Thursday, August 25, 2011

Preparing For The Auction: Survivors and Casualties Of Storage Wars

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



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

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






Tuesday, July 26, 2011

To Market To Market: How To Choose A Storage Facility

So, you find yourself in a situation constituting a search for self-storage but find yourself surrounded by nothing but utter confusion.  What do you do next?  First of all, prior to that first phone call, here is a list of the most essential information you must have so you find the best fit for you:

1)  What size do you need?

The majority of the phone calls I receive go something like this:  Caller: "Hi, I'm interested in renting a storage unit from you"  Me: "Great! What size do you need?"  Caller: "Um, I don't know" Me: "That's OK.  Do you have just a few boxes or tools or a one bedroom or larger?"  Caller: "Um, I really don't know that either"  Me: "OK, do you have one bedroom and then living room furniture and a table and chairs?"  The result can go one of two ways, either:  "Oh, no!  I have a full two bedroom house full of a lot of furniture" or "Oh, no! I don't have that much, maybe a couch and a twin bed and a few boxes".  At this point, we can make a much better determination and save about 10 of your hard earned time playing the guessing game.  Some self storage facilities (like us) have show rooms that are inside, air conditioned and have the dimensions on the floor for you.

2)  How long will you be with us?

Some storage facilities require you to sign a lease stating that you will be with them for a specific amount of time and some (like us) allow you to go from month to month.  It is very wise to ask this before signing on the dotted line so you know you are not in a binding lease that will cost you more in the long run.  Sometimes having the first month free isn't all it is cracked up to be.

3)  What are ALL of your fees?

Ask to see a list.  Hidden fees you should be aware of:  Required insurance, lock fees, admin fees (these could be labeled as something else such as Move-In fee) and security deposit (and even others depending on the facility you visit).  One question that I am always asked is, "Are these fees one-time-only?"  The answer should ALWAYS be yes, or I would advise checking out other options.  Also, not all facilities require you to purchase insurance or their locks.  If you have mortgage or renters insurance, check with your agent to see if they have a clause that allows you to have stored items covered under your policy.

4)  Are there security or security cameras on the property and is it fenced in?

We live in a day and age where even the safest of areas can have issues.  The facility you choose should at least have security cameras throughout the property.  Things to look for: Security fence, security gate (one entrance and exit if at all possible) and  security cameras and lights throughout the property.  Also, notice the surrounding area.  I know we shouldn't judge things by appearance but when we are storing our items, we should feel look around and ask the question, "would I feel safe walking around in this area?"  If not, it may be worth the trouble to go a little farther out of the area to put your items in a place where you know the crime is low so you can sleep at night.

Think about it this way, you will spend more money driving back and forth to check your items in a seemingly unsafe area than if you know you can trust leaving your items someplace safe and a 20 to 30 minute drive from home.  We are located close to a large school of ministry and some local businesses so we have patrol in our area 24/7 and students walking from building to building all hours of the day and evening even though we are 10 minutes from a high crime area.  Many of our customers drive here from the inner city to store with us and are grateful they do because they know they can rest assured their items will be safe.

Last but not least, is the facility fenced-in?  I once lived in a very rural area and had my items in storage for one month.  The area was not fenced in but the neighbors had some pretty vicious sounding dogs.  Plus, you could count the resident in under a minute.  But, what about areas that aren't quite so small?  I would, personally, never go somewhere that wasn't fenced in with a security fence.  A chain link fence wouldn't keep the neighborhood kids out so what makes a person think a thief couldn't easily scale that fence as well?  Plus, a good set of wire cutters and they are inside.  Sure, it's nice to have 24/7 access to your items but make sure it's because you have a security code to access the security gate 24/7 and not because there is no fence to keep you....or a thief.....out.

5)  Are there added amenities?

Do you have wide lanes and wide turning lanes for larger, moving vehicles?  It's a storage facility, if you can't navigate a moving truck or van around the property, you may want to think twice.  Do you have gutters over your doors?  There is no worse feeling than walking into your unit and find it flooded because the rain had nowhere else to go.  Gutters are essential as well as lanes that are "puddle" proof.  Meaning, when it rains, where will the rain go?  Hopefully the lanes are sloped and going away from the units.  Are the walls secure between each unit?  I had a woman come in once and she was so excited when she gave the wall in her unit a little shove and exclaimed "It doesn't move!"  She had such a big grin on her face as she explained the last place she stored her items had moving walls and she could touch the items in the unit next to hers.  She obviously did not feel her items were secure so she was very pleased to know our walls went wall to wall and were very secure.

6)  Are they offering any specials?

You have not because you have asked not.  I always like to offer the specials ahead of time because I want you to know that you can move in and save money.  I am all about saving money and passing on the latest deal to anyone I meet.  However, this can be a double-edged sword when calling around to different facilities.  "So, I get the first month for free?  Really?  I'll take it!"  But WAIT, there's more!  And they are not going to offer what it is.  Such as, yep, and then you are locked in for 6 months or yep, but next month your rent is $585.  "Wait, what?  For a 5 X 5?"  Yep, but that takes care of our fees and our owner's Rolls Royce collection which is parked in the large units in the back.  No thank you, customer service should be number one but it often is about the buck first.

You have to be careful and don't be afraid to ask "So, what's the catch?" and then ask them for specifics.  Are you tied in for longer than that month?  What are the hidden fees that go along with it? (refer to number 3)  Can I leave and know I won't be charged once my (preferable for you for any facility is month to month leasing) one month lease is up?

I know it sounds like a lot to look for but renting a unit that will store your valuables (even if it's your cookie jar collection and Susie's first blankie) for any period of time is just as important as any other commitment you are making.  You will be signing a legal and binding lease.  There are state laws pertinent to you and your items.  There are items you need to know and have a right to know about.  And many facilities do not offer this knowledge upfront.  So, it is up to you to be the informed consumer and know what to ask and where to look.  Happy Hunting!

Michelle Armstrong
Manager
Star Storage
816-765-7300

Monday, July 18, 2011

Hidden Fees Or "HA! Too late! We've gotcha now!"

I think perhaps one of the worst ways to conduct a business is to incorporate hidden fees or not offer the fees up front when renting a unit to a customer. Every relationship should be based upon trust. I have had many customers call or visit asking me to tell them more about our rates and our facility and upon explaining our fees to them, they would stop me and thank me profusely for being honest with them. Some would even share the horror stories of signing the lease first for a competitor and then having to pay an astronomical fee to get in when they thought they were getting their first month for a dollar.

Honesty is always the best policy. I like to explain to our customers what our fees are immediately. This always leaves an open door for more dialogue. I can explain why we have these fees and in some circumstances, how we can waive these fees. I am then able to tell them about all of our amenities and what we do to keep them happy while they are here. John Russell, President of Harley Davidson, says that "The more you engage with customers the clearer things become and the easier it is to determine what you should be doing." We want our customers to feel valued. We also want them to know once they have placed their items in storage here, they can focus on the other items in their daily lives and not be concerned about what they have here.

Customer service is vastly becoming a thing of the past. Corporate America is growing and we are losing our sense of value for the very people who keep us in business. Henry Ford said it best, "It is not the employer who pays the wages. Employers only handle the money. It is the customer who pays the wages."  If you want to bring in and retain customers, stay honest.  I promise you won't regret it.  



Michelle Armstrong
Manager
Star Storage, Grandview, Missouri

Friday, July 15, 2011

Why Self Storage Helps Take The Stress Off Of Moving

I remember years ago when my Mother told me she was getting a storage unit.  I didn't think much about it until about a year after when she commented she had three.  My Mother is not a pack-rat nor does she own a lot of items.  However, she had downsized into a complex for seniors and after we moved out of state, she took a separate unit to pack the items she was passing along to my son.  Then, two years later, moved her Mother into an assisted living facility and put some of her belongings into a separate unit.  


Although there was the added stress of adding storage rental fees to her already tight budget, it was now convenient for her to go to the appropriate unit to find the necessary items she needed in a more timely fashion.  My Mother is quite simply one of the most organized people I have ever known.  And in today's economy, more and more people are moving due to job change or downsizing.  In other instances, they are storing items for their loved ones.  Multiple families in one home are also becoming more commonplace today. 


According to The City Wire (http://www.thecitywire.com/?q=node/9977):  "The U.S. Census Bureau recently reported that the national mover rate increased from 11.9% in 2008 (the lowest rate since the U.S. Census Bureau began tracking the data in 1948) to 12.5% in 2009. According to data from the “Geographical Mobility: 2009” report, 37.1 million people 1 year and older changed residences in the U.S. within the past year. This represents an increase from 35.2 million in 2008."


Moving is not stress-free in most cases.  And once your items are in your new home, there is the dilemma of organizing.  Self-storage can remove the stress while organizing your new home.  Sometimes it's just a matter of putting your garage items in storage so you can use your garage as a temporary "sorting spot".   In other instances such as moving a child back home or parents moving in with their children, self-storage is also available for extra items.   And let's not forget children who move off to college and leave Mom with a spare room to turn into her sewing room or office space.  There are varying reasons for moving but self storage can be a temporary respite for your items while you are working on alleviating the other stresses in your life.  Let us help take that stress from you so you can move on with your new life.  




Michelle Armstrong
Manager
Star Storage
Grandview, Missouri