Carl Touhey, co-founder of the Performance Self Storage Group Inc., has opened a brokerage division with a specialty in selling California self-storage properties. Touhey currently has five properties for sale in the state and expects transaction activity to dramatically increase this year, according to a press release.

Touhey has been selling self-storage in California since 1997. He has also owned, managed and bought storage facilities nationwide.

Performance Self Storage Group was founded in 2010 by Touhey and Jason Jay Allen. The company focuses on self-storage acquisitions, brokerage, consulting and marketing. Allen and Touhey, with more than 30 years of combined self-storage experience, have completed more than $250 million in self-storage sales throughout California. They recently presented a seminar titled Creative Self-Storage Marketing: Real-Life Case Studies at the Inside Self-Storage World Expo in Las Vegas, March 14-16.

A central California self-storage facility is donating several self-storage units to a local high school's academic booster club as part of a rummage-sale fundraiser the organization orchestrates.

Paso Robles Self Storage partnered with the Paso Robles High School Academic Booster Club, providing units to store donations from the community. Students will be visit the facility April 29 to load everything onto trucks and take it to the sale site, which is the high school gymnasium. The sale is April 30.

The fundraiser is used to create scholarships for graduating seniors. Donations are down this year, so event organizers are encouraging community members to pitch in. They are especially interested in desks, bookcases and other furniture, which typically sell well.

Paso Robles Self Storage, managed by the Epic Group, has 582 ground-level drive-up and hallway units.

Police are investigating nine burglaries at a Public Storage facility in Fremont, Calif. A victim of the burglaries told KTVU thieves had cut the lock on her unit and replaced it with another.

Cherlisa Lugo said everything in her unit was taken, including her sons Playstation 3. Her family had recently become homeless and rented the unit to store their belongings. She discovered the theft last Friday. Lugo then contacted the KTVU after hearing about a burglary ring that targeted self-storage facilities in the San Francisco area.

Fremont police are checking video surveillance from nearby properties for clues, and said they will confer with San Francisco police to see if there are any similarities surrounding the break-ins.

Marcus & Millichap Real Estate Investment Services has named Michael A. Mele of its Tampa, Fla., office as the firms top self-storage agent nationwide. Mele is a vice president of investments and senior director of the companys National Self-Storage Group.

Mele joined Marcus & Millichap in May 1999. He has sold more 120 self-storage facilities totaling more than $475 million in sales. He currently has more than $150 million in active and under-contract listings and a database of approximately 5,000 buyers seeking to expand their self-storage portfolios on the East Coast.

Michaels attainment of this high level of achievement reflects the depth of his market knowledge, his superior transaction skills and his commitment to client service, said John Kerin, president and chief executive officer.

Founded in 1971, Marcus & Millichap specializes in commercial real estate investment services. The company closed 4,302 transactions in 2010 and has more than 1,200 investment professionals in offices nationwide.

Strategic Storage Trust Inc. recently acquired an industrial building in Mississauga, Ontario, Canada, for about $5.6 million, with the intent to redevelop it into self-storage. Once redeveloped, the site will consist of 101,000 rentable square feet with 800 units and will be rebranded as SmartStop Self Storage. Located at 3136 Mavis Road in Mississauga, the facility is 14 miles from downtown Toronto near the intersection of Dundas Street and Mavis Road.

"This redevelopment project is a perfect example of the many opportunities in the Greater Toronto Area," said H. Michael Schwartz, Strategic Storage Trust's chairman and CEO. "We are on target to complete the redevelopment of the industrial facility by September, with the goal of renting self-storage units shortly thereafter."

In November 2010, Strategic Storage Holdings LLC (SSH), an affiliate of Strategic Storage Trust Inc., agreed in principle to a joint venture with Toronto-based Budget Development Partners, a developer and manager of self-storage properties. The venture involves actively acquiring operational self-storage properties, as well as building new self-storage facilities or redeveloping existing industrial buildings throughout Canada.

Budget Development is the exclusive developer and on-site sub-property manager for SSH in Canada, specializing in identifying self-storage opportunities for acquisitions and handling onsite development and management. Budget Development will develop and sub-manage the new facility on behalf of Strategic Storage Trust.

Mississauga is Canada's sixth largest and fastest growing major city with a population of 729,000 residents and is home to Toronto Pearson International Airport, Canada's largest airport.

Strategic Storage Trust Inc., a publicly registered non-traded real estate investment trust targeting the self-storage market, launched in 2008. The company's portfolio of wholly-owned properties includes 56 properties in 16 states and Canada. SmartStop Self Storage has locations in 17 U.S. states and Ontario, Canada.

DoorKing Inc., a manufacturer of vehicular gate operators and access-control products, received the 2010 All Star Award from Constant Contact Inc., a provider of e-mail marketing software.

DoorKing is one of Constant Contacts 2010 top performers and most prolific user of its tools, whether within Constant Contacts e-mail marketing, event marketing, social-media marketing, survey products, or a combination of all four. DoorKing has developed an e-mail marketing program that helps keep its customers up to date on the companys activities in the industry.

Were extremely happy to be recognized by Constant Contact as one of its All Star Award recipients, said Richard Sedivy, director of marketing. Constant Contact is an excellent platform that allows us to keep in touch with our customers. Product information bulletins, newsletters and training seminars are just some of the communication tools we use.

When selecting this years All Stars, Constant Contact looked at the following criteria:

• Frequency of campaigns, events and surveys
• Open, bounce and click-through rates
• Usage of social features
• Mailing list sign-up tools
• Use of reporting tools

The Constant Contact All Star Awards are our way of recognizing our customers that have successfully used Constant Contact to market their companies. We have some of the most committed, passionate customers out there and were proud we can be a part of their continued success, said CEO Gail Goodman.

By Gregory DAtri-Guiran

With operators battling over every rental dollar, discounting has become a widely used marketing strategy in the self-storage industry. But one month free doesnt have to be your facilitys calling card. Instead, adopting an automatic credit card payment program can reduce collection time, and increase occupancy and profit. Heres how.

In 1987, my company built its first self-storage facility in the west end of Toronto, Ontario, Canada. As we were setting up the banking arrangements, I disagreed with our then bank manager over the legality of automatically charging customer credit cards.

In his opinion, transactions could be invalidated if there wasnt a separate signature for each monthly charge. In weighing the pros and cons, we ultimately decided the risk of a customer trying to reverse the charges was far outweighed by the savings wed achieve in collections. In the 23 years since, weve only had two such reversals out of the thousands of transactions we process monthly, both of which were resolved at minimal cost.

The real genius, though, was in the implementation. We created a two-tier pricing strategy in which we charged higher rents for cash transactions, and offered a 10 percent discount to customers who authorized us to automatically debit their credit cards each month. With this system, we enticed 70 percent of our tenants to the automatic payment plan. 

We came to realize the structure has other benefits as well. The first was it created a natural sorting process. Anyone with good credit and money-management skills would generally opt for the convenience of the credit card discount program and the 10 percent savings. We also knew in advance those who would likely struggle to meet their payments and, with a lower collection load, we could more easily keep on top of those accounts. We were also paid for this extra work in the higher rental rate we charged.

The greatest benefit has been that we get much more longevity out of our automatic-payment customers because their storage-rental fees get buried in their monthly expenses along with their gas, dining, shopping and such. The more you contact the customer, the more likely he is to move out, as you constantly bring the storage fee to the top of his mind. The net result of our strategy has been higher occupancy rates than our competition.

Stop the Discounting

You might ask why Im sharing my prize business strategy so publicly with my competition. Its due to the foolish free-first-month discounting I see far too much in the marketplace these days. In an industry based on short-term rentals, its foolhardy to give away the first months rent.

Another major disadvantage of this kind of discounting is it attracts the most undesirable and unreliable customers. Often that first month free is all thats used, and the owner has the work and liability of disposing of the junk deposited in the unit.

The final slap in the face with this kind of discounting is that by giving away the upfront revenue, you lower the value of your service in the eyes of renters. You condition them to think your rates are negotiable, and they are then rarely satisfied to pay the rent that is due. Your hope is this will be an ongoing relationship; however, the stage you set is the one you will have to live with, so beware.

When your total sales presentation is based on discounting, it defines the value of your service and the type of customers you attract. Bargain-hunters will always be bargain-huntersonly the deal youre offering to buy their business will never be enough for them. When price is all you have to offer, what happens when the competition matches or beats it?

The error you make when you decide to discount is assuming youll get a much larger share of the business with the lower price. But the reality is youll get your share of the businessand your competitors will get theirsbased on location, service and a multitude of other factors. Furthermore, the business gained by the discount is often outweighed by the value you give away. The net result is a reduction in revenue.

Yes, a poor economy and low occupancy rates have driven self-storage owners to this poor judgement. I can only encourage you to adopt the same time-proven strategy that has worked for my company for more than 20 years. Imagine if it became the standard to require a credit card to rent a self-storage unit? Have you ever tried to book a hotel room or rent a car without one?

If we move away from that year-round discounting mentality, and provide incentives for customers to use their credit cards, we can start to solidify occupancies and perhaps all get back to collecting rent for the first month.

Gregory DAtri is the founder and president of Storwell Self Storage, which operates three facilities in Toronto, Mississauga and Scarborough, Ontario, Canada. To reach him, call 416.534.5555; e-mail gregory@storwell.com ; visit www.storwell.com. 

By Sam Celaya

Your self-storage facility is your livelihood. To be successful, it needs to operate with maximum efficiency and minimal hassle. Management software plays an integral part in achieving this goal.

There are a number of satisfactory options available when it comes to self-storage management software, but the key is finding the program that best meets your specific needs. To begin, ask yourself why youre in the market for software. Are you building a new facility, transitioning from pen and paper, or just looking to reduce your software expense? Are you looking for more intricate features such as revenue management, financial reporting or systems interfacing?

The answers will steer you toward the management-software platform thats right for your business. Below is a summary of the criteria to evaluate when shopping for self-storage software.

Cost

If youre building a new facility, youve already made a significant investment in your business, so keeping additional startup costs to a minimum is important. While price shouldnt be the sole factor when evaluating management software, it does play a big role in your decision.

In addition to the initial price of the software program, operators must consider the long-term costs. One of the first concerns for many self-storage operators is whether the software will require a long-term commitment or contract. Purchasing requirements will vary, so cover this topic in the initial conversation with the software vendor.

You also need to consider any hardware requirements. For example, Web-based software has few hardware requirements because your data is stored with your software vendor. PC-based systems, on the other hand, may require certain hardware and could include future upgrades. Also, ask if software updates are free or fee-based. Find out if tech support is included in this fee, and what hours its available. The long-term cost and fees will play a major role in calculating the return on investment of your management software.

Ease of Use and Access

Training managers how to use the new management software is another key consideration. The program of choice should be easy to learn and master, with a user interface thats intuitive and simple to navigate. Many software providers offer training with their products, so check with the vendors to see whats available.

Also allow managers time to learn the new program. Dont expect to purchase the software on the 25th of the month and be ready to unroll it on the first. Instead, allow your managers a few weeks for training and practice. This will minimize mistakes and stress on behalf of your staff.

Exposure and Visibility

Many self-storage operators are increasing their online advertising while decreasing their investment in traditional marketing methods. Like all other industries that serve customers in a dynamic and demanding market, self-storage should be accommodating to the ever-changing ways consumers search for services and products.

Management software should support real-time access to a facilitys call center and Internet marketing, reservations and payments. Experienced call-center agents with real-time information can take payments, rent units, give driving directions and sell specials to customers. Offering the ability for customers to make reservations online or via a call center keeps them from going to the competition while also providing superior customer service.

Flexibility and Scalability

Your self-storage management software should be flexible and scalable. Operators are constantly seeking ways to enhance the customer experience while boosting the bottom line. This is only possible if the software has that business mentality built in. Your management program should be structured in a way that provides the ability to develop and implement business rules at any time.

The software should also enable you to manage rental rates, gate and security access details, move-in and move-out rules, invoicing and billing details, and marketing-related information. This allows you to be more proactive than reactive to changing customer demand.

In addition, management software should be scalable to add additional revenue streams. These may include retail sales, mobile operations, additional buildings or units, tenant insurance, use of a call center or kiosk, online payments, and mailing services. Many operators who have multiple facilities desire software with the ability to manage and monitor their locations remotely. This allows them to view the daily details of their operations and remain influential in the business.

While many software programs offer an abundance of useful reports and functionality, you should research the programs in the market before jumping to a new platform. Determine your facilitys needs, and then talk to the various software vendors to uncover which program will meet your requirements. Your objective is to choose software that will help you reach and maintain your operational goals.

Sam Celaya is the director of the eMove Storage Affiliate Network and has worked within the self-storage industry for 17 years. eMove Inc. offers WebSelfStorage Management Software, a Web-based platform for the self-storage industry. For more information, call 866.693.6683; visit www.emove.com/storageaffiliate .

The assault trial for a Framingham, Mass., police sergeant who allegedly threatened a self-storage manager is underway in Lowell.

The incident occurred April 29, 2010, when two police officers driving an unmarked SUV stopped at an EZ Storage facility to urinate outdoors. The wife of the self-storage manager noticed the two men acting suspiciously on the grounds and approached them. The officers noticed the woman and proceeded to leave before the self-storage manager, driving a golf cart, impeded them while they were stil on facility property. The manager, who testified in court March 14, alleges the sergeant stopped, got out of the SUV, and pointed a gun through his jacket at the manager, saying, "Move or get shot."

Portions of the incident were taped by facility video cameras, but the footage does not show a gun. Attorneys for the defendant are saying that's because the sergeant was not holding a gun. The formal charges are for assault with a deadly weapon and thereatening to commit a crime.

EZ Storage operates three self-storage facilities in suburban Boston, including the one in Framingham.