By Teri L. Lanza

Festive panache goes a long way in creating holiday cheer for employees and customers ...and creates great marketing opportunities, too.

A special thanks goes out to the Bialek family of Manitoba, Canada, for allowing us to draw on its "Merry Christmas Page," www.mts.net/~tyndall/cmas/xmas.htm. The family claims to be setting a record this year for the largest rural Christmas display in "The Heart of Eastern Manitoba," with upward of 15,000 lights.

December is a time of celebration for most of your customers and employees, regardless of their individual holiday traditions. Creating a festive environment during this season will not only brighten people's spirits, but will generate warm sentiments about your business within the local community. Aside from the added visibility they create for your facility, decorations may even create unique marketing opportunities, particularly if paired with an event, such as a toy drive, or other publicity stunt, such as dressing your manager as Santa for a day.

Running a business is never easy, and finding time for those special touches can be daunting during an already harried holiday season. After all, you have families to shop for, gifts to wrap and food to prepare, just like your customers do. But taking some time to dress up your facility's office and exterior with some coloful lights, ornaments, wreaths, a menorah, ribbons and bows is plain good business. It generates publicity, and communicates to the people who work with you--employees and tenants alike--that you are about more than storage.

Things You'll Need

Before you begin, make sure you have everything you'll need to hang, fasten and secure your decorations. Some smart items to have include:

• Plastic cup hooks--available in packages at any hardware or home-retail store
• Thick wire--sturdy but flexible, this can be used to hang a number of items
• Sticky tabs
• Twist ties or pipe cleaners
• A large roll of velvet ribbon
• Heavy-duty extension cords, long and short--those approved for outdoor use are preferable
• Plenty of replacement bulbs in different voltages
• A sturdy ladder
• Plenty of patience

Don't Get Tangled...

Holiday lights, as dazzling as they can be once hung properly, can be a real nightmare. The cords get tangled, the bulbs will or won't blink on command, one string works, one won't--they can try your patience. But a facility outlined with these colorful beauties draws attention, and what business doesn't want that? Following are some decorating ideas for the exterior of your buildings.

Start with a plan. A diagram of your facility, including height and width dimensions, walkways and railings, will help you determine how many strings of lights you will need. Note also where your exterior electrical outlets are located. You can start with something simple and elaborate a bit more each year.

When purchasing lights, consider miniature lights intended for exterior use. They are energy-efficient and have cool-burning bulbs that pose less of a fire hazard. Read the packaging to determine how many strings can be linked together without overloading your circuits. The package will also indicate how many feet of lighting you have to run along roof edges, windows, etc. According to the Bialek family, hosts of the Merry Christmas Page (www.mts.net/~tyndall/cmas/xmas.htm), full-size C-7 and C-9 light sets have the longest life and most durable construction. They can be purchased in strings of 25 and connected in up to six string lengths. If you choose to go with miniatures, the maximum recommended amount of lights you can string together is 350 to 400.

To determine how many feet of lights you will need for a bush or tree, simply multiply its height by its average width in feet and then multiply by six. If you are using full-size rather than miniature lights, divide the final number by two. Miniatures are the best choice for deciduous trees. You can wrap each branch starting from the trunk and working to the end of the branches. For coniferous trees, use C-9 bulbs, beginning at the top and working your way down in a zig-zag pattern, or starting at the bottom and working up the tree in circles.

In general, strings of lights should be used to highlight architectural structures and shrubbery, while a floodlight can be placed to focus on a special feature, such as a wreath, plastic snowman or decorated tree. Be sure to purchase flood- or spotlight bases rated for outdoor use with plastic, double-insulated bases, and invest in heavy-duty outdoor extension cords. Be sure to keep cords out of walkways or door openings.

Plastic hooks or clips, which can be purchased at any major home-retail or hardware store, should be used to secure lights to your building. The hooks secure to the structure and the lights simply slide into place. Never attempt to staple light strings to any surface, as you may penetrate the circuits. For gable roofs with metal facia, special shingle tabs can be used that slide under shingles without causing any damage. Special sticky tabs can also be affixed to smooth surfaces that allow you to insert a nylon cable tie to hold the lights in place.

Inevitably, there will be light strings that don't want to cooperate. If any part of a string will not light, first try firmly pushing each bulb into its base to secure it into the socket. If that doesn't solve the problem, remove each bulb and base from its socket. Straighten the wires that extend from the base, bend them back around the base and re-insert the bulb into the socket. If the string has a fuse in the male end of the plug--and some do--then try replacing the fuse. Note: Burned-out bulbs should be replaced as soon as possible, so as not to cause the other bulbs to overheat.

Some final suggstions regarding lights: It's a good idea to store light strings separately so they don't tangle. There are special caddies made for this purpose, but looping strings and securing them with tape is also effective. This will not only help you avoid frustration when unpacking them, but will make it easier to test the lights. There are testers available that make locating problem bulbs a snap.

Photographing Your Light Display

Holiday decorating is a great way to draw attention to--and even market--your facility. An impressive holiday display should be documented, not only because of all the time and effort involved, but so its benefits can be reaped year-round. You may want to include a photo of your decorated facility in a brochure or on your website. Sending a photo card of your decorated facility to your tenants--don't forget potential tenants--during the holiday season lends a nice touch.

If you are not a professional photographer, it will be a challenge to take clear, impressive photos of your display. You can capture the "magic" of your lights, however, by following some simple tips provided by the New York Institute of Photography (NIP), the world's largest photography school.

First, turn off your flash. That's right--even at night. Your flash will overwhelm the miniature tree lights, and their color will be imperceptible. What this means, though, is that you won't have enough light for a normal, split-second exposure. If you have an automatic camera, it will compensate by holding its shutter open for a longer period of time (its meter will gauge how long). This creates a risk of blurring if either you or anything in the camera's view moves. NYI suggests the following: 1) Use a high-speed film, such as ISO 800, to cut down on the duration of the exposure; 2) use a tripod to steady the camera, or use a solid surface such as a table top. For more information, visit www.nyip.com/tips/topic_holidaylights1298.html.

Other Decorating Ideas

Lights are a perfect holiday addition to the dècor of a facility's exterior, but you should also consider decorating inside your rental office to further the festive spirit. The obvious embellishments include a Christmas tree or menorah, colorful pin-ups, glass bulbs or other decorations, tinsel, garland, wreaths, candy canes, etc. Here are some more specialized concepts:

• Make a wreath out of branches from your Christmas tree and deck them with traditional items, like bells and bows, or personalize it with items indigenous to your region. For example, Christmasmoon.com suggests that if you live in a warm climate, you could attach plastic sunglasses, flamingos or toy lizards.
• Use your holiday cards as decoration by hanging them on a string along the top of a room, or affix them to a wall or door in the shape of a tree, wreath or candy cane.
• Cut some boughs from your Christmas tree or out in the wild. Bunch them together in small groups with wreath wire and tie them with a ribbon. Add wired pine cones for a festive touch. Hang them in doorways, over windows or on walls.
• Many facilities sell boxes to their tenants. Try wrapping a few empty boxes in holiday paper to look like gifts and pile them on your counter.
• Play some holiday music in your office. If you have music piped into your facility, you can play it there as well.
• Fill a glass bowl or vase with shiny ornaments. Hang decorations from your houseplants and indoor trees.
• Set up a miniature holiday village somewhere in your office.
• Put a bowl of holiday candy, a gingerbread house, fresh fruit or cookies on your counter.

Spreading Cheer

Whatever you do to commemorate the season, consider spreading the cheer--to your employees, your tenants and the local community. Team up with your local chamber of commerce, Boy or Girl Scouts, or other organization in a Toys for Tots drive. You probably have several tenants with old toys, clothing or other items they might like to donate to charity this time of year. Ask them to go through their units and leave you with any such items.

Consider organizing a caroling outing or participating in a Sub-for-Santa program. And don't forget to contact the local media well in advance if you're going to feature an unusual or elaborate light display or participate in a holiday fund-raiser. Decorating your facility will put you in the spotlight--now is the time to do something worth noticing.

---

Holiday Safety Tips

With the end-of-the-year holidays come lights, Christmas trees and other potential fire and electrical hazards. Following some simple guidelines will keep you, your family and tenants free from harm.

Tree Safety

• Place Christmas trees away from fireplaces, heating vents and other heat-producing appliances.
• Cut Christmas trees can be extremely flammable, particularly if they are dry. Trees should be kept well-watered. A dry tree will lose green needles when tapped on the ground.
• Saw at least an inch off the bottom of a cut tree and place it firmly in a stand that holds at least one gallon of water, with the water level above the cut. A 6-foot tree will use a gallon of water every one to two days.
• All natural decorations used indoors--including trees and wreaths--should be treated with fire retardant.
• To fire-retard a tree, allow the sawed-off trunk to soak overnight in a bucket of the following mixture: 2 gallons of hot water, 2 cups of corn syrup, 1/4 cup of liquid bleach, 2 pinches of epsom salts and 1/2 teaspoon of Boraxo.
• The use of candles as decorations is strongly discouraged. If you must use them, place them in sturdy holders away from flammable objects. Remember that melted candle wax can cause burns, especially for children.
• Never attempt to burn any portion of the Christmas tree in the fireplace. Dispose of the tree properly.

Lighting Safety

• Use tree lights that bear the Underwriters' Laboratory (U.L.) label, and check the strings for signs of wear and tear. Do not use lights that are frayed or that have missing or broken bulbs.
• Always unplug a light string before replacing a bulb.
• Extreme caution should be observed when rigging holiday lighting. Metallic decorations--including artificial trees, some types of icicles and tinsel--should not be strung with lights, as they conduct electricity and may become energized by faults in the electrical wiring.
• Avoid overloading wall outlets or extension cords. Use no more than three sets of lights per extension cord, and do not run cords under rugs or in other paths of travel. If the cord ever feels hot, that means it's carrying too much electricity.
• Use miniature lights that have cool-burning bulbs.
• Use only outdoor lights on the exterior of a building. Point the light sockets down to avoid the collection of moisture. Keep outdoor electrical connectors above ground and out of puddles of snow.
• When connecting light strands outdoors, wrap a plastic bag around the connections and tie the ends with teflon tape.
• Never staple lights to fasten them to walls or other surfaces. Use plastic or metal hooks for hanging.
• Remember to turn off all lights and other electrical decorations before leaving the premises for extended periods of time or going to sleep.

Equipment

• Do not obstruct exit doors, corridors, fire alarms, sprinkler heads or any other emergency-response equipment with decorations of any kind.
• Check fire alarms and smoke detectors regularly. Be sure to keep them stocked with fresh batteries.
• Always keep a fire extinguisher in an easily accessible place.

Inside Self-Storage wishes you a happy and safe holiday.

Holiday safety tips were provided by the Environmental Health and Safety Department of the University of Maryland (www.ehs.umaryland.edu); the Summit Area Jaycees of New Jersey (www.angelfire.com/nj/summitjc); Swift Office Solutions of Tempe, Ariz. (www.sosnet.com); KWTV of Oklahoma City, Okla. (www.kwtv.com); and Christmas2000.com.

According to Proverbs (21:17), "He that loveth pleasure shall be a poor man; he that loveth wine and oil shall not be rich." But I prefer the sentiments of Ralph Waldo Emerson: "Give me wine to wash me clean from the weather-stains of care."

Operators of this industry have recently uncovered a new niche business: wine storage. Though not appropriate for every market, it has earned popularity in areas offering no viable alternative for storing such collections. At the Inside Self-Storage Expo in Nashville this year, industry gurus Jim Chiswell and Joe Niemczyk joined George McCord of Southeast Storage and Development in a presentation on this ancillary's potential. George's facility, Plantation Self Storage, Bluffton, S.C., features 88 wine-storage lockers with a total capacity for 2,032 cases of wine. He shares information on construction costs, rental averages, facility layout, presentation and more. Though wine-storage revenues can be attractive, what's more important is how it can differentiate your project from others in your area.

This time of year is generally one of celebration for family, customers and employees. Regardless of your individual holiday traditions, creating a festive environment this season will not only brighten people's spirits, but generate warm sentiments about your business within the local community. Refer to page 60 for ideas on decorating for the holidays. And however you choose to celebrate, keep in mind that gatherings involving alcohol can cause liabilities for you as an employer and business owner. Fred Steingold warns against some common legal risks.

Also in this issue, Jeff Kinder emphasizes the importance of regularly evaluating and pricing your self-storage product. Regardless of what climate of competition you may face, it is crucial not to undervalue your facility. R.K. Kliebenstein takes a close look at employment issues, addressing questions such as: When is the time for a staffing change? What will a change cost my business? and How can I better solve my business challenges?

At the turn of the century in England, it was a custom for the host of a fashionable dinner party to choose both the giver and subject of a toast. During one such gathering, Nobel Prize-winning writer George Bernard Shaw was asked to tip his glass and toast to the then taboo topic of sex. In a marvelous comeback that observed propriety, Shaw graciously quipped, "It gives me great pleasure." I hope this issue, too, delights you.

Happy Holidays,

Teri L. Lanza
Editor
tlanza@vpico.com

The staff of Inside Self-Storage recently had the opportunity to speak with Tim Soder, president of VersaTube Building Systems, to discuss the potential of boat and RV storage for self-storage operators. The company, based in Collierville, Tenn., produces covered shelters for RV, boat and automobile storage.

Please give us some background information on VersaTube Building Systems and its connection to boat and RV storage.

VersaTube Building Systems has been in business seven years. We started as a tubing fabricator, and then developing technology allowed us to create our "swaging technology." From there, we moved into building systems. Our first structure was a carport, and then we began developing secondary structures, including those for boat and RV storage.

What are the primary concerns of boat and RV owners? What would drive them to pay for storage of those vehicles?

I think one of the primary concerns of boat and RV owners is where to store their vehicle. If they cannot store it at home--either because of limited space or local ordinances--then they need to find a suitable place. If the boat or RV sits in the sun, its surfaces will expand and contract and the finish will deteriorate. Add that to other damage from inclement weather, and it's easy to see that boat and RV owners would want to protect their investment, especially when that investment can cost as much as $250,000.

From your perspective, how popular is boat and RV storage within industries such as self-storage or marinas? Is it becoming more prominent? If so, why?

First and foremost, the biggest area of concentration in the self-storage industry is storage for personal belongings. But, with boat and RV purchases on the rise, people need the storage. They can't store the boat or RV at home because of city ordinances. Self-storage facilities now have designated areas for boats and RVs. The self-storage locations that do offer boat and RV storage need to indicate that in their advertising. People in the mini-storage industry can take advantage of extra space by offering this kind of storage--both uncovered and covered.

What are the various structures available for vehicle storage and what are the benefits to each?

There are flat-top canopies and normal canopies for covered parking made of red-iron and galvanized steel, which require heavy construction skills to erect. These canopies are designed to cover many spaces at once. Boats and RVs can be fully enclosed in stand-alone units or in large buildings that hold several vehicles. We offer a sled-based unit that can be portable. An in-line, galvanized, steel-tubed frame offers the best rust protection and is easy to ship and erect. The roof of a VersaTube structure is galvanized steel and can be painted to match the rest of the storage facility. An owner can erect a VersaTube structure himself with some labor assistants. The structure can be open-air or completely enclosed.

What size ranges need to be offered in terms of the vehicle space?

Our base unit starts at 20 feet deep and increases in five-foot increments. Units need to be at least 12 feet wide, but the height is dependent on the product mix in the marketplace. Travel-trailer storage units should be 10 to 12.5 feet high. Boat storage units need to be 7.5 feet high and 45 feet long.

What other special requirements might a facility or marina operator need to meet in order to offer this type of storage?

A storage facility or marina operator's first requirement is land and/or boat dock space. Market demand will also affect requirements. An operator might start with uncovered space and move to covered space, and then move to boat/RV storage exclusively. An operator could offer uncovered, covered and semi-covered space. People want to store all their vehicles in one place. Operators can also offer amenities such as vehicle washing, vehicle repair, preparing vehicles for storage (i.e. cleaning septic system and washing vehicle), or preparing the boat or RV for travel.

What about items such as fire sprinklers? Are they a requirement with these structures the way they are with standard buildings?

If the storage facility owner is using steel structures for storage, the storage facility is not going to burn, but the boat or RV might. The owner should check with local building officials to see what is required and check local building codes.

What important things should a facility owner be looking for in a builder of covered or enclosed structures?

He should look for companies offering quality products that can be delivered in a timely fashion.

Should cost ever be an issue?

Cost is always an issue. Owners need to go through the process of cost justification. Will they get a return on their investment? Is it financially feasible? The quicker the structure depreciates, the bigger the return. Facility operators also need to consider the construction cost of erecting storage structures, many of which require a construction crew for assembly. A system like ours is easy to erect. An owner could erect it himself with a few extra hands. Plus, it can be used to cover as few or as many spaces as the owner sees fit. Additional structures are easy to assemble. As a result, boat and RV storage is becoming its own opportunity.

Are facility operators paying attention to differences in quality of the various types of structures?

I think they are. Basically, the operators are pleased with the structures they are getting. Cost justification is a vital part of quality. VersaTube's product is a good value because of its ease of construction and seven-year depreciation rate.

For more information, visit www.versatube.com , or call (901) 854-6855.

By Teri L. Lanza

Festive panache goes a long way in creating holiday cheer for employees and customers ...and creates great marketing opportunities, too.

A special thanks goes out to the Bialek family of Manitoba, Canada, for allowing us to draw on its "Merry Christmas Page," www.mts.net/ ~tyndall/cmas/xmas.htm. The family claims to be setting a record this year for the largest rural Christmas display in "The Heart of Eastern Manitoba," with upward of 15,000 lights.

December is a time of celebration for most of your customers and employees, regardless of their individual holiday traditions. Creating a festive environment during this season will not only brighten people's spirits, but will generate warm sentiments about your business within the local community. Aside from the added visibility they create for your facility, decorations may even create unique marketing opportunities, particularly if paired with an event, such as a toy drive, or other publicity stunt, such as dressing your manager as Santa for a day.

Running a business is never easy, and finding time for those special touches can be daunting during an already harried holiday season. After all, you have families to shop for, gifts to wrap and food to prepare, just like your customers do. But taking some time to dress up your facility's office and exterior with some coloful lights, ornaments, wreaths, a menorah, ribbons and bows is plain good business. It generates publicity, and communicates to the people who work with you--employees and tenants alike--that you are about more than storage.

Things You'll Need

Before you begin, make sure you have everything you'll need to hang, fasten and secure your decorations. Some smart items to have include:

• Plastic cup hooks--available in packages at any hardware or home-retail store
• Thick wire--sturdy but flexible, this can be used to hang a number of items
• Sticky tabs
• Twist ties or pipe cleaners
• A large roll of velvet ribbon
• Heavy-duty extension cords, long and short--those approved for outdoor use are preferable
• Plenty of replacement bulbs in different voltages
• A sturdy ladder
• Plenty of patience

Don't Get Tangled...

Holiday lights, as dazzling as they can be once hung properly, can be a real nightmare. The cords get tangled, the bulbs will or won't blink on command, one string works, one won't--they can try your patience. But a facility outlined with these colorful beauties draws attention, and what business doesn't want that? Following are some decorating ideas for the exterior of your buildings.

Start with a plan. A diagram of your facility, including height and width dimensions, walkways and railings, will help you determine how many strings of lights you will need. Note also where your exterior electrical outlets are located. You can start with something simple and elaborate a bit more each year.

When purchasing lights, consider miniature lights intended for exterior use. They are energy-efficient and have cool-burning bulbs that pose less of a fire hazard. Read the packaging to determine how many strings can be linked together without overloading your circuits. The package will also indicate how many feet of lighting you have to run along roof edges, windows, etc. According to the Bialek family, hosts of the Merry Christmas Page (www.mts.net/~tyndall/cmas/xmas.htm), full-size C-7 and C-9 light sets have the longest life and most durable construction. They can be purchased in strings of 25 and connected in up to six string lengths. If you choose to go with miniatures, the maximum recommended amount of lights you can string together is 350 to 400.

To determine how many feet of lights you will need for a bush or tree, simply multiply its height by its average width in feet and then multiply by six. If you are using full-size rather than miniature lights, divide the final number by two. Miniatures are the best choice for deciduous trees. You can wrap each branch starting from the trunk and working to the end of the branches. For coniferous trees, use C-9 bulbs, beginning at the top and working your way down in a zig-zag pattern, or starting at the bottom and working up the tree in circles.

In general, strings of lights should be used to highlight architectural structures and shrubbery, while a floodlight can be placed to focus on a special feature, such as a wreath, plastic snowman or decorated tree. Be sure to purchase flood- or spotlight bases rated for outdoor use with plastic, double-insulated bases, and invest in heavy-duty outdoor extension cords. Be sure to keep cords out of walkways or door openings.

Plastic hooks or clips, which can be purchased at any major home-retail or hardware store, should be used to secure lights to your building. The hooks secure to the structure and the lights simply slide into place. Never attempt to staple light strings to any surface, as you may penetrate the circuits. For gable roofs with metal facia, special shingle tabs can be used that slide under shingles without causing any damage. Special sticky tabs can also be affixed to smooth surfaces that allow you to insert a nylon cable tie to hold the lights in place.

Inevitably, there will be light strings that don't want to cooperate. If any part of a string will not light, first try firmly pushing each bulb into its base to secure it into the socket. If that doesn't solve the problem, remove each bulb and base from its socket. Straighten the wires that extend from the base, bend them back around the base and re-insert the bulb into the socket. If the string has a fuse in the male end of the plug--and some do--then try replacing the fuse. Note: Burned-out bulbs should be replaced as soon as possible, so as not to cause the other bulbs to overheat.

Some final suggstions regarding lights: It's a good idea to store light strings separately so they don't tangle. There are special caddies made for this purpose, but looping strings and securing them with tape is also effective. This will not only help you avoid frustration when unpacking them, but will make it easier to test the lights. There are testers available that make locating problem bulbs a snap.

Photographing Your Light Display

Holiday decorating is a great way to draw attention to--and even market--your facility. An impressive holiday display should be documented, not only because of all the time and effort involved, but so its benefits can be reaped year-round. You may want to include a photo of your decorated facility in a brochure or on your website. Sending a photo card of your decorated facility to your tenants--don't forget potential tenants--during the holiday season lends a nice touch.

If you are not a professional photographer, it will be a challenge to take clear, impressive photos of your display. You can capture the "magic" of your lights, however, by following some simple tips provided by the New York Institute of Photography (NIP), the world's largest photography school.

First, turn off your flash. That's right--even at night. Your flash will overwhelm the miniature tree lights, and their color will be imperceptible. What this means, though, is that you won't have enough light for a normal, split-second exposure. If you have an automatic camera, it will compensate by holding its shutter open for a longer period of time (its meter will gauge how long). This creates a risk of blurring if either you or anything in the camera's view moves. NYI suggests the following: 1) Use a high-speed film, such as ISO 800, to cut down on the duration of the exposure; 2) use a tripod to steady the camera, or use a solid surface such as a table top. For more information, visit www.nyip.com/tips/ topic_holidaylights1298.html.

Other Decorating Ideas

Lights are a perfect holiday addition to the dècor of a facility's exterior, but you should also consider decorating inside your rental office to further the festive spirit. The obvious embellishments include a Christmas tree or menorah, colorful pin-ups, glass bulbs or other decorations, tinsel, garland, wreaths, candy canes, etc. Here are some more specialized concepts:

• Make a wreath out of branches from your Christmas tree and deck them with traditional items, like bells and bows, or personalize it with items indigenous to your region. For example, Christmasmoon.com suggests that if you live in a warm climate, you could attach plastic sunglasses, flamingos or toy lizards.
• Use your holiday cards as decoration by hanging them on a string along the top of a room, or affix them to a wall or door in the shape of a tree, wreath or candy cane.
• Cut some boughs from your Christmas tree or out in the wild. Bunch them together in small groups with wreath wire and tie them with a ribbon. Add wired pine cones for a festive touch. Hang them in doorways, over windows or on walls.
• Many facilities sell boxes to their tenants. Try wrapping a few empty boxes in holiday paper to look like gifts and pile them on your counter.
• Play some holiday music in your office. If you have music piped into your facility, you can play it there as well.
• Fill a glass bowl or vase with shiny ornaments. Hang decorations from your houseplants and indoor trees.
• Set up a miniature holiday village somewhere in your office.
• Put a bowl of holiday candy, a gingerbread house, fresh fruit or cookies on your counter.

Spreading Cheer

Whatever you do to commemorate the season, consider spreading the cheer--to your employees, your tenants and the local community. Team up with your local chamber of commerce, Boy or Girl Scouts, or other organization in a Toys for Tots drive. You probably have several tenants with old toys, clothing or other items they might like to donate to charity this time of year. Ask them to go through their units and leave you with any such items.

Consider organizing a caroling outing or participating in a Sub-for-Santa program. And don't forget to contact the local media well in advance if you're going to feature an unusual or elaborate light display or participate in a holiday fund-raiser. Decorating your facility will put you in the spotlight--now is the time to do something worth noticing.

---

Holiday Safety Tips

With the end-of-the-year holidays come lights, Christmas trees and other potential fire and electrical hazards. Following some simple guidelines will keep you, your family and tenants free from harm.

Tree Safety

• Place Christmas trees away from fireplaces, heating vents and other heat-producing appliances.
• Cut Christmas trees can be extremely flammable, particularly if they are dry. Trees should be kept well-watered. A dry tree will lose green needles when tapped on the ground.
• Saw at least an inch off the bottom of a cut tree and place it firmly in a stand that holds at least one gallon of water, with the water level above the cut. A 6-foot tree will use a gallon of water every one to two days.
• All natural decorations used indoors--including trees and wreaths--should be treated with fire retardant.
• To fire-retard a tree, allow the sawed-off trunk to soak overnight in a bucket of the following mixture: 2 gallons of hot water, 2 cups of corn syrup, 1/4 cup of liquid bleach, 2 pinches of epsom salts and 1/2 teaspoon of Boraxo.
• The use of candles as decorations is strongly discouraged. If you must use them, place them in sturdy holders away from flammable objects. Remember that melted candle wax can cause burns, especially for children.
• Never attempt to burn any portion of the Christmas tree in the fireplace. Dispose of the tree properly.

Lighting Safety

• Use tree lights that bear the Underwriters' Laboratory (U.L.) label, and check the strings for signs of wear and tear. Do not use lights that are frayed or that have missing or broken bulbs.
• Always unplug a light string before replacing a bulb.
• Extreme caution should be observed when rigging holiday lighting. Metallic decorations--including artificial trees, some types of icicles and tinsel--should not be strung with lights, as they conduct electricity and may become energized by faults in the electrical wiring.
• Avoid overloading wall outlets or extension cords. Use no more than three sets of lights per extension cord, and do not run cords under rugs or in other paths of travel. If the cord ever feels hot, that means it's carrying too much electricity.
• Use miniature lights that have cool-burning bulbs.
• Use only outdoor lights on the exterior of a building. Point the light sockets down to avoid the collection of moisture. Keep outdoor electrical connectors above ground and out of puddles of snow.
• When connecting light strands outdoors, wrap a plastic bag around the connections and tie the ends with teflon tape.
• Never staple lights to fasten them to walls or other surfaces. Use plastic or metal hooks for hanging.
• Remember to turn off all lights and other electrical decorations before leaving the premises for extended periods of time or going to sleep.

Equipment

• Do not obstruct exit doors, corridors, fire alarms, sprinkler heads or any other emergency-response equipment with decorations of any kind.
• Check fire alarms and smoke detectors regularly. Be sure to keep them stocked with fresh batteries.
• Always keep a fire extinguisher in an easily accessible place.

Inside Self-Storage wishes you a happy and safe holiday.

Holiday safety tips were provided by the Environmental Health and Safety Department of the University of Maryland (www.ehs.umaryland.edu ); the Summit Area Jaycees of New Jersey ( www.angelfire.com/nj/summitjc ); Swift Office Solutions of Tempe, Ariz. ( www.sosnet.com ); KWTV of Oklahoma City, Okla. ( www.kwtv.com ); and Christmas2000.com.

By Jeff Kinder

One of the most important tasks we share as self-storage operators--whether we have 1,400 facilities or 1,400 square feet--is deciding how much to charge for our units. As the industry matures, convenience remains the No. 1 reason consumers choose one facility over another. However, as consumers learn more about the product, a growing number are adding price and value to their list of motivators.

We all want to create value in our properties. We all want to move the profitability of our own properties and the industry higher. This creates the need to be more consistent and sophisticated in the way we price our product. It requires us to maximize the value of our inventory and avoid the pitfalls of being priced out of the market, in either direction. The famous Sicilian mathematician Archimedes once said, "Give me a lever that is big enough, and I can move the world." Pricing is the biggest lever you have for moving your property toward profitability and creating value.

Profitability is easy enough to understand. The more you take in and the less you pay out, the more profitable you are. Expenses are relatively fixed. Payroll and property taxes are the two biggies. The rest of the expenses all add up, but you make a bigger impact on your bottom line by tweaking out another 2 percent to 3 percent in revenue than you do by cutting your trash-pickup cost in half. Yes, you have to watch your expenses and manage your costs. But if you are neglecting the top line, you are leaving your best player out of the game.

Defining Value

When we think of value, the first thing that comes to mind is that a low price means value to the customer. But what about the value you are creating for yourself and your family? Why did you get into the business? Did you really want to maximize the value of your investment, or did you just want to buy yourself a job? As I work with owners and listen to many of the people who attend tradeshows for this industry around the country, I am amazed at how many of them have not raised their rates in the past few years. Most haven't really thought about it. Some are just happy they can make their mortgage payments, take a few bucks home and be 95 percent occupied.

Occupancy is a wonderful thing, but I'd rather have the money. A quiet tenant base is wonderful, but when it comes time to sell, your property is not going to be worth $X per square foot just because the guy a mile over sold his for that amount. Your tenants have to be worth the same, or more. Your long-staying, strong-paying tenants will not contest that small annual increase; but if you've taken your eye off the ball and have to play catch-up, a large increase creates a reason for customers to rethink your value. Even if you are still the cheapest in the market, a big increase will send a lot of people out the gate. Maintain the value of your property by regularly reviewing your rates and making the appropriate adjustments.

Creating and Maintaining Value

So what are the appropriate adjustments? First, look at the factors that create value. Storage space is a commodity. Supply and demand are the biggest factors we deal with in pricing our product. If a new competitor opens up in your trade area, there is new supply. That supply will have to be absorbed before there will be excess demand that allows you to raise prices. What we are dealing with, however, is supply and demand for each individual product, not storage in general. If your local supermarket has too many boxes of cereal, they don't run a special on steak, too. Just because someone opens a new climate-controlled, four-story super storage down the block, doesn't mean you should put your whole facility on sale. You may have to run a special or reduce the price on your inside 5-by-10s or 10-by-10s to keep from losing too much marketshare while the new guy fills up, but you can still increase the prices for your drive-up 10-by-10s and 10-by-20s.

Check the market. Determine your value compared to your competitors. If you have visibility, easy access and great curb appeal, you should not be as concerned with the property down in the industrial park or out on the other side of the airport. They can only attract business out of the Yellow Pages. Even if they have all the bells and whistles, they have to make it worth the drive to go past your place to get to them. Let them stay under you. You'll get more than your fair share of their business as they drive by, even if your rates are higher.

If your biggest competitor has 88 10-by-30 units, he may only get $275 a piece for them. But if you only have 15 of the same size unit, you can probably charge 10 percent more and stay full. Certainly, your sales team can help you create extra value in the way they answer the phone and take care of customers at the desk. All storage is not created equal. What do you have that gives your place value? How can you and your team merchandise that value so you don't always have to sell based on price?

Know your operation. How many move-ins did you have last year? If your occupancy is down, is lower pricing or a move-in special the answer? Maybe you had a special last spring and you filled up with students. They all moved out in September and now your occupancy is down. However, if you still have good move-in activity, lowering your pricing or offering specials is just leaving money on the table.

What other changes have you made? New managers and new policies will have an impact. Don't always react to changes by lowering your pricing. If you have good move-in activity compared with other years, you may even manage a rate increase while your occupancy is lower, and take advantage of all the new customers at the higher rate. Seasonal activity is a great opportunity. If you know you have more move-ins in May, June and July, raise your rates in March or April. Don't wait until you are full in July or August. Nobody can move in at the higher rate if you are full. You will have more money in the bank at the end of the year if you get the increase in early, even if you only get to 92 percent instead of 95 percent in August.

If your average annual occupancy is more than 88 percent to 90 percent, you are not charging enough. If you have not reviewed and adjusted your rates on a size-by-size basis in the past few months, you are leaving money on the table. Whatever your excuse is for not reviewing your pricing regularly, it is wrong. You can always manage an increase, even in the difficult years, adding 4 percent to 5 percent regularly.

I've provided some examples and basic ideas as to what and what not to do in terms of pricing and value. The key is to make sure you are doing something on a regular basis. As you consistently monitor the value of your tenant base, move-in activity and relative value in your trade area, you'll come up with better systems. I look forward to speaking with many of you and sharing those ideas at the upcoming Inside Self-Storage Expo in Las Vegas.

Jeff Kinder is the president of Advantage Advisors, LLC, and principal in The Advantage Group. Advantage owns and operates self-storage facilities in the United States and Canada for its own account, and is a fully integrated acquisitions, development, financing and management-services supplier to the self-storage industry, helping individuals, corporations and asset managers maximize their self-storage investment.

Mr. Kinder has been in the self-storage business since 1986. He worked for National Self Storage and Public Storage for 11 years in operations management and marketing. In 1991, he moved to Toronto, to serve as vice president, operations, for Canadian Mini-Warehouse Properties, Ltd., heading up the Public Storage subsidiary, and in 1997, he started Advantage Self Storage. For more information, call (301) 774-0243; e-mail president@advantagestorage.com.

By R.K. Kliebenstein

When is it time to bear the pain and consequences of a staff change? The human, compassionate side of our brain is often in conflict with the pragmatic and logical business side. When is it time to re-evaluate? This is part one of a two-part series in dealing with staffing changes. For supervisors and owners, this is an opportunity to evaluate your present situation and decide if a change is the answer. For employees, this article will allow you to do some self-examination and determine if the answer to the problem is you ... and what you can do to change.

In recent months, I have had the opportunity to work with several owner/operators facing a dilemma. Their properties do not seem to be keeping up with last year's occupancies. Fortunately, through rent increases, the net operating income (profits) is actually ahead of previous years, but the occupancy levels have dropped 3 percent to 5 percent. After careful review of the markets, it was determined that some of the decline is due to the emergence of new competitors, and some to population shifts, but the bottom line is that the staff is really not making the extra effort to keep ahead of the game. Let's begin the discussion of staffing changes with a self-examination for owners and other supervisors.

Never Make a Change for the Sake of Change

I would never, ever advocate making a change unless you have made the efforts necessary to get a wayward employee back on track. If there is cause for termination--i.e., fraud, theft, or flagrant violation of policies or rules--then the decision is easy. However, there may be a temptation to make a change in order to "shake things up." Most often, a change for the sake of change is a recipe for disaster. It sends the wrong message to other staff members, and is simply not fair to your organization or--more importantly--to the employee in question.

What Should You Do Before Making a Change?

To "save" your employee before making a change, make sure you do at least the following:

• Understand, in quantifiable terms, why you think you need to make the change. Look at the facts. Where are revenues or occupancy levels compared with a same period last year? What trends are developing? What are the results of these changes to the bottom line?
• Look for other factors that have caused a negative trend. Is the employee really the cause? Is this a market-driven or external problem? What is happening in the market that could have caused the decline? Have there been internal changes that may have caused a change in operations? Has another staff member left?
• What has the employee done to reverse the trend? Has the employee initiated efforts to fix the problem? Have you resisted changes in the way the store operates? Have you really listened to the employee when he has tried to discuss problems? Have you been able to distinguish "complaining" from discussion about relevant problems and solutions? Has the employee altered his normal course of action to attempt to solve the problem?
• Have you counseled with the employee? Does he know you are concerned that he may be the cause of a decline or negative trend? Have you really, really talked about the issue, the possible solutions and the role played by the employee in the problem or the solution? Do you know if there are external factors in the employee's personal life that are distracting him or causing his inability to deal with the problem?
• Have you considered that you may be the cause of the problem? Have you spent less time at the store than usual? Is your attention diverted away from the facility? Have you been ignoring the problem because you do not want to deal with conflict? Have you declined to delegate over the years, and the employee is waiting for direction from you to make a change? Do you share information about the performance of the facility so the employee knows a negative trend is developing?
• Have you communicated your concern? Does the staff know you are not satisfied, or are concerned? Have you discussed the trends in detail, and possible solutions? Do they know you are examining internal and external factors to determine what is happening? Have you perhaps communicated that "things are great," or "things are fine," when they are not? Have you given raises or bonuses because they are expected and not earned?

If you give an employee a raise or bonus, you have sent a message that he is being rewarded for his performance--unless it has been clearly communicated that the raise is simply a cost-of-living adjustment. If you gave the employee a raise during the time of the negative trend, it will be a shock to him when you communicate you are dissatisfied with his performance. Have you sat down with the employee, away from the office, and discussed your concern? Most importantly, have you listened to and evaluated his perspective?

• Have you communicated an action plan? Whether it is a plan you devise, one the employee devises, or one from an outside source, have you discussed the issue and set a corrective course of action? Does the employee know you expect him to make a change to correct the problem or address the concern?
• Have you sought outside counsel to assess the problem? Have you talked (not gossiped) with colleagues about the trend or concern? Do they have similar problems? Have you talked with other people in the organization about the problem? When talking with the employee's peer group or subordinates, discuss only the issue, not the employee himself.
• Have you asked the employee for an action plan? He may be waiting for an opportunity to discuss the issue, but you may not have been approachable. Did you communicate, either overtly or subtly, what your expectations are? You might even find the employee is already involved an action plan.

Some Other Things to Consider

If a change in staff seems to be the unavoidable solution, here are some other things to consider:

• Look at the cost of making a change--the human cost and the financial cost. Weigh the odds. Often, the decision will become clear when put into data.
• Look at the short-term discomfort vs. the long-term benefits. Is "pain for gain" really needed to sustain your business objectives? Or is this a decision you have put off for too long?
• Measure the short-term challenge against your long-term goals. If you are preparing the facility for sale in the next few years, can you afford these mistakes? Keep in mind that every dollar saved adds $10 to the facility's overall value. When owners consider that at each $1,000 the business makes equates to $10,000 in their pocket when they sell, the decision may be easier.
• Determine the impact on the employee. Is this actually better for his long-term employment? Is a change now what is needed to help the employee have a more secure future?
• Make certain you do not have hidden agendas. If an owner discharges an employee to avoid payment of a bonus, what message does that send to other employees? Be sure your motives are pure.
• Determine what unemployment benefits are due the employee. Make certain if severance is appropriate, it adequately reflects your intentions.

Perhaps these questions and answers are too uncomfortable for you to answer independently. It may be necessary for some outside intervention. Making use of a consulting firm can shift the emphasis from you, the decision-maker, to an objective third party. It will take time for the consultant to get up to speed. He will need to assess you, the environment and the employee. The expense of a third-party expert could be miniscule to the cost of an unnecessary change and the loss of a treasured asset.

Part two of this series will address the employee's side of the challenge. This evaluation involves the same types of questions. The series will conclude with some strategies for both parties to consider.

R.K. Kliebenstein is a regular contributor to Inside Self-Storage. He is the founder of Coast-To-Coast Storage, which offers management consulting as a part of its full range of services. From feasibility studies to exit strategies, Coast-To-Coast Storage is the owner/operator's one-stop shop. Mr. Kliebenstein can be reached toll-free at (877) 622-5508.

By George McCord

At Plantation Self Storage in Bluffton, S.C, the door and outside walls of the wine-storage room, which are visible from the storage office, have been faux painted to look like the exterior of a wine-storage building in France.

As an ancillary to the self-storage industry, wine storage is not for everyone. It is a niche market that works only under special circumstances. But in those instances where it does work, it can be rewarding for the storage operator on many levels. Wine storage can produce a per-square-foot return exceeding that achievable when utilizing the same space for traditional climate-controlled storage. But even if the return per square foot were the same as for normal storage, the rarity of wine storage as a service, together with the upscale image it contributes to the industry, provide a marketing benefit for the overall storage facility far in excess of its cost.

The Market

Potential markets include urban areas with a concentration of apartment or condominium housing that traditionally are short on storage space. Other potential markets include resort, vacation or second-home areas where visitors may find it necessary--or more economical--to carry wine collections with them. The market for wine storage, not ideal for areas where houses generally have basements, obviously has more potential in areas where homes are lacking in storage space with climate and humidity suitable for the storage of wine.

There are several segments of the market to target for wine storage. The primary segment includes individuals who wish to purchase wine in bulk to store for their own personal enjoyment. Last year, wine consumption in the United States exceeded $18 billion, and continued growth in consumption is projected. An increasingly active segment of that expanding market includes investors or collectors who may purchase wine to store for resale at appreciated values. Restaurants may need off-site storage space for their commercial cellars. There are also wine clubs and tasting groups who pool their resources to acquire wines for their mutual enjoyment, and need to jointly store their wine in a communal space.

The important thing to remember about wine storage is that it is truly ancillary to the primary business of renting self-storage units. If nothing else, it will bring customers into the facility that may not otherwise have come. The result is exposure of the facility to another demographic segment of your marketplace, and expanding the range of potential storage customers.

Design and Construction

Individual lockers should be constructed in sizes that accommodate the storage of wine cases. Although cases may vary in size, a typical California cardboard carton will generally fit in a space 12-by-12-by-14 inches. This case size should be the basic building block of the wine-storage lockers.

If the market is there, wine storage can be presented in several forms. It can exist simply as small lockers designated in a climate-controlled portion of your storage facility--you label this space as "wine storage" and market it as such. On the other hand, wine storage can be created in your facility as a specially designed room with a dedicated HVAC system, which produces the precise temperature and humidity conditions that are ideal for the preservation and maturation of wine. The local marketplace, the overall character of your storage facility, and the image you wish to convey to potential customers will determine the level of sophistication you build into your wine-storage area.

Assuming you decide to create a dedicated, full-service wine-storage option into your facility, the storage room should be designed in accordance with several basic standards. The primary goal should be to create an environment in which a temperature of 55 degrees and a humidity level of 70 percent can be consistently maintained. This is done by first wrapping the room in plastic, and then providing a vapor barrier on the inside of the room with an insulation rating of R22 in the walls and R30 in the ceiling. The drywall applied over the insulation should be green board, which better resists moisture. The green board should be covered with a hardcoat finish by troweling drywall mud over the entire surface of the walls. The walls can then be painted for a final finish.

Two refrigeration units, dedicated specifically to the wine-storage room, should be used. This creates a redundant system that will maintain the required conditions for the wine in the event one of the units goes down. In addition, installing a back-up generator to operate in the event of a power failure will further protect against any damage. This becomes important to the client base you are trying to reach, and will become a significant marketing tool. The collector, investor or individual who cares about his wine will want to be sure it is maintained under ideal conditions at all times.

Individual lockers should be constructed in sizes that accommodate the storage of wine cases. Although cases may vary in size, a typical California cardboard carton will generally fit in a space 12-by-12-by-14 inches. This case size should be the basic building block of the wine-storage lockers.

Any mix of locker sizes can be designed depending on the anticipated market demand and size of the room. It may be prudent to initially construct only a portion of the lockers, and then see what demand actually develops. If you end up with several commercial customers or large collectors, you will want to construct more larger units as opposed to smaller ones targeted toward individual customers.

By constructing a unit that is 24 inches wide and 24 inches deep, four such cases can be stored on each level or row. In a module that is 24-by-24 inches and at least 90 inches tall, you will have the capacity for six rows (levels) of four cases each, or a total of 24 cases. This module can be divided into three lockers of eight cases each, or two lockers of 12 cases each. This 24-case module can be doubled in size to produce a module with a capacity of 48 cases.

Any mix of locker sizes can be designed depending on the anticipated market demand and size of the room. It may be prudent to initially construct only a portion of the lockers, and then see what demand actually develops. If you end up with several commercial customers or large collectors, you will want to construct more larger units as opposed to smaller ones targeted toward individual customers.

The lockers themselves can be constructed from several kinds of materials and can be designed to fit the image you are trying to create. They can range from simple plywood boxes, to cages of wooden slats, to elaborate oak lockers with louvered doors, or any combination thereof. Some permeable surface, such as that provided by slats or louvers, is preferred in order to assure proper circulation within the lockers. The lockers can be spaced on three-foot aisles within the room. A rolling staircase should be provided to allow convenient access to the upper-level lockers.

Security

A well-designed wine-storage room will ensure the security of its contents. Access should be allowed only to tenants storing wine. A separate electronic keypad can be installed at the entry to the wine room that opens the door only to those with the proper code. Video-surveillance cameras should be placed in the room and integrated into the monitoring system of the self-storage facility grounds.

In addition, the temperature and humidity controls for the cooling units should be tied to an alarm system that monitors the conditions in the room. If the temperature or humidity exceeds certain preset limits, an alarm will sound to alert the manager of the facility. During off hours, the alarm can be monitored by a service that notifies the manager and the HVAC serviceman of any problems.

Decorating the Wine-Storage Room

In addition to creating ideal storage conditions and individual lockers, which are the basics of wine storage, the room and surrounding area can also be decorated to enhance its marketability.

In addition to creating ideal storage conditions and individual lockers, which are the basics of wine storage, the room and surrounding area can also be decorated to enhance its marketability. At Plantation Self Storage in Bluffton, S.C, the door and outside walls of the wine-storage room, which are visible from the storage office, have been faux painted to look like the exterior of a wine-storage building in France. On the inside of the room, a mural depicting a wine cellar lined with barrels gives the illusion of depth to the room and dresses up a back wall between lockers.

At the East Bank self-storage facility in Chicago, wine storage is in the basement and is accessed by an open staircase decorated with old barrels and murals depicting wine-country scenes. At the very least, a special decorative door can be used to set off the entry to the wine room. The Plantation facility, for example, features a hand-carved mahogany door designed in a wine motif. This attraction clearly calls attention to the wine room, and provides an image for use in its marketing materials.

Marketing and Amenities

Some permeable surface, such as that provided by slats or louvers, is preferred in order to assure proper circulation within the lockers. The lockers can be spaced on three-foot aisles within the room. A rolling staircase should be provided to allow convenient access to the upper-level lockers.

The marketing program for wine storage should include a brochure separate from that of the general self-storage facility. It may even include a separate name and logo for wine storage. Plantation Self Storage calls its wine-storage facilities "Plantation Cellars," and has created a separate logo to identify them. Annie's Attic calls its wine-storage facilities "La Cave."

Other amenities can serve to enhance the image and marketability of a wine-storage facility. Strongbox Self Storage in Chicago has a tasting room adjacent to its wine-storage area. There are booths and bulletin boards filled with information about wine and the facility's wine club. Wine products and accessories can be sold in the retail area of the storage facility office. A holding room can be established to accept deliveries of wine for customers, including purchases sent directly from wineries. (Be sure to read the sidebar on "Grumbling Over Grapes" for more information on how this works.) A wine club can be established among those customers storing wine at the facility. They can participate in the purchase of wine at case prices, or glassware and accessories at volume discounts. Wine tastings can be conducted by local wine merchants.

Services

Among the services to be offered to customers is the certification of conditions under which their wine has been stored. This is particularly important to investors seeking to establish the provenance of their wine for prospective purchasers. Instruments are available for use in the wine-storage room that constantly record the temperature and humidity in the room. This data can then be fed into a computer to create a perpetual record of the cellar conditions in order to assure the accuracy of the certification.

As stated initially, wine-storage is not for everyone. But in the proper market, it can provide per-square-foot revenue in excess of that achievable by standard storage. And even if the revenue were the same as regular storage, the marketing benefits of this unique form of storage will generally outweigh the additional development cost. Its real value to a self-storage facility is in helping to increase overall rentals. That is the core of our business, and can be greatly enhanced by the inclusion of wine storage as an ancillary service.

An attorney by training, George McCord has more than 25 years of extensive experience in a wide range of real-estate and development projects. He has supervised the acquisition, financing, construction, syndication, marketing and management of apartment properties, office buildings, resort hotels, shopping centers, residential and industrial subdivisions, condominium projects, marinas and self-storage facilities. His current company, Southeast Storage, currently has close to 600,000 square feet of self-storage under development. His facility in Bluffton, S.C., Plantation Self-Storage, was named overall winner as Self-Storage Facility of the Year in 2000. Mr. McCord is a member of the Self Storage Association, serving both on its regional board of directors and as vice president for the Southeast region. He is also a frequent participant in industry programs regarding the development and operation of self-storage facilities.

Plantation Cellars
Wine Storage Rental Rates
Rental Rate = $1.50 per case, per month

Locker Capacity	Rent Per Month	Rent Per Year
8 Cases	$12	$144
12 Cases	$18	$216
18 Cases	$27	$324
24 Cases	$36	$432
48 Cases	$72	$864
72 Cases	$108	$1,296
84 Cases	$126	$1,512
112 Cases	$168	$2,016
180 Cases	$270	$3,240

Plantation Cellars
Wine Storage
Summary of Wine Storage Lockers

Framed Module Size	Number of  Modules	Total No. of Lockers	Case Capacity of Lockers	Total Case Capacity
24 Cases	26	28 36	12 Cases 8 Cases	336 288
36 Cases	1	2	18 Cases	36
48 Cases	7	2 10	48 Cases 24 Cases	96 240
72 Cases	1	1	72 Cases	72
84 Cases	4	4	84 Cases	336
112 Cases	4	4	112 Cases	448
180 Cases	1	1	180 Cases	180
		88		2,032 Cases

Plantation Cellars
Wine Storage Construction Cost
Project Data

Area of Wine Storage Room	640
Number of Lockers	88
Case Capacity	2,032
Total Cost Per Square Foot	$110
Construction Cost Breakdown
Framing	N/A
Insulation/Vapor Barrier	$2,200
Drywall - Green Board	$400
Drywall - Hardcoat Finish	$1,400
Painting	$1,200
Refrigeration/Humidification	$15,400
Standby Generator/Transfer Switch	$5,400
Temperature/Humidity Data Recorder	$600
Electrical - Wiring & Set Up Equipment	$2,500
Electrical - Light Fixtures	$1,250
Entry Door	$4,300
Wine Lockers	$36,000
Total Cost	$70,650

Plantation Cellars
Wine Storage Income
Rent per case per month = $1.50

Locker Capacity	Number of Lockers	Total Cases	Rent per Month	Rent per Year
8 Cases	36	288	$432	$5,182
12 Cases	28	336	$504	$6,048
18 Cases	2	36	$54	$648
24 Cases	10	240	$360	$4,320
48 Cases	2	96	$144	$1,728
72 Cases	1	72	$108	$1,296
84 Cases	4	336	$504	$6,048
112 Cases	4	448	$672	$8,064
180 Cases	1	180	$270	$3,240
Total	88	2,032	$3,048	$36,576
Total Capacity
Cases			2,032
Bottles			24,384
Potential Income Rental rate per case per month: $1.50 2,032 Cases @ $1.50 = $3,048 per month $3,048 per month x 12 = $36,576 per year Total Potential Annual Income $36,576 Less 10 percent vacancy $3,658 Net Annual Income $32, 918
Income Per Square Foot Total income @ 90 percent occupancy $32,918 Total square feet in wine storage room 640 Income Per Square Foot $51.44

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Grumbling Over Grapes
Free the Grapes! fights regulations on interstate deliveries

By Matt Morgan

What do you do if a package is delivered to your self-storage facility for a tenant, and that package has a return label that reads "Smallville Wine Bottlers Inc."? Do you accept the package and proceed as usual?

Think again.

As more commercial and residential tenants in various parts of the country use their units to house wine collections, self-storage operators have recognized wine storage as a new niche market. In our November 2000 issue, frequent Inside Self-Storage contributor Jim Chiswell advised those considering this ancillary service to "go slowly and do plenty of research." Operators frequently accept packages for tenants as a courtesy, but signing for wine could get them into trouble. Here's why:

Currently, nearly half the states in this country will not allow direct interstate shipping of wine to consumers. These states are:

· Arizona
· Arkansas
· Delaware
· Florida
· Georgia
· Indiana
· Kansas
· Kentucky
· Maine
· Maryland
· Massachusetts
· Michigan
· Mississippi
· Montana
· New Jersey
· New York
· North Carolina
· Oklahoma
· Pennsylvania
· South Dakota
· Tennessee
· Texas
· Utah
· Virginia

In 11 other states, as well as Washington, D.C., shipping is restricted in varying degrees: Alabama, Alaska, Connecticut, Hawaii, Nebraska, Nevada, North Dakota, Ohio, Rhode Island, Vermont and Wyoming. Twelve states have reciprocal agreements, where one state will allow shipment from another if it is permitted to ship wine across its borders in return. The participating states in this category are California, Colorado, Idaho, Illinois, Iowa, Minnesota, Missouri, New Mexico, Oregon, Washington, West Virginia and Wisconsin. In Louisiana, New Hampshire and South Carolina, only licensed wineries may ship between states.

One organization, Free the Grapes!, is fighting for small wineries and the wine connoisseur--who just could be a tenant of yours. Free the Grapes is a nonprofit organization whose goal is to fight regulations that limit the direct shipment of wine to consumers across state borders. The group consists of 145,000 wine consumers and associations representing more than 1,000 American winemakers.

What the group wants is of a serious nature--encapsulated by its symbol, an angry purple grape with its fists clenched and ankles shackled. The group's mission, simply described, is to ensure consumer access to fine wine. In a roundabout way, Free the Grapes wants to make it legal for you to sign for that package of wine, better serving your wine-storage customers.

According to the organization's website (www.freethegrapes.com), less than 5 percent of wine produced at America's 2,000 wineries is shipped directly to consumers. Greed, the group contends, is what keeps organizations like the Wine and Spirits Wholesalers of America in pursuit of further restriction of interstate commerce. "Distributor middlemen are aggressively twisting the 21st Amendment to entrench state-sanctioned monopolies in wine distribution," the site reads.

Free the Grapes has come up with its own voluntary "wine industry code" that, when adopted, will make sure wineries ("licensees") administer to applicable laws. The third item of the code reads: "Cartons used to direct ship wine to adult consumers must be conspicuously labeled with a minimum notification 'signature of person age 21 or older required for delivery,' and must include a return address and other language required by specific state laws. Licensees may opt to further identify the contents, including words such as 'wine enclosed' or 'contains alcohol.'" The code later states, "...licensees must notify purchasers that the recipient will be asked to show identification upon delivery."

It appears to be an uphill, wine-bottle battle, but Free the Grapes is making progress. What happened in North Dakota in April 1999 is a good example: The state originally drafted a bill making it a felony to ship wine directly to the state. But after weighing public opinion, lawmakers passed a revised bill that struck a balance between giving wine lovers what they want--direct shipping--and preventing minors' easy access to wine.

Free the Grapes recommends contacting your state alcohol regulatory authority for detailed shipping information particular to your state; www.wineinstitute.org also has up-to-date listings. Chiswell has a helpful website for those considering wine storage at their self-storage facilities, www.selfstorageconsulting.com.

By Pamela Alton

Is it me, or do the seasons seem to fly by these days? Here we are in the midst of winter, with Thanksgiving and Christmas coming upon us faster than any of us seem prepared for. Now is the time to think about "specialty marketing," which will incorporate these holidays and perhaps make your facility stand out above your competition.

Thanksgiving

Now is the time to think about a canned-food drive for needy families in your community. Contact your local church, chamber of commerce, homeless shelther, etc., and inform them that you wish to participate in a canned-food drive. You may elect to offer a small reward to your existing tenants. If they bring in so many canned goods, you will give them $5 off their rent for that month. New rentals should also receive some sort of discount if they bring in goods at the time of their rental.

Have a big box decorated with holiday themes and place it in front of your office for donations. Post notices throughout the facility so current tenants know about your efforts. You might also consider offering a "free turkey" drawing: Each person who contributes canned goods or other nonperishable food items fills out a form for a drawing on a $25 gift certificate for a local grocery store. Offering a $10 grocery gift certificate on each new rental is also a great marketing tool during this time of year. And don't forget to have that special banner made and hung on your building or sign that notifies the public you are collecting canned goods. Be sure to notify your local media as well.

Christmas, Hanukkuh, Kwanzaa, Winter Solstice...

This time of year is perfect for your local "Toys for Tots" campaign. Contact your local Marine Corp and volunteer to participate in its program. A local children's hospital is another good place to contact. Similar to the canned-food drive, get a large barrel or box, wrap it in festive paper and place it in your front office. Again, post notices throughout your facility with information about the drive. You may also elect to offer a free drawing for a ham or turkey, like you did at Thanksgiving.

Other ideas include some creative promotions. Purchase several small Christmas trees and give them away with each new rental. Offer a "Photo With Santa" promotion each Saturday afternoon in December and announce it on your outside advertising, sign and fliers. This will bring in existing tenants, as well as prospects who might not have otherwise visited your site.

Make sure with any specialty promotion that you mention it in your telephone sales presentation. Any community involvement should be noted with your local newspaper, which may include a press release in its community section. This is a free service offered by most newspapers and will provide you priceless exposure.

This is the time of year when specialty marketing will pay off for you and your facility--as long as you promote your efforts with advertising, fliers and banners. If you don't notify the local community of your efforts, then you aren't making the most of your time and energy. Start decorating for the holidays and thinking of ways to reach out to those in need. Happy Holidays!

Pamela Alton is the owner of Mini-Management^®, a nationwide manager- placement service. Mini-Management also offers full-service and "operations-only" facility management, training manuals, inspections and audits, feasibility studies, consulting and training seminars. For more information, call (800) 646-4648.

By Cary F. McGovern

Commercial records management moved into the third millennium with a great deal of change. What is the effect of industry consolidation, the movement to digital records and the use of the Internet? How has the industry changed and what can we expect?

Effects of the Commercial Records Industry Consolidation

As you probably know, the commercial records industry has been in consolidation for the past decade. Several players have consumed the high end of the market in North America, Western Europe and Australia. Initially, Pierce-Lehay, Brambles Industries Limited and Iron Mountain bought large local and regional businesses vigorously. Over the past two years, Brambles has changed its name to Recall, and Iron Mountain has purchased Pierce-Lehay, making it the world's largest provider of records-management services.

This consolidation has not been easy for Iron Mountain. Taking over Pierce-Lehay has proven to be an arduous task at best. The company will be busy with this integration for the next two years. In many markets, Iron Mountain is suffering from customer backlash and defection. Most local and regional companies had strong relationships with their local vendor. Iron Mountain is more rigid and inflexible to local businesses' unique demands. Although the company has strong relationships in the Fortune 500 market because of national and international contracting terms, it does not have a lock on local and regional markets. In addition, Iron Mountain has typically concentrated on the 1-million-plus population markets. North American markets ranging from 100,000 to 1 million in population size are wide open for new start-ups, with the 100,000 to 300,000 markets having the highest number.

Since Iron Mountain is a publicly traded company, you can substantially rely on its observations about the market and the financial nature of the commercial records business. For more information, read the company's press releases at www.ironmountain.com/index.htm . To get another look at how the consolidation has affected local competition, you may want to read Norm Brodsky's article, "Size Matters," in the September 1998 issue of Inc. magazine. It can be found at www.inc.com/incmagazine/article/0,,ART992,00.html.

My start-up consultation services with self-storage operators have never been more active. This has been the best time to go into the commercial records business in the last 15 years. If you own or operate a self-storage, moving and storage, courier or warehousing operation, you already have many of the components in place for records management. However, it is a different business from self-storage and requires an effective business plan.

Three Basic Questions for the Movement to Digital Records

There are three questions that operators of commercial records management businesses consistently ask. No one knows the answers, but there sure is a great deal of conjecture about the possibilities.

• Where are we now in the transition to digital records?
• Where are we going and how will we get there?
• How long will it take?

I recently addressed the commercial records industry at a conference in Europe where I was on the program with Bill Saffady.¹ Saffady is considered a world-class expert in the movement to digital records and a Fellow of ARMA International. As a college professor, he specializes in this subject and writes abundantly. His observations are on a practical level. He postulates that although electronic and digital records are beginning to proliferate, there is a growing body of traditional records that accompanies them. Paper is not going away for some time.

Although we are in a transition to digital² records, the timeline is being principally determined by cost and sociological implications. Most organizations have literally hundreds of business systems that operate in their day-to-day environment. The cost of implementing new software and systems is staggering. One system at a time will succumb to digital delivery. Even though the current systems will change, paper documents will not be abandoned altogether. In fact, the opposite seems to be true--the more digital systems we invent, the higher the rate of paper consumption. Today, in any network, there are printers, fax machines and copiers. Estimates by industry pundits imply that there are as many as eight to 10 copies of most documents in any enterprise. The mass is growing and no one seems to be able to figure it out.

Of course, for those of us "Trekkies" who observe the weekly antics of Captains Kirk, Picard and Janeway of the Starship Enterprise, we see no paper being used. How did they get there from here, and how long did it take? What we now know is that we like paper and the cost of change is enormous. Surely it will happen, but over a long period of time.

In several of its press releases over the past year, Iron Mountain has emphasized the nature of storage as "permanent revenue." I don't know about you, but to me "permanent" means a very long time. The average growth of paper in storage in all developed countries is approximately 15 percent to 20 percent annually. This number is growing because the base keeps getting larger. Industry estimates indicate there are more than 1 billion boxes in storage in commercial records centers in North America alone, and an additional 1 billion boxes in self-storage facilities, moving and storage operations, warehouses, customer sites and other nooks and crannies everywhere. Countries of Western and Eastern Europe, Australia, South America and Asia are growth markets as well. Paper records storage seems endless.

Implications of the Internet

One of the most significant changes that has taken place in records management over the past 50 years is the use of the Internet. Today anyone can have inexpensive access to the web via a personal computer and Internet service provider (ISP). Many Internet services are available for free or a very low monthly cost. If you don't know of any free services, you can check out Blue Light at www.bluelight.com , a free service available in hundreds of cities. Simply click on the "Free Internet Services" button on the bottom of the site's left-hand toolbar.

You can expect all commercial records centers to use the Internet for customer access, retrieval services and electronic delivery. You may want to try it for yourself by accessing FIRMS software at www.firmshome.com/guest and requesting a free log-on ID and password. Additionally, more and more commercial records operations are offering a transition to digital services such as imaging and data-repository services through the Internet. ISPs, ASPs (application service providers) and SSPs (digital storage service providers) are growing on the Internet.

You can determine where you want to be in the spectrum of commercial records management services. Storage continues to be an annuity business, and services can offer relatively high margins while technology decreases in price every day.

1 Saffady, Willam, Managing Electronic Records, 2nd Edition. Price: $35, Catalog No. A4609. This Association of Records Managers and Administrator's (ARMA) second edition provides discussion of records management concepts and methodologies as they apply to electronic records. This may be purchased from ARMA International at www.arma.org.

2 Most people use the words "digital" and "electronic" interchangeably. "Digital" is the more appropriate term since many analog records are in fact electronic as well, such as traditional video and audiotape. "Digital" implies bits and bytes.

Regular columnist Cary F. McGovern is a certified records manager and the principal of File Managers Inc., a records-management consulting firm specializing in implementation assistance and training for new, commercial records-center start-ups, as well as marketing support for existing records centers. For more information, visit www.fileman.com.

FileMan Records Management is developing a model for selling records-management services on the Internet. The company will soon be piloting several versions of its method. If you are interested in becoming a FileMan Pilot participant, e-mail fileman@fileman.com or call toll-free (877) FILE-MAN.

By Stan Colona

If your ultimate goal as a self-storage operator is to develop your business to a significant-sized operation, you will need to pay special attention to the management of some often overlooked but important areas. There are a variety of internal and exterior variables that will determine whether a business will grow and prosper. External forces include competition, demand for your product and the supply of capital. The internal forces are likely to be more controllable, and include staff and operations.

One day, during an orientation training of middle-managers at one company I worked for, the CEO and founder of the company came in to join our group. When he entered the room, we all felt his presence. His stature in the company and the industry was well-known. He immediately established a comfort level and apologized that he would not be able to spend the entire day with us. He had, however, come to tell us two very important things, and he hoped these concepts would guide us through our careers as business people and leaders. He said, "First, some people make this business real hard. But it's real easy. We rent little garages--lots of little garages. The second thing I want to tell you is: Take care of your people and your people will take care of you."

For many years and through three job promotions I allowed those words to guide me. As I became more effective at managing larger portions of the company, I began to realize how to best apply these concepts. Keeping things simple and establishing mutual respect with your team members are basic but crucial ideas. The art lies in their application to your business.

During a company's growth, the concept of keeping things simple can be elusive. Transaction volumes and other issues outside of normal operations become more prevalent and time-consuming. Development and refinement of effective management systems becomes critical. Management operations can be as simple as a day planner used to schedule daily meetings and appointments, or elaborate as expensive, proprietary reporting sytems.

The latter can tell you almost everything you would want to know about your multiple locations, if you have them. The best systems always produce a one-page executive or key-indicators report. The intent of the report is to allow a manager to view a "snapshot" of the progress of key areas of the business. It allows the user to identify problem areas, allowing him to research or otherwise focus on them.

Having a powerful management system will also assist you in the application of the second important concept: taking care of your people. Most operators assume taking care of your team is limited to providing top wages and benefits. However, really applying a mutual-respect philosophy goes well beyond compensation. If you want to establish respect throughout your team, you must acknowlege some fundamental truths about human nature:

• Most people want to do a good job.
• People, including your employees, need to understand what is expected of them.
• There is often a large gap between good intentions and performance.

Establishing a management technique that identifies goals, measures performance, reports feedback and rewards accomplishment will stimulate and maintain the growth of your self-storage business. Without sufficient human-resource systems, even your best team members will not reach their full potential--and neither will your facilities. One of the most important factors in the success of a self-storage property is the on-site management team. It makes sense that as your operation becomes larger, the weight given to the people-factor of your business should also increase.

Remember this: Smiling faces rent more spaces.

Stan Colona is one of the founders of XPS Services LLC of Dallas. He and his partner, Brad Boyd, have combined industry expertise of more than 20 years. They have managed more than 300 properties, lead more than 600 managers and visited an estimated 2,500 facilities. Known as the "Agents of Change," Mr. Colona and Mr. Boyd offer cutting-edge consulting services to self-storage operators. For more information, visit their three websites at www.xpsservices.com , www.ministoragejobs.com or www.ministoragemanagement.com.