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Three Must Do’s for Over the Top Success while Pre-Marketing your New Facility.



Three Must Do’s for Over the Top Success while Pre-Marketing your New Facility.

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Three Must Do’s for Over the Top Success while Pre-Marketing your New Facility.

By: Garrett Byrd

 

1.)       As soon as you have closed on the parcel you will be building your self storage facility make it a point to get your self storage coming soon sign up.  Make sure you get permission and adhere to the city/county rules and regulations with signage. This will be your introduction to the community for the next six to eight months so make sure your hello to the community stands out and is inviting,  remember less is more on a quick drive by sign.  You will want to have your  phone number on the sign where your future customers can  call and receive information  or leave their contact information phone and email to be put in your data base for your facility updates and progress.   It’s a good idea to have your website on the sign as well, even if your website is in the beginning phase it’s nice to have a place where your customers can receive basic information as well as register their interest as your site progresses.  As soon as you have temporary electricity, make sure you have spot lights or even Christmas lights on the sign.  It’s the 15,000-30,000 cars driving by your parcel that well be your future customers you want to be as visible to them as you can. The average facility has 15-20 rentals and reservations, Storage Authority’s goal should is to have 50-60 hard reservations or rentals before you open your doors. If this isn’t your goal you are likely losing out on $60K in income your first year due to poor pre- planning.

Coming Soon                                        storage10steps_0_o

 

 

2.)          Join your local chamber and real estate associations.   When you join these types of associations you must be involved and you should network all angles.   You are networking, it’s not net-eating, net-socializing, or net sitting, it’s networking and you have very little time to make connections and utilize each other’s platforms to generate new business.  For your local chamber, you want to attend as many events as you can, let them know your facility will be open soon.  Business card exchanges luncheons, support any grand openings for your fellow chamber members.  It’s important that you let them know you care about their growth just as much as you care about your facility’s growth.  It’s the law reciprocity, people feel a sense of obligation to do something for you when you’ve done something for them. Help your fellow businesses achieve their goals and it will pay dividends to your facility’s growth.  The realtor associations are important as well, self storage is a transition business and  realtors are constantly in front of their clients who are on the move and in need of storage solutions. The realtor associations usually will let you sponsor their training classes for a luncheon or brunch.  They will allow you to set up a table and give a five-minute information pitch about the self storage services you provide.   Be sure to have some branded give a ways (totes, pens, marketing material) for the realtors and let them know you have a realtor resource center at your facility to help promote their business.  Ultimately the realtors want to know if they are referring your self storage facility their clients are going to have a first-class experience.

 

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3.)      Community outreach to your local businesses with in your three-mile radius.  This is critical to do before you open your doors.  You want to prepare yourself with a branded marketing tote and have your marketing material in your totes along with a pre-leasing discount.  Your objective is to visit all businesses in your three-mile radius, let them know your facility is opening soon and leave them a tote.  You also want to take their business card as well and learn as much about their business as you can in your short visit.  The key is to get the local businesses card for your contact list and let them know you hand one of these totes out to every new customer.  You like to help to promote your local businesses so you include a coupon to their business to bring awareness to their brand.  Let your fellow business owner know you are a transition business some of your customers are new to the area or on the move.  There is no fee to promote their business with you all they should do is give you a stack of coupons to stuff in your totes.  You always want to keep a master coupon with their business card, when you run low on their coupon you can give them a call and they will gladly swing by to deliver more coupons for you and thank you for handing them out.

 

Storage Authority Franchising is about owning your own hometown self storage business and having the professional systems and knowledge to assist and guide you. We like to say You are in business for yourself but not by yourself.  If you are thinking about self storage you owe it to yourself to contact  Garrett Byrd at 941-928-1354 or Garrett@StorageAuthority.com to learn more about the Storage Authority Franchise opportunity.

 

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Franchise Business Radio – Interview with Marc Goodin, President of Storage Authority Franchising

Name and Title of Person Interviewed:

Marc Goodin, PresidentIMG_3170

Guest BIO:

Marc Goodin is President of Storage Authority Franchising. As a professional civil engineer he has designed commercial developments and self storage facilities for over 25 years. His self storage expertise has been fine tuned by designing, building and managing 3 self storage facility he presently owns. Marcs experience from the trenches and his expertise is apparent in his two best selling marketing and planning self storage books available on Amazon.. Marc is uniquely positioned to provide simple, straightforward and effective guidance in achieving industry-leading service and profits in the self-storage Industry.

 

 

Click Here to Listen to Interview with Marc Goodin, President of Storage Authority Franchising

 

  • Topics/Questions:

  • Why Self Storage for the Busy Professional
  • How to get started in self storage
  • How to double your profits in self Storage
  • Storage Authority

Web Site and/or Social Media Links:

www.StorageAuthorityFranchise.com

Facebook
Twitter
YouTube
https://www.linkedin.com/in/marcgoodin

 

The One Hour Self Storage Demand Review

The One Hour Self Storage Preliminary Demand Review

By Marc Goodin   1/2017

Demand is one of the several items that must be reviewed to determine if a property is suitable for a new self storage development.  It is important not to over assign to much importance to Demand or any one of the item or any one the important site features.   This preliminary demand is not a substitute for a Feasibility Study by a self storage expert but rather a quick way to determine if further research and if a full demand analysis should be completed by experts.

Demand is typically measured based upon the existing population in 1 and 3-mile radius in the Urban areas and the 1, 3 and 5-mile radius in rural areas.  Typically, a combination of square foot per person is determined based upon individual State averages, National averages and micro averages, existing rental rates and occupancies.  Many experts use the state average of 8.3 sf per person as a starting point. And add and subtract based upon local conditions and features.  Additional demand may be added if there is a large commercial base that may use storage or subtract demand if poor rates or large vacancies exist.

Once the total demand is calculated the available demand for construction is determined by subtracting the demand used by the existing competition, plus competition under design, approved, or under construction

This used demand is again based upon the square footage of the existing competition.

These are quick down and dirty calculations.  If they look favorable, then it is time to get the actual square footage of each facility (often available at the city records and often online) and confirm with the city if any facilities have been approved or even submitted for approval.  There is no excuse for not driving the area to assist in your research.  Once the calculations are performed with the more accurate data look favorable and you have confirmed the site has the other characteristics of a good self storage location it is time to get a professional feasibility study done.

Example  1 – Urban Location

1 Mile Radius- Existing Population 22,000 people

 Total Demand available = 22,000 x 8.3 sf/person = 176,000 square feet

Demand used by 1 Existing self storages of 62,000   square feet

New Construction Available Demand = Total Demand available – Demand used =  176,000 sf – 62,000 = 114,000 sf available for new construction    –

Looks good for additional research

 

3 Mile Radius – Existing Population 86,000 people

Total Demand available = 86,000 x 8.3 sf/person = 713,800 SF

Demand used by 9 Existing self storages, assuming an average size of 60,000 sf = 9 x 60,000 = 540,000 sf

New Construction Available Demand = Total Demand available – Demand used =

713,800 sf – 540,000 = 173,800 sf available for new construction    –

Looks good for additional research

Example 2 Rural Location

1 Mile Radius- Existing Population 3,000 people

Total Demand available = 3,000 x 8.3 sf/person = 24,900 square feet

Demand used by 0 Existing self storages = 0 Square feet

New Construction Available Demand = Total Demand available – Demand used =  24,000sf – 0 sf = 24,900 available for new construction

Not enough population available in 1-mile radius but in conclusive since typical in rural low population areas.

 

5 Mile Radius – Existing Population 15,000 people

Total Demand available = 15,000 x 8.3 sf/person = 124,500 sf

Demand used by 1 Existing self storages = 55,000 sf

New Construction Available Demand = Total Demand available – Demand used =  124,500sf – 55,000 sf = 69,500 sf available for new construction

Looks good for additional research.  I should note, among other things, I often like to see a demand needed that is double what is to be built.

 Example 3 – Self Storage Opened In 2016 In Sarasota FL

Let’s take a look at a facility that opened in 2016 on Route 41 in Sarasota, FL and see if we come up with the same conclusion to build a new 3 story facility as the owner did.

The two items we need are the population stats and near by self storages for the 1 mile and 3-mile radius.

To do this I used programs from PAC-COMM  http://pac-comm.biz. If your business has interest in self storage acquisition, location feasibility studies, facility research for future development, or any type of self storage location research; PAC-COMM’s Google Mapping API provides an important service.

PAC-COMM offers free two and three-day trial periods for accessing and exploring both their demographic reporting and their mapping applications. To learn more about the demographic reporting and the mapping applications download this PDF:  http://freepdfhosting.com/d11807d40f.pdf . To reserve your test trial, ask additional application or licensing questions, contact Teresa Roemer at PAC-COMM, troemer@pac- comm.biz.  Let them know Marc from Storage Authority sent you.

I simply plugged in the address into the PAC-COMM demand URL form and got the demographic and population report and the existing facilities in the area.  Here are the results of the population section of the demographic report.

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Next I entered the address and radius into the self storage mapping program.  The program permits for several different radius options and you can click on each facility to get the name & address to assist in further research.   Here are the results for the 1 mile & 3 mile facilities.

1 Mile Radius

As you can see there are two existing self storages in the 1 mile radius.

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As you can see there are 9 self storages in the 3-mile radius.

You can zoom in and out and also get an Arial views, as well as choose other radius to help with your research.  You can also click on each facility to get the name & address to assist in further research.

For the quick and dirty calculations, I assumed all self storages are shown and the ones shown are self storages (vs RV only storages), and I simple estimated the square footages by my experience of driving by or looking at them at google earth.  I also assumed no new facilities are on the drawing boards, have been approved or are under construction in the 3-mile radius.

1 Mile Radius- Existing Population 9,504 people

Total Demand available = 9,504 x 8.3 sf/person = 78,883 square feet

Demand used by 2 existing self storages of approx. 25,000 sf and 70,000 sf for a total of 95,000 Square feet (estimated)

New Construction Available Demand = Total Demand available – Demand used =

78,833 – 95,000 sf = negative 16,167 sf for new construction

 

3 Mile Radius – Existing Population 60,844 people

Demand available = 60,844 x 8.3 sf/person = 505,000 sf

Demand used by 9 Existing self storages consisting of and estimated 450,000 sf

New Construction Available demand = Total Demand available – Demand used = 505,000sf – 450,000sf = 50,000 sf

Based upon these numbers you may consider this to be an A location based upon demand.  But since I live around the corner and know the area well, my initial reaction would be this is a great location and dig deeper. I would first get the actual square footages of the existing facilities and check their occupancy and rental rates.

In certain areas driving habits and drive times must be considered.  This location has an advantage as Route 41 is THE major road in town and many people head to this road to shop and access the town north and south. Making this location a shorter travel time and more often taken route leading prospects to this location vs. other locations that may be closer to home mileage wise.

The closest self storage is a haul dealer with inside multi story self storage that is not air-conditioned that concentrates on truck rental and not will not be a major competitor. And did you notice there is a long stretch to the north on 41 with facilities.  Also this area has a high commercial and retail storages that will also provide 15% plus of the renters.

Secondly did you notice how 5 of the 9 self storages are located just on the 3-mile line?  If we did a 2.9-mile radius the numbers we would have almost the same population and less than half the self storages.  Likewise, if we added area to the west we would not add any self storages but add substantial traffic.

For this location around 40% of the 3-mile radius has no population due to be located next to the ocean. Which is not the case for the 5 facilities at the three-mile radius.  I would visit these self storages and I bet they are both full at great rates.  If we go to the 5-mile radius we are not going to add any facilities to the west and the facilities to the north have a natural break at Fruitville Avenue where people to the south of Fruitville Avenue would have the tendency to go south due the better neighborhoods and shopping districts.

I would normally have to do a host of further research to determine if this site has the demand and other features to determine if this location is suitable for self storage. And my guess is many professionals would have stopped their research early on and skipped this site, but in this case we have the evidence this is a superior location.

Our newest addition to our Storage Authority Team (to help you) is Garrett Boyd who was the manager of this facility for its first 6 months of operations, before he joined Storage Authority.  In just six months under Garrett’s management this new 3 story facility went from opening to over 60% full.  This is an incredible feat! Of course we believe and give much of the credit to Garrett due to his superior self storage sales and marketing expertise.

This bring me to one very important fact over looked by most self storages.  If a manager is a simple order taker/clerk or even a good customer service agent an A location can rent as a C location.  A superior experiences sales and marketing self storage manager can literally garnish much more than their fair share of the demand.

You owe it to yourself to contact Garrett at 941-928-1354 or Garrett@StorageAuthority.com to learn more about the Storage Authority Franchise opportunity. www.StorageAuthorityFranchise.com

Marc Goodin is President of Storage Authority Franchising.  He owns 3 self storages he designed, built and manages. He has been helping others in the self storage industry for over 25 years.   He can be reached at marc@StorageAuthority.com or directly at 860-830-6764 to answerer your development, marketing, sales and operations questions.  His best selling self storage books are available at Amazon and here.