The Convenience Store
|Copyright 2014 by Virgo Publishing.|
|By: Cary F. McGovern|
|Posted on: 10/01/2004|
Smaller, Simpler, More Profitable
By Cary F. McGovern
This article discusses why small records-storage clients may be more valuable than large accounts in a self-storage records center. It is possible to yield three to four times per unit of storage compared to the local full-service commercial record centers in your town.
For several years, records-storage providers operating within the walls of self-storage have discovered the amazing yield of the small-business client. In fact, the smaller the client, the greater the yield per unit of storage. How can this be? It is an interesting phenomenon that has escaped the notice of major industry players. As a self-storage operator, you actually have several advantages over the big guys:
The Convenience Store
Why do people choose to go to a convenience store instead of a supermarket, especially when they know they’re going to pay more for the things they need? It’s fast and easy to get in and out. I like to compare commercial records centers to supermarkets and self-storage facilities to convenience stores. There are several good analogies at work here:
The traditional, full-service, commercial records center markets its services to larger businesses because of the relatively high cost of sales. A sales call and client-needs assessment can cost between $100 and $500 or more depending on the size of the business. For this reason, commercial centers cannot waste their time on 50- to 100-box accounts. Remember, prospects do not go to them, and rarely does a small business even know or understand the value of the service.
According to the most recent census data, small business enjoys the largest market share in the American economy. It remains virtually untouched by traditional commercial records centers. It is easy to identify small businesses in your area: Simply go to www.superpages.com, type in the city, and select a business type. The results are your prospect database. Of course, there are many other options for finding prospects to whom to market your services.
Smaller but More profitable
Your records-storage volume could be one-tenth the size of the full-service commercial competitor in your town. You could also earn more profit, make a greater return on your investment and diversify your services. There are several important things to keep in mind:
The most misunderstood area of records storage is the small-business concept. It is a gold mine for those who put this to work in their facilities. If you have multiple store fronts, there is an even higher yield potential.
Regular columnist Cary McGovern, CRM, is the principal of FileMan Records Management, which offers full-service records-management assistance for commercial records storage startups, marketing assistance, and sales training in commercial records-management operations. For assistance in feasibility determination, operational implementation or marketing support, call 877.FILEMAN; e-mail firstname.lastname@example.org; www.fileman.com.