One of the misunderstood characteristics in commercial records management is the difference between price per unit and yield per unit of storage. This article discusses the difference and how to improve yield.

In the business of commercial records management, a contract is an absolute requirement. The contract of choice was promulgated by PRISM International (www.prismintl.org), the trade association for commercial records management. Ongoing assessment of the industry proves the vast majority of commercial records centers throughout the world use some form of the PRISM contract. The document invariably employs a Schedule A, an attachment to the contract that represents the price list for services to be rendered.

Services include storage, retrieval and indexing, at a minimum, and may include hundreds of products and services related to your prime service: storage. The price for each service is listed on the Schedule A and is usually described on the reverse so all understand the exact nature of the service. Since an attachment referred to in the document becomes part of the contract by definition in the Uniform Commercial Code, it can be different for each client and circumstance. This is often the case. While service prices are generally (but not always) the same, storage rates vary greatly based on the size and complexity of the client.

Prices for storage average about 25 cents per cubic foot throughout the United States. I have reviewed hundreds of price quotes by commercial records centers and seen prices ranging from 16 cents to as much as 50 cents (sometimes more) per cubic foot of storage.

It is generally true to say the smaller the volume of cartons in storage, the higher the price; and the larger the volume of cartons in storage, the lower the price listed on the Schedule A. However, the yield per unit in storage can range to more than 80 cents when the commercial records-center vendor understands the nature of the difference between price and yield.

A Primer on Boxes and Sizes

Why is the records manager the "Statue of Liberty" of boxes? Like this symbol of America, records managers "take all your poor and downtrodden"--boxes, that is. Why? The good, the bad and the ugly generate revenue each month.

Records-storage cartons come in all shapes and sizes, ranging from a size-9 shoe box to a large clothing carton. The odd-size boxes are generally the rule rather than the exception. New accounts use either cheap throw-away cartons or poorly constructed single-wall boxes widely available in office-supply stores. You will receive whatever the client has, and you can do little about it on the front end of your contract.

The standard records-storage carton in the commercial records industry is the 1.2 cubic foot letter/legal box. Clients can use the same carton to file letter-size documents in one dimension and legal-size documents in the other. This is generally the right box for most business records because it is easily portable. This is the "prime unit of measure" in the industry. Everything else is considered odd--with a few exceptions, such as x-ray boxes.

As a general rule, the industry charges by the cubic foot or the unit. At 25 cents per cubic foot, the standard carton would be 1.2 times 25 cents, or approximately 29 cents, each month. However, other boxes are charged differently.

Price vs. Yield per Unit

With this information in hand, let's take a look at some of the things that can affect yield, regardless what the Schedule A quotes for price.

[1] Defining the carton size. You can define the carton size in your schedule as whatever you want. Some major commercial records centers have exaggerated the carton size to penalize the client for using boxes larger than 1.2 cubic feet and encourage box sales.

[2] Raising to the next cubic foot. One of the most common practices in the industry is to round the size of odd-size boxes to the next cubic foot. This effects yield positively.

[3] Charging for boxes out of storage. It is normal and acceptable to charge for boxes out of storage. Over time, a significant number of cartons are out of storage, but they still yield monthly revenue.

[4] Charging for tracking of files out of storage. Some commercial records centers charge a monthly fee for files out of cartons. This raises the charge for a carton in storage and improves yield.

[5] Under the minimum accounts. Commercial records centers generally charge a minimum monthly fee for the storage component of their services. This is usually something less than the cost of a 10-by-10 storage unit. If your 10-by-10 rents for $100 per month, the minimum would be something like $75 per month. When the client has 100 1.2 cubic foot boxes in storage at the rate of 35 cents per cubic foot, the price would be normally $42; but when raised to the minimum, it is $75, which increases the yield to 63 cents per cubic foot.

[6] Adding value-added services. The average of sixty-five cents of service revenue for every dollar of storage revenue is the low industry average. Many centers range between one and two dollars per carton by offering services provided by resource partners with no additional staff or capital expense.

The cumulative effect of this strategy across the account base you have can improve your yield on a price basis of 35 to 80 cents or more. Let's look at the 10-by-10 unit you rent for $100 as an example. The unit will hold as much as 360 1.2 cubic foot cartons, or 432 cubic feet of storage, in racking specifically designed for records management in self-storage. These 432 cubic feet at a yield of just 60 cents equals $259.20 vs. the $100 you would earn for storage alone.

Regular columnist Cary McGovern, CRM, is the principal of FileMan Records Management, which offers full-service records-management assistance for commercial records-storage startups, marketing assistance, and sales training in commercial records-management operations. For assistance in feasibility determination, operational implementation or marketing support, call 877.FILEMAN; e-mail fileman@fileman.com; www.fileman.com.

Construction corner is a Q&A column committed to answering reader-submitted questions regarding construction and development. Inquiries may be sent to construction@ministorage.com.

 Q: I see those security cameras everywhere. Are there any special considerations for using them at a self-storage site?
--Glenn in Pasadena, Calif.

There are certain guidelines unique to self-storage. When considering the installation of a video-surveillance system at a facility, there are two approaches: use in common areas only or comprehensive unit/hallway protection. As you can imagine, the system you choose largely depends on your budget, the location of the facility and your clientele. A skilled security vendor can design a surveillance placement that will reduce the number of cameras needed, give excellent coverage throughout the site, and provide tenants an added sense of security. Remember, if your tenants don't feel safe in your facility, you won't keep their business.

We are considering building a storage facility in our area, but we have very heavy snowfall during the winter months. Do you have any suggestions for a facility layout?
--Ellen in Rockland, Maine

Just keep your tenants in mind when figuring out your building design. You would think your area should only have climate-control buildings, but surprisingly, that may not be the case. For example, almost all of the sites in the Mammoth, Calif., are outside units. Mammoth is covered in heavy snow most months of the year. Some outside units cannot even be accessed during heavy-snow periods. Imagine what kind of business--and premium--you would get by being the only climate-controlled storage facility in that area! Design a multistory building that is climate-controlled. Use any outside units for your seasonal clients.

Tony Gardner is a licensed contractor and installation manager for QuikStor, an industry security and software provider since 1987. For more information, visit www.quikstor.com.

There are many ways to boost your marketing efforts, and the PC can play an important role. Marketing is about forging relationships, which is best done by educating potential customers about your services. In the 70s and 80s, the buzz phrase was "mass marketing." Today, there are numerous other approaches, such as target marketing, where direct marketers are able to pinpoint prospects with intelligence rather than just information. Following are some suggestions for using your PC to bolster your facility-marketing program.

Boost your visibility. Start by displaying your computer clearly in your office. Show prospects you are an automated facility that provides professional services. Would you rent a car from a company that wrote leases by hand? Why is self-storage any different? Use your PC to print professional looking statements, receipts, contracts and letters.

Make use of the web. If you don't yet have a website, get one. Respond to e-mails from potential tenants in a timely manner. Not all leads come through the telephone! Make sure any specials are clearly explained and visible, as well as anything that differentiates your facility from the competition (access control, climate control, 24-hour access, etc.). Your website is also a good place to collect e-mail addresses and information from your customers--but make it easy for them to "join" or sign in. Your website should enable visitors to easily sign up for your monthly newsletter, for example. Don't require them to provide their life history to add their e-mail address to your list.

Dangle creative incentives. Using Word, Publisher or another desktop-publishing product, create some informative fliers with coupons to educate potential customers and add incentive for them to act within a certain time frame. Include a map with directions to the facility and your hours of operation.

Take your business to them. There are many ways to educate your prospects, but if you have a laptop, why not prepare a presentation using Powerpoint or a similar product and take it to potential businesses in the area? Instead of coming directly back from the bank each day, try to visit one potential customer and make him aware of your services. If you don't have a laptop, use a flier you create and update periodically. And again, be sure to include directions to your facility.

Create a database of potential customers. This can be done using many different tools: management software, a spreadsheet such as Excel, or a professional contact-management product such as Goldmine or ACT. Having reusable lists is important to maximize your marketing effort. In addition to contact-management software, there are add-on products that work with it, such as software to create professional quotes, maps, etc., that can really boost your professional image.

One cost-effective yet sophisticated way to manage e-mail lists is ListBuilder, which is provided by Microsoft and can be found at www.bcentral.com. This is a tool to send information, such as a newsletter, to a list of potential customers you define. You can also purchase lists based on your own search criteria from that same website. Costs per name are 10 to 50 cents, depending on search criteria. Considering no postage is necessary, this is a very attractive way to solicit business. Another interesting product, Rocketsales, can be found at www.anconia.com/products/features.asp. There are many tools available to assist you in this effort. The most important is to find something easy to use that integrates readily with other tools in the marketplace.

Use e-mail marketing. Once your lists are created, use e-mail to "educate the masses." Unwanted bulk e-mails are known as "spam." Service providers frown on users sending spam from their sites. If the lists of prospective tenants are kept reasonable and you are sending a newsletter, not just a solicitation, it shouldn't be a problem. E-mail is not spam if it is relevant to a subject of interest and arrives from a source with permission to send. You can create simple HTML documents using Word or other easy-to-use tools. The postal expense is zero and delivery is virtually immediate.

In self-storage, customers are often transient. Contacting previous tenants via snail mail may be impossible. Even though many don't have a reliable permanent address, that neat Hotmail e-mail address is one they never give up. Allow new tenants to sign up for your newsletter in the office as well as on the web. Welcome new tenants with the latest newsletter after move-in. This will provide positive public relations and helps confirm the e-mail address.

Use direct marketing. Once your database is populated, determine a schedule to contact prospects via regular mail or e-mail. The frequency of contact is crucial, and keeping statistics on responses will determine the activity level that works best in the future. It might take four or five attempts before any response is seen. Only time will tell.

Direct marketing via the post office does not seem to be as inflammatory as direct marketing by e-mail. People are used to receiving unsolicited commercial correspondence via the post office and, I suppose, are getting used to unwanted e-mails as well. The registration process for a website and joining an e-mail list is one of the most valuable data-collection avenues. E-mail marketing makes great commercial sense. However, always give people on your mailing list an easy way to "opt out."

While PCs can perform a variety of tasks--from running your access-control programs to management software to desktop publishing--they are extremely useful in assisting with your marketing efforts. The answer to finding new customers may be right in front of you.

Tom Garden is the president of Syrasoft LLC, based in Syracuse, N.Y. Syrasoft's flagship product, The Storage Management System, is a state-of-the-art management program for running a self-storage facility. For more information, visit www.syrasoft.com.

Syrasoft Management Software LLC

P.O. Box 119
Camillus, NY 13031
Phone: 800.817.7706
Fax: 315.673.4946
E-mail:sales@syrasoft.com
Web:www.syrasoft.com

Contact: Alison Kiesa

Product(s): Storage Management System

Software Type: Management, accounting

Price Range: $995-$4,000

Designed specifically for storage? Yes

Current version on market since: August 2002

New version to be released: 2003

Demo: Trial package available by phone, website, e-mail.

Tech support: Three months with purchase. Annual program available for $399 per year, including unlimited calls through an 800 number. Hours are 9 a.m. - 7 p.m. EST, Monday-Friday; 10 a.m. - 2 p.m. EST, Saturday.

Since 1991, Syrasoft's Storage Management System software has provided an automated solution for charging rent and fees to customers, keeping customer records, and providing reports for owners, managers, and operations directors. The company's Windows software interfaces with access- control systems, credit-card processing software, digital cameras, PDA devices and QuickBooks accounting software. It also runs on many computer networks. The Storage Mangement System free trial package provides an opportunity to "test drive" the software. Company settings can be changed; tenants can be added, moved in or moved out; reports, letters, contracts and statements can be viewed on screen or printed; charges can be added; and payments can be posted. The facility map can be manipulated or changed. Syrasoft sales personnel can provide a tour of features and functions, or answer questions regarding setup and use of the software over the phone or via individual presentations.

But what happens if something goes wrong? What if the hard drive is infected by a virus, or the computer crashes, or the processor no longer works, or the machine is stolen or destroyed by fire?

Everything will be fine as long as you have successfully backed up your hard drive on a regular and ongoing basis. Many people don't think of this until it's too late. A backup is a device or a system for creating a copy of the information on your computer stored in such a manner that if you do have a terminal system failure, you can restore the information from that copy. With that backup, all you have to do is get your computer up and running by doing the necessary repairs or replacements, restoring program files (available from your product vendor, even if you don't have a copy of them) if necessary, and restoring your data.

If you do not have a backup, you face the long arduous and difficult task of figuring out the status of customer accounts: who your customers are, what their contact information is, which units they rent, how much money they owe and when, which letters they have been sent, what access codes and times they have, and what history they have with your establishment. I have seen self-storage sites go through this process, and it creates a great deal of tension between the site manager and his customers. There will be times when a customer arrives to make a payment or access his unit and he will and not be permitted access because his information has been wiped out. Often, the manager has to guess at balances owed, and mistakes are made as to who occupies which unit. This can cost a site thousands of dollars, not to mention the cost of labor. In some cases, printed reports can be relied upon, but even then, a report only provides so much information.

Many operators do not understand just how important it is to have backups and do not properly establish a backup plan. A good backup plan involves determining the files to be backed up and the media to be used, who will do the backup, the timing and frequency of backing up, the location of the backups, and testing the backups to ensure they are recoverable. See your local computer technician to create the plan that's right for you and testing it.

Media

The media on which you choose to store your backups should reflect an understanding of which files need to be saved and who will be responsible for the process. You can backup internally to another hard drive or to an outside source: tape, recordable CD, Zip drive or the Internet. In the event you have a network, it is also possible to backup from a local drive to a network drive; however, even networks should be backed up on a regular basis.

Consult with your software vendor to find out which files should be backed up and the best media for your particular application. Keep in mind recordable CDs are now low-cost and can be read by just about any CD drive in your computer, whereas tape and Zip media require compatible devices to be read in the event computers require replacement.

Timing and Frequency

How often a backup should occur is largely dependant on the amount of data input and how timely and costly it would be to have to recreate that data. For most self-storage facilities, an external backup done daily is sufficient to meet the needs of a possible recovery. However, it is important to recognize that if the media is reuseable, one backup should never be done consecutively on top of another because if something goes wrong with the second backup, it will overwrite and destroy the first. It is generally also good to maintain an end-of-week, end-of-month and end-of-year backup.

Location

Where you store backups is also important. Many managers of self-storage sites do the backup at the end of the business day and then leave the copy right next to the computer. But things can go wrong at the office where the backup was initiated. I remember a site where a burglary occurred and the thieves took all of the backup media. In another case, a fire destroyed the office and all of its contents. So it makes sense to ensure periodic backups are being stored away from the office. A backup delivered to an offsite location on a periodic basis is a great idea. Generally, backups should be maintained offsite for a specified period of time.

Even if nothing happens at the self-storage office, it is important for management companies and owners to recognize they need off-site backups in the event of employee sabotage. I have seen many occasions where disgruntled managers have left and taken the backups and even the computer, or disabled the computer and destroyed backups, before they left.

Testing

It is important to ensure the backup you have is actually successful for its intended purpose. Backups should be periodically tested to make sure the data has come over successfully. There's nothing worse than attempting to do a recovery on a computer only to find out your backup is somehow defective. You can test your backup by actually simulating a recovery. Make sure you know what the steps to recovery are and that the backup will work effectively. Don't just do this once and forget about it. Do the testing on a regularly scheduled basis.

In today's environment, it is also important to recognize your data may be hosted and maintained by an application service provider (ASP). Know what the ASP's backup and recovery plan is--you want to be sure you will not be down or lose valuable data because of the provider's lack of planning or equipment. Knowing you have a failsafe backup plan will allow you to breathe a sigh of relief in the event a computer catastrophe occurs at your self-storage location.

Michael Skrentny is president of Mystic Systems Technology Corp. (MSTC), which provides Windows-based management software, gate and alarm software, and access and alarm hardware to the self-storage industry. For more information, call 800.289.6782 or visit www.mysticsystems.com.

Mystic Systems Technology Corp. (MSTC)

8260 E. Raintree Drive, Suite 110
Scottsdale, AZ 85260
Phone: 800.289.6782, 480.556.6244
Fax: 480.556.6250
E-mail:mskrentny@mysticsystems.com, kdrybread@mysticsystems.com
Web: www.mysticsystems.com

Contact: Michael Skrentny, Kathy Drybread

Product(s): Account Manager

Software Type: Management software

Price Range: $1,795-$3,495

Designed specifically for storage? Yes

Current version on market since: Product on market since 2000, current version since 2003.

New version to be released: February 2004

Demo: Available on CD.

Tech support: Four plans offer 24/7/365 support. Cost varies based on plan.

MSTC's Account Manager for Windows is a comprehensive, user-friendly, flexible onsite property-management system. It is account-based, making multiple unit rentals and contacts per tenant account easy and thorough. It lets property managers accomplish flexible payment, billing and invoice options. During automatic processing, it assesses all fees and rent due. Additionally, it generates and prints all onsite collection letters and reports, and delivers real-time financial data to the home office and ownership members via a unique corporate-transmittals feature on the Internet. The program's uniquely designed letter-wiritng system allows the creation of personalized letters, invoices, receipts, leases and forms, all of which can be merged with a variety of site- and customer-specific data. Account Manager also features monitoring of all system-wide alterations, making audit control easy and understandable. Options include insurance, photo, and automatic, Internet-based, credit-card processing modules. The program completely integrates with MSTC's Security Manager for Windows, which provides system-wide gate-automation and alarm-security options.

Security

In the self-storage business, we have a very clear responsibility in the area of security: We have to do our best to keep our customers' goods safe. Now, however, we must also worry about keeping their information safe.

Identity theft is one of the fastest growing crimes. Self-storage operators hold a tremendous amount of data about customers that is, unfortunately, worth a fortune on the black market. More needs to be done to protect that data, and new technology and development will help us do so. We will increase the security on our computer systems to ensure only the minimum amount of sensitive data is captured and exposed. We need to use security in our management and Windows software to limit access to information from internal and external threats.

In self-storage operations, we capture a customer's driver's-license number, address, phone numbers, e-mail address, bank-account data, credit-card numbers, and often Social Security number and birthdate--everything a thief needs to steal a person's identity. The good news is future technology will eliminate the need to gather much of this data.

For example, when a customer wants to pay, instead of giving us credit-card or bank information, they will give us a personal information number (PIN). To obtain payment, we will submit the PIN to the customer's payment institution. The result is the same, but we no longer hold the information itself. Fingerprint readers or other biometric devices will eventually replace the use of PINs for access to units or to verify payments, so we don't have to worry about storing and exposing those codes. Software will be modified to capture personal information, such as birth dates for statistical purposes, but not to link that date to the customer record.

Keeping customers' property safe often depends on controlling what other customers are storing. This is extremely difficult, if not impossible, to do, but new technology will make it easier. For example, any one who has traveled in the last few months has had his baggage scanned for explosives and other materials. While available, the machines that do the scanning are bulky and expensive. I see a time in the not so distant future where scanners that detect explosives, ammunition, food, drugs, hazardous chemicals and other questionable materials are cheap and plentiful. We could place them at the entrances to or throughout our buildings. If a customer attempts to store hazardous materials, an alarm would go off.

An unfortunate fact of our business is we are very attractive to criminals. In a recent police raid of self-storage facilities in one area, police recovered piles of illegal narcotics and a large amount of stolen goods. As soon as we develop and start using scanners and sensors that will detect these items, the bad guys will discover self-storage is not the haven it is for them today.

Marketing

Advertising and marketing will be much more targeted in the future. Today, we use the shotgun approach to marketing: throw up a sign and run an ad in the Yellow Pages, show that message to thousands of people, and wait for a small percentage of them to contact us. In the future, we will be able to target our marketing to much more defined groups, and will rely less on the mass-media approach we use today.

Smart Buildings

One of the most fascinating technologies that will develop over the coming years is smart buildings. Within a few years, we will have roofs that tell us when they are leaking or need repair, walls that report cracks, foundations that report settling, buildings that control their own temperature and humidity levels, and sensors that generate alarms at the presence of dangerous gases or chemicals in the air.

Gadgets

The manager of the future will be loaded with gadgets that will make it easier to do his job. Most will be small and completely unobtrusive. The manager will in essence be a walking office. Wearable computers are coming soon: You may wear a shirt that is also a computer and telephone. You will be able to walk around your facility and answer the phone, see who is entering the site, and have instant access to all of the data about your facility (who is in what unit, customer- payment histories, which units are available, etc). You will be able to rent a unit, print a receipt (or the entire rental agreement) and capture the customer's fingerprint (for access) while at the door of the storage unit you have just shown a prospect.

Units will no longer be locked with the padlocks we use today. A sensor built into the door will accept the customers' fingerprint to unlock it. Systems exist that don't even need the fingerprint--they simply scan your face to determine if it is actually the correct person. It's expensive now but won't be for long.

Accounting

In the future, invoices and payments will become paperless. The technology to do this already exists, and the drive to reduce costs will make it a reality. Paperless invoicing (from you to your customers and from your suppliers to you) removes the costs of printing, folding, stuffing, mailing, filing, etc. We will do everything we can to make it easier for customers to pay, and tougher for them not to pay.

Our industry will continue to move toward collecting most rents through automatic payments (credit cards and direct debits). In a few years, I think most payments will be made this way, reducing our costs of collections. Customers will also pay their bills, view their accounts, rent units, change addresses, etc., over the Internet. This is all possible today, but is used by only a fraction of our customers. The ability to use the Internet to help customers manage their own accounts will grow as this process becomes integrated with management software. Customers will be able to view the interior of their units and electronically maintain their own inventory of the contents.

Communications

Our ability to communicate with our customers, suppliers, co-workers and professional community will be incredibly enhanced by technology. In just the last five years, we have made incredible progress. Mobile phones, instant messaging and e-mail have revolutionized communication internally and externally. Long-distance phone service is incredibly inexpensive. There are so many different ways to communicate that we can get in touch with anyone anywhere at any time. The result is we are better able to obtain the information we need to do our jobs.

Knowledge-Sharing

One of the most exciting ways technology will help us is through the concept of knowledge-sharing. Using technology such as e-mail, online chat, and the ability to easily obtain and post information for others to examine and evaluate, we can make the information we gather useful and available to more people than ever before.

A perfect example of this can be found in the March issue of Inside Self-Storage. Industry expert Jim Chiswell suggests we follow Oprah's example and share articles, books and industry-related reading with others in our industry. Read it, make a comment and e-mail it to others. This is a great idea and perfectly illustrates how technology (in this case, e-mail), can be used to share information. Other examples include newsgroups organized by the Self Storage Association, Texas Mini Storage Association and others.

This knowledge-sharing may start informally like this, but it will grow over the coming years until we have created online communities in the self-storage industry that address the issues we all deal with: legislation, construction, management, marketing, etc. We will also recognize many of us repeat the same work, and find it more useful and cost-effective to simply share it. For example, in a single city or area, we all spend time and money to find out what each other's prices are. Why not save ourselves this cost and simply post our prices to a common location where any of us (and only us!) can see it? Apply this process to our rental agreements, collection practices, hiring credentials, etc., and we can save ourselves money and accelerate the rate at which our industry improves.

Conclusion

Technology will raise the bar of customer service and the quality prevalent in the self-storage industry. It will help us be more professional and reduce the use of self-storage as an aid to crime. It will increase the security we can provide to customers, and help us keep their personal information confidential.

One thing will never change, however, no matter what the technology: The quality of our service and product will still depend on the quality of the people we employ to represent us. What technology will do is greatly assist quality people to do their jobs even better. As self- storage operators and owners, one of our great responsibilities will be to ensure we provide the people who work in our industry the proper training to develop and use the technological tools available today and in the future.

Michael Richards is the president of HI-Tech Smart Systems, maker of RentPlus^® and Mini-StoragePlus^® software for self-storage. Mr. Richards has been involved in the self-storage industry for more than 20 years, and has been a frequent speaker at industry events and a contributor to industry publications. He can be reached via e-mail at miker@hitechsoftware.com; phone 800.551.8324; www.hitechsoftware.com.

Hi-Tech Smart Systems Inc.

407 Uluniu Street, Suite 312
Kailua, HI 96734
Phone: 800.551.8324; 808.263.7775
Fax: 808.261.4447
E-mail:info@hitechsoftware.com
Web:www.hitechsoftware.com

Contact: Linda Black

Product(s): RentPlus

Software Type: Management software, accounting software

Price Range: $699-$1,999

Designed specifically for storage? Yes

Current version on market since: Jan. 1, 2003

New version to be released: Not yet determined

Demo: CD or download from website.

Tech support: Ninety days for free, then $450/site/year (U.S.). Can be accessed via e-mail, fax or toll-free number. Support hours are 9 a.m. - 9 p.m. EST. Urgent support is available during holidays and weekends.

HI-TECH has been producing self-storage software since 1986. It's self-storage software for Windows, RentPlus, first shipped in 1998. It was designed to provide operators the tools and information necessary to make the most of a self-storage business. Highlights include an on-screen interactive map of the facility; daily, weekly and monthly rentals; multiple collection and discount plans; automatic charges and printing of notices; inventory management; customizable letters; e-mail letters and reports; and much more. Customer and other photos may be attached and viewed with a customer's record. Corporate-office software, data and demographic mapping, interfaces with popular security systems, and automatic credit-card payment options are available. RentPlus includes technical support, updates and a risk-free, money-back guarantee. HI-TECH provides support from offices in Florida, Hawaii and Missouri. Additional offices are located in Brisbane, Australia, and The Netherlands.

The Department of Defense's Advanced Research Project Agency conceived the Internet. Its main goal was to provide a common bridge between all government computers permitting each to communicate with another, even if the connection between one or more computers failed. Information being sent would always find another route to reach its destination. Think of the Internet as the interstate-highway system--the main interstates that stretch from one end of the country to the other are the major routes and all of the exchanges are hops or turns. If there is an accident on one of the major highway routes, traffic is routed to surface streets or another major route.

The Internet is an integral part of our lives and businesses. From checking your child's homework assignments on his school's website, to balancing your checkbook, to booking a flight to your next business meeting, to communicating with friends and business associates, to buying a multitude of products--it seems anything and everything is accessible via the Internet, and records management is no exception. Corporations, individuals or any entity storing information offsite have come to expect the conveniences the Internet affords. They want access to their information from anywhere in the world.

The basic expectations for records storage via the Internet include:

• Data Entry: Enter information in a screen designed for specific needs, from simple A-to-Z carton-descriptive information to detailed file-by-file indexing.
• Retention Scheduling: Incorporate a corporate retention schedule for all items stored off site. Changes to the existing schedule, based on legal or company policies, should automatically update review dates for new and/or existing items currently in storage.
• Requests for Service: Provide a user-friendly search and query engine to easily find needed items, cartons or files, automatically placing a service request.
• Create Reports: Download data and/or create reports in any number of popular formats for immediate use.
• Security: Limit access and functionality based on the individual rights of authorized users, i.e., some users can only perform data entry; others can do anything and everything in between.

In short, customers want "ownership" control--the ability to add, edit, retrieve, create reports and request and order other services for all stored information. In many instances, they not only want control, but a customized database with field structures that match their corporate profile. Others insist the commercial records center not have detailed descriptions or a "roadmap" to the stored information. Security, confidentiality and rules imposed by authorities such as the Securities and Exchange Commission often restrict the records center's database to a box number only.

Multiply these unique needs times thousands of customers, automate the service requests, and then make it all Internet accessible. Add the need to provide a national or international database and the programming/software challenges are, at best, a challenge. A key ingredient to delivering such service is, of course, the Internet. And there are two very separate and distinct Internet approaches for records management-- web-enabled/web-access or web-based. The differences are significant.

Web-Enabled/Web-Access

This approach uses the Internet as a phone line to connect two locations together for the purpose of exchanging information. Some liken the phone-line connection as "portal access," where the records center is allowing the client to portal into the database at the records center through a third-party application like Citrix, Winframe, pcAnywhere or dozens of other applications. All data is stored on the records-center database with functionality and access generally controlled by the records center.

Field structures, field titles, screen layouts and other customer-specific needs are generally limited to those provided to all customers. Some might provide functionality allowing a customer to alter the titles or structures of a couple of fields, with 80 percent to 90 percent of the structure being precast for all users. In addition, customers with multiple locations are limited to using one records-center database at a time. Searching for information potentially located in 10 different cities would require dialing into 10 different websites, setting up and running 10 separate queries. This approach also requires the records center to own, operate and maintain a web server with appropriate bandwidth, Internet connection, firewall and security.

Web-Based Application

This approach creates a separate centralized website housing customer data from all locations. Customer-specific field structures, field titles, screen layouts, reports, retention tables, individual employee access and functionality are all controlled by a customer-designated administrator. Orders for service are transmitted to the respective record centers via an automated interface, similar to syncing your PDA with your computer or, when appropriate, via a web interface or e-mail. Customers can designate which fields are transmitted to the records center, providing a full duplicate database at the center when all fields are transmitted. Or, for customers requiring a higher level of security, only the box/file number fields are transmitted. This approach does not require the records center to maintain a web server with appropriate bandwidth and limits security concerns. In short, no outsiders have access to your internal network.

Both systems have their advantages and disadvantages. The customer benefits in either case by having immediate access to the index of information stored off site. The customer and the records center enjoy the advantages of automated service requests, search and query capabilities, automated retention scheduling, full on-line reporting capabilities and much more--all without receiving a phone call, fax or e-mail.

Records centers and end-user customers who have embraced this technology are experiencing new efficiencies, improved accuracy, fewer paper reports and better customer service. Some records centers are receiving as much as 80 percent of their daily service requests electronically, reducing phone calls, faxes and the errors associated with manual order entry. Some are offering discounts for electronic service requests. Check it out--it's definitely a win-win approach.

Scott Bidwell is the general manager for Andrews Software Inc., which has provided quality software solutions to the commercial records- center industry for more than 18 years. For more information, call 800.807.2093.

Andrews Software Inc.

One Andrews Circle
Cleveland, OH 44141
Phone: 800.807.2093
Fax: 440.838.8781
E-mail:sbidwell@andrewssoftware.com
Web:www.andrewssoftware.com

Contact: Scott Bidwell

Product(s): Visual Corporate Keeper

Software Type: Records-management

Price Range: $4,500+

Designed specifically for storage? No

Current version on market since: 28 months

New version to be released: Enhancements released quarterly

Demo: Contact company

Tech support: Accessed via phone, online or e-mail. Hours: 7:30 a.m. - 5:30 p.m. EST. Voicemail and cell phones available after hours.

Andrews Software Inc. has provided quality software solutions to the commercial records-center industry for more than 18 years. The company uses its own tools in its Cleveland and Columbus, Ohio, facilities, which contain 1.4 million cubic square feet and 500,000 cubic square feet of records respectively. The Andrews family of software products has a proven track record of accommodating most, if not all, of the management and operating challenges in the records-management industry.

Those programs able to mine data connect guest information in new, meaningful ways and offer powerful recommendations to storage operators. Owners taking advantage of programs' analyses of marketing or guest preferences, for example, can offer more targeted or added services. In addition, some programs use technology such as e-mail to facilitate communication between stores and their guests. In all cases, operators using software to its full extent realize higher retention rates, positive word of mouth and repeat business.

Some of the more powerful yet simple features included in self-storage programs are customizable invoices and payment receipts. Many operators have benefited from invoices showing all units and charges for a tenant on one page. However, some programs allow you to get extra mileage out of invoices by adding a message each time you print. For example, you could mention holiday greetings or operational changes to your store, such as updated hours or new methods of payment.

Programs offering customizable receipts let you take your messages a step further--you may print receipts more often than invoices. When you tell customers about your business or remind them to pay their bills, you make it easier for them to use your store. The more flexible you are about delivering your message, the higher the value of service to your customer. Therefore, some programs offer postcards, invoicing or reminders by e-mail. You may not have to use postcards or e-mail to deliver your message, but some clients will prefer and thank you for them.

Mailings reiterate your store's message to customers and help them benefit more from your services. Mailings will be more effective if your management program allows you to target customers with specific messages. For example, imagine you just received a call from a prospect inquiring about storing from you. You managed to receive a mailing or e-mail address, and your software allowed you to fire off a letter of introduction to him with information about your facility, its features and benefits. Not only have you made the prospect feel welcome, you have just added to your database of prospects.

Your management program should discern between current, past and prospective tenants and prompt you on appropriate correspondence for each. For example, some programs prompt you to print a thank-you letter each time a tenant moves in or out. Clearly, the service to your customer is in the clear, well-tailored messages that help him stay in touch with you.

Your service to customers can be even more powerful when you deliver the message in person. Each time a tenant steps into your office, your management program can display key notes or personal facts you or other employees have input on his file, such as a spouse or child's name, or something you may have sold or assisted him with at the time of move-in. Mention these facts and you immediately connect with your tenant on a personal level. Recalling details makes a tenant feel appreciated. And remembering you sold a tenant boxes or services in the past may lead to another sale when you ask if he needs more.

Relationships should not end when tenants vacate. Not only do some management programs facilitate mailings to moved-out accounts, they keep data such as addresses and ledger information handy until these clients return to rent from you again. When your program "remembers" tenant data upon their return, they will feel their relationship with you didn't end just because they moved out temporarily.

Programs offering flexible payments and transactions can offer a big leap forward in customer service. Customers' time is valuable; they will thank you for getting them through payments and adjustments quickly. For example, offering reservation fees helps you sell units and offers a tenant assurance that his unit will be available when he arrives. However, to make for seamless move-ins, your program should apply reservation fees to rent. Similarly, programs should quickly process tenants moving from one unit to another and clearly communicate transfer balances or credits. Management programs taking into account balances, credits and deposits of current units, and applying relevant items to new units, make transfers a seamless, one-step process.

Finally, some programs make it easy for operators to respond to growing needs for ancillary services. If you do not already sell tenant insurance, boxes or locks, for example, you may be missing out. Tenants storing boats, RVs or other vehicles will thank you for offering teak oil, polish or detergents because such items add convenience and eliminate a trip to other stores. If you do not already offer 24-hour access, a controlled entry system may let you offer and charge a premium for those hours some clients specifically request. Any add-on service or product enhancing your customers' rental experience will add to your bottom line.

Operators use programs to find out who their customers are. When management programs combine data you have entered about tenants with their preferences, you are able to offer better and more targeted services. Excellent customer service applies to current and previous tenants, as well as prospects. Management programs make it easy for your customers to rent, adding to your bottom line in the form of longer stays, referrals and returning, satisfied customers.

Markus Hecker is director of marketing for SMD Software Inc. out of Wake Forest, N.C. SMD provides management software for the self-storage industry. For more information, call 919.562.6711 or visit www.smdsoftware.com.

SMD Software Inc.

152 N. White St.
Wake Forest, NC 27587
Phone: 919.562.6711
Fax: 919.562.0269
E-mail:info@smdsoftware.com
Web:www.smdsoftware.com

Contact: Markus Hecker, Bob Meyers

Product(s): SiteLink

Software Type: Management software, accounting software, online management/accounting software

Price Range: Varies

Designed specifically for storage? Yes

New version to be released: Updated continuously

Demo: Available via mail or download.

Tech support: Service contract includes tech and accounting support, and updgrades for $399 per year. It is accessible via phone and e-mail, 8:30 a.m. - 6 p.m. EST, with a separate number for afterhours support.

SiteLink is a powerful program for self-storage management. User-friendliness, complete audit trails and accounting links make it a popular choice for single- and multisite operators. The program's e-commerce module includes electronic billing, online account management and electronic invoicing. SMD works closely with its clients and delivers quality support. The company's responsiveness produced industry-first features such as the Revenue Manager for yield maximizing, comprehensive reporting and onscreen video training.

The Family and Medical Leave Act (FMLA) is the easiest of the federal laws to violate without knowing it. It is amazing so many employees think they are entitled to leave--and so many employers give it--without understanding the act. The act may not apply to your self-storage business at all, as it applies to larger operators. But it is important for smaller operators to know why the FMLA does not apply to them and what expansion of operations may trigger compliance.

According to the FMLA, you must have 50 employees within a 75-mile radius of each other for the act to apply, although a few states have lowered that number. IBM may have an office with 40 employees in the middle of Iowa, but if there are no other IBM offices within 75 miles of the Iowa location, it would not be required to abide by the FMLA, regardless how many people may be employed at the main headquarters. Where you, as a business operator, may need to be concerned is if you own multiple businesses in a city--for example, a construction company and a self-storage facility. If you have 50 or more employees between the two businesses, you may have to observe the FMLA at both.

Even if you are an employer with more than 50 employees, it does not mean every employee is entitled to the benefits of the act. To be entitled, an employee must have had one year of service prior to requesting the leave and have worked at least 1,250 hours during that year. There is also an exception that excludes highly compensated key executives from the entitlement of the act, although this is not clearly defined.

Assuming you are an employer with more than 50 full- and part-time employees in a 75-mile radius, and assuming they meet the FMLA entitlement requirements, what triggers benefits? The scope of availability is limited to: 1) the birth or adoption of a child; 2) if the employee himself has a serious health condition; or 3) if the employee is needed to care for an immediate family member (defined only as spouse, parent or child) with a serious health condition. (We will get back to what qualifies as a "serious health condition.")

If your entitled employee makes a leave request, the following is true: 1) the employee is entitled to up to 12 weeks of leave in a 12-month period; 2) the leave is unpaid, unless you agree otherwise; and 3) you can require the employee to use all unused paid leave as part of the 12 weeks. That is, you can make the employee use all of his unused paid or unpaid sick leave, vacation days, personal days, etc.

While the leave is unpaid, you do have to maintain benefits for this employee. If you pay 100 percent of the health insurance for the employee, you must maintain this benefit during the leave. If you require some sort of split, you can only require the employee to continue to pay the split amount; and, of course, if the employee does not pay the amount, you can terminate your end of the health insurance or benefit coverage. At the end of the leave, you must give the employee his old job or a substantially similar job with the same pay.

A "serious health condition" that allows an employee to take leave as defined by case law is a physical or mental condition that meets one of the following three criteria (remember, it must apply to the employee or an immediately family member):

[1] The condition requires inpatient hospital treatment, even if only for one day.

[2] The condition incapacitates the employee for at least four days and requires continuing medical treatment. Continuing medical treatment is defined as at least two contacts with a medical professional, not within any specific period of time. That is, if the employee goes to the doctor one time and begins a course of physical therapy, and he is incapacitated for four days, he is entitled to leave. It has also been held that a doctor visit and the consequential fulfillment of a prescription constitutes continuing medical treatment.

[3] The condition requires periodic medical treatment. Asthma, migraine headaches and arthritis have, in some circumstances, been found to be serious health conditions.

Intermittent or reduced-schedule leave are also permitted under the FMLA. For example, if an employee must leave periodically for short periods to receive treatment such as dialysis, or to go home and care for a loved one every Thursday afternoon, you have to allow him to take the leave.

There is a notice requirement for employers and employees. The employee is supposed to give 30 days notice of an intent to take a leave, but only if it is practical to do so. If it is not practical, he must give only as much notice as can reasonably be expected. The employee is not required to ask for FMLA leave specifically--it is the employer's responsibility to determine if the time off qualifies as FMLA leave. The employer then has to notify the employee the time off counts against FMLA leave time. For example, if the employee calls in sick and is out for four days, he could have been suffering from an incapacitating condition. If he went to the doctor twice, it could be considered FMLA leave, at which time you are required to notify him of this fact.

Your notice has to be in writing and must alert the employee, within a reasonable period of time, that his leave is charged against FMLA time. Initially, the Department of Labor had very strange rulings that said if you did not give the employee notice within a reasonable time, you had to waive the right to claim FMLA leave. For example, in older cases where an employee called in with a migraine headache, if the employer did not give him written notice at that time, the employee was not charged FMLA leave. Courts have subsequently tried to straighten out these over-interpreted rulings and give employers a reasonable period of time to serve notice.

There is a two-year statute of limitations on most FMLA actions. An employee denied FMLA leave can have a jury trial. If he wins, he gets his benefits, back wages, and his job back--plus attorney's fees and liquidated damages in an amount equivalent to the award of lost wages and benefits.

Again, this area of the law is full of potential pitfalls, and mistakes are easy to make without intention. If you believe you may be subject to the terms of the Act, confirm you have the employees in number and location to qualify, and know which of your employees are eligible. Then consider a review of your employment practices with a qualified attorney. If you are not subject to the Act, first be grateful, but also make certain you are not giving leave to employees who are not entitled.

Jeffrey Greenberger practices with the law firm of Katz Greenberger & Norton LLP in Cincinnati, which primarily represents owners and operators of commercial real estate, including self-storage. Mr. Greenberger is licensed to practice in the states of Ohio and Kentucky, and is the legal counsel for the Ohio Self Storage Owners Society and the Kentucky Self Storage Association. He is a regular contributor to Inside Self-Storage magazine and the tradeshows it sponsors. For more information, call 513.721.5151.

To maximize the effectiveness of your sales and marketing program, you must track the results of your findings. This will help every operator, big or small, develop a strategy for improving the operation of his business. For example, one way to improve the performance of a manager's phone skills is to consistently measure the results. This can be accomplished by having the manager evaluated by a mystery-shopping service on a monthly basis. This service will provide an evaluation and audio record of the call, which is a great tool for measuring its effectiveness.

It is important everyone involved in the selling process--even part-time employees--be a part of this evaluation, as it will help develop the overall consistency of the sales presentation. It will give the person being shopped an opportunity to listen to how he handled the caller and recognize what he needs to do differently to improve on future phone-sales presentations. Over a period of time, this can help operators create more customer visits as they convert more callers to renters. For this system to be effective, though, it must be used as a training tool for improvement and not a source or method for punishment.

Every operator should use a customer log to record every call, walk-in and sales activity at the store. It is a great tool for measuring weekly and monthly sales activity and can be used as a method of follow-up and prospecting for future rentals. It can also be used for scheduling appointments and measuring various components of the sales process, such as month-to-date conversion ratios, rentals, new-prospect calls, walk-ins, etc.

In addition, the log can be used to measure the effectiveness of advertising and marketing programs by tracking how customers found out about the store. If used properly, the log can equip self-storage operators with vital information about their specific marketplaces. The information can be used to make critical decisions on improving the sales and marketing program, and ultimately increase the profits at the store.

Another method of obtaining vital information to improve the operation is to conduct a survey of the customer. This should be part of the "move-in" process and mandatory for every new rental. This will help every operator develop a profile of who their customers are and will assist in developing a strategy for advertising and reaching out to the most effective target market(s).

On the survey, it is important to ask questions such as:

• How did you find out about XYZ Storage?
• Why did you choose XYZ Storage?
• In general, what will you be storing?
• How long do you anticipate using storage?
• Are you a homeowner, renter or a business?
• Do you live less than 3 miles away? Three to 5 miles? Five to 7 miles? More than 7 miles?

These questions are examples of what to ask on the survey and should be altered based on the market conditions of a specific self-storage location. Each survey can be evaluated and documented on a tally sheet to be measured on a monthly basis. These findings can be invaluable in making future decisions and becoming more successful in the advertising and marketing of a self-storage business.

To become more effective in the marketing of a particular location, the results of these efforts must be documented consistently. Developing and implementing a plan for each location is crucial. If executed properly, the marketing plan will give continual feedback on how promotion efforts are working. It will also assist in developing a customer profile.

It is imperative to predict how many rentals are expected from each key influence on a monthly basis. Documentation will enable goals to be set and a plan of action implementation to achieve these goals. It is important to document findings and review any variances in the marketing plan. If discrepancies are found, documentation will help pinpoint weaknesses.

For example, let's say there is a large apartment community within one mile of a storage location. If there is less than one referral per month coming from this key influence but your marketing plan anticipates three, why is there such a discrepancy? Is the lack of results due to a failure to develop the relationship with the key decision-maker (i.e., the apartment manager)? Or maybe the community has a monthly newsletter in which the storage location should be advertising? Is there a brochure or flier for the self-storage facility included in the community's information packet?

These are just a few examples of what documentation of results can reveal if noted on a regular basis. It will also help fine-tune and strengthen marketing efforts over time, until eventually the results are highly effective. Remember, the marketing plan of a self-storage operation can be greatly improved if tested and measured continually.

In today's competitive environment, tracking results of sales and marketing programs will set self-storage operators apart from one another. It will be a great advantage to those who diligently seek to measure the results of their programs and find ways to improve on the shortcomings.

Brad North is founder of Advantage Business Consulting and specializes in sales and marketing training to the self-storage industry. He has produced two live videos along with a workbook called "Maximizing Your Sales and Marketing Program." This resource will help managers take their sales and marketing programs to a higher level. Mr. North also offers comprehensive on-site sales, marketing, feasibility and operational training to the self-storage industry. For more information, call 513.229.0400 or visit www.advantagebusinessconsulting.com.

Your manager will stare at your facility's PC monitor for at least a few hours on a daily basis. A hard-to-read screen will result in a noticeable reduction of productivity and may cause headaches.

CRT vs. LCD

For everyday use, 19-inch CRT (cathode ray tube) monitors give you the best bang for the buck. You can buy one for less than $500, which is only slightly more than the smaller 17-inch version. Yet the 19 inch provides 30 percent more screen area than its 17-inch counterpart. This extra screen area makes it easier to read text-heavy management screens and spreadsheets.

The images on a CRT monitor are made of rows and columns of small colored dots. Collectively, they produce the picture you see. The distance between these dots is called the dot pitch. In general, the smaller the dot pitch, the sharper the image. For clarity, the dot pitch should be no more than 0.25mm horizontal or 0.29mm when listed diagonally.

Monitor sizes are listed by their diagonal screen size, not their actual viewable area. As such, a 17-inch LCD (liquid crystal display) monitor provides a viewable screen area approximately equal to an 18-inch CRT monitor. Seventeen-inch LCD monitors are only about an inch thick, weigh 10 percent of a CRT version, and can fit on almost any desk space. They use less electricity; and since a 17-inch LCD costs about $600, they are usually the best monitor choice.

Both CRT and LCD monitors are available in white or black. Other colors are available, but only on the more expensive models. The most common screen resolution is 1024x768 at 24-bit. In nongeek speak, that means your computer's graphics card needs to have 3MB or more of onboard memory. Personally, I have seen the best performance from G-force enabled video cards, especially the nVideo brand.

If I were writing this column just three years ago, I would have devoted much of it to describing which on-screen image controls to seek. However, all of the models I researched had everything that once was reserved for high-end systems.

Connectivity

Monitors can connect to your computer through a variety of methods. By far, the most common method is a short cord that plugs directly into a video port behind your computer. There is nothing technologically superior to this method. The popularity stems from the fact this is how all monitors have attached to computers since the 1970s when TV ceased being the monitor screen.

Today's faster computers can eliminate the need for a special video card by connecting through a USB port. USB-equipped monitors usually include a USB hub so other devices can be easily connected to your expanding computer. You might also want to consider dual inputs so two computers can share the same monitor and, for LCD screens, the ability to switch between portrait and landscape modes. (I do not recommend built-in speakers, as the sound quality is usually inferior to a basic subwoofer system.)

There are hundreds of monitor models from dozens of companies, and the available versions change every few months. Anything I could recommend today may be discontinued by the time you read this column. However, one model was so unique I could not help myself from writing about it.

The ViewSonic Airpanel Smart Display V110 breaks all the rules. It is a wireless LCD monitor weighing less than 3 pounds. It has a touch-panel display that can function on its own as a portable organizer. The 10.4-inch screen (15 inches on the V150 model) was bright and viewable from almost any angle. I was able to get five hours of use at 1024x768 (the maximum resolution).

The manufacturer's documentation warned me wireless household items might interfere with the monitor. This was never an issue. I found the Airpanel communicated without a hitch at distances of almost 50 feet through several interior house walls. Beyond that, the signal was lost. Once I came back in range, the monitor automatically reestablished the connection.

I did like the idea of having my wireless keyboard and Airpanel monitor to do office work in my livingroom. However, with an $1100 street price, once the novelty of the Airpanel wore off, I went back to my wireless laptop computer to accomplish the same mobility.

Doug Carner is on the Western-region board of directors for the Self Storage Association. He is also the vice president of QuikStor Security & Software, a California-based company specializing in access control, management software, digital video surveillance and corporate products for the self-storage industry. For more information, call 800.321.1987; e-mail doug@quikstor.com; visit www.quikstor.com.