So you've been overly honest with your customers. You want them to know they can trust you and your business. This is a good thing. We need to establish that from the beginning. We go over the fine print of the lease with them and cover everything we would hope someone else would share with us if we were the customer. However, there is also a fine line that can be so easily crossed. Many of your customers have had storage before and they know the routine. Naively, you may think this is all new to them (it's OK to assume they don't and still give them your sales speech) and they play along. So, what are some of the signs they have been down this road before? And when these signs reveal themselves, when do you place the cork in your mouth? Because now, one month later, some how, some way, you have just found out that....you have been duped.....
I've been in self storage management for a little less than a year. I have been in marketing and sales for several years and I can usually spot a fast talker a mile away. However, my heart really softened with all of the stories of people who have been hit hard by the economy. I also have a tendency to be transparent. I love people and serving them is a priority. However, working in self-storage I have learned that my client base is a lot different than that of tourists or philanthropists who are generally well-seasoned in their business/pleasure endeavors. It actually wasn't until about a month ago when I realized my transparency was causing me to be "scammed" on more than one occasion by these "frequent movers". Don't get me wrong, there are always exceptions, I don't want to lump everyone into the same category.
Bottom line is, I really like meeting new people and selling them a good product. And I like the challenge of working with customers to give them the best deal that won't cost us an arm and a leg in the long run. Now, granted you cannot control what people do or even predict their motives but what they say should motivate appropriate changes to your responses. And you need to be ten miles ahead if at all possible. You cannot be in panic mode that you are going to lose the sale. If you go that direction, you will fall into a "loose lips, sinks ships" mode. Although that ship may seem to stay afloat for a little while, it's going to sink.
The last three months we have had an amazing special going on. A $25 refundable security deposit will get your first month free on a 10X10. Sounds easy enough to sell, right? And yes, it pretty much is. We sold out in 6 weeks. So, when they come in and say they want this, move them in and keep the chat to a minimum. Be cordial and attentive to what they are saying and be sensitive to their needs and situation but don't go overboard. Go over the lease with them, thank them and let them know you are here for them if they have questions. Most of your customers will be fine with that. And if it goes that easily, you have done well. But, when do you know you have a seasoned self-storage veteran in your midst? Sometimes they will let you know or you just know because they have few questions and are very prepared. If they are seasoned but don't want you to know, these are the questions they will ask:
1) Do I have a grace period to pay rent?
2) How long before a late payment is assessed?
3) How long before my lock is cut?
4) How long before my items are auctioned?
5) If I am late, will I be locked out and on what day, if that's the case?
6) When do you overlock the units?
Your lease may or may not have these stipulations covered and you should ALWAYS check your state laws prior to making any changes. Before you consider changes to your rules or lease agreement, perhaps you should check how you need to respond to the above questions:
1) Do I have a grace period to pay rent? (if you have a grace period...):
"The rent is always due on the 1st."
They persist: "But, is there a grace period?"
"The rent is always due on the 1st, this saves you from getting late fees assessed to your account" but thanks for asking.
2) How long before a late payment is assessed?
"The late payment will be assessed on the _______ day of the month. However, keep in mind your rent is due on the 1st and the security gate won't allow customers who are late to have access"
3) How long before my lock is cut?
"I appreciate your concern but if you pay on time each month, it won't get to that point. Remember that your payment is due on the 1st."
4) How long before my items are auctioned?
See number 3
5) 5) If I am late, will I be locked out and on what day, if that's the case?
"Yes, you will be locked out. Just remember to pay by the 1st of the month and it won't be a concern for you"
6) When do you overlock the units?
See number 3
I don't want to ever encourage anyone to assume everyone has an ulterior motive. More than likely, they do not. However, establishing boundaries from the beginning is always a good idea in any business relationship. As the owner of our facility always says, we wouldn't want to encourage bad behavior from our children, so why would we encourage bad behavior from anyone else? If someone has a pattern of always being late and learning how to buck the system, then they should know the established boundaries where your system is concerned. If this is put into place from the beginning then you will have no issues and you will begin to have more dependable customers as well.
Most of all, you want to make the environment a good place for those who are always on time and always play by the rules. If this means having the occasional potential customer change their mind, then that's OK, too. You will make up for it with a shorter collections list in the long run. You will also have fewer "surprises" when doing your facility unit walk-thru.
And finally, if your state laws allow, consider removing your grace period (please check your state laws, not all states allow this) so they are unable to enter your secured facility until they pay. Also, consider a $25 security deposit refundable only if they give a 7 day or longer notice. We have been charging a $25 refundable security deposit for quite a while and no one seems to mind at all. Get rid of the Admin fee. There will be enough people who wait until the last minute and forfeit their deposit to make up for the admin fee loss. Offer an incentive for using auto-pay. Using auto-pay is one of the most effective ways to always make certain your rent is collected. Also, most people won't want it taken out if they move so that prompts them to let you know in advance.
I've shared all of this with you because I have learned the hard way. I have been duped not once, not twice, but several times in the past few months and I want you to know you don't have to fall 100 times before you learn to walk. I've tried to figure this out and have researched what other facilities do to stop this and am glad to say I'm not the only one. I don't want to stay on that list of facilities who are still trying to figure it out and I don't think you want to be on that list, either. Let's break this cycle and make some positive changes for the self-storage industry. Climb on board with me and let's ride this train together.
Michelle Armstrong
Manager
Star Storage
Grandview, Missouri
816-765-7300
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