Inside Self-Storage is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Sitemap


Articles from 2005 In April


Storage Facilities and EFT

Article-Storage Facilities and EFT

In the past, self-storage businesses received the lions share of rental payments in the form of paper checks, but these are quickly becoming a thing of the past. Electronic-check payments, known as electronic funds transfer (EFT), are fast becoming an efficient, economical way for storage owners to collect funds from tenants.

According to the Federal Reserve, EFT transactions totaled 44.5 billion in 2004, exceeding paper-check transactions at 36.7 billion. The shift to EFT is one indicator of the growing role technology plays in business. The more significant impact of this trend is electronic checking competes with and complements credit-card transactions in providing optimum convenience for business owners and customers.

Credit and Debit Cards

Your facility may already accept credit cards for point-of-sale and automatic-payment transactions. Paying rent automatically by credit card offers many benefits for you and your customers. Tenants like the convenience, and storage owners report that auto-pay customers tend to rent for longer periods. Though you must assume the cost of credit-card transactions in the form of processing fees, your funds management still improves. Predictable and timely tenant payments relieve you of the tasks and expense involved in pursuing delinquent accounts.

Debit cards that carry the Mastercard and Visa brands can be used for transactions in which the exact amount of a sale is deducted directly from the cardholders checking account. They may also be used for transactions in which the cardholder enters a PIN to complete the sale. This method is used for point-of-sale transactions only, since the merchant cannot hold a customers PIN for use in an automatic-payment scenario. Many businesses prefer a debit-card transaction to paper checks because they are confirmed against a customers checking account balance before payment is approved.

The Benefits of EFT

An EFT payment, also referred to as an automated clearinghouse (ACH) payment, is a paperless transmission of money through a computer network. EFT provides an attractive payment alternative. It involves automatically debiting customers checking accounts when payment is due, and withdrawals register on their monthly statements. Since EFT payments are processed before paper checks at the Federal Reserve level, they ensure rapid posting to your business account.

To accept EFT, you need a merchant account with your bank or payment-processing company, along with an Internet connection to upload your batch transactions. You also need to file a Credit Exposure Risk Status Report indicating the maximum amount in EFT transactions you intend to process each month. Finally, youll have to pay processing fees.

Generally, youll pay a fixed monthly fee to your bank or processing company for use of its online service center, which allows you to upload transactions and retrieve activity reports. This fee might range between $20 and $25. Youll also pay a flat or per-transaction fee for your EFT processing, based on the rate you negotiate. These file fees are competitive with credit-card transaction fees. They might range from $20 to $50 if you pay a flat monthly fee or approximately 10 cents if you pay per transaction. You might also pay an account-setup fee as well as charges for nonsufficient-funds (NSF) transactions, though these are much less expensive than NSF charges on paper checks.

How It Works

To automatically debit a customers checking account, you must have the tenant sign an authorization form for you to keep on file. (If the account is joint, both account holders are required to sign.) Next, you run one of your customers blank checks through a magnetic-ink check reader, which transfers the account and bank-routing numbers into your management software. Every day, your management software will display a screen to let you know if you have EFT payments to process. The software sends all the information directly to your bank or processing company in a batch, and you never see tenants personal financial information.

When your batch uploads to the bank or processing company, its transmitted to the ACH. From there, each transaction from the file is sent electronically to the customers banks, and each account is debited for the amount of payment. The transactions are then sent to your bank and credited to your account. The turnaround time for the batch transaction, from upload to deposit, is less than 48 hours. If a customers payment is for some reason reversed, youll know within 24 hours.

Electronic banking allows storage owners to deposit funds without going to the bank. It also establishes a more positive relationship between the business and customer, as it eliminates many scenarios involving late payments and fees. EFT is well on its way toward being the norm in everyday self-storage transactions.

Alison Kiesa is the sales and marketing director of Syrasoft Management Software LLC, which has produced management-software solutions for the self-storage industry since 1991. For more information, call 800.817.7706; visit www.syrasoft.com.

Commonsense Marketing

Article-Commonsense Marketing

People in the self-storage industry talk about marketing as though its something you have to add to your business. But the fact is your business already uses marketing. The question is whether it is being handled properly. In the Frontier Days, traders traveled from settlement to settlement, carrying their entire inventory in their packs. These pioneer peddlers had to decide what to carry, how much to stock, how much to charge, and how to convince prospects their goods were worth the price. In doing these things, they were engaging in marketing.

This little bit of history is meant to make a point: Marketing isnt some exotic, newfangled notion. Youve been using it since the first day you decided to go into business. I know there are sophisticated techniques and high-tech formulas that earn the people who have mastered them a lot of money. But for our purposes, lets focus on how your natural sales skills can be the basis for some simple yet effective strategies.

Non-Storage Customers

Good sales skills enable you to anticipate what customers need before they know they need it. For example, if theyre renting storage for household goods during a move, you know they could probably use garment-storage bags, furniture covers, desiccants, cartons, bubble wrap, tape and so on. You sell these items to customers all the time, so its not exactly ESP. But what if you were to apply the same approach to people who havent come in to rent storage space, those who visit your facility with the intent to purchase retail products?

Given time, these customers may become renters. But since you dont currently have a business relationship with them, how do you anticipate what they will buy? You probably already have a better inventory of moving supplies than most retail stores. And your employees have learned through experience what people need during a move. So the real question is: How many retail prospects are in your area and how do you reach them?

According to the U.S. Census Bureau, 16 percent to 20 percent of Americans move their homes every year. Homeowners move every 8.2 years and renters move every 2.1 years. That being the case, there should be a good number of people in your market interested in purchasing retail moving products.

How do you reach them? Traditional outdoor signage may attract drive-bys, but there are more active ways to promote sales. Ads in the local shopper publications might work, but think also about places these prospects frequent, such as real estate offices, apartment complexes and supermarkets. A well-placed flier at these locations could garner the right attention.

Current Tenants

What about your current customers? How do you encourage them to purchase more than space? Include a coupon for retail purchases with your monthly invoices. Even if your tenants dont use it, they might pass it on to a friend. Remember, once people connect you with moving supplies, word-of-mouth will come into play, saving you real marketing dollars.

Theres no better source for commonsense marketing ideas than your own imagination and experience. If youve had success with a promotion youd like to share with others, feel free to contact me. Im always happy to pass along what Ive learned from friends in the business.

Roy Katz is president of Supply Side, which distributes packaging as well as moving and storage supplies. The company has developed merchandising programs for many leading companies including Storage USA, the U.S. Postal Service, Kinkos and Mail Boxes Etc. For more information, call 800.284.7357 or 216.738.1200.

Using Technical Support

Article-Using Technical Support

Youve finally made the decision to buy management software. At first glance, it seems all you need is a good product. But while software quality is of utmost importance, theres something else to consider: technical support. For most buyers, software support is an afterthought, an add-on many believe to be necessary only immediately after the sale. But the truth is technical supportinitial and ongoingis as critical as the product itself. The question is how to make the most of it so your software can be operated to maximum potential.

Do Your Homework

Often, the person who buys the software is not the person who will use it. This is especially true in the self-storage industry where the primary decision-makersowners and investorsare one step removed from a facilitys day-to-day operations. Site managers are often the last to know when new software is being installed, despite the fact they are the ones who will use it the most.

Its imperative for your managers to familiarize themselves with the software by practicing on a demo and reading the manuals providedbefore you install it on your facility computer. The first few support calls your managers make should not be exhausted on fundamental, how-to questions that could have been easily addressed in advance. For the same reason, you should be as familiar with the software as you expect your managers to be. Support technicians are qualified to answer questions from people with various levels of expertise, including operational employees. Its your duty to take advantage of that distinction in service.

Many vendors offer training around the time of installation. Being educated about the product beforehand will be beneficial for you, your staff and your vendor. By not entering the training cold, youll retain information more effectively. And those conducting the session will be able to delve into more advanced topics, ultimately helping you optimize use of the software.

Know Your Specs and Keep Current

Your vendor should provide you with a list of the hardware and software youll need to use its product. Your management software will be rendered useless if you dont have the right equipment to run it. That being said, if you know of a deficiency in your system, share this information with your support staff if a problem arises with your software. More than likely, the deficiency and problem will be related, which means your issue can be easily identified and resolved.

Your vendor will also release regular product upgrades. Although you have the option of keeping your current version, upgrading to the latest edition is always best. An upgrade typically includes new or modified features that enhance the product and improve the way you do business. Support technicians are trained to provide customer assistance for the latest version of their product. By the same token, few support teams are willing or able to assist a user operating an outdated version of their software.

A History Lesson

Before contacting technical support, there are things you can do ensure your issue is handled in the most appropriate manner and least amount of time. Inform the representative if your problem is one that has occurred in the past. Any respectable support department will be able to quickly identify your account and scan a history of your calls. A previous inquiry on a similar matter can shed light on your current situation, regardless of who handled the callwhich means you can spend less time on the phone with a support technician and more time servicing customers.

Error Messages: What, When and Why

Support teams are frequently contacted as a result of an error message that appears during operation of the software. Error messages should not be ignored. Programmers deliberately encode them into software to warn users when something unusual has occurred. In a best-case scenario, the message is simply a result of a single event that can be easily reversed or resolved. In a worst-case scenario, the message is an indication of a problem that, if disregarded, can lead to more trouble down the road.

Contact your support department as soon as an error message appears, and try to recall exactly what you were doing before the message came into view. Its the support technicians responsibility to determine why it occurred, and any information you provide will improve the likelihood of a quick resolution.

If you must move past an error message, its critical to write down its contents word for word. No matter how confusing a series of numbers or letters may be to you, it means something to your technician. If possible, take a screenshot of the message and fax or e-mail it to your support department. (On most computers, you can create a screenshot by pressing Print Screen on your keyboard and copying and pasting the image into your word-processing software.)

Dont Cry Wolf

Some software users will call a support department with minor issues that dont require immediate attention to continue facility operation. These callers will typically have their calls answered in the order they are received within a specified time frame. If your computer is down, meaning you cannot do anything until you receive help, a good support staff will give your call priority. But dont take advantage of this policy by claiming your problem is worse than it is to jump to the front of the line. Not only will you be cheating the customers who really need immediate assistance, youll also risk losing credibility with your vendor.

You and your employees should take full advantage of all the software resources available to you. Technical-support services are vital, and learning how to use them effectively can only add to the success of your operation.

Veronica Hsia is the director of marketing for Domico, which has provided management software to the self-storage industry for more than two decades. For more information, visit www.domico.com.

Marketing RS-Lite

Article-Marketing RS-Lite

Last month, we discussed the elements of communication and how it forms the foundation for marketing and sales. This month, well look at marketing designed for the launch and support of records storage lite (RS-lite) in a self-storage environment.

No business can exist without selling something, which is why the importance of sales and marketing cannot be overemphasized. Marketing is the precursor to sales. To get a customers attention, you must demonstrate how your product or service has value to him. What makes this tricky is people value different things; but what seems to be common to all members of the human race is the avoidance of pain and the pursuit of pleasure. Dealing with records is a pain all business owners seek to avoid, whether their operations are large or small.

The business of records storage, like self-storage, is largely driven by peoples problems: lack of space, audits, litigation, employee fraud, etc. Records are often relegated to a basement, closet or storage room until an important issue rears its ugly head. When marketing records storage, you seek to show clients how they avoid this pain by storing their boxes at your self-storage site. If you accept the definition of marketing we used in last months columnMarketing is everything you do to put yourself in front of the customerand you agree the process must be simple and attractive to the customer, the goal is to develop a marketing plan that reflects those basic concepts.

The Elevator Speech

The elevator speech is one very powerful marketing tool. The playful premise behind it is you encounter a prospect in an elevator on the 25th floor and have only until you reach ground level to sell the person on your product or service. When you arrive at the lobby, he should know everything important about your offering and why it would be valuable to him. In your situation, the elevator speech is a brief, carefully constructed statement that tells interested parties the most essential information about your company and its RS-lite service. It summarizes your solutions value into a well-organized, digestible paragraph that will be compelling for your prospect.

You can use your elevator speech on the phone, during standard sales calls, at networking events, or any time you find yourself face-to-face with a potential customer. Following are a few questions that will help you construct an effective presentation:

  1. What is your product, service or solution?
  2. What need, problem or pain does it address and solve?
  3. Who is your target client?
  4. What does your offering do for him?
  5. How does your offering work (how does it provide value)?
  6. What makes you and your offering different from and better than others?

Customer Contact

Many marketing experts say prospects do not really pay attention to you and your business until the third contact, so you should devise a reason to communicate with prospects regularly. Some business owners use newsletters, others offer educational events, and some call on clients to introduce new products or services. Records-storage articles and websites are filled with stories about marketing methods owners have used to make (or break) their businesses. Read as much as you can and learn from others experience.

Some of the most successful RS-lite operators in self-storage use a showroom at their facility to demonstrate to clients how records management works. If you have the space, there is not better way to convince prospects of your services value than show and tell. If you dont have the luxury of a showroom, you can also consider using a laptop presentation or kiosk.

Finally, the Internet offers many inexpensive marketing opportunities. Professional videos and Flash applications can quickly walk prospects through a demonstration. Invite clients to visit your website by sending an e-mail with a link to your presentation, which should be informational and entertaining. Some enterprising owners have even offered a prize for spending a certain length of time on their websites. Be creative, and use as many marketing tools as you can to get your message in front of prospects.

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

The Future of Self-Storage Technology

Article-The Future of Self-Storage Technology

“The future’s so bright, I gotta wear shades.”

This well-known song excerpt sums up the future of self-storage technology. The next few years promise better and simpler management software that tightly integrates with advanced security systems; wireless devices that can be mounted anywhere and moved in a flash; IP-based equipment; and software with remote-monitoring abilities. Of course, the hardest part of predicting future developments is imagining technology yet to be discovered. In the meantime, let’s envision how existing tools may come to be applied in the self-storage arena.

Web Everything

Twenty years ago, a major computer manufacturer advertised “the network is the computer,” meaning networking abilities were a PC’s most critical function. Today, the Internet is the computer. If your PC isn’t connected to the Internet, it’s a boat anchor. Regardless which self-storage management software you use, it will soon necessitate an Internet connection—if it doesn’t already. Why? There are several reasons. The first is flexibility.

Most of today’s management and security applications are written with personal productivity tools. They have limited abilities regarding networking and Internet access. But rewriting current applications to be web-accessible with database engines that can accommodate one to hundreds of users means self-storage owners don’t have to change software as their business grows. Being able to access information from anywhere at anytime also increases productivity.

For the software provider, the flexibility afforded by the web means it can offer one application that will work for all of its customers, regardless of the size of their operations, simplifying upgrades and support. The same flexibility allows self-storage tenants to securely pay their rent, view payment history or rent units online—all without extra fees for using a third-party provider.

As management software integrates more closely with a facility’s security functions, self-storage operators will be able to create online access logs for customers who depend on deliveries made to their units, such as pharmaceutical representatives. The logs can provide detailed information about when packages were dropped off or picked up and even include video of the actual deliveries.

Access-control software that monitors door alarms, keypads, gates and surveillance cameras will also benefit from the web, giving owners the ability to run security locally at each site, centrally from a single location or a combination of both. For example, an owner with only one or two sites may run all his security locally with a resident manager. But an owner with 10 locations may choose to operate security for all his sites from one facility, giving him the option to use only day-time managers and outsource off-hours security to a monitoring service.

At some point, browser interfaces may be incorporated with other devices, such as keypads, cameras, muxes, controllers, etc. Although few managers would wish to open a browser to see what is going on inside their keypads, technical-support personnel might use a web facility to troubleshoot problems. The greatest value for customers will certainly center on implementation of access-control and management software into powerful web-accessible database applications.

Wireless Technology

Wireless applications are flying at us so fast it’s like trying to get a sip of water out of a fire hose. Every day, a new feature emerges, like last year’s big entry: the ability to take and send digital photographs with a cell phone. This year, streaming video was added, allowing text messaging, e-mail and Internet browsing. These days, we expect that wherever we are, whatever we’re doing, we can acquire information. We expect wireless solutions, even in self-storage.

Wireless door alarms have been an alternative to hard-wired door alarms for years. Soon, wireless keypads, intercoms and video cameras will allow easier installation and flexibility for owners who decide to add equipment to their site or update current technology. For example, adding hard-wired equipment such as a keypad can mean expensive trenching for additional conduit. But broadband wireless applications will eventually eliminate these costs.

Wireless security cameras are in their infancy. They are generally based on an Ethernet connection (similar to the Internet), which has been used by businesses for years to provide network connectivity to conference rooms, guest offices or laptop users who want to move around the office without being tethered by wire. Because digital video involves transmitting lots of information, wireless cameras don’t currently offer the picture quality a storage operation demands. But the product will mature, and when it does, adding a camera to building six will be as simple as bolting it to the building, aiming it, then configuring it on the DVR in the office.

Will there come a day when installing all devices on a wireless network will be less expensive than a wired solution? My bet is yes, but it will take time. We’ll see what unfolds as the wave of wireless solutions comes at us.

IP Devices

IP (Internet protocol) devices are great for moving large chunks of information like computer data, voice communications and video. Over the last year or two, network video recorders and IP cameras have become the products of choice in the commercial security market. They’re still more expensive than DVRs and traditional video cameras, but as the price becomes more competitive, these solutions will find their way into the self-storage arena.

Intercoms are also coming available in an IP version. While these lack some of the basic features of traditional intercoms—like the ability to play background music and running announcements—these deficiencies will disappear as the technology improves. The main benefits of IP intercoms are ease of use and configurability. Instead of needing an office intercom station with an array of push buttons, messages come over speakers via a PC. Add wireless to the intercom solution, and you can add stations all over the facility with minimal effort.

Finally, as IP phones come to small businesses and local-area wireless solutions become available, self-storage managers will be able to take phone calls from anywhere on the property. As the phone works off the facility PC, it may one day be possible to integrate the phone and intercom system, allowing you to make and answer calls through any intercom on the premises.

Electronic Door Locks

Customers continually expect the latest in security from their storage sites, and the industry has answered with the addition of personal electronic door locks. Standard door locks with exposed door latches are fine for most properties, but for added protection, facility owners can now offer units with electronic locks and keypad or card access.

Like the online access logs mentioned earlier, these solutions are particularly useful to storage tenants who rely on deliveries to and from their units. Code-access electronic locks relieve the facility owner of responsibility from accepting packages or keeping keys for customers. And they allow business tenants to accept packages even when they aren’t physically present to sign for them.

Unattended Self-Storage: Maybe Yes, Maybe No

As security undergoes a technological revolution and the web gives us unceasing access to information, reducing the need for onsite managers, does “unattended” self-storage make sense? It’s tough to say. The business drivers are there. Many owners complain of the difficulty of hiring qualified employees. It’s hard to find people who want to live on site and have good sales and operations skills.

Technology exists that will allow site security to be monitored remotely. Rentals and payments can be handled online and via self-service kiosks. Even voice or video conferencing is an option to provide customer assistance from a remote location. But when a tenant really needs help, it’s hard to replace the human touch. Other businesses that have experimented with self-service options, such as grocery stores and airlines, still keep an attendant on hand for assistance. While unmanned self-storage sites may be on the horizon, it’s difficult to say whether they will ever be completely automated. Certainly, developments like electronic door locks, remote site access, kiosks and Internet access will make the possibility more viable.

Tools and Integration

For decades, self-storage security crept along the technology curve. Keypads controlled entry, and then came card access and video surveillance. But eventually, two things changed the world: the Internet and the events of 9/11. Businesses and consumers have become more security conscious, resulting in a revolution of offerings.

What did this transformation mean to the self-storage owner? Greater systems integration and more equipment options than ever before. Management software merged with access control to heighten monitoring abilities and streamline daily business processes. Not only does the software work with entrance and exit gates, it collaborates with video surveillance, elevators, lighting control, alarms, climate control and sprinkler systems. New purchase options include web-based features, centralized and remote facility monitoring, wireless and IP devices, and electronic locks. There are limitless customizable solutions for every facility. The future is very bright, indeed.

Tom Lewellen is the sales and marketing manager for Scottsdale, Ariz.-based PTI Integrated Systems Inc., which offers a complete, integrated management-software and access-control system for self-storage worldwide. For more information, call 800.331.6224; visit www.ptiaccess.com.

Terminal Services vs. Thin Client

Article-Terminal Services vs. Thin Client

Management software is a fundamental consideration for any self-storage operator, and the technology is always changing. The market has seen an influx of web-based management packages, which deliver an array of advantages. But which one do you choose? When shopping for the right product, your primary consideration should be how the software will connect to the Internet: via terminal services or a thin client. This article compares the performance, benefits and licensing costs of each.

Terminal Services

Terminal services allows multiple users to log into a facilitys server under separate user sessions, meaning several people can use a facilitys management software from remote locations. Rather than installing the software on several computers, you install it on a single server. From a user perspective, it works just like its on his PC. Terminal services consists of three components: a remote desktop for administration, remote assistance and the actual terminal server. It allows changes to the server from two administrator connections, and one system administrator can invite another to connect to the server from any Internet portal.

Terminal services works through Windows Server 2003. To use it, youll need a server with 256 MB of RAM to run Windows Server, plus an additional 21 MB for each user. Keep in mind if you are running an older software application, your server may support up to 40 percent fewer users, and youll have to increase your server memory by an additional 50 percent. Check with your software vendor to make sure its product is supported in a terminal-services environment.

The biggest benefit to terminal services is centralized server administration. Because all users connect to the same server, installing new software and implementing regular updates is easy. On the other hand, terminal services is not a good solution for an enterprise environment, and there can be a tremendous amount of overhead for even the simplest of tasks.

The cost of terminal services includes the purchase of Microsoft Server 2003 plus two licenses for every user: a Client Access License and a Terminal Services Client Access License. The accompanying chart gives an estimation of costs based on a server with 20 user workstations. Obviously, the price will fluctuate based on how many users connect to the server. The following does not include the price of storage-management software, hardware or any additional networking costs. The published price is the suggested retail price, and the street price is what you should expect to pay.

Cost Breakdown: Terminal Services
Item Description Published Price Street Price
2003 Windows Server Operating system for server computer $999 $729
Client Access Licenses (20) Required to connect Windows Server 2003 $799 $589
Terminal Services Client Access Licenses (20) Required to connect Windows Server 2003 terminal services $2,899 $1,799
Total    $4,697 $3,11

Thin-Client Applications

A thin-client application uses an Internet browser to connect to a central server. It allows for quick implementation on user computers because all Windows operating systems include a preinstalled browser. While some packages rely solely on Microsofts Internet Explorer, others allow use of additional browsers, such as Netscape. This is an important option, as Explorer continues to be plagued with security vulnerabilities.

Two types of thin-client applications are used with storage management software: application service provider (ASP) and webbased data warehousing. With ASP, you store all your data in a remote server farm the software provider maintains. This gives you a centralized storage area that can be accessed from any Internet location. However, ASP requires a constant connection to the Internet. If the connection is unavailable on either the users or hosts end, the software is unable to operate.

Web-based data warehousing provides redundancy, which enables your business to continue even if your Internet connection is disrupted. This software works with a transmitter applet that transmits data based on user-defined intervals. After the Internet connection is re-established, changes are automatically sent to the server.

In terms of benefits, thin-client applications generally outperform those using other server-connection methods. Plus, all you need is a computer with Internet access to view your data. Finally, they carry reduced operating-system costs. On the other hand, if you fail to choose an application with redundancy of data, your software is inoperable when the Internet connection is disrupted.

Thin-client applications do not require licensing fees for multiple users. The cost simply includes $599 (street price, $799 published price) for a Red Hat Linux ES Standard operating system. Your storage-management software and hardware are, again, separate expenses.

Regardless which web-based solution you choose, research the product thoroughly before purchasing. While thin-client connections generally surpass their terminal-services counterparts, ASP requires an Internet connection to handle day-to-day business operation. Consider web-based software for your storage business and connect to the possibilities.

Steven Smith is a technical support manager for Empower Software Technologies LLC in Sun City, Calif. His goal is to ensure customer satisfaction for each call received by his support team. He has 15 years of IT-based experience in technical-support management and as a network architect and design consultant. He previously worked as a database administrator and contract specialist for Boeing Information Systems. Empower is the developer of Storage Commander self-storage management software for single- or multi-facility operations. For more information, call 909.672.6257; e-mail sales@storagecommander.com; visit www.storagecommander.com.

Software & Technology Vendor Showcase

Article-Software & Technology Vendor Showcase

Inside Self-Storage is pleased to express its gratitude to the software and technology vendors that support this annual edition through the purchase of advertising. Look for ads from all of the following suppliers in the body of this issue.


AndraTech Software Corp.

P.O. Box 222904
Chantilly, VA 21053-2904
Phone: 703.766.2700, 877.613.2700
Fax: 413.723.6890
E-mail: selfstorage@andratech.com, info@selfstoragepro.com
Web: www.selfstoragepro.com, www.andratech.com
Contact: James Boyd
Product(s): Self-Storage Pro
Price Range: $399 to $1379 (Some features extra. View pricing on website.)
Demo: Free CD or hassle-free download from website

AndraTech Softwares Self-Storage Pro puts the automation in self-storage management. Developed specifically for the industry, it has all the features necessary for any size facility, including automatic generation of monthly paper or e-mail statements and late-fee notices. The interactive visual map gives a quick glance at the status of an entire facility using customized color-coding. Users can click on any unit on the map to view all the information about that space and its tenant. Self-Storage Pro offers an industry first: a report-importing capability that allows users to pick and choose the reports they want to install. The feature is not restricted to the reports the company deliversusers can request new reports to be developed and published on AndraTechs website for the entire self-storage community.

Centershift Inc.

2755 E. Cottonwood Parkway, Suite 450
Salt Lake City, UT 84121
Phone: 801.303.1300; 877.927.4438
Fax: 801.303.1350
E-mail: info@centershift.com
Web: www.centershift.com
Contact: Terry Bagley
Product(s): STORE
Price Range: Subscription license (rental) based on number of facilities or units
Demo: Can be requested via website or phone

Centershift Inc. provides innovative technology solutions that increase the profitability and value of real estate assets. The companys STORE product provides a web-based rental-management and point-of-sale software solution for self-storage. STORE provides owners/managers better control of business assets, improved efficiency at the facility and corporate office, opportunities for increased profitability, and information security. Centershift introduced these industry firsts: real-time, consolidated, multisite reporting; Internet credit-card processing; call-center integration; tenant-insurance integration; web-based business-to-consumer ecommerce (online credit-card payments, account management, unit availability, rent rates and reservations); centralized mail processing for tenant correspondence; online support and documentation; web-based training; centralized yield management and forecasting; fully integrated company and facility websites and web hosting; and self-service kiosk integration.

DHS Worldwide Software Solutions

563 Blanding Blvd., Suite 3
Orange Park, FL 32073
Phone: 904.213.0448; 800.377.8406
Fax: 904.213.1490
E-mail: sales@dhsworldwide.com
Web: www.dhsworldwide.com
Contact: Sales
Product(s): Total Recall
Price Range: $2,000+
Demo: Available

DHS Worldwide offers a full-featured SQL self-storage operations software designed to manage multiple facilities from a single database. The product also includes a client web server and functionality for mobile/portable units. In addition, DHS offers a full suite of commercial records-management software solutions, as well as software for asset management and wine-storage management.

Dilloware LP

2825 FM 2722
New Braunfels, TX 78132
Phone: 800.880.0887
Fax: 830.899.2124
E-mail: sales@dilloware.com
Web: www.dilloware.com
Contact: Rebecca Kelley
Price Range: $689.95

Dilloware has been providing storage facilities with easy-to-use, affordable billing software since 1981. The Billing Clerk automatically bills and tracks monthly rents, insurance, etc., and generates invoices, statements, late charges, past-due notices, receipts, multiple reports and much more. Unit availability is easily accessed. History is maintained for as long as needed for an unlimited number of units and customers. There is a large notepad for information on each tenant (comments, access codes, contact information, etc.). Technical support is provided by the people who actually developed the program, offering no long hold times or waiting for call-backs. The first year of support (up to 60 minutes) is included in the initial price of $689.95.

E-SoftSys

1717 Swede Road, Suite 112
Blue Bell, PA 19422
Phone: 610.277.7457
Fax: 610.278.4117
E-mail: sales@e-softsys.com
Web: www.selfstoragemanager.com
Contact: Kat Shenoy (U.S.), David Ambrose (Canada), Ola Andersson (Europe)
Product(s): Self Storage Manager, Multi-Facility Manager, e-SSM
Price Range: $2,600 to $7,000 per site, based on the number of units and add-on modules selected
Demo: CD can be requested through the website, or call to schedule an online demonstration

E-SoftSys, a Microsoft Certified Partner, provides technology solutions for the self-storage industry. The company offers a complete suite of products and services:

  • Self Storage ManagerA comprehensive management software designed to streamline business processes in large facilities with the convenience of a color-coded site map and optional interfaces to accounting systems and gate-access equipment.
  • Multi-Facility ManagerA management tool used to connect to and manage multiple facilities from a corporate office.
  • e-SSMA web-based, multifacility management software used to centralize operational control of all facilities and enable customers to rent, reserve and pay online.
  • MobilRentalA wireless rental module that allows an operator to carry his rental office in the palm of his hand.
  • WebsiteDesign, development and search-engine optimization services that interface with management software.

eMove Inc.

2727 N. Central Ave.
Phoenix, AZ 85004
Phone: 866.MY.EMOVE
Fax: 602.277.5812
E-mail: lisa@emove.com
Web: www.emove.com
Contact: Lisa Fugate
Product(s): WebSelfStorage Management Software
Price Range: $44.95/month
Demo: Available via website

eMove Inc. provides a unique Storage Affiliate program that enables operators to make more, pay less and compete with larger operators. Premier-level affiliates enjoy a package of benefits that includes WebSelfStorage, an affordable, web-based, facility-management and point-of-sale software that allows owners to securely manage their sites online anywhere at any time. Designed by industry professionals, the software is currently used to manage more than 40 million square feet of storage in real time. It comes with free online tech support and lifetime upgrades, and interfaces with all major gate systems and accounting packages. WebSelfStorage includes built-in modules that save money on credit-card processing, tenant insurance and online payments. It also connects affiliates to the worlds largest moving and storage reservation system and allows them to receive Secured Online Affiliation Rentals (S.O.A.R.) from more than 10,000 moving and storage retail outlets across North America.

Empower Software Technologies LLC

27851 Bradley Road, Suite 120
Sun City, CA 92586-2202
Phone: 909.672.6257; 877.672.6257
Fax: 909.672.6258
E-mail: sales@storagecommander.com
Web: www.storagecommander.com
Contact: Tom Smith
Product(s): Storage Commander, Net Commander

Storage Commander is a self-storage management program designed to satisfy the operational requirements of independent and multi-facility operators and management companies. It is easily configured to meet any management style and supports more than 100 reports that give accurate, detailed insight to all aspects of the business. It supports advanced technology solutions such as online payments, biometric security devices, electronic-funds transfer, automatic credit-card processing, drivers-license scanning/ verification, digital-camera support, and an advanced graphical site map.

Net Commander is a full-featured, Internet-based program that allows multi-facility operators to fully manage all stores through a single server. From a central location, they can accept rental payments, reserve units, implement rate changes, make adjustments to customer accounts and run reports. The program uses 128-bit data encryption, making it extremely secure. Because it works as a companion to Storage Commander, if communication with Net Commander is lost, the facility continues to operate without interruption.

HI-Tech Smart Systems Inc.

407 Uluniu Street, Suite 312
Kailua, HI 96734
Phone: 808.263.7775; 800.551.8324
Fax: 808.261.4447
E-mail: info@hitechsoftware.com
Web: www.hitechsoftware.com
Contact: Linda Black
Product(s): RentPlus
Price Range: $699-$1,999
Demo: CD or download from website

HI-Tech has been producing self-storage software since 1986. Its self-storage software for Windows, RentPlus, first shipped in 1998. It was designed to provide operators the tools and information 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. Digital photos may be attached and viewed with a customers 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 in Brisbane, Australia, and The Netherlands.

Mystic Systems Technology Corp. (MSTC)

8260 E. Raintree Drive, Suite 110
Scottsdale, AZ 85260
Phone: 480.556.6244; 800.289.6782
Fax: 480.556.6250
E-mail: sales@mysticsystems.com
Web: www.mysticsystems.com
Contact: Sales Assistant
Product(s): Account Manager
Price Range: $2,000-$3,495 plus optional modules
Demo: Available on CD

MSTCs 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. It also 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 programs versatile letter-writing 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 processing, digital photos and credit-card processing. The program completely integrates with MSTCs Security Manager for Windows, which provides system-wide gate-automation and alarm-security options.

ONeil Software Inc.

11 Cushing Irvine, CA 92618
Phone: 949.458.1234
Fax: 949.206.6949
E-mail: sales@oneilinc.com
Web: www.oneilsoft.com
Contact: Rick Jones
Product(s): RS-SQL, RSWeb, RSMobile
Price Range: From $1,000
Demo: Available through the website, via e-mail, or by calling

For more than 20 years, ONeil Software Inc. has been committed to providing the records-management industry with accurate, flexible hardware and software solutions that deliver results. The company has more than 700 users in more than 48 countries throughout the world, including startup facilities and multinational companies. Its software manages and tracks multiple types of data, including traditional storage boxes, file folders, documents and tapes, from deposit to destruction, work order to invoice. ONeil also provides barcode tracking, portable printers, laser scanners, wireless handheld devices and web technology. Its products consistently offer automation, enhancements and new features that promote ease of use. ONeils flagship product, RS-SQL, is a competitively priced software that ensures record center productivity and profitability.

Online Self Storage Inc.

3827 N. Oracle Road
Tucson, AZ 85705
Phone: 877.301.4635
Fax: 520.407.9616
E-mail: rmcgee@onlineselfstorage.com
Web: www.onlineselfstorage.com, www.callmaximizer.com, www.ctsgroup.com
Contact: Rick McGee
Product(s): Call MAXimizer, Online Transactions
Price Range: $299
Demo: Available at www.onlineselfstorage.com

Online Self Storage provides self-storage owners and operators the ability to easily generate revenue and profits from the Internet. The company can create, host and help operators maintain a dynamic website that provides information and e-commerce opportunities for customers. The company can also help maximize overflow and after-hours customer calls through its professionally staffed call center. Its agents can book rentals, set up appointments and accept payments when operators are unable to answer the phone. Facility information, such as availability, pricing and discounts, are easily updated through the simple, easy-to-use browser interface. The integration of Onlines call-center and kiosk technology with the Internet allows customers to conduct business with a facility 24/7.

OpenTech Alliance Inc.

11834 N. Sundown Drive, Suite 100
Scottsdale, AZ 85260
Phone: 480.778.9370
Fax: 480.778.1936
E-mail: info@opentechalliance.com
Web: www.opentechalliance.com
Contact: Greg Sherwood
Product(s): INSOMNIAC Self-Storage Kiosk
Price Range: $6,500-$16,500
Demo: Available at website

OpenTech Alliance Inc. is the developer of the INSOMNIAC line of selfstorage kiosks, which offer customer convenience, reduce operating expenses and increase revenue for self-storage facilities. The kiosks work with all Alliance Partner software products, including SiteLink (SMD Software Inc.), Storage Commander (Empower Software Technologies LLC), Storage Management System (Syrasoft LLC), STORE (Centershift Inc.), TaskMaster (PTI Integrated Systems) and Domico software.

Quayle Computer Concepts

27682 Paseo Barona
San Juan Capistrano, CA 92675
Phone: 949.364.6314
Fax: 949.347.6900
E-mail: info@quayles.com
Web: www.quayles.com
Contact: Gordon Quayle
Product(s): SWAMP (Storage & Warehouse Asset Management Program)
Price Range: $495 initial license, discounts for multiple licenses, $50-$100 for updates

SWAMP (Storage & Warehouse Asset Management Program) does what operators need to make storage management easier at an affordable cost. SWAMP helps owners and managers be more productive and their businesses more profitable. The program is used by hundreds of satisfied users, serviced by a father and son who have been in the storage and software industries for more than 25 years. They understand customers needs and listen to their suggestions. Offerings include free and unlimited support, and friendly and courteous service.

PTI Integrated Systems

8271 E. Gelding Drive
Scottsdale, AZ 85260
Phone: 480.991.1259; 800.331.6224
Fax: 480.991.1395
E-mail: sales@ptiaccess.com
Web: www.ptiaccess.com
Contact: Business Development
Product(s): TaskMaster, Master Security, Falcon 2000, SiteMaster Graphics
Price Range: $495-$4,000
Demo: Available via CD or website

TaskMaster is a comprehensive, user-friendly, Windows-based management program that handles all aspects of the self-storage business. It simplifies rentals, billing consolidation, rent collection and payment processing for multiunit customers. It also manages merchandise sales, inventory, insurance and other income, and provides customer history with demographic profiling for marketing purposes. Automatic functions handle daily rent processing, late fees, correspondence, credit-card processing, email, accounting exports, and extensive reporting capabilities for accrual and cash accounting. Other offerings include:

  •  webXpressAllows customers to rent units, view account information and pay their rent online.
  • Credit-Card ProcessingA single transaction and batch process allows operators to reduce their processing fees. No additional software required.
  • payXpressA pay-at-the-gate feature that collects past-due rent before allowing a customer to enter the site.
  • Photo ModuleIntegrates with Taskmaster to store client photos with tenant information.
  • TaskMaster Home OfficeAllows operators to manage one or many sites from a single office.

QuikStor Security & Software

6613 Valjean Ave.
Van Nuys, CA 91406
Phone: 800.321.1987
Fax: 818.501.5785
E-mail: sales@quikstor.com
Web: www.quikstor.com
Contact: Owen Runnals
Product(s): QuikStor-Express
Price Range: Free and up
Demo: Available for free

QuikStor software offers an interactive, multilevel help system, employee-training mode and builtin tutorial videos. Its management products range from a free version for small, single-project owners to Express Professional for enterprise-wide reporting and management of hundreds of facilities. Express features include: automatic rent collection with a low banking fee (25 cents per transaction); automatic e-mailing of invoices, receipts, and delinquency letters; integrated software for ATM-style, self-service kiosks; integrated digital photography that stores images in tenants data records; QuickBooks integration that provides full general-ledger accounting; automatic data encryption and off-site data backups; simultaneous data access and off-site reservations; integration with pay-at-the-gate access keypads; support for rental of wireless door alarms for standard units and tabletop motion sensors for recreational vehicles; same-day conversions of management-software data; and complete integration with the first-ever 3D site-graphics software. QuikStor offers modular design, affordable pricing and professional installation.

Sentinel Systems Corp.

1620 Kipling St.
Lakewood, CO 80215
Phone: 800.456.9955
Fax: 303.242.2010
E-mail: sales@sentinelsystems.com
Web: www.sentinelsystems.com
Contact: John Fogg
Product(s): WinSen Property Manager
Price Range: $1,500-$2,600
Demo: Available by request or via website

This year, Lakewood, Colo.-based Sentinel Systems is celebrating its 30th anniversary. The company developed its original property-management software more than 23 years ago, which, combined with its access-control systems and individual-door-alarm packages, provides customers complete system integration. Sentinels trademarked WinSen product line offers high-quality property-management and access-security options. Over the years, the company has grown from a handful of employees to a corporation with a full staff of development, support, production, administrative and sales-team members. It markets its products through industry publications, referrals and a strong dealer network. It works with self-storage companies worldwide and has installation dealers and distributors employed across the globe. Sentinel recently opened an office just outside London and continues to have a successful relationship with its Australian distribution partner, Intellistore of Sydney, Australia. Simply put, Sentinel products are reliable and they work. The companys employees take pride in everything they develop, manufacture, distribute, sell and support.

SMD Software Inc.

3000 Highwoods Blvd., Suite 120
Raleigh, NC 27604
Phone: 919.865.0789
Fax: 919.865.0795
E-mail: info@smdsoftware.com
Web: www.smdsoftware.com
Contact: Markus Hecker, Bob Myers Product(s): SiteLink
Price Range: Varies
Demo: Available via mail or download

SiteLink is a popular, powerful storage-management program that incorporates user-friendliness, complete audit trails and accounting links for single- and multi-facility operators. The program reports ensure collections and operations to maximize revenue. They evaluate performance, including aged receivables, marketing and discounts. Management and financial summaries seamlessly tie into supporting documents like accounts receivable and payments, providing complete analysis and audit trails. Reports provide a water-tight financial picture, including all entries for current and previous customers. SiteLink also embraces e-commerce to process payments electronically, invoice via email, reserve units online, download to handheld devices and link to kiosks. SMD works closely with clients and delivers quality support. The feature-rich, user-friendly software includes industry firsts such as the Revenue Manager, which uses operator experience to set guidelines for maximizing return based on occupancy, rates and time. On-screen video and training reduces time to learn the program and identifies opportunities for improvement.

Space Control Systems Inc.

206 Providence Mine Road, Suite 118
Nevada City, CA 95959
Phone: 530.265.3133; 800.455.9055
Fax: 530.265.6504
E-mail: info@spacecontrol.com
Web: www.spacecontrol.com
Contact: Steve Quinn, Gilbert Bohen Product(s): NX.gen
Price Range: $1,980+
Demo: Available via phone, e-mail or Internet request

Space Controls NX.gen is management software that takes advantage of the best of the Internet without exposing businesses to the worst. Operators get a standalone, onsite package that never prevents them from doing business just because the Internet is down or slow; but in the background, the software sends management data to a web page that can be accessed from anywhere in the world. NX.gen also provides total rate management. Not only are move-in rates automatically adjusted based on supply and demand, the software can raise occupant rates one year after move-in or whenever an operator chooseswithout any prompting from employees. Designed specifically for storage, NX.gen is easy to use, showing all necessary customer information on a single screen, including a customers balance and paid-thru date, as well as every charge, payment, late letter, returned check and the employee who made each entry.

Syrasoft Management Software LLC

P.O. Box 119
Camillus, NY 13031
Phone: 800.817.7706
Fax: 315.708.0819
E-mail: sales@syrasoft.com
Web: www.syrasoft.com
Contact: Alison Kiesa, Mickie Brown
Product(s): Storage Management System
Price Range: $995-$5,000
Demo: Trial package available by phone, website or e-mail

Syrasoft has produced management software for the industry since 1991. The companys Storage Management System meets the operating requirements of self-storage businesses while keeping managers tasks in the software easy to learn and use. It not only automates daily operations, it provides customer correspondence and reports for owners, operations directors and controllers. The software interfaces with gate-access control systems, automatic credit-card and ACH/EFT payment systems, digital cameras, PDA devices, Internet connectivity, online payments, kiosks and QuickBooks accounting software. Syrasoft provides essential user-defined features including a robust and flexible late/lien system, demographics tracking, merchandise sales and inventory tracking, and a creative rate-management system for maximizing revenue. Contact the company for a free trial package. Syrasoft sales staff is available to provide tours of software and features and answer questions about setup via phone or personal presentations.

Got Wireless?

Article-Got Wireless?

Wireless networks are springing up everywhere in places like Starbucks, McDonalds, airports, hotels and libraries. Its almost impossible to go a whole day without stumbling into a wireless zone or hotspot. Why are they so popular? The reason is simple: freedom from wires, desktop computers and the office environment. Its not difficult to see the benefits of working outside the boundaries of traditional workspace.

How Does Wireless Work?

Wireless networks, also known as WiFi, transmit data across the same radio spectrum associated with mobile phones and garage-door openers. Using an antenna linked to a high-speed Internet connection, the network sends signals to your wireless device, usually a laptop or personal digital assistant (PDA), which has its own antenna to send and receive data. Though WiFi connections are advertised as good for up to 300 feet, the best connections with the highest data speeds usually occur within 100 feet of the network.

The big advantage of WiFi is its simplicity. It allows you to use your laptop or PDA anywhere in your home or office without wires. All of the technology is hidden in a card that slips into your wireless device. Many laptops and PDAs already come with a WiFi card built in. In many cases, you dont have to do a thing to start using itjust get on the network and go.

How Secure Is It?

A hotspot is a connection point for a WiFi network, a small box hardwired to an Internet connection. It can be open or secure. If a hotspot is open, anyone with a WiFi card can access it, connecting to the network and using its bandwidth to surf the web. If the hotspot is secure, users need a key code to connect.

Security has always been a concern for people using wireless technology, and open networks still abound. But such fears are largely unfounded. The WiFi Alliance supports the new WiFi Protected Access (WPA) standard, which replaces the old, less secure protocol. In addition, new security tools are constantly in development. Simply put, many people now take wireless seriously, and so it keeps getting better and safer.

WiFi in a Records-Center Environment

The increased use of business computers and the need for worker mobility have created the demand for wireless networking. WiFi is meeting a long overdue demand for many industries, including self-storage. If your storage site offers records storage as an ancillary service, youve no doubt discovered the benefits a wireless network provides.

Typically, in a records-storage environment, you communicate with your customer database through a PC workstation or a handheld device that connects to the PC via a cradle. In the past, that handheld was a 16-bit DOS device that acted like an electronic clipboard, collecting barcodes from boxes or files and only transferring them to the database through physical connection to the PC. But users were also limited by the devices memory capacity. They had to drop the device into the cradle and download its data several times a day.

Thanks to WiFi, new handheld devices allow users to complete more tasks in less time. With a plug-and-play connectivity to your internal network and some sophisticated software, you can be completely mobile at your siteno more multiple trips to and from the desktop workstation. Now you can do what you need directly through the wireless device, saving time and reducing costs. To transfer data in real time from your records-storage area to your database, all you need is to be within a wireless zone.

Got Productivity?

WiFi allows records-storage operators to process tasks more efficiently. They can use their wireless handheld from anywhere on site to request a list of files or boxes to be pulled from the shelves, update the database with new barcode scans, and retrieve detailed box or file information. It also allows them to share a common access point with other users. Since handheld devices dont need a cradle to upload or download information, several people can access the database simultaneously. And the devices work from any hotspot, not just the one inside your facility.

Got Service?

WiFi increases your level of customer service, as it provides records-storage customers the benefit of real time information about their files via web-based software. Just imagine the peace of mind they have when they can see their items have been received by your facility and safely filed. Your handheld devices even allow you to capture signatures for proof of delivery or receipt. Hows that for instilling customer confidence?

Wireless technology also increases the responsiveness of your business. Mobile users can act on customer requests from anywhere at any time, reducing legwork and labor requirements and enhancing customer satisfaction. Using WiFi means less downtime, so more records can be processed each day. Implementing a wireless network at your facility can create as much as a 10 percent savings on labor costs and an increase in order efficiency.

Is It Time to WiFi?

WiFi may be the new frontier, but you must know when the time is right to implement it. Opportunities to increase productivity and value abound at most facilities. When deciding how to best use the technology, focusing on day-to-day tasks is an excellent way to start. Many of your routine business processes may be a natural fit for mobile functioning. Even tasks that seem unlikely candidates may benefit from a wireless network. Ask yourself the following:

  • Would I save time and money by eliminating trips to and from my PC to upload or download data?
  • Would immediate access to facility data speed my decision-making or responsiveness?
  • Would quick access to information about customers records be valuable to me?
  • Is my data captured manually for later database entry?
  • Would greater mobility improve my work performance?
  • Is data retrieval at my facility difficult or time-consuming?
  • Would wireless data capture improve the accuracy and integrity of my information?
  • Would on-demand access to information enhance the quality of my customer service?

If you answered yes to one or more of these questions, its time to go WiFi. Free yourself with a wireless network and reap the business benefits of mobile computing.

Christine Spisto is the director of marketing for ONeil Software Inc., which provides records-storage software and full-featured commercial and corporate record-center tools, including the companys flagship product, RS-SQL, which ensures records-center productivity and profitability. ONeil supplies barcodes, laser scanners, printers, industry education and more. Its products consistently offer automation, enhancements and new features. For more than 20 years, ONeil has provided software and hardware solutions to more than 800 record centers in more than 50 countries, from start-ups to multinational companies. For more information, visit www.oneilsoft.com.

Hi-Tech Cavalcade

Article-Hi-Tech Cavalcade

Its a technological world, and Im a technological girl. I prefer online shopping to braving the mall. I love my laptop. Im addicted to my PDA, MP3 player and AIM. My phone is for text messaging, and I keep a blog. My keychain holds a USB memory key. I buy CDs only to rip them. All my photographs are digital. And when I go out with my single friends, its now an e-mail address I watch them slip to their promising prospects. E me, they say with a coy little smile.

Spend an hour in a coffee shop hotspot or waiting in an airport and its like being at a mechanized carnival. Step right up, ladies and gentlemen! Welcome to the New Worldthe world of web, wireless and all manner of hi-tech wonders! Youll see hands-free devices send data through the air! Send pictures to your friends through your cell phone! Zap your business card to a colleague! And those of you with a stomach for astonishment can watch as multiple storage facilities conduct businessin real timefrom a central database via the Internet!

People are coming around on this technology thing. As one of this months writers deftly points out, you have no choice. Get on board or get out of the way, he says. In either case, the revolution is on. Dont feel like communicating via e-mail? Tough. Dont want to conduct business via the web? Too bad, baby. You may be a small facility, you may be a business that prides itself on personal touches. But if you fail to give customers the conveniences they cravei.e., online rental and payment options, e-invoices and self-serve kiosksdont be shocked when a PC dances on your bottom lines grave.

Even if you dont like it, developments in self-storage software and related technology are accomplishing wondrous things for operators in this industry. In the pages that follow, youll read about kiosks, call centers, online payment processing, centralized database solutions, wireless devices, future software features and more. A few years ago, the ISS Annual Software Issue (every May) focused solely on providers of management programs and how to choose between DOS and Windows. Our horizonsand yourshave been greatly expanded by a plethora of new-fangled products.

All that being said, I love to play devils advocate. Hi-tech tools are fantastic, but what about the importance of personal relationships? Can an e-mail convey the affability of a phone call? If tenants rent their units through a kiosk and pay their bills online, how will operators get to know them? How will they learn who their tenants are and what they store in their units? And what will all this automation mean for the position of on-site self-storage manager?

Good questions, all of them, and worthy of contemplation. Perhaps you should think about them over a caramel macchiato while viewing your management reports remotely from a Starbucks near you.

Have fun at the fair,

Teri L. Lanza
Editorial Director
tlanza@vpico.com

Online Marketing and Facility Value

Article-Online Marketing and Facility Value

Like many members of the Baby Boomer generation, I find computers to be a mixed blessing. They are certainly expedient, but they lack the flexibility and forgiving ways of old methods of doing things. They require you to execute tasks the right way and in the appropriate order. As my office colleagues can testify, my entry into the age of the Internet has not been graceful, but I am making progress.

Being in the real estate business, I have one principle concern at the forefront of my mind: What is a propertys value and why? Computers and the Internet allow us to make all kinds of calculations and comparisons. The data lets us plumb the depths of information to really understand a facilitys worth. But more important, technology can create and destroy self-storage value. This became true while the old curmudgeons were sitting on the sidelines, unaware of evolving trends and significant changes in industry marketing.

Three Short Stories

There are approximately 202 million Internet users in the United States, which is roughly 69 percent of our total population. Nearly two-thirds of those users have access from home. When you consider what portion of those users might also be potential self-storage customers, marketing your facility on the Internet only makes sense. Let me share a few anecdotes that will demonstrate how I came to the conclusion about the importance of online marketing in this industry.

First, about a year ago, I was at the ISS Expo in Las Vegas when I overheard two of the largest self-storage operators talking about getting 8 percent to 10 percent of their customers from the Internet. I was impressed. Talk about creating value.

My second awakening was during a visit to a facility in Denver. While Im not in the habit of calling a project an ugly baby, this one was not prettya dilapidated old warehouse you would need a guide dog to find. It was, however, essentially full at good rental ratesa prosperity not typical of nearby competitors. When I asked the owner how he leased up so quickly, he said, Since I couldnt afford much Yellow Pages advertising, I just used the Internet. I get almost all of my customers from the Internet, and it doesnt cost much. From that moment, I was converted.

The third reason I believe the Internet is important in self-storage marketing is because of the progress of my companys own website. Last year, it got 3 million hits. My webmaster pointed out that if there are 40,000 facilities in the United States, there were 75 hits for each one. She was quick to point out that not all of the hits were from people looking to rent storage; nonetheless, every day, there are a little more than 8,000 people poking around on the Internet, looking for information about our business.

Creating Value

Lets just take a stroll through the math and see how much value is created by using technology to market a facility. Lets assume a hypothetical project of 50,000 square feet and the average 8 percent increase in rentals cited by the large self-storage operators I mentioned earlier. (See the table below.) The first thing to notice is NOI and value go up by 11.4 percent, even though rents went up only 8 percent. Thats whats called operating leverage. The value goes up a whopping $450,000not bad! Whats even more impressive is what a mere 8 percent increase in occupancy can do for your equity, which actually increases by more than 46 percent. No wonder the big guys are into the Internet.

Sample Project
  Before Internet Marketing After Internet Marketing Net Change Percent Change
Revenue (50,000 @ $10/SF) $500,000 $540,000    
Expenses @ 30% $150,000 $150,000    
NOI $350,000 $390,000 $40,000 11.4%
Value @ 9% cap rate $3,890,000 $4,340,000 $450,000 11.4%
Loan @ 75% $2,918,000 $2,918,000    
Debt Service @ 5.5% $206,000 $206,000    
Cash Flow $144,000 $184,000 $40,000 46.3%
Equity $972,000 $1,422,000 $450,000 46.3%

Nothing to Lose

Theres also a downside involved with Internet marketing. Namely, if you are not marketing via the Internet and your competitor is, he could be getting renters that would otherwise come to your facility. I think its safe to assume that if a customer finds what hes looking for on the Internet, he will not go to other advertising venues. With the technological maturation of younger generations, online purchasing behavior is more common than ever. I know my daughter and her friends wouldnt think of using the Yellow Pages!

If you arent earning more business off the Internet, you might actually be losing it. Having seen the impact an 8 percent increase in rentals can have on value, consider what an 8 percent reduction does for a property. To save you from deciphering another of my charts, Ill just give you the bottom line: The numbers are roughly the same, but in just the opposite direction, which is not a happy circumstance.

Online marketing services are actually inexpensive. A facility can have its own webpage listing for well under $200 per year. It doesnt take long to break even, especially compared to the high cost of Yellow Pages advertising. When you compare the risks to the value and cash flow created, the cost is inconsequential.

Useful? Yes. Nirvana? No.

Theres a difference between hosting your own facility website and simply having a page on a niche website (one devoted to a single product or industry, like self-storage). There are advantages to both, but a large self-storage website that contains pages for multiple facilities in addition to general information and educational articles may have a more effective reach to your desired audience.

Can you expect a web page on a niche website to generate an 8 percent increase in business for your facility? Maybe. The site must be actively marketed and properly configured to appear on the first page of search results on most search engines. Even though consumers visit higher-traffic sites of general interest more frequently, this doesnt mean the information is easy to find. Niche sites allow consumers to find you quickly and easily.

While some self-storage websites offer ways for customers to reserve or rent units online, most people just look up information about a facility and call. You may never know how many renters start with a web search because they dont tell you they found you on the Internet.

While precision in measuring success is elusive, the anecdotal information indicates the Internet is productive and has a growing influence on revenue. As a self-storage owner, if you dont use the web for marketing, you could be losing renters to other facilities. Likewise, you are passing up a chance to materially enhance your value and return.

It is imperative to include online methods in your marketing plan. If you look at history, those companies that failed to change with the times are no longer around. Im not saying you have to toss out all of your current systems and equipment and break the bank, but the numbers show even small changes in occupancy have large effects on your net worth. If someone else gets renters who never even knew your facility existed, you get hit with a double whammyyou lose the customer, and you lose the potential for increased revenue.

Michael L. McCune is the owner and president of Argus Real Estate Inc., a real estate consulting, brokerage and development company based in Denver. His company also hosts www.selfstorage.com, a marketing medium for owners in the self-storage industry. Broker affiliates of the Argus Self Storage Sales Network can offer a facility six months of free Internet advertising, allowing owners to reach thousands of potential renters monthly. Users can request a basic or premier listing through their Argus broker, securing their own web link and a customized web page. For more information, call 800.55.STORE or visit www.selfstorage.com.