WANTED:

A silver bullet to smite the competition

By Harley Rolfe

Self-storage owners tell methey are increasingly vexed by competition, and they think marketing will help.So, I tell them about step one in creating a sound marketing program: Study yourtenant base. At this point, their eyes glaze over. They have a real problem, andthey are willing to pay for help, but they want something fast and easy. Theywant a set of marketing "tricks" that will wipe out the competition.But nothing is that simple.

How do you conduct a "hard-nosed" marketing program? Easy. Knowmore about what users are looking for than your competition. Create a uniquesolution to their problems and get the word out. Note that step one is gainingknowledge. For example, successful athletes or sports teams study theiropponents to antipate how they will behave during a game. Similarly, a goodpolitician researches the issues and figures out a program to meet voterpreferences.

Marketing is no different. You already have a head start--you have a facilityfull of tenants who have already "voted" in your favor. You have theadvantage of being able to ask and find out from paying customers what they wantand need. And there's another benefit: After you speak with your customers, younow have a repertoire of interesting stories and endorsements to illustrate andreinforce your marketing claims.

A marketing program is no better than its underlying research. That's yourfoundation, and it will vary segment by segment. Until you identify yourprospective tenants and determine their specific needs, you're flying blind.

Self-Storage: A Complex Market?

Some see the simplicity of the self-storage product and assume theself-storage market is equally uncomplicated. But keeping in mind thatmarkets or segments really represent different uses of the product, theyare more varied and, therefore, complex. There are personal and business uses,with dozens of applications in each. You really don't know your market until youknow all the uses to which your facility is being put. You must know what needor use each prospect has, and target your appeal to that. A "come one, comeall" philosophy doesn't work in an aggressive market.

Divide and Conquer

In determining the right marketing approach, you must first survey yourcurrent and vacated tenant base. Compose a questionnaire to determine how thosetenants came to you. The main question is, what caused each tenant to need andobtain a storage unit? You need to learn how to be there when a need for yourservice arises. Don't always wait for tenants to come to you.

For example, when someone purchases a new home, there is an immediatepossibility that he will need storage. Aim your marketing at that crucialmoment. But first, there is some basic information you will need:

These are some of the insights that begin to guide your approach. We knowthere are two major classes of users: personal and commercial. We also know theoccupancy term for each is quite different. Why? Changes or events in a person'slife generate personal uses--a new home, divorce, job transfer, etc. These aretransient occurrences. The use of the facility ends when the occasion ends, soit's only temporary. Business applications are likely to be more permanent ifwoven into the operations of the enterprise. These differences should berecognized in the way we plan, price and offer our services.

Self-Storage Marketers Lament

I continue to be disappointed that the Self Storage Association has notstudied and established definitions for the basic market segments. The SSA seemsall too willing to encourage developers to build new facilities, but devoteslittle effort to reducing the woe this added capacity causes existing sites.There should be a catalog available to identify the various market segments (andthere are probably hundreds). Operators could then match up their own marketpatterns with the master list, permitting them to draw comparisons between andwithin geographical areas. Current operators shouldn't be faced with doing thisgroundwork.

Because of the lack of shared market definitions, facilities inevitablycreate a mish-mash of data. That data is useful to the individual facility, butis not comparable to anything else. The SSA should help increase the size of theself-storage "pie," making room for added unit capacity. Manyassociations are right in there pitching for their members. But the SSA has beenpassive toward marketing needs, and many of today's operators cannot sit tight.The market won't wait. I urge you to press the SSA to help you meet yourmarketing challenges by at least categorizing the possible uses andcharacteristics of self-storage.

Is This Trip Really Necessary?

There are some who doubt the need to do all this basic homework. But theefficacy of any marketing effort is a function of the underlying research youhave done. It's the foundation of your program. Without it, you are justguessing about who is using your facility and why. Once you've collected thatinitial data, keep in mind that it will get dated, so you should ask each newtenant about his particular application. This will keep your database fresh andcreate opportunities to uncover trends and niches.

Many owners got into the self-storage industry because it didn't seem torequire sophisticated management. After site selection, financing andconstruction, it seemed the owner need only take an ad in the Yellow Pages andperform the housekeeping duties and good things would happen. But competitionchanges things. When marketplace combat breaks out, detailed knowledge of yourtenant based is more than necessary knowledge--it's your ammunition.

Missed some previous issues? Check the web at www.hardnosed.com.

Harley Rolfe is a semi-retired marketing specialist whose career includesexecutive-level marketing positions with General Electric and AT&T. He alsoowned lodging and office facilities for more than 20 years. Mr. Rolfe holds abachelor's degree in economics from Wabash College and a master's degree inbusiness administration from the University of Indiana. He can be reached at hishome in Nampa, Idaho, at 208.463.9039. Further information can also be found inMr. Harley's book, Hard-Nosed Marketing for Self-Storage.