» Self Storage Almanac

Welcome to the self-storage blog, our diary of the world of self storage.

We are still covered up by the residual call volume from the end of July. In the next day or two I will be able to make some sense out of July activity. It looks like it actually finished off a little stronger than we had anticipated. And we were projecting for a flood of rental demand over the last weekend of July.

How was July for you? Did it run you over like a run-away truck?

So August is here, which means it is time to get ready to go to the Self Storage Association’s Fall conference in Las Vegas. Attendance is required at this event if you are at all serious about your involvement in Self Storage. The SSA always has a great program. As the SSA develops and becomes more of a professional development source for us, you will see many interesting offerings. The trade show is always good. You’ll get to see our new booth and get to see lots of other great vendors. The setting isn’t bad either. The host hotel is very nice. Fit for an emperor.

I have a special offer that should make it interesting for you. PhoneSmart is offering one paid full registration and a night out to dinner for one lucky winner. We will select a winner at random from anyone who can name three different people who have posted submissions to the self storage blog over the last several months. Just look through the archives and pick out the names of three people who have submitted items and email the names to me at Tron@phone-smart.net. The deadline for entries is August 17th. If you are selected the winner and you have not registered yet for the conference, we will buy your registration. If you win and have already registered, we will reimburse you for it. And we will treat you to dinner. There will be two dinner times available for you to choose: Wednesdays or Thursday at 8:00 pm in one of the restaurants in Caesar’s. You can transfer your prize to someone else if you won’t be able to use it.

So don’t delay. Look through the archives and submit the three names to me soon.

bye for now, Tron

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Welcome to the self storage blog, whwere we look at the self storage business.

Today was a pretty slow day compared to the last few weeks. This is what we expect in the middle of a busy month. We usually see a big dip in rental demand this time of month. It is a let-down to our telesales reps who have been living on storage adrenaline for the last few weeks. They don’t have many chances to hit home runs between now and the 14th or so. That is when end-of-month demand will start to heat up. Today you can hear a lot of calls about tenant’s past-due rent and account questions.

These days do allow us to catch our breath, re-examine call volume and staffing projections. We also saw which new staff memebers could handle the rush and which couldn’t. So we have lost one rep who could not make it work. But that is okay. This is a challenging position and if a person is not cut out for it, it is better for them, for us, for our clients and for the callers, if they find another line of work. And we see there is always another talented prospect in the wings. So we will have three new sales trainees working next week. If they catch on, they will be able to swing up to par by the end of the month. This time of year, it is easy to get someone a lot of experience quickly.

bye for now, Tron

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Welcome to the self storage blog, our diary of the self storage industry.

Yesterday, the 5th of July, was a crazy day. We did not know exactly how to call the day for rental demand. Last year the 4th fell on a Sunday. It acted like a normal Sunday ,although the phones did slow down a lot earlier in the day. Monday was like a regular Monday and Tuesday was quite busy.

We assumed yesterday should have been busy as it was the first day back to work for most people after a big summer holiday weekend. It ended up being our busiest day so far this year, but it took a long time to get started. The early moring hours were fairly slow and we thought we called the day wrong. The call volume never really started until about 10:30 am central time ,when the west coast callers start getting at it. It stayed steady through the day with a few spurts. But none of the call volume spikes were extreme as they often are on a very busy day. So by the time the evening shift took over, we still thought we were going to have a relatively lackluster day. But the calls never really slowed down as they normally would until much later in the evening.

This means that July is coming in strong. This is a good thing. It also falls in line with what many clients have told us. This year’s rental season started a little later than usual…maybe not until mid June. We’ll keep you posted as the month continues. We assume this weekend will quiet down and next week will be a little soft before things get bonkers on the 18th.

bye for now,
Tron

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Welcome to the self storage blog, where we keep our finger on the pulse of the self storage industry.

July is here and June blew threw like a gale. The last two weeks of June behaved moslty like we forecasted…strong demand towards the end of the week of the 20th and a big bang the last few days. Two items worth noting. Our early morning call traffic has picked up since in June. We had seen fairly lackluster call volume in the early morining hours until about June 6th, when we started seeing much more demand very early in the day. This is a great indicator that the season for storage is heating up.

We also saw an error in our forecast at the very end of the month. Normally we would have expecting a softening of demand on Wednesday the 29th, with storage buyers “catching their breath” before blasting us again on the 30th and the 1st. But Wednesday was not soft at all. Actually it was stonger than Thursday. This is another indicator that the season is probably as hot as we’d like to see it.

What I don’t know is how this fourth of July weekend will play out. With the fourth falling on a Monday, we might see much more activity than normal, since everyone will have a three day weekend. Last year was a three day weekend, with the fourth falling on the Sunday. The demand acted like a mormal beginning of the month weekend. As expected Monday was a little soft, with people kicking back and traveling. Then Tuesday was very strong.

The AAA auto club is predicting a record travel weekend. It may be that more people will be traveling than storing. Or it may be that many will take advantage ot the long weekend and get a lot done around the house and with their moving before relaxing on Monday. Either way, Tuesday will be very busy here. We hope your site will be busy as well.

bye for now, Tron

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Welcome to the self storage blog, where we look at the self storage business with a focus on sales and marketing.

May’s call volume rolled pretty much as we expected. Memorial day was about as busy as a normal Monday. The Tuesday after was our best call volume day of the year and included our highest number of calls in a half hour period all year, too. Today was more like a normal Wednesday. We hope you benefitted from all of this call volume. Our average self-storage property sent us three callers to talk to yesterday. On average, that would mean one rental per property was created from missed calls just yesterday alone. Not too bad, eh?

Today is the last chance for you to enter our contest for the free registration for the Inside Self Storage conference in Miami in October 2005. Simply browse through the archive of self storage blogs and select your favorite entry. Email me with the number of the entry. You find the entry number in the lower right hand corner of each submission. We will select the winner tomorrow and announce the winner on Friday.

Good luck. We have quite a few entries already. Don’t miss your chance.

bye for now, Tron

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Welcome to the Self Storage Blog, where we open PhoneSmart’s unique window on the self storage industry for you to look through.

Is it worth having PhoneSmart handle a self storage property’s missed phone calls? Here are some results from 2005 that should be interesting for you.

PhoneSmart clients, you can use these numbers to compare to your properties’ results.

The rest of you can use these to calculate lost revenue.

These numbers represent the averages for all PhoneSmart Self Storage client properties for 2005.

If you apply the typical closing percentages of 75% of credit card reservations and 20% of Hot Leads * and assume an average value of $600.00 per rental, our average self storage client property rented:

January 3.53 units for $2,118.00 in revenue

February 3.39 units for $2,034.00 in revenue

March 4.22 units for $2,532.00 in revenue

April 4.79 units for $2,874.00 in revenue

These are units that were rented from phone calls the property was not able to answer.

Almost all properties pay for their PhoneSmart call center service with one rental per month.

The question then becomes…
Is it worth spending $250 to $500 to gain $2,000 plus?

This is before the rental season has even really begun. Call volume is up so far about 30% in May as compared to April

* Clients with top notch lead management systems are renting 85-90% of credit cards and 30% of Hot leads.

For those of you who are also interested in how secret shopping services and improved sales skills impact self-storage, go to today’s entry at www.secretshoppingblog.com and see our report on secret shopping results in self storage. Click the secret shopping affiliate link on the side bar.

And don’t forget to send me an email with your favorite self storage blog entry and you’ll be entered to win a Gold Package registration for the ISS Miami 05 conference in October.

Month /Reservations /Hot Leads
jan /2.06 /9.95
feb /2.05 /9.33
mar /2.56 /11.5
apr /3.16 /12.13

Bye for now, Tron

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Welcome to the self storage blog, a diary of the self storage industry.

The U.S. census bureau projects that the 60 and over population will increase 81% by the year 2030. The 18-59 market is said to increase by only 7% in the same period. What is this going to do to the self storage business? What is it going to do to your little sub-market that you operate in? I’m not sure self storage insiders have dealt with this issue specifically, have they? Some people in the apartment industry are starting to see more and more seniors keep an apartment near the grandkids, while having their “permanent” residence somewhere else. Many are finding an apartment is the ideal part-time residence.

The self storage association’s market survey found that home owners are storing more often and more belongings than apartment dwellers. But the survey did not, I believe, ask about 100% residence or part-time residence. How different are the part-time residents than the full-timers in their storage habits and needs?

Will these two-residence seniors store on both sides or on only one?

How will we build, market and run self storage properties differently when the majority of customers are 60 and older? Will we have “muscle” on hand to move the belongings for people? Will we need a more “valet” attitude? Who knows?

Will we have craft rooms or community meeting rooms, so our customers can practice their hobbies and meet with their hobby friends at the same storage unit where they store their hobby supplies? Maybe so.

What about the slow growth in 18-59 year olds? Will this mean we see a contraction in our business when the tipping point comes between the two population groups? Will it mean that the younger group will use storage more as home price increases price most younger people out of the home market, or force them to seek smaller homes? Will it mean the younger group will rent apartments because the home prices are too steep? If so, will They need to store more or less?

These are things we need to think about. Tell me your thoughts on these topics. I realize few of us have a 25 year plan. Those of you who were in storage in 1980 may or may not have been able to anticipate and prepare for what we see today.

bye for now, Tron

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I don’t know how to project call volume for this weekend. Our projections for end of April and beginning of May have been pretty much right on. Last year the second weekend of May had the slowest Saturday and the second slowest Sunday for the month. It could be slow again as many people who needed self storage in the near term have called us this week and last. People who need self storage at the end of the month may not be calling until the 16th or 23rd. But most self storage operators seem to be spending more promotional dollars this season as compared to last to get ahead of the competition. So it may be that the weekend is busier than last. We are staffing for the middle ground. We’ll see how it turns out. I’ll let you now on the self storage blog.

In case you don’t konw why our clients love us, I thought I’d share these points with you…

“WHY DO THEY LOVE US”

Current tenants
Current tenants appreciate our service because we are here to answer their concerns when they call in. We are able to answer basic questions for them and solve minor issues. Tenants are also given the option of leaving a message for the managers. Some of them feel relieved to reach a live person instead of a recording. Either way, we help eliminate any frustration that might have otherwise occurred.

Renters
Shoppers and prospective renters respect our service because we are knowledgeable, friendly, and responsive. We are here to answer questions and help people figure out their needs. By stressing the benefits of the features at the property, we can help callers decide to rent with you. We save them time and the hassle of searching for space by highlighting your property.

Property managers
Property managers trust our service because we are part of their team. We assist by renting units, serving as a backup on phone calls, and offering excellent customer service…while site staff people are unavailable.

Management
Upper management is pleased with our ability to provide them with useful information to run their business. We help them meet revenue and occupancy goals. We also protect advertisement investments.

Share Holders
Owners and investors are grateful because we protect their assets. We aid them in maximizing investment returns. We help their businesses run smoothly and successfully.

We are here to boost your profits and provide you with excellent service.

bye for now, Tron

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It felt like rental season yesterday. We broke our y-t-d call volume record by about 20%. That isn’t bad, considering that our y-t-d call volume record was set last Monday on April 25. We had several reps write double digit reservations, too. This is always a good sign.

Mondays are always good days for rental demand. Mondays in busy season are sweet. First Mondays of the month in busy season are very good. I hope you saw a lot of activity yesterday, yourself. We averaged a little over 2 calls answered per self storage property serviced yesterday. That means we probably paid for our entire month of service for each self storage client in one day of work. That isn’t too shabby.

Self storage insiders often look at the busy season as a time to hunker down and keep busy. It should also be a time of maximizing demand and maximizing rent rates. Improving sales techniques and using a call center like PhoneSmart should help you rent to more people. This should help you move rental rates forward. Bye for now, Tron

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Welcome to May. It is a new month on the self storage blog. It is the start of another new monthly cycle. Getting into a new cycle deserves an attitude check. Keeping your attitude sales focused can be tricky in self-storage as it can be in any business. Now that the end of the month rush to rent units is done, we are going to start getting a lot of current tenant calls in the call center.

This is the same cycle you experience at the store. Today and tomorrow there will still be some new renters showing up to get a unit. But starting today you will get your early month calls like, “How much do I owe?”, “When are you open so I can pay my bill?” People are easily conditioned. So after the first five calls like this, you assume the sixth call will be the same. So you answer with your, “ Drat, another silly billing question” attitude. But the sixth call is someone who is shopping around for a storage unit.

Self storage insiders believe that a caller will stop calling when they get a friendly, knowledgeable person who sells the store. Will you be caught off-guard and give the caller the wrong first impression? Sometimes playing a mind-game with yourself is far more effective than allowing the flow of the day to condition you as if you were one of Pavlov’s dogs.

Assume every person who is calling is a new potential customer. This is, in fact, true. If you get first time callers, then the field is wide open. If you get a current tenant, then you have the chance to sell boxes, supplies and referrals. If you get 20% of your business from referrals, then every 5th tenant you talk to represents a new customer. If you rent 25% of your units to referrals, then every 4 current tenants you talk to represents a new renter. So don’t allow the couple of current tenants who have less than lovely phone manners ruin your attitude. Approach those current tenant billing calls as a way for you to stimulate referrals. Answer each call as if you are making a sale. This is one of those self-fulfilling prophesies. Make it happen. Bye for now, Tron.

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