On Every Transaction?

Unless your advertising says “on every unit” or “on every size” or something similar, then you can better manage your discounts when you think of your move in specials as a closing tool, rather than a default part of the transaction.

Move In Special As A Closing Tool

Here’s how this concept works in practice.

Let’s say a prospective customer calls or walks in to rent a storage space and asks for a size that is highly occupied (let’s say 90% or above).  This prospective customer is interested in renting with you, and is also aggressively looking for the best deal so they  ask for your most aggressive move-in discount that you have advertised on a sign or flier or website.  Assuming, as I mentioned above, that you haven’t promised the discount on every storage space, you simply reply that your move-in incentives are tied to occupancy and that if they would like to rent a <name size that has the most vacancy> you would be happy to give them the <most aggressive move-in special>.

You then continue explaining what you are willing to do for them on the size the originally requested.  That would sound something like this, “If you still would rather have the <size they originally requested> I can offer you <very small token discount like $10 off the first month> .

Then be quiet.

You’ll be surprised at how many will move forward with the rental/reservation right then.

Escalate or Follow Up

For those shoppers that say something like, “Well…. I’m not sure… I think I need to keep shopping,” or something similar, then the ball is in your court to stand pat or to escalate your discount or move in incentive. In this way the move-in incentive becomes a closing tool rather than a standard offer.

With this approach you are in a better position to fine-tune your offer. If demand is slow or slowing and you really do want the rental, then sweeten the deal. If demand is strong or you are renting something you know your competitors don’t have, then maybe you let them go and use your follow up skills to rope them back in.

Do you differentiate your move-in incentives based on occupancy? How do you do it?

Photo Credit: timparkinson

Don’t Stop Selling

One way to sell more is to simply keep selling.   Most self storage managers think the sales process has only two pieces, the storage space, and everything else, and so they stop selling too soon.   The trick is to keep selling, i.e. moving from sale to sale, as long as the customer will let you or until you run out of things to sell.

A Retail Example

Let me illustrate with an example from another retail business.

Imagine yourself walking from you car and through the automatic sliding doors of your favorite department store to shop for a suit. After the sales clerk measures you to see what size jacket and pants you need and discusses your preferences, he goes to the rack and pulls some suits that he thinks will work. You shop until, fast forward, you have selected a suit and you’ve had it pinned and marked so that it can be tailored to a proper fit.

You came in looking for a suit, and the menswear salesman helped you find one. Boom, done. So, does the sales clerk walk you to the register to check out?

No.

Instead he walks you to the shoes and picks a pair that will complement the new suit. If you say yes, he just increased your order by 15-20%.

But what if you said no? It doesn’t matter, he still walks you to the shirts and helps you pick a nice pinpoint oxford or two, adding another 5% to the sale.

So, now we done, right?

Of course not. The sales clerk now shows you a selection of ties that will go nicely with the shirt and the suit, and takes the time to explain why the colors and patterns work in this ensemble of clothes.

Ok, great so now we are off to the checkout.

Not so fast. If you are going to invest in looking top notch with your new suit and shoes, you might as well complete the outfit with a new belt to match. So he shows you a few of his best selling dress belt. (Remember, Best Selling = Social Proof = More Persuasive).

And on and on the process goes. (I’ve even had guys try to sell me additional collar-stays and packets of spot remover wipes for my new tie once we finally made it to the register).

Expand Your Self Storage Sales Process

The best sales people have a process that helps them sell everything they have to offer.  Looking back to the menswear example, if the salesman is any good he takes his customers through the same steps every time.

When you think  about everything you have to sell: a storage unit,  auto-billing, storage insurance, locks, standard boxes, wardrobe boxes, dish pack boxes, mattress covers. Then, of course, they need that plastic wrap stuff, and some bubble wrap to keep their stuff safe and secure. Finally, they need some tape to seal it all up.  You try to sell a second unit (maybe a 5×5 as an add-on for a discount).  You ask for referrals. Put it all together (along with whatever I have missed) and you definitely have a number of items to build a process around.

You undoubtedly spend a fair amount of money and energy attracting each new customer. Having a sales process that includes everything you have to sell helps you get the most revenue from every one.

What do you plan on adding to your sales process to make sure you’re selling everything you have to offer?

photo credit: Paul Stevenson

I had a property manager who was living paycheck to paycheck and was very reluctant to sell boxes and packing supplies because she couldn’t fathom paying the prices we charge for boxes if she were to move.

What she didn’t consider is that not everyone is like her.  Her perception of the value of the boxes and other packing supplies was colored by her current economic situation.

When I was younger and newly married I worked for the Boy Scouts of America and  my wife stayed at home with our (then) two young daughters who were under the age of 3.  Some months the only reason we could pay our bills was because of the mileage reimbursement I received for using my run-down Ford Tempo for work. In essence, I had a small reverse mortgage going on my Ford… So, I can relate with the mindset that wouldn’t pay for boxes.

Now I have five kids and I’m no longer living paycheck to paycheck and if I were moving there is no way I would spend my time looking for boxes at grocery stores or out behind the retail center.  My priorities have changed, convenience is now more important, and sometimes I gladly pay for it.

We all make the mistake of assuming that others are like us.  This limits you.

If you don’t ask for the sale, the answer is automatically no.  Don’t judge, just sell what you have to offer as if the prospective customer is the perfect candidate.

Don’t be so arrogant as to assume everyone has the same priorities and preferences that you do.  If you’re location offers boxes at a price higher than you would want to pay, sell them anyway.

If you only have space on the third floor or in the back of the facility, figure out what is good about that space and sell it. Don’t mislead… but don’t hold back either.   Do your best, and don’t say no for your prospective customer.

Who do you serve that is not like you?  Is it possible that they might prioritize their purchases differently than you do?

I wanted to find out how Extra Space sold their insurance product because I heard that they had very high conversion rates (anecdotally, something like 90% of their customers pay for insurance).  The video below documents my mystery shop and what I learned that can be applied to my business (and yours).

Below the video I also outline a few extra bonus observations…

Bonus Observations

1. Get the customer’s name and phone number so that you can follow up with them.  Both of the locations I visited knew I was looking to rent the unit “not this weekend, but next”.  Neither of them have a way to contact me. What, do they think they are so awesome that I will just magically feel compelled to come back when I need a storage unit.  As if there aren’t a hojillion other self storage facilities within a few miles.   What a wasted opportunity.
.
2. Uniforms matter.   The Extra Space employee looked 10x more professional in his company issue polo shirt and company issue and logoed windbreaker.  I have to say, my employees don’t look quite as sharp, but I’ll be ordering new logowear for everyone next week.  That was how hard this observation slapped me upside the head.
.
3. If you are a store manager, please, please, please stand up to greet customers who come in the store.  There is no good connection made when the customer has to peer down at you over the giant barrier of a counter (especially the ones that are high enough to write on while the customer is standing).
.
4. Do the math for your customer.  Storage Direct offered me 1/2 of 3 months as a move in special on a unit priced at $119 a month.  Quick, divide 119 in half and multiply by 3 to get your total savings.  Uhhh, that’s way too much mental exertion for your casual shopper.  Make it easy by doing the math: “We are offering half off for three months.  That’s a total savings of $178.50.  Would you like to lock in your savings and reserve your storage space right now?”
   .

   As a side note, the more instantly comprehensible your offers are the better.   That’s why “First Month Rent $1″ or “one free month” type offers work so well.  You don’t need to think to understand them.  It’s like.. BAM!, your customers just instantly get it.

Ok, so if you still haven’t invested the few minutes to watch the video above you should at least watch a couple of minutes so that you can get through my first observation and take-away that you can apply to your business.  I think it will really help you.

What have you learned from your competition lately?

Sure, sometimes self storage sales is about price.

But not always. And not usually.

So stop shooting yourself in the foot and giving away unnecessary discounts by making that faulty assumption.

The other day my coworker and I met for lunch near one of our self storage facilities. After eating some mediocre pizza that sat too long under the heat lamp of the lunch buffet, I headed to our self storage location. Rather than follow me, my co-worker went to a competitor just around the corner to shop them, get a feel for their manager, their prices and their move-in discounts.

Here’ s the report he came back with 20 minutes later…

“When I asked, he quoted me a price and then immediately said, “and we have some great discounts.”"

Why would the property manager say that? It seems he was assuming price was more important than anything else.

3 Ways To Rent With Fewer Discounts

1. If they are already at your location, they are more likely to rent from you, even without a discount or special. Because they have already invested so much time and energy coming to your location, there is often no need to pull out all kinds of crazy discounts. This is triple true if they drove up in a loaded truck.
.
2. Do your best to showcase the benefits of renting with you (other than price or discount) and then invite them to rent. If they say something like, “I need to check a few other places” then you know that price might be a factor and you can address it. (See my video post on making a better invitation to rent by clicking here.)
.
3. You can always sweeten the deal.
   .

   Here’s what you say to the person who just told you they “need to check a few other places”. You say “You are just the type of person I would love to rent to.” or “I would love to have your business.” Then follow with “Let me look at my availability one more time. If I can work you a special deal, can I entice you to go ahead and rent the storage space?”

   .

   So, all together it would sound something like, “You know, you are just the type of person I would love to rent to.  Let me look at my availability one more time.  If I can work you a special deal, can I entice you to go ahead and rent the storage space?”

I’ve found that if you have a strategy for refining the deal you offer, you can confidently offer your storage spaces to people without a discount. This is especially true for people who have already made the effort to physically come to your location.

Minimizing discounts without sacrificing occupancy is one of best benefits of learning to sell more effectively because it immediately increases your revenue.

The three tips above are my approach. What have you found to work?

Tweet

“What will you be storing?” is the most commonly misused question asked by self storage managers.

It’s misused because for most storage managers the only purpose for the question is to get the size recommendation “just right”.  They are missing an opportunity to expand their vision of what their prospect is going to need and want.

It’s like trying to take a look around with your eyes closed.

In contrast, asking what a prospect plans to store can tell you a lot about the type of experience they are going to have while packing, transporting, and storing their property.  When done correctly, this question puts you in a great position to anticipate ways you can build a bridge between what you have to offer and what your prospective customer will need or desire (even if they don’t know it yet).

6 Things You Need To Accept

1. Your prospective customer doesn’t want to talk to you all day.
.
2. Spending time figuring out the perfect size recommendation doesn’t help you communicate how you are different or better than your competition.  They sell the same sizes you do.
.
3. You probably have one or more units available in most sizes.  You need to be in the ballpark so that you can know if you are likely to have something appropriate available to rent. Any fine-tuning can be done when the prospective customer comes to your store to take a look around or fill out the rental paperwork.
.
4. Spending too much time discussing what size the prospect needs leaves you with less time to discover your prospect’s needs and desires.
.
5. Spending too much time trying to get the size recommendation “just right” leaves you with less time to help your prospect see how you are going to give them what want and need.
.
6. Spending too much time probing about what they are storing may come across as intrusive.

The Hidden Power

The true power (and the hidden power) in the question, “What will you be storing?” comes from the clues it gives you about how you can make the prospective customer’s experience feel more convenient and secure.

Example 1

Let’s take for example a prospect who tells you that they will be primarily storing furniture.  When you discuss the benefits of storing at your location you can mention conveniences that are pertinent to their situation like flat bed dollies that will help them easily move their bulky items to their storage space.  You can  let them know that you have hand-selected a storage space that is as close to the entrance of the building as possible to make it as easy as possible to move their bulky items into their storage space.

Example 2

Alternatively, when someone tells you that they will be storing files and excess office furniture (like I do) you might follow up by asking how often they will be getting things from their storage space or putting new things into their space.  A prospect who envisions himself regularly accessing the space might appreciate knowing about the lights inside of the storage space that will make working with and finding their stored goods much easier.  Because you discovered that they plan to access the storage frequently, you might mention that after-hours access can be arranged.

Example 3

As a final example, let say you discover that your prospective customer will be storing the contents of a three bedroom home while overseas.  If you put yourself in her shoes, you might make an educated guess that they are going to be more concerned about the safety of their property (since it is most of the contents of their home and because they will be so far distant).  In this instance you might say something like, “Since you are going to be so far away, am I correct in assuming that security is important to you?”.  When they reply that it is, you then have their full attention when you discuss the security benefits of storing at your facility.  You tell them about how you’ve hand-picked and set aside a space right in the view of a security camera.  You might offer to let them put a second lock on their latch (when you normally only allow one) and even provide the second lock for free.

Conclusion

When you ask some variation of the question, “What are you going to be storing?” you are not merely getting information to help you determine the appropriate sized storage space.  You are, more importantly, getting a glimpse into your prospective customer’s life and getting some valuable clues that will influence the direction of the conversation from that point forward.  When you listen carefully you will be able to openly connect the features and benefits of your location and service to their individual situation, rather than simply enumerating a long list of standard items offered at your store.

Do you have a story about how learning about what a prospective customer is storing has helped you tailor your offer to meet their needs?  Please share you experience in the comments!

I call it a tweak because it’s just the slightest shift in the way you do things.  But sometimes just a little tweak makes a world of difference when you are selling

So here’s the recommendation: Start Confirming Appointments

You should be inviting prospects to rent from you in a way that leads to an appointment.   The more effective you are at selling, the more often you succeed and the temptation is to think you are done.

You are not done.

Even when you have an appointment, stop expecting your prospect to keep it without any help from you.  The act of reminding your prospective customer about the commitment they made to meet with you is an act of service.  They have a ton going on in their life, and your cheerful reminder helps them.

You benefit because by confirming the appointment to rent your self storage space because:

• You are less likely to lose the prospect to a competitor
• You are less likely to be left waiting around when you could have been doing something productive or enjoyable (like eating your lunch).
• You are more likely to have the opportunity to reschedule with the prospect in the event they can’t make the original appointment time.
• You are able to deliver superior service because you are more likely to be ready and available to help them when they come to your location.

This is a no-brainer.  It is more effective to confirm appointments than to sit back and hope that they will happen according to plan.   Confirming an appointment is also socially acceptable and in some cases it is expected.

Your doctor and your dentist call you to confirm the appointments you have with them. You should do the same.

Here’s the summary: Self storage sales scripts are generally  good for beginners, but can also cause problems.  Problems get worse as property managers become more proficient.

Good For The Beginner

Sales scripts have a lot going for them, especially since most self storage operators are not hiring experienced, professional sales people.  A good script has benefits:

1. It outlines the sales process from start to finish and give a self storage property manager an overview of how a call will progress from the greeting through the invitation to rent.
2. It gives a self storage property manager clear, focused direction to help them get started down the path to becoming more effective on the phone.
3. It’s easy to measure compliance through mystery shops or by reviewing recorded phone conversations.

Not So Good For The Beginner

For the beginner, scoring or grading based on a script can produce a lot of anxiety.  Without adequate training, coaching, and feedback, a self storage property manager begins to feel anxiety when the phone rings with a prospective customer on the line.  What should be a celebrated moment (as in, YES!  someone is calling us and wants to do business with us) becomes fraught with apprehension and dread.  (I know, I did this to my store managers when we first started evaluating phone calls).

Not So Good For The More Experienced

I am assuming you have some sort of formal or informal evaluation process that grades or evaluates the selling skills of your self storage property manager.  If this is the case, you will get the same results that every sales organization gets when there are high-stakes objectives.   Property managers with some experience with your script and evaluation process they will start gaming the system and working toward saying the right phrases, even at the expense of being as effective as possible.

Once the self storage property manager has mastered some of the basic skills like getting a name, getting a phone number, and asking discovery questions, etc. then he or she may be most effective when given a little latitude.  Each person has their own style, and their own voice, and sometimes that means moving beyond the script.

A budding artist goes to art school and is taught various techniques.  She practices the techniques diligently and is evaluated on her level of mastery.  As her training progresses, achievement is based less on completing exercises and more on creating something unique and stirring with the tools and techniques that are now becoming second nature.

Once she has mastered the techniques, true mastery of her art requires her to step off well worn paths and make something that resonates with a person’s soul.

I’m arguing that as a self storage property manager begins to become a sales professional, then the reins need to be loosened so that she has the opportunity to really connect with the prospective customer and care for the prospective customer in creative and helpful ways.  Ways that a tight script will never achieve.

The Recommendation

1. Develop a script or an outline as a framework for your managers who are learning to become sales professionals.  If you need help, shoot me an email or give me a call.
2. Use the script as a tool to model effective skills and building blocks of the sales process.
3. Don’t tie any rewards or immediate punishments to your evaluation process.  Use the evaluation simply as a diagnostic tool to help you to know when and where more training or coaching is needed.  Think of mystery shop scores like feedback in a game.  The game becomes fun, in some part,  precisely because you know where you stand.
4. If you are going to reprimand, make it based on a property manager’s unwillingness or inability to make improvements (assuming you have given them a reasonable amount of support and coaching).  If you don’t do any support or coaching, then it becomes hard to lay all of the blame at your property manager’s feet.  You hired them didn’t you?
5. Encourage the heart.  This is new ground for most of the people you employ.  You want them to want to pick up the phone.
6. As your property managers become more proficient at the fundamentals extend them some trust.  To really create the strongest bonds with prospective customers and do their best work at selling your property and service they may need some leeway to veer off course without fear of being punished or continually second-guessed by a supervisor.

A Self Storage Sales Objective = Difference 1

When you are taking orders, you don’t really have an objective.  You are happy to give people whatever they want as long as it is on the menu.  You are not steering.  You are not an active part of the decision making process.

You are a record keeper.  A receipt dispenser.  You are happy to let the prospect do all of the work to figure things out.  Telling a prospect to call back later when they are ready is standard.

When you are selling, there is something you want your prospective customer to do.

You know enough about your prospective customer,  and you know enough about how your business makes money that you can build a bridge between what the prospective customer wants and needs and what you can provide profitably.   When plain vanilla doesn’t work, you get creative and try to put together something that is a win for you and for your prospective customer even if it isn’t standard or common or “on the menu”.

You are active in the process.  Once the bridge has been built, you illuminate the path that leads to your objective of a rental or purchase.

An Invitation = Difference 2

An order taker doesn’t make an invitation to rent.  He or she simply reacts to to the prospective customer’s requests.  If you are an order taker, you are relegated to the back seat.  If the prospective customer wants to rent a space, that’s great.  If they never ask, you never push the issue.  There is no urgency as an order taker because if all you do is take orders, then it doesn’t matter if anyone does anything

When you sell, on the other hand, you invite your prospect to move closer to your sales objective (renting a space at your location, or buying merchandise, or whatever).   I say move closer because even if your invitation to rent the storage space fails, you are still inviting people to come to your property because coming to your property moves them closer to renting.

Even if your invitations to rent or visit the store fall flat, then you invite them to give you permission to follow up with them so that you can stay involved in their buying process, remain in their service, and potentially win their business down the road.

When you are selling you are inviting prospective customer to take action, then you are inviting some more.

We all want to make a difference.  We all want to act, and not just be acted upon.  Two simple things make a world of difference.   Get clear on your objective and make invitations.

1. You Have a Professional Mindset

You treat the sales component of your job like professional athletes approach their sport, like professional chefs approach their food, or professional welders approach their craft.   You are striving for 100% from the 3 point line.  You are striving for a pie with the perfect flavor and consistency.  You are striving for a weld that is perfectly symmetrical and solid.

You are striving for an irresistible invitation.  You perfecting your ability to listen and discern the needs and wants of your prospective customers.  You are striving.  You are perfecting.

2. You Track Your Progress

Just like Michael Phelps knows how many seconds it takes him to swim 100 meters, you know the number of people who rent from you as a percentage of the people who call.  You review your work.  You listen to your recorded phone calls.  You ask others to critique your work. Because you are in tune with the results you are getting, you know when something isn’t working like it should and you adjust.  You experiment with new approaches until you find something that is more effective and  feels good to you.

3. You Practice

You grew up practicing all kinds of skills. As a kid you practiced penmanship. If you played sports, you practiced before game-day.  How did you memorize your times tables?  By practicing. If you are are a religious person, you “practice” your religion because you have yet to be successful at fully living up to the values and perfections you aspire to.

So why not practice an essential job skill?

Some people have told me that they don’t want to practice phone calls because it’s not real.  Some people think your best shot at improvement is to hear yourself interacting with real customers by listening to your recorded phone calls.

That is half true.

Listening to yourself will help you identify where you are powerful and where you are deficient. However, listening to yourself will not help you say things better next time.

Take swimming for example. Pointing out to your child that he doesn’t move his arms and legs effectively enough in the water to keep his head above the surface is not sufficient to keep him from drowning if he jumps into a deep pool of water.  Having the child watch himself on video won’t do the trick either.

There is a gap between knowing and doing. The gap is filled by practicing. The wannabe swimmer practices in a safe environment until his/her skills are sufficient to be safe.

You have to practice only a little if your goal is to just keep your head above water.  True professionals like Michael Jordan or Yo-Yo Ma practice more (alot more).

When you are a professional you practice like one.