earliest memories have are those of him painting signs on the
sides of trucks or the six foot painting of the Indian Chief he painted on the
basement wall of one of our homes. My personal
favorite memory involves the look on my mother’s face when she came in and
there was a 4 foot by 6 foot piece of wood on her dining room table with dad working
feverishly carving away at it. All was forgiven after weeks of work produced an
eagle with wings outstretched wide grasping the American flag in its talons
that he proudly placed above the fireplace. That was until the next project
ended up on her dining room table…
Dad inspired my favorite saying “Smile, It is contagious”
with his simple 2 word ending of his column each week… Stay Happy.
Dad you are deeply missed, but will not be forgotten for
generations to come.
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