SELF-STORAGE WHITE PAPER

ADVANCED K IOSKS : SELF-SERVICE K IOSKS & SELF-STORAGE

www.advancedkiosks.com

WHITE PAPER

KIOSKS IN SELF-STORAGE & THE DIFFERENTIAT ION

PROCESS

2 ADVANCED KIOSKS: SELF-SERVICE KIOSKS & SELF-STORAGE


EDITOR William P. S. Manning

WRITERS Kelsie M. Collins

DESIGN William P. S. Manning

CONTACT Advanced Kiosks 20 Canal Street Franklin, NH 03235 (603)865-1000 [email protected]

Copyright © 2016 by Advanced Kiosks

All rights reserved. This book or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of the publisher except for the use of brief quotations in a book review.

Printed in the United States of America

advancedkiosks.com

ADVANCED KIOSKS: SELF-SERVICE KIOSKS & SELF-STORAGE 3


A word from Advanced Kiosks President Howard Horn II

It has been over 15 years since we began our journey in the self-service industry, and even now there are still plenty of things that can surprise us as this field continues to grow. That being said, it would be easy to understand how someone new can have a hard time making sense of it all. Between the varying terminology, hardware, software, and differing degrees of support, anybody who is just hunting for a solution can become rather disoriented in the mix of it all.

So, in response to the ever increasingly dynamic environment of customer interactive devices and service, myself and the Advanced Kiosks team have decided to put our decade and a half of experience to good use beyond our typical operations to help readers such as yourself, to better understand what is going on out there. To help break down and consolidate the information you need to know to find out if self-service is right for you and your organization, how it works, what its value is, and what it takes to keep it running the way it should.

It is in hopes that through materials such as this document that we can educate (and on occasion maybe entertain) potential self-service buyers on the correct terminology and services in which to better find what they need.

Thank you for your interest, and please feel free to enjoy our available resources as you’d like. We look forward to helping you and your business succeed, and hearing back from our customers!

Best Wishes,

H.H.

To help people and businesses bring their services to those who need them through the art of engineering, quality craftsmanship, and the innovative nature of self-service technology.

O U R M I S S I O N





CONTENTSS E L F- S TO R AG E & T H E R EC ES S I O N 6

T H E D I F F E R E N T I AT I O N P R O C ES S 8

U N I T R E N TA L & C H EC K- I N 9

B I L L PAY I N G 9

WAY F I N D I N G 1 0

F I N A L N OT E 1 1

S O U R C ES C I T E D 1 1



KIOSKS IN SELF-STORAGE AND THE DIFFERENTIATION PROCESS

All over the country, self-storage facilities are using self-service technology to improve customer satisfaction and differentiate themselves from the competition. Self-service kiosks can be used for registration, checking into a unit, paying a bill, and ‘wayfinding’ (finding the way to the unit). They fit into several industries, including healthcare, education, government, general business, airports, and many more.

After the recession of 2008, businesses were greatly impacted, and self-storage was no exception.

As self-storage begins to rise in revenue every year since the recession, differentiation has become a huge part of what makes a self-storage facility successful.

Things that differentiate these facilit ies include high quality security, temperature control, updated facilit ies, convenient hours, and reasonable prices. For example,

The average customer pays $0.33 more per square foot in a climate-controlled unit than in a non-climate-controlled unit.

Self-service technology is an easy solution that improves these differentiating qualities for self-storage.

SELF-STORAGE & THE RECESSION

A major factor that contributes to the health of the self-storage business is

Written by Kelsie M. Collins



its symbiotic relationship with the housing market. When more families move into smaller living spaces, like an apartment, there is an increased demand in self-storage because those families do not have room for their stuff. A smart self-storage professional will keep track of changes in the market to foreshadow the upcoming demand for self-storage. It is true that there is a common flow of increased and decreased demand of self-storage, and most of it is based off of real estate. When apartment leases increase, so will the demand for self-storage. It would seem probable

that in a state of financial crisis like the recession of 2008, that self-storage would flourish because of the increase in need for apartments. The logic behind this mode of thinking is reflected by its relationship with the housing market. However, self-storage was still hit by the recession because self-storage was considered a luxury that many could not afford. In most cases, people forced to downsize either threw their things away or asked a family member with a house to store the extra boxes.

Post-recession, the self-storage industry has improved greatly in revenue. According to a Self-Storage Report by Viewpoint, the self-storage market collected a

“revenue of $31.6 bill ion in 2015 and forecasted to be $32.7 bill ion by the end of 2016”.

In the same study, it was found that the

net operating income (NOI) increased 9.5% from 2014-2015.

The nature of business is clear in the way that smart business owners will invest in businesses that require little maintenance and financial risk for the most profit. Self-storage, as it began to improve post-recession, has quickly become one of the most lucrative business investments for conservative entrepreneurs nationally.



THE DIFFERENTIATION PROCESS

Since self-storage has been doing so well, increasing revenue every year, the recession is no longer a primary concern for self-storage professionals. Now, the major concern is differentiation. For example,

“Short term leases and little-to-no product differentiation can make sustaining a regular revenue flow difficult”.

Particularly because even the top name self-storage facilities such as “Public Storage” don’t dominate the industry.

“Public Storage Inc., the largest self-storage REIT, has only a 5% share of the industry, according to Morningstar’s research”.

No one company has all the power in the self-storage industry. This means that instead, there are a thousands of small business owners with one or two facilities distributed evenly nationwide.

Another point to be made is that those small business owners don’t intend to leave anytime soon, not while the ‘getting’s good’.

“Vacancy is low and rents can be moved quickly, leaving many investors hesitant to sell”.

This means that self-storage is a hard business to get into in the first place, with little chance of openings in the future. The business owners who have already invested are in a good position now to differentiate their facilities and get ahead of the competition. Some factors that can contribute to differentiation, as listed above, are as follows:

high quality security

temperature control



updated facilit ies

convenient hours

and reasonable prices.

Investing in self-service kiosks for a self-storage facility has great ROI because it is the most cost-effective and efficient way

to improve security, convenience, and prices for the business owner and the customer. Kiosks do this

by providing services that help customers rent a unit, unlock the unit, pay a bill, find their unit, and receive information regarding the state of the unit. All of these solutions work to provide a 24/7 facility with shorter wait times and lower rental prices at no deduction in revenue for the

business owner.

UNIT RENTALS & CHECK-IN

Unit renting and check-in is a solution for self-storage facilities that helps customers get into their unit 24/7 without the need to keep an employee overnight. The solution decreases spending on

payroll and increases customer satisfaction. This is how it works. A new customer walks into the facility past business hours and needs a unit in a pinch. They go to the kiosk, select the option to rent a unit, choose a rate and unit space, a lock if needed, and enter their personal information. Then, the customer can find their unit and move in. Without the help of an employee, the new customer is able to register for a unit. Similarly, a customer can also use this kiosk to rent another space and change account contact information.

The type of hardware that would typically be used for this purpose depends on what the business owner

wants for the facility. Most commonly, freestanding kiosks or wall-mounted, compact kiosks tend to be used most often for this purpose. This is because both the freestanding and compact kiosk can have a keyboard, VOIP phone system, receipt printer, and magnetic strip reader. If the self-storage professional wants the kiosk to be able to move all around the facility, a freestanding with wheels is a better option. If the self-storage professional would prefer to save floor space, the wall-mounted kiosk is the better choice. The freestanding kiosk has a bit more flexibility with its add-ons, but does take up more floor space. Software that would go well with this solution would be kiosk management, VOIP, sleep mode, and technical support software.

BILL PAYING

Another kiosk solution for self-storage is bill pay and accounts payable. This solution can be in addition to the check-in kiosk as an added function. Basically, it would include the same process as the previous solution, but would also allow the customer to pay a bill through the kiosk at all hours. This



is convenient for people who don’t get out of work until the building office is closed. In limited hour facilities, the customer would not be able to walk in and pay the bill after work. A bill paying solution is convenient, and ultimately improves differentiation within a facility. The software solution for bill pay would have to revolve around a POS system and the hardware add-ons would need to make it so the customer can pay the bill (card reader).

WAYFINDING

Wayfinding is a solution for self-storage that helps the customer find their unit without the help of an employee of the facility. This can assist the customer in navigating the massive maze that is a self-storage facility. The way this works is usually on a large display kiosk presented by the entrance of the building. The customer walks in and is immediately presented with a giant map of the building with all the number units so the customer can find their unit more quickly. These maps can also be displayed as an add-on option in addition to the check-in kiosk solution. Using a large wall-mounted display is useful because not only can it display a map of the facility, but it is also a great solution for advertising self-storage. The self-storage professional can program this kiosk to show a slideshow of the facility and staff, rate deals and coupons, and welcome videos depending on the preference of the self-storage professional.

For this solution, there a multiple ways to deploy a kiosk in the facility. Once again, it mostly comes down to floor space. Does the self-storage professional want a double sided freestanding display or do they want a wall-mounted display to save floor space and still get the message across? Lobby software is another thing to consider when thinking about implementing a display kiosk for this purpose. Kiosks that are compatible with windows and are displaying the information from the internet should also consider a tamper proof browser lockdown solution for the kiosk so that customers cannot navigate outside the intended web pages. For large display kiosks



generally add-ons like a phone are not necessary, but can be added to the kiosk if it is the case.

FINAL NOTE

In an industry where the competition is always high, having the technology to make the facility stand out is the key to success in self-storage. “Sellers are experiencing record level prices, while those acquiring are keeping an eye out for value-add opportunities”.

A lot of self-storage professionals, in the middle of a revenue growth, may not take the time to look into what the future for self-storage holds. Those who stay updated and do research on self-storage will find that self-service technology is one of the most efficient ways to ensure differentiation in the industry. Even in an industry that is currently flourishing, there is room to fall off the map in dipping quarters of the year.

“Though the industry is well-positioned for another strong year of performance, it must be remembered that self-storage is cyclical. First and fourth quarter are typically lower-demand times, with the summer months quite active”.

This statement is also a reflection of the natural quarter trends of real estate and moving businesses. In another self-storage research paper done by Marcus & Millichap,

“The rise in interest rates could be the beginning of a slow tapering, or stabilization, of values”.

This makes the ability to stand out even more important when it comes to increasing revenue, rather than letting it stabilize. Using self-service technology, self-storage facilities can improve the registration, bill pay, and wayfinding processes of the facility. In turn, the kiosk creates a 24/7 facility that decreases cost and wait time. While there are things the self-storage professional cannot prevent (like a recession) implementing self-service technology is a great way to start thinking proactively for the future. To learn more about how self-service technology can benefit your self-storage facility, check out the contact information below and give us a call!

SOURCES CITED, COLLINS, K.

Marcus & Millichap Research, Special Report Emerging Trends: Real estate investors re-evaluate transactions amid shifting landscape; strong performance supports extended outlook. Fourth Quarter 2016.

Marcus & Millichap Research, National Report: Self-Storage Research, Operations strengthen despite mounting concern of construction. Second Half 2016.

Integra Realty Resources Publication Team, Viewpoint 2016, Self-Storage Report: Commercial Real Estate Trends. New York, NY.



GIVE US A CALL1 (866) 783 - 3791

A D VA N C E D K I O S K S . C O M

Interactive kiosks are engaging, attractive solutions for nearly every aspect

of modern life from promoting and wayfinding, to check-in and standard HR

functions.

Self-service kiosks are ideal for business & organizations looking to bring useful

services and info that much closer to those who need it.

ADVANCED KIOSKS: SELF-SERVICE KIOSKS & SELF-STORAGE


Date post:	08-Feb-2017
Category:	Documents
Upload:	kelsie-collins
View:	9 times
Download:	0 times

SELF-STORAGE WHITE PAPER

Documents