europe v2 2011 layout 1 19/04/2011 14:27 page 1 · 4 fedessa news self storage europe european...

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contents

FEDESSA News . . . . . . . . . . . .4 to 6

• European computer statistics

• Is “Mobile Search” changing the waycustomers find self storage?

• Small Business Act update

• FEDESSA Profile – Kimmo Vesander

USA Feature . . . . . . . . . . . . . . . . .7

• Lien sales gone crazy

Company Features . . . . . . . .9 & 19

• BOX Noliktavas, Latvia

• Australia’s largest self storage company is gearing up for growth

Marketing Feature . . . . . . . . . . . .12

• Have you reviewed your sales plansfor 2011?

Country Feature . . . . . . . . . . . . .14

• Self Storage in Finland

To subscribe to the Focus and Self Storage Europe magazine, please contact:

Self Storage Association, Priestley House, The Gullet,Nantwich, Cheshire. CW5 5SZ

Tel: + 44 (0)1270 623 150Fax: + 44 (0)1270 623 471

e-mail: [email protected]

EditorialNews items and articles on all aspects of the self storageindustry are welcomed, and should be sent, together withphotographs if appropriate, to the editor, Stan McKerron:

e-mail: [email protected]

The SSA UK and FEDESSA or any of itsagents/representatives/staff cannot accept any legal

liability for the accuracy of the news items and articlescontained in the magazine, which have been obtained

and are reproduced in good faith.

AdvertisingPlease contact Stan McKerron:

48 Talbot Way, Stapeley, Nantwich, CW5 7RQ.Tel: + 44 (0)1270 624 622e-mail: [email protected]

While FEDESSA now embraces 14 separate NationalAssociations, we are all in the same industry with similar aims,problems and experiences. And, although goals andagreements across Europe are not always achieved easily, ourgoals are aligned and we are united. The following are just a few of our achievements of recenttimes, of which we are proud:

The development in under two years of a Quality Standard specifically for ourindustry, viz: EN15696 “Self Storage - Specification for Self Storage Services”,which is recognised by CEN (Comité Européen de Normalisation), was a majorachievement. This standard now provides reassurance for customers and a“benchmark” for European operators.Our conferences are a huge success. The generosity of the SSA UK is to beapplauded for allowing us to use their conferences as the annual European eventfor our industry. These conferences provide networking opportunities throughsimply swapping ideas with friends at the bar, or during the social events, andeducational platforms via professional speakers during the business sessions.And, sponsors and suppliers show their latest products and services directly tofacility operators. By these means, the work of FEDESSA is also communicatedto its members; but, we don’t rely on this avenue alone.The Focus magazine has improved dramatically in recent years and now has asection devoted to the industry, Europe-wide. Additionally, we created the“FEDESSA e-news bulletin” which covers matters at National Association andEuropean Federation levels, including industry news and legislation updates.These twice-yearly e-bulletins are sent directly to each company belonging to ourmember associations.The FEDESSA website has a “Members Only” section, which will be developedover the coming months, and we are taking steps to establish FEDESSA “socialnetworking groups” to keep abreast of this fast-developing media opportunity.These are but a small part of our work and I am proud that we have achieved somuch in such a relatively short period. Changing track, I would like to offer mysincere thanks to:• Michael Fogelberg, for introducing me to the self storage industry in 1997,

following 14 years in the removals sector. This is an industry in which I amextremely proud to be involved.

• The SSA UK and their HQ team of Sue Brash and Jane Massey for organisingthe conferences and assisting in many other ways.

• The National Associations for encouraging operators to get together, forcontinued co-operation in helping to expand the “FEDESSA family” and forallowing me to attend and participate in some of their conferences.

• Our customers, the people we serve and who make our businesses viable.• Rodney Walker and Tony Richman, the “kingpins” of FEDESSA, who have

managed all the background administration and the development ofmembership benefits.

I genuinely thank everyone concerned, including many I have not been able tomention by name.I wish my successor an equally, if not more rewarding presidency. I can foreseenew energy and a new perspective on things, as well as building upon existingprojects. These include increasing our database and statistics, welcoming newmembers, expanding our activities to deal with business continuity plans, disasterprevention measures, environmental challenges, financial implications and manyother issues affecting, and likely to affect, our industry and its continuing growthin the future. While I am leaving the Presidency, I will continue to play a full partin helping to develop FEDESSA.

Frank Boot - President of FEDESSA

A FEDESSA President’s Recap

2

Late News

A new storage facility is being built inMatosinhos, Portugal (Oporto area).

The facility is expected to be inoperation by the 1st of June, 2011.

FEDESSA is in contact with thecompany and hopes to provide fulldetails in the next edition of Focus.

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FEDESSA NEWS Self Storage Europe

European computer statistics

To coincide with the Safer Internet Day on the 8th of February,2011 Eurostat, the statistical office of the European Union,presented a selection of statistics concerning Internet security.The Safer Internet Day is part of a global drive to promote asafer Internet for all users, in particular children and youngpeople, and is organised by INSAFE, a European Internetsafety network co-funded by the European Commission.

The following data presented in the Eurostat News Release wasgathered, mainly in the second quarter of 2010, from a surveyon Information and Communication Technologies (ICT) usagein households and by individuals in the EU27.

In the EU27 in 2010, almost one third of individuals (31%)who used the Internet in the 12 months prior to the survey,reported that they caught a virus, or other computer infection,resulting in loss of data or time. The highest numbers ofInternet users who caught a virus or other computer infectionwere found in Bulgaria (58%), Malta (50%), Slovakia (47%),Hungary (46%) and Italy (45%), and the lowest numbers inAustria (14%), Ireland (15%), Finland (20%) and Germany(22%).

Among those in the EU27 who used the Internet in the last 12months, 4% reported that they suffered an abuse of personalinformation sent on the Internet and/or other privacy violations,with the highest number in Bulgaria and Spain (both 7%), Italyand the Netherlands (both 6%). In the same period, 3% ofInternet users suffered financial loss due to phishing orpharming attacks, or fraudulent payment card use, with thehighest number recorded in Latvia (8%), the UK (7%), Maltaand Austria (both 5%).

In 2010, 84% of those who used the Internet in the last 12months stated that they used IT security software to protect theirprivate computer and data. Among the Member States, morethan 90% of Internet users in the Netherlands (96%),Luxembourg, Malta and Finland (all 91%) used IT securitysoftware, while it was less than two-thirds in Latvia (62%),Romania (64%) and Estonia (65%).

In 2010, 14% of individuals in the EU27 who used the Internetin the last 12 months, and live in a household with children,had parental control or web filtering software installed. Thisnumber was highest in Luxembourg and Slovenia (both 25%),followed by France (24%), Denmark, Austria, the UK (all 21%)and Finland (20%).

Of the individuals in the EU27 who used the Internet in the last12 months, and live in a household with children, 5% reportedthat their children accessed inappropriate websites, orcommunicated with potentially dangerous people, while usinga computer within the household. The highest numbers wererecorded in Italy (11%) and Latvia (9%). It should be notedthat this indicator only represents the number of individualswho became aware of this problem and thus it mayunderestimate the real figure.

More information about the European Commission SaferInternet Programme is available at:

http://ec.europa.eu/information_society/activities/sip/index_en.htm

Is “Mobile Search” changing the way customers find self storage?

Some pundits are predicting that 2011 will be the “Year of theMobile”. In addition to the many other uses of mobile devices,mobile phones are now being used to search for localbusinesses.

According to the 2010 Morgan Stanley Internet Report, mobiledevices will surpass personal computers as the most widelyused Internet platform by 2015. Other respected studies havepredicted that mobile marketing will surpass traditional desktopon-line marketing in terms of effectiveness and audience share.

Studies also show that people who search using their mobiledevices are often looking for something nearby, andcompanies who have optimised their websites to be foundlocally are clear winners.

Mobile users are often on the move and require specificinformation at their fingertips that satisfies their needs. Forstorage, this might mean answering the basic questions: “Doesthis company have a facility near me? Is it open at convenienttimes (including right now)? Is it within my budget?” If theanswer to all three questions is yes, the mobile user is likely tocall.

While the results referred to previously are indicative of amarket shifting towards the use of mobile devices, the desktopInternet sector has not been abandoned.

Self storage operators need to continue focusing on optimisingtheir websites for search and engagement on line. Desktopsearches are not going away anytime soon, but self storageoperators should prepare for the “mobile shift”.

Have you moved to “Mobile Advertising”? Do you have a“Mobile Website”? If so let us know. Let us know how youwent about it, any pitfalls experienced, changes made, successachieved, customer reaction, etc. E-mail:

[email protected].

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FEDESSA NEWSVolume 2, 2011

Small Business Act update

Europe’s economy and 2020 strategy rely heavily on Small andMedium-sized Enterprises (SMEs) achieving their potential.Within the EU, some 23 million SMEs employ 67% of theprivate sector workforce. The Small Business Act (SBA) is theEU’s policy framework aimed at strengthening SMEs so thatthey can grow and create employment.

Between 2008 and 2010, the Commission and EU MemberStates implemented actions, set out in the SBA, to alleviate theadministrative burden, facilitate SMEs’ access to finance andsupport their access to new markets. Although most initiativesforeseen by the SBA have been initiated, a review ofimplementation so far reveals that more must be done to helpSMEs.

Successful SBA Initiatives since 2008

The Small Business Act is the first comprehensive SME policyframework for the EU and its Member States. Since itsadoption in June, 2008 considerable progress has been madethrough actions to strengthen SMEs in the following areas:

• 100,000 SMEs have benefited from the financialinstruments of the Competitiveness and InnovationFramework Programme, creating more than 100,000 jobs.

• Through the Late Payment Directive, public authorities arenow required to pay their suppliers within 30 days, therebyimproving the cash flow of businesses.

• In most EU Member States, the time and cost of setting upa company has been considerably reduced, lowering theaverage for a private limited company from 12 days and€485 in 2007, to 7 days and €399 in 2010.

• Streamlined on-line procedures, and opportunities for jointbidding, have made participation in public procurementeasier for SMEs.

• The new EU SME Centre in China helps SMEs to accessChinese markets.

Although all Member States have acknowledged theimportance of a rapid implementation of the SBA, theapproach taken and the results achieved vary considerablyamong Member States. The review underlines that MemberStates have to step up their efforts to support SMEs and topromote entrepreneurship in today’s difficult economic climate.

Giving fresh impetus to the SBA

The Commission is determined to continue giving priority toSMEs. To reflect the latest economic developments, align theSBA with the priorities of the European 2020 strategy and tocontinuously improve the business environment for SMEs, thereview proposes further actions in the following priority areas:

Improved access to finance for investment and growth

• Access to loan guarantees for SMEs, through improvedloan guarantee schemes.

• An action plan for improving SMEs’ access to finance,including access to venture capital markets, as well astargeted measures aimed at making investors more awareof the opportunities offered by SMEs.

• Allowing all banks, independent of size, to easily implementEIB loans and EU instruments.

Smart regulation to enable SMEs to concentrate on their corebusiness

• Improved EU legislation through an SME Test for theCommission’s legislative proposals, paying particularattention to the differences between micro, small andmedium enterprises.

• Development of “points of single contact” in MemberStates, to facilitate administrative procedures.

• Quantified targets for reducing “gold plating”, the practiceof national bodies exceeding the terms of EU directives,when translating them into national law.

Making full use of the Single Market

• Proposal for a Common Consolidated Corporate Tax Base.

• Measures to facilitate cross-border debt recovery.

• Revision of the European standardisation system makingstandards more SME-friendly and easily accessible.

• Guidance to SMEs making use of “labelling of origin” rules.

Helping SMEs face the challenges of globalisation and climatechange

• Proposals to support SMEs in markets outside the EU.

• New strategies for globally competitive clusters andnetworks.

• Specific actions on regional knowledge transfer betweenenvironmental and energy experts within the EnterpriseEurope Network.

The review also proposes strengthened governance for theimplementation of the SBA, with business organisations at thefront line. The actions outlined here are a limited selection.

For more information, visit:http://ec.europa.eu/enterprise/policies/sme/small-business-act/

Tony Richman is FEDESSA’sEuropean Representative

Tony Richman

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FEDESSA NEWS Self Storage Europe

FEDESSA Profile – Kimmo Vesander

Kimmo Vesander (49) is the manager of the Finnish self storagecompany Omavarasto Oy. And, he is a founding member andthe current President of the Finnish Self Storage Association“Itsepalveluvarastot ry”, a position which he now holds for asecond time. Kimmo is also the FEDESSA CouncilRepresentative on behalf of Itsepalveluvarastot ry.

Omavarasto Oy has six facilities in the greater Helsinki area andit is the oldest family-owned self storage company in Finland.

Kimmo, who was born in Helsinki and grew up in this area, nowlives in Espoo. The greater Helsinki area covers three cities;Helsinki, Vantaa and Espoo.

He has been running the self storage business since 1996, whenOmavarasto Oy was first established. Omavarasto Oy is ownedby Kimmo’s family and his friend Jyri Leppänen’s family.

Kimmo has two daughters aged 21 and 5 years old, and two sonsaged 16 and 6 years old. His hobbies include cross-countryskiing, tennis, golf and hunting.

Front Cover Photograph

The front cover photograph shows the harbour area of Vilamoura, in the municipality of Loulé,

in the Algarve, Portugal. This is the venue for the European Self Storage Annual

Conference in June, 2011.

Kimmo Vesander…is a founding member and the current President of the Finnish

Self Storage Association…

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USA FEATUREVolume 2, 2011

Personally, I do not like reality TV. As a matter of fact, I go outof my way to avoid it and find something else to do when thetelevision at home is tuned in to shows like “Pawn Stars” and“American Pickers”. And then, along comes “Storage Wars”.

Mind you, I am not a big fan of this new show, but being in theindustry I have been compelled to watch it. Did I cringe andwant to turn off the TV when one regular bidder announced:“Why go out and get a job when you can just buy the contentsof storage lockers?” Absolutely! Nevertheless, the factremains: reality TV has, at least for now, changed lien sales formost self storage operators in the United States.

“Storage Wars” features auctioneer, Dan Dotson, and hisfollowing of bidders as they converge on self storage facilitiesin Southern California. The amazing thing is that almost everyunit contains something of value, most often hidden from viewin the midst of the otherwise undesirable contents of the unit.

Because I know the storage industry, I am sceptical. And, sinceI know people in the film industry who swear that all of thesereality shows are scripted, I am even more sceptical. The firstquestion that comes to mind is about lien laws. Are they beingadhered to? Are these shows a red flag to state legislators,who will react by initiating changes to existing laws? Then,there is the question of how this TV programme is affecting selfstorage facilities.

The report across the board is a hysterical interest in auctionsbeing held at storage facilities. Many owners and managersreport a 40% increase in the number of attendees at theirauctions, while others report having to increase their staff justto handle the phone calls.

Since the show started, the Arizona Self Storage Associationhas seen a tremendous increase in traffic to its auction websiteat: www.selfstorageauctionsaz.com. On the other hand, someauctioneers have forbidden the filming of their lien sales,stating that it is bad for business since it attracts large groupsof uneducated bidders. Others say that too many biddersmake the crowds unmanageable. And then there are thebidders.

While out shopping over the holidays I had a conversation witha shop assistant who asked what I did for a living. When Imentioned self storage the conversation immediately turned to“Storage Wars”. The assistant proceeded to tell me about hisunemployed brother, who watched the programme and was soexcited that he scraped together $1,000 to buy the contents of

a “storage garage”, hoping to make a profit. “However, it wasfilled with nothing but garbage,” he informed me, “and mybrother lost all of his money.”Over the past few months, I have heard from many Mini-Storage Messenger readers about the negative and positiveimpact these reality TV shows are having on the storagebusiness. On the one hand, some managers are reportingfewer bad debtors; on the other hand, others reported that newtenants are anxiously asking: “How soon do you sell my goodsif I don’t pay on time?” Managers are also receiving more calls about the date of theirnext auction than about storage requirements from newcustomers. Most comments concerned an overwhelmingincrease in the number of bidders showing up at auctions,which has resulted in trash being left behind, criminal activity(such as cars being broken into during the auction) and thelack of parking spaces for all of the bidders who now turn up.

There is one other consideration: it is important to realise thatproposed legislation is often initiated because a disgruntledcustomer happens to be related to a legislator, or is in someway associated with the law making process. As such, selfstorage has typically been able to stay under the radar, untilnow. These new reality TV programmes have brought the auctionprocess into the living rooms of America, and viewers whogave no thought to self storage previously, now haveopportunities to see abandoned possessions sold in biddingwars. For those who don’t know any better, these possessionsare invariably valuable treasures stored in abandoned units.Needless to say, reality TV has raised the awareness of lawmakers and lobbyists about self storage practices. Someamong us may believe this is all an exaggeration. However,our industry cannot afford to ignore the magnifying glass thatis focused upon it. As a result of this new spotlight on our industry, we need tofocus on the way we do business, especially when it comes toauctions. In the interests of maintaining our industry’s goodreputation and safeguarding our margins, we need to ensurewe follow proper procedures, especially when it comes to liensales.

Lien sales gone crazy

Poppy Behrens

Poppy Behrens is the Publisher of the Mini-Storage Messenger

and MiniCo’s other publications,including the Self-Storage

Almanac, Self-Storage Now andMobile Self-Storage Magazine

…“Why go out and get a job when you can just buy the contents

of storage lockers?”

Many owners and managers report a 40% increase in the number of attendees

at their auctions,…

As a result of this new spotlight onour industry, we need to focus on the way we do business,…

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COMPANY FEATUREVolume 2, 2011

The spread of self storage services in some East Europeancountries might be at a relatively slow pace, but some operatorshave been quick to make sure that they have an early foothold;ready for when the industry really takes off.

One such operator is BOX Noliktavas in Latvia, which already hasthree facilities up and running, all within Riga, the capital of Latvia.

With a population of about 2.6 million, Latvia is regarded as asmall country. However, Latvia encompasses 64,589 squarekilometres, a size surpassing that of better-known Europeancountries such as Switzerland, the Netherlands, Belgium andDenmark. Seen from the air, Latvia is an extension of the EastEuropean Plain; its flat terrain differs little from that of itssurrounding neighbours. Latvia’s only distinct border is the BalticSea coast, which extends for 531 km. Its neighbours includeEstonia to the north, Lithuania to the south, Belarus to the southeast and Russia to the east.

Prior to World War II, Latvia bordered eastern Poland, but as aresult of boundary changes, this territory was attached toBelorussia. Also, in 1944 Russia annexed the north-easternborder district of Latvia, known as Abrene, including the town ofPytalovo.

Because of its northern location, daylight hours in Latvia are muchlonger and in the winter much shorter than in New York City, forexample. In December it is still dark at 9:00 am, and daylightdisappears before 4:00 pm. This light aberration may be animportant factor in deciphering certain aspects of Latviancollective behaviour. It may account for the general exuberanceand “joie de vivre” in spring and summer and the relativemelancholy the rest of the year.

The winter months can be challenging for self storage operators,especially as heating plays a major role in monthly expenses.And, in cold countries such as Latvia, it is essential to offer coveredloading and unloading areas, as well as climate control systems.

Added to this, since self storage services are quite new in Latvia,it takes time to educate customers.

Latvia, like many other countries, has been hit hard by therecession; however, it is slowly recovering from the crisis. 2008and 2009 were extremely hard and a large number ofcommercial businesses did not survive.

Bad debtors made it a difficult time for companies like BOX

Noliktavas, which has always relied on a large percentage ofcommercial customers. However, the situation has improvedthroughout 2010, not least due to the determined managerialleadership and marketing efforts of BOX Noliktavas’s MD andowner, Vilis Vitols. While the occupancy level was much betterbefore the crisis, it is now back to 70% and constantly growing.

Some customers think that self storage services are expensive,because salaries in Latvia are low compared to many other EUcountries. However, investments and operational costs force BoxNoliktavas to charge similar rates to those in other EU countries,which makes it difficult for average earners to take advantage ofself storage services. Fortunately, this situation is graduallychanging although it will take some time. Of course, there arealso a number of customers who are happy to pay the going rate,in order to ensure that their possessions are stored in a safe anddry place with easy access.

In fact, self storage has become very popular with people whoare renovating or building extensions to their homes, or simplymoving to another location. In addition, several customers useself storage to store “seasonal equipment”, such as skis, wintertyres, bicycles, motor-bikes and lawn mowers.

BOX Noliktavas opened its first facility in 2006 and its third in2009.

…continued on Page 11

BOX Noliktavas, Latvia

A view of BOX Noliktavas’s first site in Riga, Latvia

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Volume 2, 2011 COMPANY FEATURE

Vilis Vitols, said: “We have no plans to expand beyond Latvianborders, but our plans for existing sites include expanding Site2 with a new, purpose-built, 2,500 to 3,000 m2 building. And,in a year’s time, we intend to build an 800 m2 mezzanine floorat Site 3. This new phase will add an additional 1,100 m2 ofstorage space. There are no short-term plans to develop newfacilities in Latvia.”

Site 1 comprises 1,100 m2 of storage space, plus 500 m2 ofoffice space; there are 220 storage units, plus 13 offices.However, there is no space for further expansion and the flooris not strong enough to bear the weight of a mezzanine floor.

Site 2 was an old building, which BOX Noliktavas completelyrenovated and re-styled. This included installing a new heatingsystem, fire and security systems, cladding on the façade, newfloors, toilets, decorating, etc. It has 1,100 m2 of storagespace; currently there are 150 storage units.

Site 3 has 1,500 m2 of space for rent, comprising 20 individualoffices and 1,200 m2 of storage space, comprising 180 selfstorage units.

As with most facilities throughout Europe, storage units vary insize from 1, 2 and 3 m2 units up to 70 m2 units, toaccommodate customer requirements. The offices varybetween 14 and 120 m2 in size.

BOX Noliktavas offers climate-controlled units, and some unitsoutside that are not climate controlled where temperature andclimate are not considerations. Other useful services includecar storage, small boat storage and the use of fork-lift vehiclesfor loading and unloading goods.

Office hours are 9 am to 6 pm, Monday to Friday, but accessto storage units is available from 6 am to 10 pm, daily.Security is provided by CCTV cameras, access control systemsand G4S “remote” security. These measures replace theprevious manned security, which became too expensive and lessefficient as the business expanded.

Apart from conventional domestic and commercial use, Vilisnever fails to be amazed by the uses to which customers puttheir storage units. “We had one customer who rented 8 m2

units, then built small office units inside each one; we had tocharge more for the electricity used! Then there was a chef whorented five units for all her kitchen equipment. And, she wouldpark a mobile kitchen at the back of the facility and cook forevents such as marathons and filming TV commercials. We

also have Internet shop owners, who allow their customers tocollect their merchandise directly from the storage unit,” saidVilis.

The balance between commercial and domestic usage is about2 to 1 in favour of commercial customers. This is explained, inpart, because BOX Noliktavas offers a number of small officesfor rent at two of its facilities. This creates a good opportunityfor small businesses to rent space to store their stock.

As is the norm these days, the Internet is by far the company’sbest marketing tool. It has also posted its details on a numberof local “information” websites, similar to Yellow Pages.

In addition, some short video clips about the company and itsservices have been shown on a Sunday morning TV programmedevoted to “new businesses”, and have proved to be verysuccessful. The company also uses radio advertising, which hashad some very good results.

Signage is also very important and cost effective, consideringthe number of customers that this method of advertising bringsin. Finally, some direct marketing such as brochures andleaflets and customer referrals complete the marketingstrategies.

A Latvian Self Storage Association does not yet exist, but Viliskeeps in contact with a facility owner in Estonia and he hopesthat talks will start soon, with a view to forming an association.We hope so, as it would be good to have the Baltic States andsuch enterprising young people as Vilis Vitols, becoming part ofthe FEDESSA family.

A view of BOX Noliktavas’s second Site in Riga, Latvia

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Self Storage Europe MARKETING FEATURE

As the economic challenges for many businesses continue, it’scrucial that you take time to think about your sales strategy so thatyou are able to maximise profits. Creating an effective sales andmarketing plan is vital to the success of your business. A wellthought out strategy will help you identify potential customers andtarget them with appropriate products or services. Using thecorrect sales techniques will help you convert interest in yourproducts or services into firm orders. Here are some tips:

Sell more to existing customers

The easiest way to boost sales may be to try and encourageexisting customers to spend more, rather than attempting to attractnew business. In order to achieve this, you may benefit fromsetting aside some time now to consider whether you are currentlyoffering the best customer experience possible.

If you want your existing clients to start spending more, it isimportant to:

• Tailor your products and services to meet your customers’needs. For example, if customers prefer to access their unitson a specific day of the week, make arrangements so that theirwishes can be accommodated.

• Ensure you don’t take on more work than you can handle.You should always give yourself sufficient time to manage keyaccounts.

• Identify and resolve problems quickly.

• Communicate regularly with your customers; contact them

when a better deal becomes available, or their service contractneeds renewing.

• Build up a personal relationship with your customers.

• Consider offering preferential terms to your most valuablecustomers, such as discounts on bigger orders/additionalrentals.

Get old customers back

Another way that you may be able to boost your market shareand grow your business is by encouraging previous customers tostart buying products or renting units from you again. Make astart now on trying to establish why customers stopped rentingfrom you in the first place. There could be a number of reasonsfor this. For example, the customer may have decided yourproduct or service was:

• No longer necessary, too expensive or unsatisfactory.

Once you have determined why customers stopped renting orbuying materials, you will be in a strong position to begin temptingthem back. If customers thought your prices were too high, youcould offer a time-limited discount to encourage them to startusing your services again. If customers were unhappy with theservice they received, you may find by discussing clients’expectations you can make changes to the way you operate andconvince them to give your business another chance.

Sell to new customers

If you are keen to expand your current client base, it may be a wisemove to identify consumers or businesses that are similar to yourexisting customers. You should only need to make minimaladaptations to your services, the products you provide andsystems you use before you are in a position to start selling to newclients. This will reduce the financial risk of growing your businessand protect your margins. It also means that you will not have “allyour eggs in one basket”.

Have you reviewed your salesplans for 2011?

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MARKETING FEATUREVolume 2, 2011

D

For example, it may be that if the domestic market reduces, thestorage of records and files for a local hospital or municipalauthority increases. You can identify similar customers in anumber of ways, such as market research and referrals fromexisting customers.

Once you have identified potential new customers, you can begintailoring an advertising campaign for your target market.

Consider new sales methods

You may be able to boost profits and grow your business in 2011by adopting new sales methods. The main options are:

• In addition to direct selling, you may be able to widen yourcustomer base by selling through distributors or wholesalers(for example, estate agents, small moving companies,mortgage/money lenders) or enquiring if shops are interestedin retailing your cartons, tape, etc. Of course, these may havean effect on profit margins, as you will need to paycommission to any third parties you use.

• Selling via the internet. Establishing an on-line shop can breakdown geographical barriers and bring you to the attention ofa wide variety of potential new customers. However, youshould bear in mind there will be an initial outlay in setting upthis type of operation.

First come up with a shortlist of new sales methods that may suityour business. Maybe more frequent “brain-storming” sessionswith your staff, the very people at the front end of your business.Then you can make a start on carrying out more thoroughresearch.

Involve the local communityPromote your services by sponsoring or hosting local communityevents, or supporting relevant charities. This often has the addedbonus of bringing free PR via local TV news and newspapercoverage. Don’t be shy about sending in your own articles toeditors for consideration.Consider new products or servicesDeveloping new products or services is another way to grow yourbusiness. Start thinking now about the new products or servicesyou could introduce. Once you have a clear idea of the directionin which you would like to move, you will be ready to researchyour options more thoroughly. If diversification is to work for yourbusiness, you will need to ensure that:• You have the necessary time and resources to devote to

research and development.• You can still deliver the level of service your existing customers

expect, while working on your new products or services. • You have the ability to track and react to market trends in a

new sector.It may be useful to approach diversification like you are settingup a new business. You should:• Understand your new market.• Consider whether you need to hire specialists to develop your

new products and services.• Know how to sell to the new customers you are targeting.• Be confident that diversification won’t have a negative impact

on your current offerings.• Have the finance in place to fund the development of your

new products or services.Let us know what changes you make, how things improved, whatwas successful and what was not, etc.

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Self Storage Europe COUNTRY FEATURE

Around two-thirds of Finland is covered in forest and about a tenthby water. In the far north, the sun does not set for around ten weeksduring the “white nights” of summer, while in winter it does not riseabove the horizon for nearly eight weeks. This wild northernlandscape has inspired many and helped to create a strong anddetermined people.

Hundreds of years of Swedish rule were followed by a furthercentury of Russian control. And, as a result, the country displaysdistinctive elements of past Scandinavian and Russian links in itsstyle and culture. Independence in 1917 failed to stem thedemands of Finland’s giant eastern neighbour and World War IIsaw fierce fighting along Finland’s eastern border. Finnish troopsmounted a vigorous campaign against the Soviet forces andstalled their advance, but the country was eventually forced to cede10% of its territory and make extensive war reparation payments tothe Soviets.

The collapse of the Soviet Union in the early 1990s allowedFinland to step out of the Cold War shadow. It applied formembership of the EU soon after its friendship treaty with the SovietUnion became void in 1991, and became a full member in 1995.

To date, Finland is the only Nordic EU member to use the Euro asits national currency. The country spends heavily on education,training and research and investment, which pays dividends bydelivering one of the best educated and trained workforces in theworld. This has been a key factor in the development of a modern,

competitive economy in which a cutting-edge telecommunicationssector has been added to the traditional timber and metalsindustries.

Most Finish people enjoy a relatively comfortable standard of living.The country continuously tops the international comparisons ofnational performance. It is the eighth largest country in Europe interms of area and the most sparsely populated country in theEuropean Union. With a population of around 5.4 million, withthe majority concentrated in its southern region, Finland managesto achieve a Gross National Income per capita of $45,680 US(according to the World Bank statistics in 2009). A total of aboutone million people live in the Greater Helsinki area (which includesHelsinki, Espoo, Kauniainen and Vantaa) and a third of thecountry’s Gross Domestic Product is produced there.

Other large cities include: Tampere, Turku, Oulu, Jyväskylä, Lahti,Kuopio and Kouvola.

The following statistics reveal some interesting facts andencouraging reasons for entrepreneurs to invest in Finland:

• Nearly five million Finns were on line by June, 2010; astaggering penetration rate of more than 85 per cent(Internetworldstats).

• Finland has also made broadband access a legal right for everycitizen.

• Finland was ranked the best country in the world in the 2010Newsweek survey, based on health, economic dynamism,education, political environment and quality of life.


Self Storage in Finland

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COUNTRY FEATUREVolume 2, 2011

• Finland has also been ranked the second most stable countryin the world, and the first in the 2009 Legatum Prosperity rating(the world’s only global assessment of wealth and wellbeing).

• In 2010, the World Economic Forum deemed Finland the 7thmost competitive country in the world.

• Finland is currently ranked as having the 3rd highestgraduation rate (percentage of graduates to the population atthe typical age of graduation) in the 2010 Organisation forEconomic Co-operation and Development (OECD) FactBook.

Many of these points lead to strong business reasons for investingin Finland. Main manufacturing and service industries include:information and communication technology, biotechnology,healthcare, environmental services and technologies andmechanical goods industries. Spin-offs relating to such businessactivities and consumerism have attracted those investing in selfstorage, in order to satisfy the growing demand for extra storagespace.

The Finnish government will invest up to two Euros for every threeEuros invested by a foreign company.


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Self Storage Europe COUNTRY FEATURE

And, Finland’s 29% corporate and capital gains tax comparesfavourably with the rest of the European Union. Also, bothbusiness premises and the country’s highly educated and multi-lingual labour force are relatively cheap.

Looking toward future expansion, Finland is an ideal base fromwhich to reach the massive Russian market. The Scandinaviancountries can also be targeted from Finland, potentially givinginvestors access to markets in excess of 80 million customers.

Itsepalveluvarastot ry is the National Association for Self StorageOperators in Finland and the Finnish constituent member ofFEDESSA.

The recent global economic situation has resulted in the loss ofthree association member companies; however, on the plus side,the association has gained one new member.

The current membership comprises the following nine membercompanies:

• Cityvarasto Oy runs 13 facilities in Helsinki, Espoo, Tampere,Järvenpää, Turku, Lahti and Kerava.

• Espoon Minivarasto Oy has three facilities in the Helsinki area.

• Helsingin Kotivarasto Oy has one facility in Helsinki.

• Turun Minivarasto Oy has three facilities in Helsinki, Naantaliand Turku.

• Omavarasto Oy has six facilities in Helsinki and Espoo.

• Oulun Omavarasto Oy has one facility in Oulu.• Pelican Self Storage has one facility in Helsinki (but also has

facilities in Denmark).• Savon varastovuokraus has three facilities in Kuopio.• Helsingin Varavarasto Oy has one facility in Helsinki.Kimmo Vesander from Omavarasto is the current President ofItsepalveluvarastot ry, as well as the appointed Councilrepresentative on FEDESSA. Other Board Members are VilleStenroos (Cityvarasto Oy) and Niklas Sontag (EspoonMinivarasto Oy).The association has a national conference each year and twoboard meetings. In addition, other communications andexchanges of news items between members are facilitated viae-bulletins. While still relatively small, in association terms and activities,Itsepalveluvarastot ry does have its own website in the Finnishlanguage at: http://www.varastointia.com, and a direct link tothe FEDESSA website.Finnish exports are growing and the domestic market is now running well. In talking to some of the members ofItsepalveluvarastot ry, it seems that this is now reflected in theself storage industry as the economy recovers from the effects ofthe recession.

During the past year, association activity has mostly beenconcentrated on the establishment of a common rental-agreement, which has now been completed. Future projectsinclude plans to establish a new name and logo for theassociation, and standard “packing instructions” to assistcustomers; all of which goes to show the value of united effortin helping to standardise and promote the industry publicly andprofessionally.We hope to bring you more news from the far north, as theindustry expands and new facilities open.

Do you have any news for Self Storage Europe?If you have any News Items or Articles for the Focus magazine,

please e-mail your contributions to Tony Richman at:[email protected]

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Volume 2, 2011 COMPANY FEATURE

Kennards Self Storage loads up its development pipeline and the Australian SelfStorage Industry helps out following the recent devastating floods and cyclones.Having recently acquired its partner’s interest in their joint venture, Kennards SelfStorage has now begun loading up its development pipeline. Kennards completed itsbuy-out of Valad in June, 2010 giving it full ownership of 36 self storage facilities,previously owned by the joint venture.Since then, the company has acquired several development properties, commencedconstruction on some already owned and acquired the landmark Moore Park centrefrom Mariner. When the global financial crisis hit, Kennards decided to defer theconstruction of a couple of new storage facilities.

However, now the Valad buy-out is complete and economic conditions are morepositive, the company has re-activated the following projects: • Penrith in outer Western Sydney is the first project to start work with Stage 1

comprising 450 storage units.• In Queensland, the company also started construction of its ninth facility in the

Brisbane suburb of Yeerongpilly. This storage facility will have 370 storage unitsin the first phase.

• This year, in the south of Sydney, Kennards will commence construction of its firstWollongong storage facility in Gipps Street, North Wollongong. In addition, thecompany has acquired a two hectare plot in the southern suburb of Warrawong;work will commence later this year.

• A property has also recently been acquired in the Adelaide suburb of Klemzig; thiswill be developed after council approval is obtained.

In addition, Kennards is also expanding another seven facilities across Australia andNew Zealand.Queensland’s Wet and Stormy SummerDrought-breaking rain in Queensland caused devastating floods in Brisbane andsurrounding districts. Flood water is known to have submerged four storage facilitiesimpacting the majority of customers, while another four facilities were partially affected. Two of Kennards Self Storage’s Brisbane properties were partially flooded. However,the salvage rate of goods was very high, so damage to customer’s goods was kept toa minimum. Prior to the floods in Brisbane, storage operators enjoyed a surge of newbusiness to their upper level spaces. In the days leading up to the floods, insurancecompanies stopped issuing new policy cover to self storage customers. Three weeks later and 1,300 km north of Brisbane, tropical cyclone “Yasi” hit far NorthQueensland. This Category 5 cyclone missed Cairns and Townsville. No storage centres in North Queensland were destroyed or damaged by the cyclone.In response to the disaster, the Australian Self Storage Industry has been supportingrelief efforts and initiatives, by providing free space for donated goods.Kennards is also providing free storage space directly to flood victims, for six months.This will assist them to gather their belongings, while they repair their homes.

Australia’s largest self storage company is gearing up for growth

Kennards Self Storage, Moore Park, Sydney

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