market tips five steps newsletter vol.4.pdf · contributed by jim emilson who helps storage...

Market Tips 9from Anderson Foy InvestmentRealty Advisors

Five Steps 12to a Successful Construction Project

Are Your Promotional 15Items Working Against You

an Anderson Foy publication

is a name you can trust for global knowledge and expertise.When you’re thinking about your financing needs know that weexcel at helping you get the best possible structure within thetime frame you require.

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West Canada Central Canada East CanadaScott Rowland Warren Appotive Brian Mills416 842-1720 416 842-1712 514 846-7156

imagination at work

Some recent transactions:

Self-Storage$11,400,000First MortgageVarious, ON

Self-Storage$4,050,000First MortgageEtobicoke, ON

Self-Storage$5,015,000First MortgageBurlington, ON

Retail$6,400,000 CMBS Nelson, BC

Office$7,300,000CMBSMontreal., PQ

Industrial$5,400,00First MortgageToronto, ON

CONTENTS NATIONALSELF STORAGE REVIEW2 Retail OptionsSignificant Returns forMarginal Efforts.

4 Finance UpgradesThe Benefits of Climate Control.

6 InsuranceLoss Prevention.

8 Property ProfilePurchasing an Existing Facility.Apple Self Storage.

10 Construction5 Steps to a SuccessfulContstruction Project.

12 Business StrategiesMaking The Most Of Your Advertising $’s.

Anderson Foy would like to thank Storage Now for the cover photograph of their new mid-townToronto facility.

7 Editor’s Market TipsNotes from the Inside Self Storage Trade Show

www.AndersonFoy.com | Volume 4 1

Have you considered developing a self storage facilityin one of Canada’s metropolitan areas and are having difficulties figuring out how to make thenumbers work? You are not alone.

Developing in metropolitan regions such as Toronto, Montreal,and Vancouver gives you the population demographics andeconomy for a relatively secure investment. However, theproblem with these areas is simple; there is not the space fordevelopment. If you look at any of the large cities acrossCanada, infill projects have become one of the favorites fordevelopers. As a result of this demand, bidding wars haveraised the value of property in these areas making it a nightmare for self storage developers. It is expected that developing in a major metropolis is going to be more expensive,therefore, if a developer is pursuing this real estate avenuethey need to be willing to look at doing unorthodox deals. Asan example consider using buildings with existing tenants in them (buildings which are only breaking even). While developments can be great for cash flow, remember there aremany investors willing to spend a lot of money up front, so youwill likely be in a position to have to do the same. Keep in mindalso that you will need to have your financing in place; as withany deal, this is an enormous factor in achieving a successfulclosure. Typically, it is very difficult to borrow money on storage, but as the self storage industry gains momentum inthe Canadian marketplace you will see more groups willing toget involved.

What we are seeing in some of the smaller Canadian citiessuch as Regina, Edmonton, Winnipeg, and London is an enormous amount of new development. In most cases thesecities have not yet reached a size where infill is a necessaryventure. You will be able to find buildings in the core of these cities which are vacant and are being sold off at very reasonable prices. With development timing is everything;therefore the advantage to conversion buildings is the ability tobuild out almost immediately without development fees andother typical headaches. If you can get your perfect projectbuilt one year earlier because you do not have to go throughthe city for things like zone change applications then you havea better chance of out-positioning your competition. Anotheradvantage is that your project will be cash flowing earlier thenground up projects. The one thing you need to be carefulabout in these smaller urban centers is competition. There isso much land available for development you may get into aposition where, next door to your facility, the competition canbuild a new, one level facility, with drive up access to storageunits (which can be more attractive to some tenants).

Remember, whether you decide to develop in a large or smallmarket, first year taxes can sometimes be very high with conversion projects, particularly old commercial properties.Even at storage rates it is going to take a while to overcomethat first year deficit and make the project cash flow positively.This is another great argument for keeping any existing tenants. Their rates may be low, but they are a good way tohedge your risk. ❖

REAL ESTATE CONCEPTS

Big Market Problemor Small MarketOpportunity?Weighing out your options beforedeciding on your next development.

2 NATIONAL SELF STORAGE REVIEW

Many progressive storage companies have foundthat generating retail sales in a self storagefacility is relatively easy. Maximizing those salesso that they become meaningful profit dollarsadded to the bottom line requires planning.

In the last issue of The National Self Storage Review, consideration was given to the appearance of your retail store,and the need to have depth and breadth of inventory availablefor your customers. This article will focus specifically onopportunities to promote your store.

Promoting Your Store Starts with Your Staff

First, let’s consider the tools available to draw traffic into yourstore. The most valuable tool at your disposal is your staff.They are your most important asset. They are the face of yourbusiness. At the recent “Inside Self Storage” Expo in LasVegas, a well known and highly experienced facility owner andtraining guru discussed the need for staff to promote the retailstore when fielding telephone calls from storage prospects.Her advice was that staff simply say: “I’ve reserved a locker foryou. Come on down and take a look at it, and at the same timeI’ll show you our packing and moving supplies. We have thebest selection in town!”

That simple statement is guaranteed to increase your profitsfor two reasons. First, it may make the difference betweenthat potential customer renting from your facility, or going tothe facility down the street. Second, you are offering your customer a valuable service. Nobody likes running to the liquorstore for boxes, least of all someone who needs to have storage

space right now! You will profit because you are saving themvaluable time and aggravation.

When your staff is away from the phone, or during non-busi-ness hours, mention your store in your answering message.You might add a statement such as: “If you need boxes, bubble wrap, or furniture blankets to make your move trouble-free, we have a full selection in our well-stocked store!”

Driving Traffic to your Website will Drive Traffic to your Store

More and more facilities are developing an online presence.The challenge with a web-site is how to make it a meaningfultool to generate traffic. Most web-sites are simply boring billboards on an already crowded information highway. Onesolution may be to develop an online store. Put digital imagesof the retail products you offer onto your website. Let youronline visitors know that these are available at your store. Thisinitiative, combined with the efforts of your staff to mentionthe web-site address and the online store in their telephoneconversations and on the answering machine message, willhelp you to develop a meaningful web presence.

Seasonal Promotion Opportunities

Careful planning for retail success includes looking at the yearahead for specific promotion opportunities. Perhaps the mostobvious seasonal opportunity is the Canadian moving season.Specifically, this includes the months of June, July, and August.The province of Quebec even has Moving Day, which takesplace at the end of June each year. In order to benefit frommoving season, advance planning is necessary.

Significant Returnsfor Marginal EffortsStrategies to promoting the Retail Aspect of a Self Storage Facility.

RETAIL OPTIONS

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This may come in the form of a mail-out, advertising the retailproducts you stock. To ensure the greatest success, includepictures, along with usage recommendations. For example,more and more residential moves are done by the householder himself. Illustrate the advantages that come fromusing mover’s boxes, such as the ability to easily stack them on a hand truck for easier moving.

Do you have a marquis sign? Then starting mid-April, customize your message to promote moving season. You haveto change the message frequently, or people who regularlydrive by your facility will simply tune it out. For example,instead of simply stating that “We sell boxes”, the first weekyou might say “View our in-store moving solutions! Movingsupplies in stock to help you.” During the second week, youmight say “We have the boxes, furniture blankets, and bubblewrap you need for a safe move!” During the third week, youchange the message again. The point is, use your signage tocommunicate a consistent but dynamic message that willattract potential moving customers to your store.

The months of November and December also offer a uniquepacking supply opportunity. At this time of year millions ofCanadians are packing gifts for delivery through the mail or via courier. In most major metropolitan centres there are companies that specialize in packing valuables for safe shipment. This presents a profitable opportunity for the alertstorage operator. Again, your marquis sign can be your bestfriend in communicating the message that you are THE sourcefor packaging materials. Develop a series of catchy phrasesthat will encourage your drive-by traffic to stop in and pick upa few rolls of bubble wrap or packing peanuts. Be creative!

In review, the success of your store depends greatly on theenthusiasm of your greatest asset, your well-trained staff, andyour diligence in promoting the store. Consistency in sendingout the message that your store is well stocked to address yourcustomers’ packing needs will ultimately result in a profitableretail business. ❖

Contributed by Jim Emilson who helps storage facilities across Canadadevelop the retail component of their business.

Population Increases

10 m

20 m

30 m

40 m

0

1 991 1 996 2001

2 m

4 m

6 m

8 m

0

1991 1996 2001

Population vs. Dwellings Owned vs. Rented DwellingsPopulation vs. Dwellings Owned vs. Rented Dwellings

Occupied Dwellings

Total Population

27,296,860 28,846,760 30,296,8601 0,01 8,260 1 0,820,060 1 1 ,562,965

Rented Dwellings

Owned Dwellings

6,273,020 6,877,790 7,61 0,3753,71 8,51 0 3,905,1 45 3,907,1 60

ANDERSON FOY INVESTMENT REALITY ADVISORS

IN CANADA


Asignificant trend in the self storage industry todayis the move toward climate controlled units.However, most small markets in Canada are stilloperating without temperature controlled storage units, and until recently smaller market operators

had not yet considered it as an option. As self storage becomesmore competitive in Canada, the time to examine the advantagesand disadvantages of climate control has arrived.

When should climate control storage be considered?

The location of a business should be the primary influencewhen considering climate controlled storage. For example, afacility in an urban area will typically be used to store moresensitive material, such as paper documents, which require amore moderate and constant storage environment.

Market awareness also plays a big part in knowing whether ornot climate control is right for a storage site. If competing sitesoffer climate controlled storage, and the leasing of these unitshas been successful, or if there are numerous requests for climate control from the public, then your facility may be at adistinct disadvantage if you are not equipped with temperaturecontrolled units. Following the competition may be a good way to determine weather or not to install climate control.However, before such a decision is made, it is necessary tothoroughly assess the needs of current tenants, and the levelof market saturation, before investing in the conversion or construction of these units.

Climate control as a competitive advantage

The number of new self storage developments in Canada is increasing steadily every year. In this environment it isunderstandable why existing self-storage groups are looking to

reposition themselves within theirmarkets by considering the competitiveadvantages of climate control.

Nationally branded self storage groups have tended to be theleaders in this new sector of the industry. The ownership ofthese companies have come to believe that providing climatecontrol as an option increases the marketability of their sites.If competing facilities, which currently offer climate controlledunits, are drawing in new customers, then it may be feasible todo the same.

Another important factor to consider before undertaking the investment in climate control is whether or not the subsequently higher rents applied to temperature control willbe in demand within a particular market. Markets that areextremely price sensitive may not accept this level of increase,regardless of the benefits of climate control to the consumer.However, when operating in a market where climate controlhas been proven to be viable, it should be viewed as one of thecosts of doing business. In the same way that advertisingexpenses are necessary for promoting business, climate controlled units (in the right environment) should be lookedupon as an investment to help increase occupancy levels.

After the proper research has been conducted, climate controlcan be a very effective tool when vying for customer attention,and the results have shown that both market awareness andacceptability are favorable. ❖

FACILITY UPGRADES

The Benefits of Climate Control

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I N V E S T M E N T R E A LT Y A D V I S O R S

* S t a t i s t i c a l i n f o r m a t i o n p r o v i d e d b yA n d e r s o n F o y , t a k e n f r o m a s a m p l i n g o f F a c i l i t i e s .


INSURANCE

Loss Prevention

The cost of insurance has gained a great deal ofattention in recent years. According to the industry,the loss ratio (premium dollars taken in versusclaims paid) and inflation have contributed to theunpopular rise in premiums. While many of the

causes of this rise are outside the control of the individual,there are steps which can be taken to influence the cost ofinsurance. A good loss control program and a well-maintainedand managed operation can help to keep the cost of insuranceas low as possible

The following are a few suggestions that may help to make apositive impact on future insurance costs, and also assist inreducing the aggravation associated with claims of any type.

Checklist of ways to protect tenants and thegeneral public from accidents while on site:

Slips and falls can be a common source of claims at facilitieswhere there is frequent access to the general public. It is recommended to perform a daily ‘inventory’ of the storagefacility. Thoroughly inspecting all buildings on site not onlyprevents avoidable injuries, it also provides documented proofthat the facility has not been negligent to the care and protectionof the tenants. Specific issues to focus on are: keeping sidewalks and driveways clear of snow and ice, maintaining ingood order exterior walking surfaces (having cracks or eleva-tions in the concrete repaired to eliminate tripping hazards),inspecting roofs and eaves troughs, watching for any loosematerial on building façades, and maintaining interior hallwaysby keeping them clear of debris.

For those facilities that allow customers to place their ownlocks on their storage units, make sure that all empty units aresecured with similar locks. This will prevent other tenantsfrom using them to dump refuse, saving both the time andannoyance of cleaning it out, and creates uniformity throughoutthe site, which serves as an added protection should a break inoccur.

Another precaution that is often overlooked is involving theregional police with the security of a self-storage facility. Policepresence provides an extra level of assurance to both theowner of a storage facility and tenants alike. Requests forpatrols in and around respective storage facilities will often bewell received and produce results in raising the level of security

at no extra cost. If the site has an access controlled entrancegate, then providing the police with their own code will allowfor monitoring of how often the police tour the facility.

Most importantly, introduce a no-smoking policy on site andenforce it. Even small fires can be devastating to both ownersand tenants. Make sure that ‘no-smoking’ signs are clearlyposted around the facility. Reduce the liability and the poten-tial of being involved in expensive and time consuming law-suits by taking the simple precaution of having a no-smokingpolicy. ❖

Contributions for this article were made by Toby Struewing, CommercialAccount Executive for Cowan Insurance Brokers [email protected]

Ways that self-storage owners can avoid claims from tenants and the general public:• Exposure to water damage claims may be reduced by providing

wooden pallets to all tenants. Also, suggest to all tenants that

they should tarp valuables and collectables in the event that a

sprinkler head should accidentally malfunction.

• Store valuables towards the back of the unit so that they are not

visible to passers-by.

• A comprehensive tenant agreement may help to serve as a

deterrent for tenant lawsuits and complaints

• Fencing and an access gate, as well as video cameras, can give

owners and operators the ability to monitor their facility and

sends the message to existing tenants that suspicious activity in

and around the site will not go unnoticed.

• Simply having a well-lit site will help to deter unwanted guests from

entering the facility after hours.

How small improvements now can save youtime, money and aggravation in the long term

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1.Start sending out welcome letters to new clients. If theletter comes back it will put

up a red flag that there are inconsis-tencies with what tenants are tellingyou.

2.Make sure that your market-ing is not static, change yourtelephone directory advertis-

ing every year.

3.Remember the three C’s –Care, Custody and Controlare what differentiates the

storage industry from the movingindustry.

4.Do your manager’s havebusiness cards with theirnames on it?

5.Do you consult your managerabout business in order togive them a felling of impor-

tance ie: If there is only enoughmoney to repair the parking lot orremodel the office this year ask forhis or her advice. Get your managerinvolved in whichever they feel isimportant. This will help create alevel of confidence and assurancewith managers and make them feelas though they are a valued part ofthe decision making process.

6.Do not refer to yourself asLandlord in your lease(s) ifthe law refers to you as

Owner (make sure you are consis-tent with your Provincial Lien Laws)

7.Present rates in 4 week incre-ments rather than by themonth, this will provide you

with 13 payments per year asopposed to 12.

8.Sell solutions not units! If aclient comes looking for a10x20 and you do not have

any available, offer two 10x10 units;one for long term storage and theother for the short term.

EDITOR’S MARKET TIPS

Notes from the Inside

Self Storage Trade Show February 2004 – Las Vegas, Nevada


An exceptionally quick close has left AppleSelfStorage with a 10-acre, mid-Toronto self storage facility. Only 27 days from the listing date,Anderson Foy, successfully turned Elf Mini Storage over to Apple so they could start implementing

their $1 million renovation plans. The scheduled improve-ments to the site are intended to complement the existing cli-mate controlled buildings and will include increased individualunit security, access control, and video surveillance to the site.

The biggest percentage of the renovation budget is goingtowards providing greater tenant security by installing a stateof the art security system. Plans are underway to establishwireless alarms on all individual storage unit doors, increasegate security and double of the number of security cameras onsite.

The second biggest aspect of this renovation is modernizingthe design of the storage buildings and office to improve curbappeal. One of the most significant undertakings of the newdesign is the addition of a unifying security fence around theperimeter of the site. The Allan brothers, who own and operate six Apple SelfStorage facilities in and around theGreater Toronto Area, wanted to emit a feeling of both security and friendliness from those who pass by this newestaddition to their portfolio.

One of the ways that the Allan’s are able to connect with thepeople in their community is through their signage. They tookadvantage of being located in a high volume traffic area byinstalling a large, dramatic sign shaped as a lock (their signature logo). The sign has reader boards installed whichkeeps people informed about what is happening on site.

While the above mentioned Apple project has all the hallmarks of success, not all situations lend themselves to thismanner of expansion. Purchasing an existing facility may bethe quickest way to add more rentable square footage to aportfolio, but it should only be considered after two key questions have been answered.

1) The viability of the existing business: What are the circumstances surrounding the sale of a facility and how doyou make the numbers work?

Of course the biggest hurdle to overcome is negotiating a deal.In this particular scenario both the vendor and purchaser weremotivated and willing to cooperate in order to complete thetransaction by the desired closing date. Both sides also had agood understanding about what was going on in the surround-ing sub-market, so the cost of upgrading the facility to marketstandards was relatively easy to negotiate into the value of theproperty. If there’s a large amount of vacancy in a project the

Purchasing anExisting Facility

PROPERTY PROFILE


capitalization rate will usually be driven down in order toaccount for the value of the vacant space. There would be novalue added to a site with 15% vacancy or less as the Vendorwould now be into a position of long term average vacancy.

2) Renovation costs: Determining how much work needs to be done to an existingsite.

Figuring out how much work needs to be done to an existingsite is normally based on what is necessary to bring a facilityup to market standards. You want to be competitive, whichmeans having the ability to advertise all of the same advantages as your competition. You could go beyond the current market standards and be a market leader which givesyou both a marketing edge and a site that should compete wellinto the future. In this deal Apple SelfStorage decided to gobeyond the market standard, one example being the additionof a 3,000 square foot service area that accommodates the specific needs of their business clientele.

There are a few consequences to keep in mind with purchas-ing an existing facility, mainly tenant uncertainty and clean-up;you are not just taking over a property, you are taking over theexisting tenants as well. In most cases problem tenants, andother such issues, are worked out during the due diligence

period. However, it is always beneficial, for a purchaser tomaintain a working relationship with the vendor so that further information can be passed along after a deal has closed.

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The construction of your project will be an excitingand rewarding experience providing that you takethe necessary time and care in managing theprocess. Construction projects in Canada are regulated by municipal, provincial and federal

codes, technical authorities, fire departments and labour laws. Mini-storage projects, whether it is an interior conversionor new one-or multi-storey buildings, require a similar level of commitment, enthusiasm and project management. Projectmanagement includes initiating, planning, executing, control-ling and closing your project.

Plan your Project and Your Team

Decide what you want to accomplish in terms of time, cost,quality and risk. What is your market demanding and how doesyour vision fit with the market? Are you looking for a simpleturn-key building or an up-scale building? Can you convert anexisting building or are you looking for undeveloped land? Siteplan approval is a key step in development, requiring drawingsfor planning department review.

Your project team needs to be chosen carefully and mayinclude an engineer, architect, general contractor, subcontractors,suppliers, erectors, lenders and property managers. Eachmember of your team needs to be competent, experienced andunderstanding of your vision and goals.

Each project requires a different team mix. Many mini-storageprojects in Canada require only an engineer for stamped drawings. Some architects/engineers are often more experienced at site plan approval than their peers, and may bemore familiar with the approvals process in your part of thecountry. Poor drawings and/or engineering will cost you morein the long run. Typically, a project hierarchy consists of theowner and consultants controlling the construction processthrough a general contractor who hires subcontractors and/orpurchases materials directly. Mini-storage projects are wellsuited to the design-build and construction managementprocesses. Design-build generally refers to an arrangementwhere the owner hires a general contractor who then hires all

consultants, subcontractors and suppliers.Construction management contractsengage firms as facilitators in the design-build process and assign a set value to thegeneral contractor’s management fees.

Smaller mini-storage projects can be subcontracted directly bythe owner. Your subcontractors and suppliers are as much ofyour team as your consultants and construction manager. Themost significant contracts will typically be for site work andthe mini-storage buildings. Investing the proper time andmoney into the initial planning and engineering will benefityou in a smooth construction process. Your building supplierand erector can assist you during the design process to reduceconstruction costs.

Ensure your lender understands the construction process foryour project. Mini-storage building suppliers typically requirea deposit for engineering and the balance upon delivery of thebuilding. Your property manager should also understand thefocus of your marketing program and be able to contribute tocustomer-friendly designs, particularly in terms of the retailoffice.

Understand What You Are Buying

Scope is the contractor’s measuring stick for price, quality andschedule. Construction is often a very qualitative industry andthe scope of work can be tailored to meet final prices. Thething to avoid is focusing too much on price at the expense of scope. Surveys show that owners are prepared to pay more when quality is improved. Understanding the level ofquality expected on a project requires a thorough evaluation of product specifications and service level expectation. Forexample, is your engineer doing site plan drawings just for permit or with a view to constructions costs? Does your buildingsupplier use high quality structural steel and cladding/roofingmaterials? Are the roll-up doors from a reputable supplier? Isyour general contractor, retained on a lump sum contract,pressured into inferior subcontractors or suppliers just to meetbudgets that do not reflect your quality objectives?

CONSTRUCTION

Steps to a SuccessfulConstruction Project

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Quality is different to everyone. Drawings and specificationsare limited in their ability to clearly define quality requirements. Quality expectations should be communicatedthrough detailed discussions with your project team. Teamcoordination will clarify who’s doing what, which will savetime and undue cost to you and your team.

The contracts you enter into should clearly define the scope ofthe work that is to be done. Vague contracts demonstrate alack of expectations and will result in disappointment or disputes. A low price should always be evaluated against thescope of work to ensure that quality and schedule do not suffer.

Manage the Project as It Progresses

Field supervision is critical to a successful construction project. There are many sources of good supervision: competentsubcontractor’s foremen, consultants with field experience,external consultants and/or project managers hired on a contractual basis and of course, you. While you may not construct buildings everyday, you understand your vision, andhaving been involved in the contracting process to-date, youcan have a positive impact on progress.

Site meetings, informal discussions on-site and correspondencewithin the team helps to both facilitate expectations anddefine the project while it proceeds. Communication is alsoparamount to maintaining the construction schedule. A lack ofcommunication may result in delays, uncoordinated work andpotential cost impacts for team members. As an involvedowner your input will help to negotiate conflicts between teammember’s competing interests for work area, product performance and site manpower commitments.

A site presence provides a means for measuring the progressof the work and identifying insufficient resources such asmaterials, workers and equipment. Coordination is a dailyactivity. Changes in the work need to be managed in advanceto provide an opportunity to alter resource requirements and availability. Changes occur in every project and it is important to plan for them with contingencies in your budgets.Documenting changes, circulating updated drawings or specifications and tracking resources required to complete thechange will result in fair increases/decreases to the contractvalue.

Pay Your Team On Time

Prompt, proper payment facilitates a smooth constructionproject. Everyone is happier with a pay cheque. Paymentsshould proceed on a regular basis (i.e. COD for material delivered to site or net 30 days). Requests for payments fromteam members should be well documented to substantiate theamount being claimed. Generally, work is evaluated on a percent-performed basis. Payment certifiers can be engagedsuch as the architect, engineer or consultant, if required, toconfirm the percentage of work performed. In construction thework is considered substantially complete at 97% of the contractvalue. At this time, the expiry period for liens commences andruns for 45 days.

Owners are often gauged by general contractors, subcontractorsand suppliers on their ability to pay quickly, correctly and fairly.Pricing for your project may be reflected in your preferred ability to pay promptly. Disputes over payment can be mini-mized by detailed documentation at the time of contract write-upand during changes. Late payments can result in strained relationships within the project team and may result in delaysin the work as contractors/suppliers re-evaluate the allocationof their resources. Owners who pay promptly and properlykeep the full attention of their team.

Achieve A Successful Project Close-Out

The end of the project will bring a reconciliation period wheredeficiencies, outstanding scope ambiguities and financialaccounts are settled. A close-out meeting to review the projectand highlight outstanding issues will help in smoothing thetransition of ownership of the work from the general contractorand subcontractors. A deficiency list identifying outstandingissues from the contract documents needs to describe the concern, the date noted, who is expected to take action andwhen the deficiency will be or has been completed. Solving deficiencies is inefficient for subcontractors and suppliersalike. A detailed list with clear communication about the itemsof concern will facilitate prompt action. Closing the projectamicably and professionally will ensure opportunities forrepeat work and good post-construction service/warrantyresponse.

Consultation for Builder’s Corner provided by Garry K. Carriere,M.A.A.T.O., HC Steeelman Inc.

1) Plan Your Project and Your Team.Ensure that you and your team are committed to the vision.

2) Understand What You Are Buying.Construction is scope and defining itrequires detail, documentation and under-standing.

3) Manage The Project As It Progresses.Supervise, be involved and resolve issues asthey are identified. Prepare for changes withcontingencies.

4) Pay Your Team on Time.Owners who pay promptly and properly keepthe full attention of their team.

5) Achieve a Successful Project Close-Out.Address deficiencies and pay out accounts reasonably for future relationships.

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BUSINESS STRATEGIES

Advertising a storage facility (or any other business for thatmatter) in the telephone directories benefits your company bybeing listed in easily accessible categories. The problem is thatmost, if not all, of the competition is listed in a similar way. Inorder to take full advantage of the 70% of Canadians who referto directories every month, your listing must be promoted in amanner that will make it stand out from the competition. Byfollowing the three advertising guidelines of Attention,Interest, and Action laid out in this article, your chances ofstanding out among the competition will be increased.

In order to gain the attention of a potential customer an advertisement must be clear; not only in what is being offeredbut also in how a product or service directly benefits the reader. For example, if location is a positive feature of yourbusiness, then take care to include a map that clearly outlineswhere the business is situated and how potential clients candirect themselves there. Another example could be your company’s reputation. If your biggest asset is being known forreliability within an industry then reinforce that to the audience by highlighting the number of years you have been inbusiness or by including any relevant testimonials that attest to your dependability.

Directing interest to your advertisement can be approached indifferent ways. It is estimated that 56% of users make a purchase following their referral to a directory, and 46% of

those purchasers are new customers for the advertiser. As aresult, directory advertising generates a relatively high rate of return per advertising dollar. Taking the time to think of thebest ways to layout an advertisement to generate interest willgo a long way in furthering your return. For instance, not alldirectory users search in the same manner, so by being creative with the size and content of an advertisement you cancreate a bigger impact when trying to grab the attention ofreaders scanning the pages of a directory. In the same way you can look at what is currently being listed in your localdirectories and attempt to use headings and colour schemesthat will differentiate you from the competition.

Once the interest of a potential client is attracted, the nextstep is to direct that reader to a desired course of action. It isrecommended advertisers end their solicitation with a CALLFOR ACTION. Invite the readers to: “Visit our website formore details” or “Call for information and prices…” It is alsoimportant to remember to provide complete contact details,and if there is any remaining space, include the hours of operation as a convenience to the readers.

Regardless of the size of your advertising budget, rememberthat gaining the attention, interest and action of potential customers is a continuous process. Keeping your advertisingimage fresh and dynamic will help to prevent you from beingout positioned by the competition.

has been shown statistically thatthe number one resource for localbusiness information remains thetelephone directory.IT

Making the Most of YourAdvertising


Establishing name recognition of a business is oneof the keystones to an effective advertising campaign. Accomplishing this requires developinga unique branding for the product being sold andkeeping that brand constant in future advertising.

If done successfully, this strategy can lead to memory associationwithin the target audience, tying a general product with thespecific company doing the advertising. With this long termstrategy in mind, the benefit of paying close attention to someof the finer points of marketing is obvious. A careless approachto promotional products can detract from an otherwise well-conceived marketing plan.

As the level of saturation of advertising increases, the attentionspan of the public to it decreases. Therefore the message beingrelayed in a sign or billboard must be put forth in a mannerwhich is immediately clear and concise. Grabbing the attentionof the passer-by, and leaving a lasting impression of the productbeing advertised, requires the correct choice of options available in the lay out of a sign. The colour selection for thetype and the background is perhaps the most important decision when designing the advertisement. The greater thecontrast between these two aspects of the sign the more likely the public is to be aware of it.

Lastly, signs have to be clear and easily-read, so the type shouldbe of an appropriate size. To reinforce company branding onthe public, be sure to use a single typeface on all signage. As always, presentation can communicate a great deal about abusiness, therefore be sure to replace ragged, torn or fadedsigns.

Red & Green These two colours, when layered on top ofeach other, clash and are very hard to read.Also, people who are red-green color blindwill not be able to discern messages beingrelayed.

Orange & BlueThis is another pair that causes a disturb-ing effect as the colours seem to vibrateagainst each other.

Red & BlueThese two colours simply do not have thenecessary contrast between them to beseen from a distance.

Dark Background with Light Text & GraphicsBackground – a dark blue (navy shade),dark purple, or blackText and Graphics – white or yellowAccent Colours – red, lime green, camelorange, light blue

Light Background with Dark Text and GraphicsBackground – warm beige, white, yellowText and Graphics – dark blue, black, darkpurpleAccent colours - dark green, burgundy

Background Graphics or PatternsIf Graphics or patterns are incorporated inthe sign, it is suggested that they be verysubtle, leaving little difference between thelightest shade and the darkest shade in thebackground.

Are your promotionalitems working against you?

As the level of saturation of advertisingincreases, the attention span of the publicto it decreases.

Colour Combinations that are recommended:

Colour combinations to be avoided, for example:

Ande

Ande

Ande

CLEAR ANDCONCISE


PUBLISHER:

Anderson Foy Investment Realty AdvisorsAnderson Commercial Realty Inc.

LIST OF CONTRIBUTORS:

GE Real EstateCowan Insurance Brokers

Monster Minis Inc.Apple SelfStorage Inc.

Archetype Collaborative

HOW TO REACH US:

Is there something that you would like to see in our publication? We would like your feedback.

YOU CAN EMAIL US AT:

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OR WRITE US:

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1-877-567-3800

ADVERTISING INQUIRIES:

For advertising contact:Michael G. Foy1-877-567-3800

[email protected]

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NATIONALSELF STORAGE REVIEW

Anderson Foy is a full service commercial brokerage firm specializ-ing in the acquisition and disposition of commercial real estate. Our comprehensive consulting and advisory servicesinclude site selection, feasability studies, financing options andmarket research. Anderson Foy’s commitment to being a boutiquestyle firm ensures customized global solutions for your specific realestate needs.

Our goal with the National Self Storage Review is to provide groupswho are either involved or interested in self-storage with an informative, up-to-date and Canadian perspective of the business.

market tips five steps newsletter vol.4.pdf · contributed by jim emilson who helps storage...

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