The cable show Storage Wars, on A&E, has made a huge name for the self storage industry. The pop culture event of finding your treasure through another man's trash can be both mysterious and intriguing. However, what takes place leading up to that moment is not as exciting. The sad story is this, our economy is suffering and there are people who, yes, walk away from everything and never look back. Sometimes we will hear from them and they say they really don't need it because it's just junk anyway. It makes one wonder: why would someone pay thousands of dollars per year to store junk that is worthless to them? Then, there are those who have lost everything: job, home and more. Some are in shelters and some are in hotels. Sometimes it is because of job loss but other times because nature hasn't been quite so kind to them. Yes, the Joplin tornado which struck 140 miles to our South has even affected some of our customers. There are also others who have had medical, personal and/or economic tragedy strike. The tragic death of a spouse, a sick child or a spouse walking out on their family because the loss of a job along with the responsibility of a family was too much for them to bear.
So, auction day is a very bittersweet time for us. We work with our customers until the day before the auction, if they will work with us. I call, beg, offer them the deal of the century whenever possible. When we can work out a deal, it's a win/win for everyone involved. They can remove their belongings and not lose them and we have a freed space to rent again. The owners of public storage facilities do not gain wealth of any sort from an auction. According to law, we cannot make a profit on an auction. We apply what is made from the auction to the defaulted account and if there is anything leftover, it goes back to the client whose unit was auctioned. We watch belongings walk away that were once someone's prized treasures. Children's toys, beds, heirlooms which belonged to someone's Grandmother at one time, appliances from a home once filled with joy. You know from my previous blogs that I am a firm believer that every person has a story. I see a story in every filled unit as well. History that was once alive.
However there is always an upside to the auction process. We have bidders who come from all walks of life as well. We have those who are starting over and they come in to bid on items with which they can fill their new home. Some of our attendees are non-profit groups who help those getting back on their feet again by bidding and winning units filled with clothing and furniture. Some have made this into a business which has helped them to survive the economic crisis and they do very well. So, although we see some casualties of our economy during the auction process, the survivors are those who have avoided the backlash of the economy. These people are making new memories for someone. A single Mom with little children who have been sharing a mattress on a floor somewhere may get a new bed. A couple who lost their home to a fire may end up with a washer and dryer to put in their new home. Someone who has been praying for a car for a long time, walking to work daily through searing heat and bitter cold may end up with a car. This is where the sadness in my heart for the losses becomes a new spark of joy for those who benefit.
So, you see, auctions are an emotional thing for those in the storage business. It takes weeks of preparation and is a most time-consuming factor in our business. It's not something I can say we enjoy, ever. We would much rather be spending our time marketing and selling. But, it has to be done. My sentiments echo those of Larry Reeves who said, "Anyone, who truly wants to go to war, has never truly been there before!" Amen.
Michelle Armstrong
Manager
Star Storage
816-765-7300
Thursday, August 25, 2011
Wednesday, August 17, 2011
Is It Always About The Money? Let's Talk About Customer Retention
One of my favorite customers came into the store today. I'm not going to lie, last month was an incredible month but our numbers are down somewhat this month. We've had a number of people moving into new homes and business projects ending. I'm the marketing "fiend" right now trying to figure out new and creative ways to let people know we are here without dipping into the budget too much. So, when this elderly man, a long time customer, came in today and asked about renting a second space I could have easily signed him up. However, I not only want to make more sales, I want to retain my good customers. And, he is a good and consistent customer.
So today, as I listened to his needs (listening is the magic word) I realized that he had outgrown his space somewhat, but not enough to constitute a much larger second unit. I looked at his records and saw he was in his current unit at the old rate, which was more expensive. "Omer" (not his real name) isn't the wealthiest man in town but he always pays on time. He will be a long term customer if I do what it takes to retain him. And just like all of our customers, as I mentioned in my previous blog, he has a story. He's not a huge talker but I love hearing about his life when he drops into the office to pay his monthly rent.
So, I decided to move him into a larger unit at the new price (which was the same price as his old unit-no money lost there). I gave him a senior citizen discount (10%), as well. I located an available unit only 6 spaces from the old unit. I wanted to put him close to his old unit since I knew he would be doing the hauling himself. I gave him until next Monday to have his items transferred and marked the unit he just "vacated" as unrentable until then. I probably wouldn't do this for every customer, you have to be a little discerning in this industry and know your customers. But, I knew that "Omer" would live by his word. He is a very good, long-term customer and I want to retain customers like "Omer".
Although I could have raised our net a little today, that could have caused it to go lower in the near future if "Omer" decided to leave and go elsewhere. Management Writer, Peter Drucker said, "The purpose of business is to create and keep a customer." That may be a little difficult in the self-storage business but what have we lost when we lost a good customer? "....dissatisfied customers would tell between 7-10 people while a satisfied customer would recommend a company to 3-4 of their friends". PIMS
When I went back to check on "Omer", he seemed so very content. He was filling his van with items from his old unit and putting them into his new unit. I probably won't even have to wait until Monday before his old unit is vacated. We chatted for a moment and he thanked me again for working out a better deal for him. I didn't even think twice about what I did. I walked away feeling just as satisfied, if not more.
Michelle Armstrong
Manager
Star Storage
816-765-7300
So today, as I listened to his needs (listening is the magic word) I realized that he had outgrown his space somewhat, but not enough to constitute a much larger second unit. I looked at his records and saw he was in his current unit at the old rate, which was more expensive. "Omer" (not his real name) isn't the wealthiest man in town but he always pays on time. He will be a long term customer if I do what it takes to retain him. And just like all of our customers, as I mentioned in my previous blog, he has a story. He's not a huge talker but I love hearing about his life when he drops into the office to pay his monthly rent.
So, I decided to move him into a larger unit at the new price (which was the same price as his old unit-no money lost there). I gave him a senior citizen discount (10%), as well. I located an available unit only 6 spaces from the old unit. I wanted to put him close to his old unit since I knew he would be doing the hauling himself. I gave him until next Monday to have his items transferred and marked the unit he just "vacated" as unrentable until then. I probably wouldn't do this for every customer, you have to be a little discerning in this industry and know your customers. But, I knew that "Omer" would live by his word. He is a very good, long-term customer and I want to retain customers like "Omer".
Although I could have raised our net a little today, that could have caused it to go lower in the near future if "Omer" decided to leave and go elsewhere. Management Writer, Peter Drucker said, "The purpose of business is to create and keep a customer." That may be a little difficult in the self-storage business but what have we lost when we lost a good customer? "....dissatisfied customers would tell between 7-10 people while a satisfied customer would recommend a company to 3-4 of their friends". PIMS
When I went back to check on "Omer", he seemed so very content. He was filling his van with items from his old unit and putting them into his new unit. I probably won't even have to wait until Monday before his old unit is vacated. We chatted for a moment and he thanked me again for working out a better deal for him. I didn't even think twice about what I did. I walked away feeling just as satisfied, if not more.
Michelle Armstrong
Manager
Star Storage
816-765-7300
Saturday, August 6, 2011
Are Your Customers Growing You?
I've spent the past week trying to think of a unique blog to write. I don't want to copy other ideas. Today as I was running through Twitter updates, I began seeing the faces of the different people who update and an afterthought was the many faces who come through our door. I love most of my customers. I'm not going to lie and say they are all delightful. However, I try to glean from my customers the wisdom of life that arrives with them.
You see, I like to be treated with respect, whether I am wearing my black Capri's, Colts t-shirt and Ryka's or dressed in my nicest clothes. The storage business is not what I would say an "opulent" business by any means. If you dress up, you may regret it by the end of the day. I have faced the fact that Ivana Trump or Oprah Winfrey will never walk through my door. Self-storage is what it is. It is a temporary place to store your goods. But, with each customer comes a unique story. I have learned that through these stories, I grow and so does the business.
I have single parent's, retired military, active military, retired couples, collectors of dolls and collectors of cars, traveling ministers, unemployed, underemployed, homeless families and more. You see, I believe working for any retail business takes compassion but I have learned more about compassion working here than anywhere I have clocked in and out. I have worked as a director for a foundation, a business analyst, in marketing and development and, well, I have been very blessed. But it was a different type of blessing. That blessing ensured that my son and I were well taken care of; and through my work in the non-profit industry, others were blessed monetarily but rarely was I able to spend time with the recipient and see the full effects.
However, now it is time for soul growth and my customers have become my teachers. I am able to see the effects of how we are helping people during some of the most difficult times of their lives. Many of them have been through a lot and have faced harsh judgment and criticism from others. I make it a goal when my customer comes in to treat them like Ivana Trump would be treated if she walked into the Waldorf Astoria. I want to roll out the red carpet for them and let them know I care. I talk with their children and get to know the names of everyone who walks through the door. I ask about their job or if they are unemployed I ask how they are doing and listen when they tell me. I ask about their family, their day, etc. I offer to work with them if I know things are getting tight for them. I offer to show them options and ideas for getting rid of some of their items and transferring to a smaller unit in lieu of defaulting. I know what it is like to be unemployed, have a chronically sick child and lose everything you own. I want my customers to see and know hope again. I don't want to be a talker, I want to be a listener. I encourage them and we often hug and have even cried together.
"What?!" you ask, "and cross that invisible line and let the customer take advantage of you?" If you are in tune with your customers and your business, you can often see from the beginning who is handing you a line and who is sincere. And even the most sincere can put you in a position of wondering "will the money come in this time?" Since I have started managing this business, our collections have decreased and our sales have increased. I believe that what you sow into others you will reap in your own life. Call it Karma or simply doing unto others as you would have them do unto you, but it works. Being compassionate doesn't equivocate to being a pushover. It actually motivates people to want to make right choices. And from a marketing standpoint, you will increase your customer basis because they tell others about you and your great customer service. But, that should never be your goal because it will only appear superficial when you are developing a relationship with your customers.
Immanuel Kant said, "What are the aims which are at the same time duties? They are the perfecting of ourselves, the happiness of others". It's not all about me and it's not all about you. It's not about the bottom line being the almighty dollar. It truly is about putting others above ourselves. How is compassion derived? Jon W. Parlett and Matt Seddon, owners of Americle Medical Supply company answer with this: "A company’s compassion is derived from those who work there. An owner can influence the staff to a large degree but the SENSE OF URGENCY must come from the heart of all that work there.” It begins in you and me. So, the next time a customer walks in, remember a story just walked through your door. Read it, embrace it and grow from it and watch yourself and your business grow as well.
Michelle Armstrong
Manager
Star Storage
816-765-7300
You see, I like to be treated with respect, whether I am wearing my black Capri's, Colts t-shirt and Ryka's or dressed in my nicest clothes. The storage business is not what I would say an "opulent" business by any means. If you dress up, you may regret it by the end of the day. I have faced the fact that Ivana Trump or Oprah Winfrey will never walk through my door. Self-storage is what it is. It is a temporary place to store your goods. But, with each customer comes a unique story. I have learned that through these stories, I grow and so does the business.
I have single parent's, retired military, active military, retired couples, collectors of dolls and collectors of cars, traveling ministers, unemployed, underemployed, homeless families and more. You see, I believe working for any retail business takes compassion but I have learned more about compassion working here than anywhere I have clocked in and out. I have worked as a director for a foundation, a business analyst, in marketing and development and, well, I have been very blessed. But it was a different type of blessing. That blessing ensured that my son and I were well taken care of; and through my work in the non-profit industry, others were blessed monetarily but rarely was I able to spend time with the recipient and see the full effects.
However, now it is time for soul growth and my customers have become my teachers. I am able to see the effects of how we are helping people during some of the most difficult times of their lives. Many of them have been through a lot and have faced harsh judgment and criticism from others. I make it a goal when my customer comes in to treat them like Ivana Trump would be treated if she walked into the Waldorf Astoria. I want to roll out the red carpet for them and let them know I care. I talk with their children and get to know the names of everyone who walks through the door. I ask about their job or if they are unemployed I ask how they are doing and listen when they tell me. I ask about their family, their day, etc. I offer to work with them if I know things are getting tight for them. I offer to show them options and ideas for getting rid of some of their items and transferring to a smaller unit in lieu of defaulting. I know what it is like to be unemployed, have a chronically sick child and lose everything you own. I want my customers to see and know hope again. I don't want to be a talker, I want to be a listener. I encourage them and we often hug and have even cried together.
"What?!" you ask, "and cross that invisible line and let the customer take advantage of you?" If you are in tune with your customers and your business, you can often see from the beginning who is handing you a line and who is sincere. And even the most sincere can put you in a position of wondering "will the money come in this time?" Since I have started managing this business, our collections have decreased and our sales have increased. I believe that what you sow into others you will reap in your own life. Call it Karma or simply doing unto others as you would have them do unto you, but it works. Being compassionate doesn't equivocate to being a pushover. It actually motivates people to want to make right choices. And from a marketing standpoint, you will increase your customer basis because they tell others about you and your great customer service. But, that should never be your goal because it will only appear superficial when you are developing a relationship with your customers.
Immanuel Kant said, "What are the aims which are at the same time duties? They are the perfecting of ourselves, the happiness of others". It's not all about me and it's not all about you. It's not about the bottom line being the almighty dollar. It truly is about putting others above ourselves. How is compassion derived? Jon W. Parlett and Matt Seddon, owners of Americle Medical Supply company answer with this: "A company’s compassion is derived from those who work there. An owner can influence the staff to a large degree but the SENSE OF URGENCY must come from the heart of all that work there.” It begins in you and me. So, the next time a customer walks in, remember a story just walked through your door. Read it, embrace it and grow from it and watch yourself and your business grow as well.
Michelle Armstrong
Manager
Star Storage
816-765-7300
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