Best in Class

A tribute to small operators

By RK Kliebenstein

Whatdoes it really mean to be No. 1? That your facilities comprise the most squarefeet? The most units? The most land? The most employees? Are any of theseimportant enough to make you No. 1?

I was recently asked to prepare a speech to present to the Texas Mini StorageAssociation. As the president-elect for the national Self Storage Association,Kevin Langley, was explaining to me the message he wanted delivered to thegroup, we discussed a phrase that really means something to me: "best inclass." As I travel around the country and throughout Europe, I amconstantly bombarded by the message "Business 'X' is No. 1!" In self-storage, Public Storage is regarded as No. 1 based on shear numbers--squarefootage, number of units, employees and revenues. Many would argue, however,this is not the case. I urge you to shop any of the top 20 operators and askyourself, is this what it really means to be the best?

Focus on Quality, Not Quantity

I have always believed the No. 1 owner-operator in almost any market is theone who is active in the day-to-day operations of his self-storage property.This usually means the facility is new, because there is a growing trend ofowner-operators becoming very complacent--even lazy--after lease-up. Theslothful approach to management is not intentional, but migrates into the dailyroutine as the store produces a steady cash flow.

In the early days of an operation, the owner is at the store checkingoccupancy, making sure everything looks new and clean, and is really involved.He checks the deposits and marvels at each percentage-point gain in occupancy.If you have a store that is more than five years old, ask yourself: Did you callthe store today to see how many spaces were rented? Did you check themove-in/move-out report and congratulate your team on a job well done? Did youask what you can do to correct a declining occupancy trend? When was the lasttime you took your manager to lunch and had an in-depth conversation about whatsets your store apart from the competition? Are you reviewing themystery-shopping reports with your sales counselors every month, striving forhigher scores and better closing ratios? Are your traffic reports consistentlyproducing data by which you can manage revenues?

Driven by Excellence, Not Obsolescence

When was the last time you walked the property and looked in every vacantunit? Were they spotless? Were the doors lubricated and adjusted? Are there newrubber sweeps on the bottoms of the doors? What about new pull handles? When didyou last drive through the property at night to make certain every bulb wasshining brightly? Have you replaced the sir filters in the A/C building as apart of routine maintenance or because the unit was not cooling as well as itused to? Is there a sticker on the HVAC unit indicating the date of the lastfilter change? If you have left these items up to your manager, they may not begetting done as regularly as you would like.

What does your restroom look like? Mobil Oil had an entire advertisingcampaign built around the cleanliness of its gas-station restrooms. Is yourswell-stocked? Is the sink spotless? What about the floor? Is the tile clean? Arethere black marks or water stains on the floor? How does it smell? If you thinkthese things are not important, maybe you are not interested in "best inclass" status.

Is Bigger Really Better?

The answer to this question is no! To be more exact, heck no! I recentlyvisited the No. 1 store in a particular market--No. 1 in customer service,cleanliness and, most important, occupancy. The store was also the oldest intown, the smallest and had the least number of employees. This was truly a"best in class" store.

The facility's sign was not the largest in town, but it was well-located; andagainst the white background, green and blue letters proudly displayed thefacility's name. The reader board simply said "great value, friendlyfaces." The entry drive was wide and clean, with well- maintained grass oneither side. I pulled into a wide parking spot clearly marked "Parking forOur Future Friends." I walked just a few steps to the front door where thepleasant smell from a room freshener and a smiling face greeted me.

"Good morning, my name is Gary, and thanks for stopping in. How may wehelp?" I announced my need to store a car that would probably require a10-by-20 unit. I noticed Gary record my visit on a clipboard along with the timeof day. "Just for the record, how did you hear about us?" he asked. Ireplied and my answer was also noted on the clipboard. I was then taken throughthe sales process. Gary asked for my name and used it twice. I was informedabout the facility's wide aisles, security cameras, newly installed individualdoor alarms and hours of operation. Most important, Gary listened to myquestions and answers and acknowledged they were important to selecting theright space.

He informed me he did not have a 10-by-20 unit available that day, and askedabout the make and model of the car to be stored. After asking if I had a momentto spare, Gary went to his computer, looked my car up in a database, andinformed me the car was 14 feet, 6 inches long and would fit nicely in a10-by-15 space. He asked if I would be storing other items, and offered to showme a 10-by-25 and a 10-by-15. He then said he would give me a free lock if Iwould take one of the alternate spaces, and offered to put me on a transfer listto a 10-by-20 if that was the size I really wanted.

We took a property tour as we went to look at spaces. I was offered a cup ofcoffee or bottle of cold water. The golf cart we traveled in was clean and neat.On the seat was a brochure and an envelope with "Free Gift" writtenacross it, both of which were for me. Gary pointed out the gate operation,security cameras, location of the climate-controlled building (just in case Ineeded a "special" space later on). He was never pushy, butinformative, and we shared the usual chitchat. But I knew I was at No. 1 whenGary said, "RK, I have only one of these 10-by-15s and only one 10-by-25unit left for rent. I want to have you as a neighbor," (he lives on theproperty), "and I would like to hold either space for you. Which one isbest for you, and would you be reserving the space with a credit card or adeposit check?"

Well, it was time to tell Gary he was being "shopped." He was justas enthusiastic, and said he was glad I chose to stop by. When we returned tothe office, two more people were at the door. He politely asked if I wouldunderstand if he assisted some potential renters. As I returned to my car, Inoticed the absence of litter and cigarette butts and the presence of flowers onthe property. On my way out, there was a sign that read, "Glad You StoppedBy."

I opened the envelope marked "Free Gift." Inside were a couple ofcoupons for neighboring businesses and another envelope marked "Let me buyyou a drink," which included a coupon for a free soft drink at the localdeli. Gary's card was inside with a handwritten "thank you" on thefront. There was also a coupon for a free disk lock with a new unit rental and areferral coupon for 10 percent off the first month's rent for a friend and 10percent off my rent for the referral. Pretty slick!

When I got home, Gary had left a voice-mail message that he was glad Istopped by, and even though I was just shopping him, he would appreciate anyreferrals I might be able to offer. He asked me if I could think of anyone whoneeded storage and offered to send that person the referral coupon. A few dayslater, the owner, too, left me a voice mail that he was glad I stopped by, hewas sorry I was not on the list of "Gary's new neighbors," and Ishould call him personally if there was anything he could do to help me with mystorage needs.

That, my friends, is a store that is No.1.

RK Kliebenstein is the team leader at Coast-To-Coast Storage, whichoffers consulting services for the self-storage industry. Specializing infeasibility studies and financing, Mr. Kliebenstein is a frequent speaker atindustry tradeshows and author of articles regarding the industry. For moreinformation, call 561.367.9241; e-mail [email protected].