Marketing Toolbox

Tune up your business with basic advertising techniques

By Mary Briggs

There was a time when a good-sized Yellow Pages ad was all your self-storage facilityneeded to remain competitive, when your facility was the only one within a five-mileradius, when free-rent giveaways were non-existent. That time is gone. In the past fiveyears or so, competition has increased so much that in some areas, self-storage facilitiesare rivaling the convenience store--one on every corner. Consequently, the increasedcompetition has made a remarkable change in advertising and marketing strategies, forcingowners to take a closer look at customers' needs and wants. Competition has made them lookbeyond their Yellow Pages advertising and test additional marketing avenues.

Surveys have revealed that customers have the opportunity to be selective because ofthe increase in facilities within their immediate area. "Good services" are afactor for selection. Move-in specials and giveaways have become determining factors.Convenience has emerged as a determinant as well. Market area has decreased from three tofive miles, to one to three miles in radius.

With this information, owners defined their marketing area and began looking foradvertising that would assist them in attracting customers in the immediate area. Theybegan surveying the market area as to the highest percentage of current tenants inspecific zip codes, and then by customer type: homeowners, apartment dwellers, commercialtenants, senior citizens, etc. Through the years, self-storage owners have used andre-used many kinds of advertising. Here are some conclusions:

The Best Marketing Tool

Your first and best marketing tool--which is also the one most often overlooked--isyour on-site manager. A manager should be sales-oriented, know the competition and knowhow to sell the advantages of a particular complex. Also, he needs to be involved in thefacility's marketing plan. If a manager believes in the marketing plan, he will make itwork. Some of the best and most often used advertising ideas come from managers.

The Basics

Marketing and advertising tools come in varied shapes, forms and costs. Once you'vedefined your market area and customer type, decide what you want to say and how you wantto say it. The following are some pointers:

Inexpensive Advertising Tools

Numerous formats for advertising can be done inexpensively on a routine basis. An adcan be produced for a nominal cost through a print shop, or it can be reproduced on a copymachine as needed by the manager. Fees are kept at minimum if the advertisement isdistributed directly by on-site personnel at the facility. Here's a review of some of themost inexpensive forms of advertising:

Tenant Referral. "Word of mouth" is rapidly becoming aviable source for new tenants. In some areas, tenant referrals are rivaling Yellow Pagesin percentage for sources of new customers. To enhance this new customer source, onefacility uses a tenant-referral coupon entitled, "Tell Your Friends to StuffIt." The coupon is 3.5-by-8 inches (three coupons can be reproduced on a standard8.5-by-11 sheet of paper), offering an incentive for use by both the current tenant andthe "friend." For example, each receives $10 off one month's rent.

"Stuff It" coupons can be included in move-in packets and/or distributed astenants pay their monthly rent. Offering a discount to current tenants gives them agreater incentive to pass on the coupon, and it also serves as a thank you for theirbusiness.

Business Letter. Commercial- and business-storage tenants are still arelatively untapped source of new customers for self-storage. The business letter is aninexpensive method of promoting your facility and services to them. The letter can betargeted toward specific businesses, or toward a specific service, i.e., seasonalinventory storage. It should offer some type of discount or giveaway in order to track theresponse, such as 10 percent off or three free file boxes.

The letter can be sent by the manager on a monthly or quarterly basis, or can be usedas an introduction for additional services or for a specific event, such as storage ofdead and year-end files. It should always be followed up with a phone call or a visit fromthe manager to further promote your services.

Apartment-Tenant Referrals. Contacting apartment managers can be agood source for new tenants. For these, a "Space Invader" coupon, reproduced inthe same vein as the "Stuff It" coupons, is an excellent tool that can bedistributed by your manager.

Have your manager visit apartment complexes in the market area and supply them withcoupons. The "Space Invader" coupon should have an incentive for the apartmentmanager as well as tenants. For example, a $10 referral fee and $10 off the first month'srent.

Every few months or so, re-contact the apartment managers in order to keep themsupplied with coupons. Or, have an open house for apartment managers--invite them to thefacility, show them around, offer refreshments and, most importantly, promote yourservices.

Thank-You Letters. Send out letters to "good" vacatingtenants, offering them a discount on their future storage needs--such as a $20 discount onthe first month of rent. For tenants who are leaving the area indefinitely or know theywon't need storage within the next year, allow the tenant to pass the coupon on to afriend or relative. Transferable coupons increase the exposure of this marketing tool.

The Next Level

As competition increases, we often have to increase our advertising expenditures.Fortunately, there are several viable advertising options in the mid-dollar range that canbe very effective. Here are some of the mid-range advertising options:

Fliers. Fliers are often used for short-term campaigns, such as agrand opening or a promotional special. Fliers can be distributed by the manager (or othersources) in specific geographical areas, such as parking lots and apartment complexes.

Keep flier advertising simple, specific and trackable. Keep headlines to less thanseven words and body copy to no more than 50 words. Readers tend to have very shortattention spans, so give the message quickly.

The cost of fliers varies greatly depending on quantity; the greater the quantity, thelower the cost of printing. Keep in mind the cost of this advertising has to include thecost of distribution as well.

Direct Mail. With direct-mail advertising, it is extremely importantto know your specific market area. Coupons are sent to residences in a specific zip code.Computerized facilities can easily generate the highest percentage of zip codes for theircurrent tenants, and use that as their primary marketing area. With a manual bookkeepingsystem, it takes a little more research in order to target your main zip-code area, butonce this is achieved, it will greatly enhance your advertising effectiveness.

Direct-mail advertising requires that you offer something free, such as 10 percent offthe first month's rent. Offer only one special. Don't confuse the reader by offering achoice of 10 percent off the first month or a free lock.

Direct mail can be sent through bulk mail by a manager, or through a direct-mailcompany. Normally, it is more cost-effective to use a direct-mail company, when you takeinto consideration the printing costs, employee time, mailing and the bulk-mail permits.With the direct-mail company, the cost is all inclusive, and these tend to average as lowas 3 cents per piece, up to approximately 6 cents, depending on the area and quantitymailed.

Coupon Tabloids. This type of advertising is similar to direct mail,but normally the marketing area is not as specific. The cost is generally lower thandirect mail. Promoters of these periodicals say that because the tabloids contain couponsfor numerous businesses, the time use is generally longer because people keep theseperiodicals for an extended period of time. Once again, with this type of advertising, youneed to use something that can be tracked for response.

Special Community Events. Every community has some type of local eventthat offers an opportunity for additional advertising, i.e., the chamber of commerce,Rotary or Kiwanis clubs. Participation in community activities is especially advantageousin keeping the facility visible in your area.

Facilities have conducted canned-food drives in cooperation with local organizations.They might offer $1 off a month's rent per can, up to a 20-can maximum. Prior to thedrive, send a press release to the local newspaper promoting the community service. Also,send an additional press release after the campaign is over, announcing the amountcollected and thanking all those who participated.

Participation in special community events works exceptionally well in small urbanareas, but also can work well in the larger cities where there are small neighborhoodorganizations or local business associations.

The High End

The more expensive range of advertising is the Yellow Pages. It's the best source ofadvertising and tends to be the most expensive. The bonus is that people who pick up theYellow Pages are already in the process of selecting a facility; you don't have to sellthem on self-storage. You do, however, have to sell them on your facility--settingyourself ahead of the competition.

Keep in mind that larger ads tend to attract more attention. Make sure you match orbeat your competitors' ad size. If you decide to save money and go with a smaller ad, youmay end up losing a lot of business in the long run. In some areas, larger Yellow Pagesads garner preferential placement in the directory. If you have two or more facilities,you might afford a larger space by listing them both in one ad.

Most areas have more than one directory available. Try to evaluate directories as ifyou were the end user. Before buying space, check out the circulation of each, when theyare published, and if the listings are accurate, complete and up-to-date.

When designing the ad, you should include several items: a headline with a promise orlocation, because most readers want a business that is nearby; business name, logo, phonenumber and operating hours; one or two key selling points, such as "we can save youmoney" or "credit cards accepted"; confidence-building information, i.e.,"established in 1984"; and a closing command that spurs the reader toaction--such as "call today to save money." Keep it simple, concise and easy toread.

Remember: Advertising is only as good as the response it draws. No matter what type ofadvertising you use, make sure it is trackable, so you can keep score on itseffectiveness. Always keep it simple, yet specific. If it works, use it again; expand onit. If it doesn't work, eliminate it. Always keep an open mind, be creative and willing totry something new.

This article was written by Mary Briggs for Kevin Howard Real Estate, a management,consulting, brokerage and development firm based in Portland, Ore. For more information,visit www.portlandstorage.com.