By M. Anne Ballard and Stacie Maxwell

When it comes to self-storage phone sales, getting the phone to ring at your facility is only half the battle. Knowing how to sell your services once you answer each call is the other and most important half. Most self-storage operators are finding their phone volume declining as online activity and walk-ins increase, so they must make the most of each valuable call. Following are tips to improve your phone-sales skills as well as four key questions to ask every caller.

Be Focused, Active and Attentive

Before you answer the phone, remove your gum, chew your food, and swallow that drink. And smile! Callers can hear it in your voice. You need to take a split second, get focused on the call youre about to receive, and let everything else go. Trust methose other things will still be there when the call is over.

Engage and listen to your callers. When the phone rings, its easy to just regurgitate facts and information about your facility, such as pricing and features or services. However, by asking your customers the right questions, you get them to tell you about their situation; you learn their needs and can determine how your products or services can best help them. Never ask, What size do you need? as they often have no idea.

Asking the following pointed questions will help you determine how to sell your various sizes and amenities. Have a one-sheet phone or walk-in script at the ready. Take extensive notes from the questions and comments customers provide, and then use them to outline your benefits in a way that relates to each remark. Here are the four questions you should ask every prospective tenant:

1. Have you ever rented self-storage before? In some markets, up to 50 percent of residents may have never rented before so they dont know all the ins and outs of month-to-month leasing programs.

2. What do you plan to store? You need to make sure the use is qualified, not old tires or batteries, fish or other livestock. If its a commercial tenant whod like to rent a unit to store inventory, records or other stock, your sales approach will be different.

3. When do you need to move in? This will help you create urgency no matter if he says one day or one month from now. Here, you can be the hero to someone moving his entire household, for example. You might respond with something like, Since your movers wont be coming until the first of next month, you have a unique opportunity to make this the most stress-free move of your lifetime. Just begin by bringing over a few treasured items each weekend, things you dont want the movers dealing with, like your antique china. By the time the movers arrive, all your most treasured possessions are dealt with, and they can pack and move you more quickly as well. Youll be so glad you had this extra time. Lets take a look at which size will suit your needs. From here, you make recommendations about size and move forward.

4. How long do you think youll need storage? Make note of the answer and consider it when recommending the perfect unit location. For example, someone whos going to be out of the country for a year or more doesnt care much about unit location compared to a local retailer wholl be in and out every day and receiving shipments.

This last question also allows you to limit the term of any discount used to close the salebut only if necessary. For example, if youre asked to match a competitors special or lower rate, you could ask, If I match that rate for the two months you think you will need storage, and then adjust to the regular price thereafter, will you move in with me today? This is much preferred to an ongoing, open-ended discount, which robs the property of value.  

Meet Customers Needs

One key to closing every salecommercial and residentialis meeting customers unique needs. The more questions you ask, the better youre able to determine exactly whats needed, which unit will work best, and which special programs or discounts you should offer. This could include truck rental or even free use of your facilitys moving truck, key release for package delivery, remote control to an RV space, 24-hour access, business-center services, etc.

Once youve learned customers needs, you can emphasize the benefits of your products or services and how you can exceed their expectations. Show how you can help commercial customers cut costs, increase profit or beat the competition. Demonstrate how you can solve your residential customers storage and space issues, including caring for sensitive items such as antiques or cars, or providing moving solutions or referrals for other services theyll need.

Take lots of notes during each call so you can touch on key points throughout the conversation and provide a customized service experience. Get names and contact information, including e-mail. Making your customer feel welcomed and being the local friendly expert on all things storage-related will make callers more comfortable and build a sense of trust in your professional expertise.

Close With a Bang

Once youve determined your callers needs and discussed all the ways in which your facility is the right choice for him, ask if hed like to reserve a unit or make an appointment to tour the facility. The goal is to get the customer to the facility or get a reservation, not just give your prices and hang up. If youre just giving pricing, youre missing a big opportunity and only giving the caller a tiny percentage of the information he needs to make an informed decision.

When it comes to phone sales, be prepared with a script, uncover your customers needs, then show him how your facility will fill them. Youll find improving your phone-sales skills will also improve your closing ratio and increase your facilitys occupancy and revenue.

M. Anne Ballard is owner and founder of Atlanta-based Universal Management Co., a full-service management and consulting company serving self-storage businesses worldwide. Ballard is a frequent speaker at national and international conferences, and author of The Hat Lady Speaks, which focuses on self-storage marketing and management. Stacie Maxwell is Universals director of marketing and communications. With more than eight years of industry experience, she is responsible for the companys branding, design and marketing. For more information, call 770.801.1888; visit www.universalmanagementcompany.com.

Molly Seeley, a Minnesota native and entrepreneur, has launched a storage company called Cyber Space to provide new options for storing ones personal items. With Seeleys service, customers store their items in a temperature-controlled environment where they can all be seen and tracked online. Seeleys patented technology allows licensees and customers to accomplish multiple tasks in relation to indexed items such as scheduling pickup or delivery, purging items to a recycle program, donating items to Goodwill or selling items on eBay.

Seeley's business operates with the assistance of Local Motion, a Minneapolis-based moving and storage-pod business owned by her husband, David. When customers opt to store with Cyber Space, they receive a storage pod from Local Motion into which to put their items. The pod is then stored at one of Local Motion's warehouses. Cyber Space provides the online access to that pod and its contents.  

Seeley is marketing her new service as a disruptive technology, claiming it will revolutionize the $26 billion self-storage industry. A press release issued by Cyber Space states current choices in that industry will soon be displaced by this faster, more efficient and less expensive technology.

The 37-year-old has been awaiting five years for her virtual storage patent to be approved. It was finally issued earlier this year. Seeley said her pricing can sometimes be as much as 80 percent cheaper than the market rate for self-storage, and the companys first set of space sold out in the first two weeks of operation.

Should local operators of traditional self-storage facilities view Cyber Space as competition? Seeley said yes, and though she feels bad about that, she feels great about saving customers money on top of providing the convenience her technology can provide.

Seeley is not the first entrepreneur to experiment with a virtual storage product. Companies StorageByMail.com and Storage By The Box offer similar services, though they function through the mail rather than a moving company. Storagebymail.com, based in Jersey City, N.J., was co-founded by Daniel Hughes and initially launched in 2005. Storage By The Box, operated out of Plainfield, Ill., by Phil Murphy, was launched in 2010.  Both allow for the shipping of storage boxes to a warehouse location where they can be managed through an online portal. Customers can access digital records of box contents and request boxes for delivery at any time.

A self-storage facility in Johnstown, N.Y., has filed an application with the city planning board to build a third building on his property.

Shawn McCormick, owner of S&D Self Storage Units, hopes to add a 1,350-square-foot building to the property at 34 W. State St. The proposed addition is about half the width and 30 feet shorter than the propertys two existing buildings. McCormick estimates the addition will cost about $24,000 and will take up to three weeks to complete.

The new building will have the same appearance as the existing buildings. There are no code or setback issues. However, an Environmental Quality Review is required. The city board has appointed itself as the lead agency for the review. A public hearing for Oct. 4 at City Hall has been scheduled.

Paladin Quarters 2 LLC acquired a 29,000-square-foot self-storage facility at 2717 Poinsett Highway, Greenville, S.C., from Chadjere Enterprises LLC for $825,000. The 180-unit property with four industrial buildings had some deferred maintenance, so $15,000 of the proceeds were put into escrow until the seller completes the repairs.

In addition to self-storage space, the property has an office/retail building leased to a barber shop. The property was 85 percent occupied at the time of sale.

Jim Hopple and Rodger Willoughby of Keystone Commercial Group LLC represented the buyer. Keystone is a Greenville, S.C.-based commercial real estate firm that represents buyers and sellers of commercial property including industrial, office, retail, and investment. Clients include corporations, small businesses and investors.

StorageMart is assisting Texas residents being displaced by wildfires with an offer of highly discounted self-storage space to store their possessions or home-reconstruction materials.

The companys Safe Spot program also provides self-storage at extremely low rates to families affected by natural disasters. Texas wildfire victims can get three months of storage at the 15601 FM 1325, Austin location for only $3.

In situations like these we are more than happy to do what we can to help those people being affected, said Sarah Little, interactive marketing director. When someones home has been lost or damaged or is being threatened, a self-storage company is in a unique position to lend a hand. We find the opportunity to provide that assistance rewarding.

StorageMart is promoting the Safe Spot program via the companys Facebook page at Facebook/StorageMart. Fans of the page can share the offer with those in need.

StorageMart is a self-storage provider with more than 130 facilities throughout the United States and Canada. The company supports charities within its communities, including the Boys & Girls Club of Austin, animal-rescue missions and more. In July, the company began the StorageMart ScholarSmarts program, which awards $10,000 in scholarships annually to students from various stages of continued education.

The final review for a proposed self-storage development in Washington Township, N.J., has been rescheduled for Nov. 14.

Washington Development Co. is proposing to build a 48,500-square-foot self-storage facility at 229 Delsea Dr. The facility would include 350 self-storage units. The developer pulled the application from last weeks zoning board meeting because the company is still waiting on approvals from outside agencies.

The preliminary site plan application was approved June 13. It outlined restrictions and requirements for the proposed development. The facility will be open from 7 a.m. to 7 p.m., with a manager on site during those hours. Access will be gained through a keycard or by entering a combination.

In addition, the driveway to the self-storage facility will be lined with trees, but no curbing or sidewalks will be required. Construction will include the removal of about 900 trees from the property, 64 of which will need to be place around the property. The facilitys 30-square-foot sign must be set back from the property line by 10 feet, and the buildings design must be consistent with the redevelopment zone.

By Jeffrey Rogers and Matt Swanson

The self-storage market has improved, but its clear the industry is experiencing a different dynamic in todays environment. While the current economic climate has raised questions about resiliency in the property type, a more fundamental question is whether existing and potential tenants have changed their habits around self-storage.

In past recessionary periods of the early 1990s and 2001-2003, self-storage occupancies and revenue were generally not negatively impacted. For most facilities, revenue continued to increase year over year, and self-storage development turned out quite well for investors and developers.

The following table shows recent quarter-over-quarter changes in rental rates and occupancies based on a nationwide survey conducted by Integra Realty Resources. This reflects the nationwide market and illustrates current market conditions, which are unlike any historic trends.

Period	Rental Rate	Occupancy
1Q 2010	-2.2%	-0.6%
2Q 2010	0.0%	-0.3 %
3Q 2010	-5.2 %	-1.2 %
4Q 2010	-1.1%	-3.3 %
1Q 2011	0.0 %	-3.5%
2Q 2011	-2.2%	-3.5%

In this most recent recession, history has not repeated itself. Because of cuts to many individual incomes, elevated unemployment and lower purchasing power, the use of storage has moved into a more discretionary spending category. The result has been a slow but progressive slide in rental rates and revenue.

A review of recent revenue changes at more than 100 self-storage facilities in major markets nationwide shows many markets are starting to settle or experience a slowdown. In 2010, revenue decreased by 5.2 percent. During the first two quarters of 2011, it decreased by 1 percent.

What Changed?

The change from prior recessions is multi-faceted. After around 1995, self-storage construction spiked, with a massive amount of development taking place in most major markets. With historic strong returns for existing facilities, this property type caught on not only with existing owners but first-timers wanting to enter the industry.

The financial barriers caused by limited financing were also toppled as banks and institutions specifically sought out this property class for loans. As most developers were not known for strong due diligence and lending sources focused on just placing loans, the overall inventory increased between 1995 and 2007 by about 25 percent.

Corresponding to the rapid rise of storage space, rates of return, or capitalization (cap) rates, plummeted. The typical cap rate for a self-storage facility up to about year 2000 was in the 9 percent to 10 percent range. This was looked upon as the norm, or the Goldilocks range, without much variation.

Beyond 2000, cap rates declined, with many markets showing transactions in the 6 percent range. Even secondary markets experienced exceedingly low rates, which did not make much financial or market sense based on the underlying level of risk. This was viewed as cap-rate compression, where cap- rate tiers reflecting location or geographic market distinctions did not appear to exist.

In this expansion period, it was rare that the question was asked if new construction or more storage space was even needed. Markets known for having overbuilt conditions in the past saw new product enter, often from first-time developers anxious to get in the storage game. Many of these markets had low barriers to entry or cheap land. At the end of the development boom in 2007, the industry found itself with far too much storage space and was, for the most part, overbuilt.

The Recent Recession

With this recession, many existing and prospective tenants exited the storage market. The use of storage became a discretionary expenditure, with tenants opting to get rid of excess personal goods.

Commercial users of storage space who typically rented larger units also left the market. These tenants included small contractors and entrepreneurs using storage for inventory and equipment storage. Without construction jobs, the tile, flooring and drywall contractors disappeared as their need for storage evaporated. For many markets, the current level of self-storage space should satisfy demand for the next 10 years.

In an unexpected twist and despite economic declines, self-storage facility values have increased over the past six to nine months. This turnaround does not reflect a change in the underlying fundamentals of storagetheres still too much available space and flat or shrinking demand. It primarily reflects the low-interest-rate environment being faced by investors. The lack of alternative investments that offer reasonable return opens the way for self-storage to provide higher return.

In 2009, self-storage cap rates were pushed into the 8 percent and 9 percent range. This was probably good for the industry, as these rates were considered more commensurate with the level of risk. They were viewed by many as representing fair return reflective of the use characteristics of self-storage.

The downward pressure on cap rates now stems from the low-interest-rate environment as well as large of amounts of sideline capital willing and needing to be placed. Some of this capital is flowing into self-storage. Most of the transactions taking place are typically of secondary properties in overbuilt markets or ones having some problematic condition. In many cases, the cap rates tend be low but are setting precedents for future transactions. Its important to note that the historical condition of the market still remains intact in that the good and well-located properties rarely sell.

A review of numerous transactions reveals a large number of cap rates in the 7 percent range. Although considered low based on the risk levels associated with many of these market areas, the lack of alternative investments is placing this downward pressure.

Given that storage revenue is probably at or near the bottom, its probably reasonable to see cap rates for class-A facilities in the 7 percent range, and class-B and -C facilities achieving a 100 to 200 basis point risk premium, leaving them in the 8 percent range.

While the self-storage industry continues to be resilient, industry dynamics are different in the current economic climate than during past recessions. Many markets are overbuilt, consumer behavior has changed, and revenues and occupancies are in decline. Even still, a lack of alternative investments is putting downward pressure on cap rates, and facility values have managed to increase.

Jeffrey Rogers and Matt Swanson are part of Integra Realty Resources Inc., an independent commercial real estate valuation and consulting firm. The company specializes in real estate appraisals, feasibility studies, market studies, expert testimony and related property-consulting services. Rogers is president and chief operating officer. To reach him, call 212.255.7858; e-mail jrogers@irr.com. Swanson is managing director and principal of the companys Los Angeles office. He can be reached at 626.792.2107 or mswanson@irr.com.

By Chuck Gordon

So youve listed your self-storage facility on all the premier local search-listing websites and social-media profiles. Your business is soaring with the Internet under its wings. Then you discover a customer has posted a scathing review of your facility online. Suddenly, being visible in the social universe doesnt seem like such a great idea.

Dont falter. The Internet is here to help you connect with customers. This negative situation actually presents an opportunity to showcase positive customer service.

Assess the Complaint

The first course of action in dealing with any type of customer complaint is to be receptive. After all, youre in the business of pleasing customers, and understanding them is essential to fulfilling their needs. This holds especially true when handling a negative comment.

Read the complaint thoroughly, watching for specific concerns that can easily be addressed. Then make sure the reviewer has all of his facts straight. If someone complained that the cabin of your moving truck lacked seat warmers and an espresso machine when those features were never advertised, you can politely clarify that all you ever claimed to offer by way of in-cabin entertainment is an FM radio.

Joking aside, try to gauge the customers mindset. Is he looking for reparations for a bad experience or just raging to snag attention? If your situation looks more like the latter, it might be best to let it sit. Everybody can recognize a crazy person in a public forum, so his opinions will rarely carry much weight. That said, its equally important to keep your cool as well.

Presenting Your Response

Platforms like Yelp, Facebook and Google Places provide businesses the opportunity to publicly respond to reviews. Make the most of this. A polite, genuine, public response puts readers at ease and may encourage potential tenants to give your business a chance. Frankly, its free advertising for your ability to be flexible and provide excellent customer service.

Transparency is now a familiar concept in the business world. You understand that consumers demand accountability in dealing with any company, and this should translate easily into your response. Be honest, addressing the specific issues mentioned in the review and stating how you plan to make good.

Dont forget you also have a good number of satisfied customers who deserve just as much attention. If someone gave you a five-out-of-five star rating, reply with a simple thank you and welcome him to come back any time. Assuming all goes according to plan, your facility should come out looking stronger than ever.

Getting lots of reviews from your self-storage customers isnt just a good method of building relationships, its also one of the most effective ways to garner your presence on the Internet. Remind and encourage happy former and current customers to leave you reviews online. When it comes to negative reviews, dont get upsettreat them as customer-service opportunities. Respond calmly and constructively whenever possible, and show your customers what a true professional you can be.

Chuck Gordon is the CEO and cofounder of SpareFoot.com, an online self-storage marketplace. SpareFoot offers a suite of Web marketing tools including ad listings on its 50-plus partner sites, a facility website builder and local-search solutions. For more information, call 202.257.2111; visit www.sparefoot.com .