As I write this article, the 2010 Winter Olympics are taking place in Vancouver―the biggest sporting event in Canadian history. The Vancouver Olympic Committee must have submitted an impressive presentation to the review board to illustrate that the city would be the ideal location. I wonder about the type of information they collected and how they got it.
Vancouver began its bid to host the games nearly 15 years ago. Country officials collected data for a long time to become the successful bidder. Would they have won if they hadn’t gathered sufficient information? Did other cities lose their bids because they were not as diligent? What does this have to do with storage?
A self-storage facility doesn’t really compare to the Olympics, but the process of winning the bid demonstrates how you too can effectively manage your time and gather data for greater industry success. This article discusses how and why you should be collecting information from tenants. To complete your due diligence, you’ll need to ask a lot of questions―and record all of the answers.
Record All Activity
I often hear managers talking about their net occupancy and how much revenue they’re bringing in, but this information has nothing to do with the future success of the company. The tenant you rented to today will eventually move out. You need to be concerned about how you’ll rent that unit again. What type of marketing will attract your next customer? What size unit will that customer need? Do you have all the features he wants?
Tracking this information can be difficult, and you’ll need to ask a lot of questions. This can be a challenging task but, if done accurately, it can bring many future rewards. For example, if there are plans for facility expansion, you’ll have a more accurate measure of what your unit mix should be. You’ll know what features are in demand, and how to improve your operation to be more appealing in your market. You’ll learn what marketing resources are effective, and see how efficient you and your sales staff are in closing prospects.
So many owners want to know when a manager rents a unit so they can compare it to how much they’ve spent on advertising. This allows them to estimate how much it costs to get that customer to call, and how many prospects are needed to justify advertising dollars. The problem is too many managers will not record all the activity. Some will only document the rentals or prospects who seem like they’re going to rent. The prospects who call and hang up after quickly getting a quote are rarely recorded. This negatively impacts facility data and may keep you from getting the “Olympic Games.”