Europe V4 2010:Layout 1 · Have we turned the corner? 3 Europe V4 2010:Layout 1 25/10/10 15:54 Page 3

Europe V4 2010:Layout 1 25/10/10 15:54 Page 1


contents

FEDESSA News

• Third Spanish self storage survey . .4

• Energy Performance of Buildings Directive

• Shining a light on the problem! . . .5

• France Green Building Council has been created

• Xuklis House – a private foundationfor girls and children with cancer

• AESS Conference . . . . . . . . . . . . .6

• Virtual tours, coming to a websitenear you!

• High-speed Internet plan facesobstacles . . . . . . . . . . . . . . . . . .10

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

• New ventures for an industry icon

Company Features

• Contemporary designs on storage unit doors . . . . . . . . . . . . . . . . .11

• The Netherlands Self-Storage Association Golf Day . . . . . . . . .14

• The North and South of it! . . . . . .15

• Inbox Storage bucks the economic trend . . . . . . . . . . . . . . . . . . . . .19

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

• Are you keeping track of the latest marketing trends?

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]

The FEDESSA General Council is meeting in November to formulate its plans for2011. While it remains an informed umbrella organisation, with an ability tobring together expertise from across Europe when required, it is very keen toproduce its own statistical information for the sake of the industry Europe-wide.However, first it will need to take account of the current state of the industry.

On a recent trip to Brussels, I witnessed thousands of people (perhaps hundredsof thousands) marching through the city and blocking the streets around the“European area”, which gave an added impetus to my concerns. This was notjust a national protest, but a protest by people from all over Europe!

So, where does this leave the self storage industry and can we remain resilient tothe situation and benefit as a result of the measures taken by nationalgovernments?

I guess that some self storage companies thought that the fast growth rate duringthe second half of the 1990s and the first few years of the 21st century, togetherwith the comparison to the huge market in the USA, meant that continuedinvestment was ultra safe. This was clearly not true; but, the good news is that theindustry has remained resilient to the worst effects of the downturn, and faredmuch better than many other sectors. Some parts of Europe, particularly wherethe recession has been softer, have experienced continued expansion andincreased rates throughout the whole period. This was perhaps also as a resultof the demand for self storage in countries where the industry is still very new.

Even in countries hardest hit, we understand that storage occupancy and rentalrates have picked up in recent months. And, the initial problems have resulted incompanies being more efficient, more alert to new opportunities and the need tomonitor developments and changes very carefully. People basically are still“collectors” and “hoarders” (perhaps it’s a “caveman” instinct for survival!) This,coupled with smaller houses, restricted storage space and a difficult real estatemarket, will continue to ensure the need for storage space. And, when thingsstart to improve, people’s instincts to store will surely surface again!

Let us not forget business customers; this is what the SSA UK is concentrating onin its marketing of the industry, as many businesses may still have to down-size tosurvive.

In this issue of the magazine, we have tried to cover a number of relevant itemsof legislation, reported as Europe continues to “green”, included news items aboutthe innovation and lateral thinking within our industry and some features fromopposite ends of Europe, about bucking trends and how we can still find “funand joy” within the industry.

As we go to print, the Spanish Self Storage Association will be holding its 5thconference in the lovely, Spanish city of San Sebastián. We will report on this inmore detail in a future issue; but, in the meantime we hope that you enjoy thecontent we have brought to you this autumn.

Please remember to keep your news items, photos and articles coming in. Whilewe may not be able to use everything, we very much appreciate the input andcarefully consider everything while endeavouring to provide a wide coverage.

FEDESSA is also looking forward to the 2011 European Conference, which as youknow will be held at Vilamoura, The Algarve, Portugal on the 15th and 16th ofJune, 2011.

Tony Richman

FEDESSA’s European Representative

Have we turned the corner?

3


4

FEDESSA NEWS Self Storage Europe

Third Spanish self storage survey

Another year on and the Associación Española de Self-Storage(AESS), in conjunction with the DYM Institute, has prepared itsannual survey of the Spanish Self Storage Industry. When collecting responses from Spanish operators in 2010some new questions were added, while those questions whichhad obtained the same results for two years and were,therefore, no longer relevant to the industry, were removed.

The results will not show names, addresses or areas of Spain,thus guaranteeing, as usual, total confidentiality. For the first time, the survey was conducted via the Internet.This method of surveying offers several advantages andoptions. The closing date was the 6th of August, 2010 and the resultswere presented during the 5th National Conference for theSpanish Self Storage Industry, in San Sebastián on the 28th &29th of October, 2010.

Energy Performance of Buildings Directive

Reducing energy consumption and eliminating waste areamong the main goals of the European Union (EU). EUsupport for improving energy efficiency will prove decisive forcompetitiveness, security of supply and for meeting thecommitments on climate change made under the Kyotoprotocol. There is significant potential for reducingconsumption; with 40% of our energy consumed in buildings,the EU has introduced legislation to ensure that they consumeless energy. A key part of this legislation is the Energy Performance ofBuildings Directive (EPBD) which requires all EU countries toenhance their building regulations, and introduce energycertification schemes for buildings. All countries are alsorequired to inspect boilers and air-conditioners. The introduction of national laws meeting EU requirements ischallenging, as the legislation has many advanced aspects. Tosupport EU countries with this task, the Concerted Action(CA) EPBD was launched by the European Commission (EC)to promote dialogue and exchange best practice. An intenselyactive forum of national authorities from 29 countries, itfocuses on finding common approaches for the most effectiveimplementation of this EU legislation. The multi-faceted format of the forum, with specialistworkshops combined with high level discussions, allied tonetworking opportunities and web resources, has centred on

sharing and inspiring smart solutions for the professional tools,skills and systems in all fields addressed by the legislation.These solutions are now being applied across the majority ofEU countries. When initiated in 2005, most countries were still at theplanning stage, but they are now well advanced. Afterstimulating advancement and convergence across the EU, theapproach was enhanced in 2007. Countries now share realoperating experience and the CA provides ever increasingpractical value and deeper understanding for all participatingauthorities. The CA is funded by Intelligent Energy-Europe, under the EU’sCompetitiveness and Innovation Programme.

Objectives• To assist with the creation and adoption of national laws

and regulations for certification, inspection and testingmarkets.

• To create favourable conditions for common solutions andstandardisation.

• To support the follow up of legislative implementation.• To encourage sharing of experience, good practice and

networking.Structure• The CA-EPBD is carried out under the co-ordination of

ADENE, the Portuguese National Energy Agency. • The consortium comprises organisations from all 27 EU

Member States, plus Norway and Croatia.• The activities revolve around six meetings, each with over

100 participants, held over a three-year period (December,2007 to November, 2010).

• Working groups and networking take place between themeetings.

• Only national authorities implementing the Directive, orthose bodies appointed and entrusted by the nationalauthorities, are involved.

• Invited experts attend to give additional viewpoints.

ThemesThe CA-EPBD covers the following five core themes: 1. Certification procedures2. Inspection of boilers and air-conditioning systems 3. Specifications and training requirements for experts and

inspectors4. Methods and procedural aspects for energy performance

characterisation5. Information campaigns.


5

FEDESSA NEWSVolume 4, 2010

Shining a light on the problem!

The European Commission Services has created a website(www.e-lumen.eu) in 22 languages to inform consumers,professionals and the media about the wide range of energyefficient light bulbs currently available, the phase-out ofinefficient light bulb types and European legislation already inplace.

The website includes an interactive tool, which helps users toselect the appropriate light bulb for their needs, and adescription of important product data that will have to beincluded on the packaging of light bulbs from the 1st ofSeptember, 2010 to allow consumers to make informedchoices.

On the 1st of September, 2009 incandescent light bulbs andother energy-inefficient lamps started to be gradually replacedby more energy efficient light bulbs in Europe. By switching tomore energy efficient lighting products, European users cansave energy and contribute to reaching the EU’s climateprotection targets.

France Green Building Councilhas been created

France Green Building Council (GBC) aims to raise awarenesswithin the building sector on the environmental quality ofbuildings in France, and it hopes to convey a strong and co-ordinated French position in this area internationally. FranceGBC is being constituted gradually under the auspices of anumber of sustainable building institutions.

After signing a Memorandum of Understanding (MoU) inNovember, 2009 it recently signed a Charter which aims atstarting off the activities of France GBC, as the Frenchrepresentative organisation in the international World GBCnetwork. France GBC is also supported by “Plan BâtimentGrenelle”, the French state taskforce for “greening” thebuilding industry.

France GBC is mobilising the operators within the Frenchbuilding sector, bringing together stakeholders which represent

the overall fields of: technical and certificating centres,businesses and manufacturers, energy sector stakeholders(producers, managers and energy services), local authorities,banks and insurance companies, public and private masterbuilders, owners and users, resource centres, associations andNGOs, research organisations and all other levels ofinvolvement, be it local, national or international.

It aims at co-ordinating and spreading French leverage at aninternational level, as well as within the Sustainable BuildingAlliance (SBA) International Network, the initiative of the UnitedNations Environmental Programme (UNEP-SBCI), the CEN andthe ISO for buildings and sustainable building.

Its action plan will include: sharing of experience,communication, standardisation, providing a betterunderstanding of certifications and labels, and professionaltraining.

Xuklis House – a private foundation for girls and children with cancer

Xuklis House, which is sponsored by the Spanish Self StorageAssociation (AESS), became a reality at the end of July, 2010when the work, originally started in April, 2009 was finalised.This refuge centre is situated in the precinct of Llars Mundet, inthe same way as the Vall d’Hebron hospital in Barcelona, onland provided by the Delegation of Barcelona.

Through its members, the AESS’s objective is to support thisworthy institution in its aim to provide accommodationthroughout the whole of Spain, within a specific period. And,apart from helping and indirectly gaining publicity for theSpanish Self Storage Industry, the customers of each selfstorage facility also become aware of, and part of, theinitiative.

The AESS circulated its members with information, asking thosemembers who wished to take part to confirm their details,which enabled the project to be put in motion during thesummer.

The Private Foundation for Girls and Children with Cancer, theproject property development company, built the premises tolow ecological specifications, with sustainable accommodationlevels in mind. The 1,800 m² building is equipped with 25lodgings, each 30 m², and it was constructed in a way whichcombines private and communal areas, to guarantee both theintimacy and the welfare of families during their stay.

The mission of the Foundation is to build special refuge centresfor the families of girls and children diagnosed with cancer,who have been referred by hospitals, in order to continue withtheir specialised medical care.

...continued on Page 6

Tony Richman is FEDESSA’sEuropean Representative

Tony Richman


6

FEDESSA NEWS Self Storage Europe

Xuklis House provides for the specialised needs of the girls,children and their families completely free of charge. Forfurther information, visit: www.lacasadelsxuklis.orgIn Spain each year some 1,350 new cases of cancer arediagnosed in children under the age of 18. Around 25% of thechildren and adolescents diagnosed in Spain apply for theprovision of such care via Barcelona.

AESS Conference

The 5th Associación Española de Self-Storage (AESS)Conference was held in San Sebastián on the 28th and 29thof October, 2010. On this occasion, French and Portugueseoperators were also invited to attend the conference. TheConference and Trade Show took place at the Palacio deMiramar, just five minutes from the Barceló Costa Vasca Hotel,where delegates were able to book a room.

A very interesting and intriguing programme, covering all theissues that are important to its members, had been prepared.This included an “Internet and social networks” session byJorge Mira on Friday the 29th, which was especiallyrecommended for self storage managers.

It is hoped that the members who attended shared in thedelights of the vibrant and animated town of San Sebastián!

Virtual tours, coming to a website near you!

Euro Mini Storage, with its recently built state-of-the-artfacilities in Romania and Hungary, is making the very best useof marketing opportunities on the Internet.

In addition to the “viral portals” being used by the company,we now learn that “virtual tours” have been developed and willsoon be made available on the Euro Mini Storage website.

Visit the following websites for an advance showing; just sitback and let them run:

http://euroministorage.hu/tour/en andhttp://euroministorage.ro/tour/en

Front Cover Photograph

The front cover photograph shows some of the participants at the San Sebastián Carnival. This was the venue for the 5th Associación Española de Self-Storage (AESS) Conference, which was

held in San Sebastián on the 28th and 29th of October, 2010.


7

USA FEATUREVolume 4, 2010

Following more than 35 years at the helm of the company hehelped to found, Hardy Good sold MiniCo Insurance Agency inMay, 2010 to Aran Insurance Services Group, a full-servicegeneral agency and underwriter. Currently, he is CEO of NewEmpire Ventures in Phoenix, which operates three self storagefacilities in Hong Kong, through MiniCo Asia Ltd. In this article,Hardy reflects on his career, his accomplishments and the pastand future of the self storage industry.

Entrepreneur, insurance professional, executive publisher andCEO are titles that have described Hardy Good over the courseof his 36 years in self storage. But Hardy offers his own jobdescription: “First, last and always, I am a salesman.”

In the early days of Mini Storage Insurance Corp., Hardy soldCustomer Storage Insurance, a policy that provided protectionfor self storage tenants’ property. While the insurance wasunique to an industry in its infancy, Hardy was keen to sell moreproducts to facility operators. “In marketing insurance forcustomers, we learned a lot about owners’ liabilities and whatthey needed, so we developed products for self storage ownersthat became the principal business of MiniCo,” said Hardy.

One of those products was a property and liability insurancepackage called MiniPak. Hardy soon looked to offer productsbeyond insurance to owners and operators. “I always felt like wewere selling supplies to gold miners. Whatever we could thinkof to sell them, we were offering,” said Hardy. For the youngentrepreneur who immersed himself in a new market niche, italways came down to, “What else can we sell these guys?”

The answer came to Hardy one day when he got an idea as hetoured a facility in Northern California. “It was the end of theday and I was riding in a golf cart when, all of a sudden, I sawa disc-shaped padlock reflecting in the sun. I had never seenanything like that in all of my surveys of self storage facilities,”Hardy recalled.

The high-quality padlock was made by a German company andHardy negotiated an exclusive agreement to distribute thepadlocks to self storage facilities in the US. Besides providing anew source of income, padlocks presented a practical way toreduce insurance costs. “We could make self storage facilitiesmore safe and secure with a good quality padlock,” Hardy said.“The idea was that we could reduce our claims and increaseour profits. That was our first foray into product distribution.”

Time to get to Phoenix

In the early days of his career, Hardy was a manager, buyer and

merchandiser in the menswear industry. He came to Phoenix in1965 and moved to Chicago in 1970 to represent a retailchain. Looking for a career change, Hardy and his wife returnedto Phoenix in 1974.

One day, he decided to have lunch with two neighbours; anevent that changed the course of his career, as well as thedirection of self storage. It wasn’t as momentous as when theBeatles met in Liverpool, but it turned out to be a significant dayin self storage history.

One of the neighbours was an insurance professional and theother was a self storage developer, who had built and operatedfacilities in Tempe, Arizona. Since there was no insuranceavailable for customers who rented storage space, the threeneighbours decided to form a new company that did. The twoneighbours invested $2,000 in the new venture and Hardydevoted his efforts to sales. The rest, as they say, is history.

Industry pioneers

The Western United States fostered the early growth of selfstorage. Whether due to a lack of basements, limited atticspace, or just some savvy developers looking to build new realestate space, the West has been very hospitable to the industry.Hardy told the story of an Odessa, Texas, operator who mayhave invented modern mini-storage when he opened a 30-space boat storage facility. “He had a sign that said “boatstorage” but no-one rented space,” he related. “His boatstorage concept was unsuccessful, so he took down the sign thatsaid “boat storage” and put up a sign that said “storage”.”

Maturing baby boomers, who had a propensity to acquiregoods, soon began flocking to these new storage facilities.“Americans didn’t have self storage space available to them forall those years,” said Hardy. “Historically, I think consumers hada need but they didn’t realise a solution. When it becameavailable, they took advantage of it.”

Hardy was responsible for drumming up business for MiniCo’sproducts, and his travels allowed him to cross paths with someof the industry’s pioneers in the Western US in the 1970s and‘80s. TL Brundage, who operated A-AAA Key Mini Storage inSan Antonio, registered the name “mini-storage,” according toHardy.

Another pioneer, Frank Blumeyer, Sr., operated A Storage Innswith his son, Frank Blumeyer, Jr. “They thought the self storageindustry was going the way of the motel industry, where mom-and-pop motels were bought up by Holiday Inns andconsolidated into chain operations,” Hardy said. “They thoughtthat’s how the self storage industry would develop.”

...continued on Page 8

New ventures for an industry icon

David Lucas

David Lucas is a freelance writer and editor based

in Phoenix, Arizona. He is also the news editor for the Mini-Storage Messenger


8

USA FEATURE Self Storage Europe

In California, Hardy crossed paths with H. James Knuppe, whopioneered the self service storage concept in the San FranciscoBay Area, with AAAAA Rent-A-Space. And, Kenneth Volk had afledgling enterprise called Public Storage. It was during a visitto Volk that Hardy made a profound impact on the way selfstorage operates today.

“Volk kept a master key to all of his customers’ storage units,”Hardy recalled. “I told him, from an insurance viewpoint, thathe had liability exposure and that he should not keep a masterkey to customers’ locks. It was shortly after my visit that PublicStorage changed their corporate policy to not keeping a key tocustomers’ locks.”

Today, it’s standard industry practice that self storage operatorsdon’t take care, custody and control of customers’ goods; apolicy that insulates them from significant liability.

Birth of a voice

Mini Storage Security Co. was created to distribute padlocks andother products for safety, security and loss control. Business wasgrowing along with the industry and new opportunities emerged.

With 600 Stock Keeping Units (SKUs), Mini Storage soonrequired a newsletter to market its array of products. CalledMini-Storage Messenger, the publication was mailed free to afew thousand readers. “We had an advertising agency thathelped create and distribute our newsletter,” said Hardy. “It wasour ad agency partner’s brainchild that this industry was readyfor a magazine. Although he had never published a magazine,he was familiar with the printing process and graphic design.So, in 1979 we decided to convert the newsletter into amagazine format.” After three, free quarterly issues, the fourthedition ran the headline, “Free Subscriptions End” andMessenger has been a paid publication ever since.

Through the publication, Hardy gave the industry a valuableresource and a strong advocate. “He was the premier voice ofthe industry through the Messenger,” said Bill Bohanan ofStorage Solutions, headquartered in Mesa, Arizona. “For years,the Messenger was our trade publication.”

Hong Kong bound

MiniCo’s growth over the years was not always on target; therewere a few bumps in the road. For a decade, Hardy’s padlockshad no competition. Then, in the early 1990s, cheaper locksentered the marketplace and dramatically affected companysales. Hardy sought a source of less expensive products, so he

could remain competitive, and following a survey of the PacificRim countries, Hardy found a new source in China.

After establishing a joint venture with the Chinese governmentand factory managers, Hardy was approached about openingstorage facilities in Shanghai. “The idea of developing selfstorage facilities was a little daunting, as we never owned andoperated self storage facilities in America,” Hardy said.

The thought bounced around in the back of Hardy’s headwhenever he travelled abroad. “We made numerous trips toChina and Hong Kong throughout the 1990s and early 2000sand learned a lot about Asian ways,” he said.

Eventually, entering the Hong Kong market seemed logical andreasonable, because there were no self storage facilities in thearea. “Beginning in 2000, we spent two years of due diligence,market research, surveys and travel to Hong Kong and searchedthe market for suitable buildings,” Hardy said. “The buildingsthat were suitable for self storage were not affordable, and thebuildings that we could afford to buy wouldn’t work. We almostdecided not to proceed.”

Hardy explained that most commercial spaces in Hong Kongare leased for short, one- or two-year terms and his vision waslong term. “We felt it was important to own the property,” Hardysaid. “We didn’t want to be tenants, especially in Hong Kongwhere the market prescribes short-term tenancies. Rather thanbe defeated, we struck a deal to lease a property for four years,with an option to renew the lease for four more years.”

In 2002, MiniCo Self Storage opened; it was the first Americancompany to operate a self storage business in Hong Kong. Thecompany leased four storeys of a ten-storey building. MiniCoSelf Storage later opened two other facilities in Hong Kong.

“There are numerous barriers to starting a business in Chinaand Hong Kong, but the biggest one is understanding theculture,” Hardy said. “We took our skill and knowledge aboutself storage operations in America and applied it in Hong Kong.We soon found out that we got a lot of things wrong. Therewere many aspects in Hong Kong that were contra-indicated inAmerica.”

When Hardy sold MiniCo Insurance Agency, he kept MiniCoAsia Ltd. as part of New Empire Ventures, which isheadquartered in a Phoenix office building just down the streetfrom his old office.

The firsthand knowledge gained through years of experience inAsia is part of MiniCo Asia’s competitive advantage, yet Hardydoes not believe he has the Hong Kong market all to himself.“We’re braced for American competition,” he said. “We believethat American entrepreneurs will seek to tap into the vast Asianmarket.”

Hardy already sees the potential of his new venture. “We wantto expand self storage in Hong Kong,” he said. “We are lookingfor more locations to develop and we’re exploring otherpotential ventures worldwide. We’re open for business andideas.”

The future of self storage

As American and foreign developers recognise opportunitiesabroad, Asia and other overseas locations will likely see agrowth in new self storage space.


9

USA FEATUREVolume 4, 2010

“It’s a lot like McDonald’s in that most of their growth is now inforeign markets. The growth in the self storage industry over thenext ten years will be in foreign markets,” Hardy predicted.

Even Hardy could not have predicted the success of self storageoverseas. “Originally, I thought it was uniquely Americanbecause Americans collect and save,” he said. “Subsequently,my thought that it was a uniquely American concept wasdispelled, because self storage has been successful in almostevery country in the world.”

Hardy is optimistic about the industry, especially in how it hasweathered the recession. “The future bodes well for self storagein America,” he said. “The self storage industry continues togrow, albeit at a reduced rate.”

One segment of the industry that shows promise is portablestorage, which has experienced significant domestic growth inrecent years. “I think portable storage is a big success,” Hardysaid. “It represents more service to the customer, but it’s adifferent business. It’s labour intensive, has more regulatoryrequirements; it’s more like moving and storage than storage.Portable storage is going to continue to grow.”

As for Hardy’s future, the MiniCo sale allows him time to devoteto other interests. “I wanted to spend more time with my familyand our new boat,” he said. “And, I wanted to devote more ofmy time, effort and finances to Hong Kong.” He added that hesold MiniCo as part of a personal strategy for his future and itwas the right time. “Thirty-six years was a lovely cruise and itwas a pretty good run.”

Along the way, Hardy left an indelible imprint on the self storageindustry. He is a founding charter member and past National

Director of the Self Storage Association and he was inductedinto the organisation’s Self Storage Hall of Fame in 2005. Hehas been a member and sponsor of the Arizona Self StorageAssociation since its beginning. And, he is also one of the earlysupporters of international self storage expansion and industryassociations.

“I’ve been in the industry since 1979 and I’m hard-pressed tothink of anyone who has made a bigger contribution thanHardy Good,” Bohanan said. “No-one has supported ourindustry more than Hardy from a financial standpoint, in goodand bad times. When we were getting started, he was one ofthe biggest benefactors of the state association, and throughthat, he created a tremendous amount of loyalty fromcompanies like ours.”

Hardy looks at his greatest accomplishments from a differentviewpoint. “I am most proud of teamwork,” he said. “I wassuccessful at fostering teamwork within the MiniCoorganisation. In the last ten years, I was particularly successfulin fostering and maintaining teamwork with a group ofexperienced, knowledgeable and skilled executives.”

He is leaving the self storage market in capable hands. Thosewho learned teamwork from Hardy have populated the selfstorage industry far and wide. “We have supplied the selfstorage industry with many successful people,” Hardy noted.“They came to work at MIniCo, we taught them theentrepreneurial spirit and they started their own businesses, orwent to work for others. They’re everywhere.”

As MiniCo Insurance Agency’s CEO and President, MikeSchofield worked with and witnessed Hardy’s entrepreneurialspirit for ten years. “Hardy was the type of leader who recruitedtalent to fill the expertise needed for his company and heempowered them to manage in their own style,” Mike said.

MiniCo Insurance Agency will continue to offer commercial andcustomer storage insurance products and publications to theself storage industry, while looking to expand its services in theyears ahead. “We have a vision of expanding our productofferings over the next three years within the self storage industryand in other business classes,” said Mike. “We’re excited aboutthe opportunity to focus our company on self storage and utiliseit as a foundation to grow into other areas.”

Hardy is not expected to sail off into the sunset, for he has newhorizons to explore in business and in his personal life. After all,there is bound to be something new to sell.


10

Self Storage Europe FEDESSA NEWS

High-speed Internet plan faces obstacles

Neelie Kroes, the European Union’s Digital Agendacommissioner, proposed a number of measures on the 20th ofSeptember aimed at boosting high-speed Internet acrossEurope. However, her plan faces opposition from someMember States and key industry groups.

To date 25% of EU households have access to high-speedInternet. In other words, this means that the remaining 75% ofEuropeans do not have access! Nevertheless, harmonisationis a taboo word when it comes to radio frequencies, and theapproval of Member States is still essential to push throughbinding measures on the matter.

Germany is the only EU country so far to make the “broadcastspectrum” available for mobile broadband. But in other

countries, the entrenched interests of national politicians andpublic broadcasters represent a powerful opposition lobbyagainst the use of spectrum for purposes other thanbroadcasting.

In Italy, where Prime Minister Silvio Berlusconi built his politicalfortunes on the basis of his television empire, it is unlikely thatbroadband operators will stand a real chance of competing.Indeed, all bidders for the freed frequencies in Italy are at presentexclusively broadcasters, not Internet Service Providers (ISPs).

Investment in infrastructure

The other facet of Neelie Kroes’s proposal comprises a long-awaited recommendation on access to Next GenerationNetworks (NGNs) and a communication on broadbandinfrastructure investment. As its name indicates, therecommendation is not legally binding. Member States areinvited to follow the Commission’s advice, but there is littlechance of forcing a recalcitrant national regulator toimplement it.

The third initiative presented by Kroes relates to investments innew high-speed Internet infrastructure, with the EuropeanInvestment Bank (EIB) set to table innovative financialinstruments to back the initiative. Public/Private partnershipsare also encouraged. However, with little money available ata time of economic uncertainty, the plan faces significantimplementation hurdles.


11

Volume 4, 2010 COMPANY FEATURE

An extraordinary art competition, organised by self storageoperator Euro Mini Storage and MOME line – design works, hascome to a successful conclusion. At Euro Mini Storage’s streetart day, which was arranged to support young Hungarian talent,the finalists painted seven, 6 m2 storage unit doors. At the start of the competition, which was launched in May,2010, more than fifty designs were submitted to the judges bystudents and alumni of the Moholy-Nagy University of Art andDesign. Euro Mini Storage provided the prizes for the best threeof the final seven designs, and the seven artworks painted onthe storage unit doors overlooking the street were givenmaximum publicity. Danu M. Temelie, Managing Partner of Euro Mini Storage, said:“We believe it is essential that the up-and-coming generation ofyoung Hungarian artists and designers are given the opportunityto be promoted in unconventional places like city space, andfor their art to be made available to everyone. Our competitionnot only supports young Hungarian talent, but it also strengthensart’s community-shaping role in our everyday lives.” The seven artworks painted on the storage unit doors of EuroMini Storage’s building, were viewed by the general public at50 Gyáli Road, Budapest, near the M5 junction. At the event, the jury selected the following three finalists:First prize was awarded to Tímea Ferth for “The Guardians”Second prize was awarded to Máté Mlinarics for “Eye”Third prize was awarded to Richárd Orosz for “Hiding”.Euro Mini Storage was the first purpose-built self storage facilityin Hungary. The 7,800 m2 building, which was opened in 2009,offers nearly 1,000 safe storage units of different sizes to bothcompanies and private individuals. Apart from the €7 millionCanadian investment in the Budapest facility, the company isplanning to open another four sites in the Hungarian capital inthe next three years. The self storage concept, which is wellknown in the world’s major metropolitan cities, is a newgeneration idea in Hungary and Central Eastern Europe. The Moholy-Nagy University of Art and Design occupies aunique place in Hungary in offering instruction in architecture,media and design. Notwithstanding its educational services andresearch and development activities, the university integratesthese areas and promotes their social and cultural functions.MOME line – design works was set up for this purpose; it

undertakes to fulfil the role of mediator between a wide varietyof initiatives, be they business, art or social investments, and theavailable creative human resources.

Contemporary designs on storage unit doors

First prize: Tímea Ferth – The Guardians

Second prize: Máté Mlinarics – Eye

Third prize: Richárd Orosz – Hiding


12

Self Storage Europe MARKETING FEATURE

With tight budgets, businesses are forced to find creative andcost-effective ways of attracting customers. New opportunitieshave developed through the creative adaptation of tried andtested techniques and, when combined with the newtechnologies that are now available, there are real opportunitiesto attract new customers.This article provides a snapshot of some of the latest marketingtools. However, FEDESSA is not suggesting that all thesetechniques will be suitable for your business; but, they maytrigger some ideas.PromotionAs customer commitment becomes harder to secure on higherprice tag items, “try before you buy” and “guaranteed results”promotional techniques are gaining ground in some markets.For example, General Motors recently offered 60-day trials andguaranteed the return of your car purchase price if you were notsatisfied. Also, UK medicare company, Cambridge TemperatureConcepts, offered “pregnancy within a year or your moneyback” on its fertility treatments.Action – We do not recommend that you guarantee pregnancy!However, maybe there are ways you could offer customers thechance to “try before they buy”, with a free trial period. Thisapproach is great for attracting new customers and is particularlyeffective when combined with on-line and e-marketingstrategies. LoyaltyRecent research questions the effectiveness of loyalty schemesand advertising campaigns designed to improve brand loyalty.Results indicate that the majority of customers would still return,even if a store scrapped its loyalty card scheme. While, only afew shoppers said they chose where they shop based on loyaltycards. On the other hand, the creation of an exclusive clubaround a new business proposition, or providing a personalservice, can work on a smaller scale. Action – Take heart, because big businesses do not have themonopoly on customer loyalty. Focus on providing personalservice, the unique advantage that small businesses have overbigger companies, or even reward your most loyal customers.

“Word of mouth”People are becoming more cautious about marketing messages,preferring to seek the unbiased opinions of other consumers.And, US market pundits have valued “word of mouth” at US $3billion! Action – Work on your recommendations through social medianetworks and face to face contacts, or offer a discount or otherincentive to any customer who recommends a friend or familymember.

“Community” marketing“Community” is the latest buzzword in marketing. Word ofmouth has long been accepted as the best form of marketing,but research has shown that the word of a complete strangercan be more powerful than the word of a friend! People canignore comments from a friend, if they read enough opposingviews on their “digital community”. Accordingly, social mediawebsite Facebook has recently launched “community pages” asan alternative to Facebook pages for businesses, organisationsand public figures. The community pages are driven by users,rather than brands, and advertisers are expected to targetcommunity pages as users flock to them, rather than pages setup by the brands themselves.Action – Do you know if anyone has a preference for yourservices and/or the “add-on” products you sell, or uses yourFacebook pages to support other communities or activitiesundertaken by others? If so, this helps to raise your profile andportray you as a positive community member.

Are you keeping track of the latest marketing trends?


Advanced analytics

Business intelligence has become even more important in2010, as more advanced data mining and analysisapplications, that smaller businesses can make use of, havecome onto the market. Business intelligence that was once anexpensive commodity is becoming available to smallbusinesses via on-line data mining systems, which enablecompanies to rapidly modify business plans in response tocustomer data. On-line marketing also provides users withfantastic insight regarding the effectiveness of a campaign.Social media usage data is also becoming widely availableand the behaviour of users will become an essentialcomponent of every company’s analytics in future.

Action – If you have customer data, or are thinking aboutpurchasing data for marketing, look at what on-line businessintelligence options could help you maximise it. On a basiclevel you could simply type your company name into socialmedia communities such as Twitter, Facebook and others, tosee what people are saying about you! Also, ensure that youanalyse any on-line marketing you have been doing, to seehow effective it has been in terms of views, clicks and audiencereactions. This information can be used to plan futurecampaigns.

“The rise of the Mum”

The marketing potential of women and mothers has beenrecognised, as they gain influence on purchasing decisions.

For example, social parenting websites “Mumsnet” and“Netmums” were targeted by political parties in the run up tothe recent UK general election. And, a recent study bymarketing agency, Iris, suggested that women make 80% ofall purchasing decisions.

Action – Ensure your sales and marketing messages aresufficiently attractive and accessible to female buyers. Test outyour adverts on female friends and relatives, if you can’t affordmarket research.

DIY market research

On-line survey tools have taken marketing departments bystorm. These easy-to-use tools are within the reach of anysmall business with an e-mail list, no matter how large orsmall. They can be used for assessing the thoughts andattitudes of your customer base, providing feedback formarketing and service/product development, and creatinginterest for participants who are interested in obtaining resultsby e-newsletter.

Action – Undertake an on-line customer survey and find outwhat your customers think about your services and products.Use the results to improve your service, price and product.

Social media

Digital marketing is reaching a tipping point; a growingnumber of companies claim that on-line advertising spend hasnow overtaken off-line spend. Computer company Dell claimsit made US $3.5 million in less than six months from Twitter,using a viral system! Discount offers are posted daily for itsfollowers, who then “re-tweet” the offers, attracting newfollowers. Many Twitter users are happy to be alerted aboutpromotions and special offers and, in turn, recommend theservices or products to other users.

Action – Try a social media course to see what it could do foryour business.

13

MARKETING FEATUREVolume 4, 2010

Do you have any news for Self Storage Europe?

If you have any News Items or Articles for the Focusmagazine, please e-mail your contributions toTony Richman at: [email protected]


14

Self Storage Europe COMPANY FEATURE

Golfbaan Spaarnwoude, which is located approximately 20minutes from the centre of Amsterdam, was the location for thisyear’s Netherlands Self-Storage Association Golf Day. Theevent, which took place on the 3rd of September, was hosted bySteel Storage Europe and organised jointly by Steel Storage andthe Dutch Association. The competition was close; however, the supreme victor wasRobert van den Bosch of Boedelbeheer, who beat the previouschampion, Bo Suchy from City Box. Robert’s victory wascelebrated with dinner and drinks at the SpaarnwoudeClubhouse, together with the other participants and othermembers of the Association and their partners. The relaxed andfun atmosphere ensured that it was a very pleasant evening.Adrian Starling, Steel Storage’s Sales and Marketing Director,had the following to say about the golf day: “We were delightedto host this enjoyable event for a second year, and we lookforward to partnering another successful year with our Dutchcustomers.”Training has already begun in anticipation of next year’scompetition; those who are interested in attending should sendan e-mail to: [email protected] Storage would especially like to thank Hubert vanWoudenberg Hamstra from the Netherlands Association, BoSuchy from City Box and the staff at Golfbaan Spaarnwoude fortheir help in organising such a successful day.

The Netherlands Self-Storage Association Golf Day

Hubert van Woudenberg Hamstra and Adrian Starling

The cup is handed over

Wim Hooijwn and Bob LukassenNicole and Bo Suchy


15

COMPANY FEATUREVolume 4, 2010

In this article, Tony Richman introduces us to a company inNorway (where a National Association exists) and a companyin Portugal, where the industry is still very new (and a NationalAssociation has not yet been established).

Holmen Minilager AS (Oslo, Norway)

Holmen Minilager offers a total of 370 storage units in threefacilities in the Oslo area; one has two floors and the othertwo are on one level. In addition:

• one has 2,500 m2 of storage space• one has 1,550 m2 of storage space, and...• another has 150 m2 + 600 m2 of storage in wooden

containers.

The additional 600 m2 of storage does not comprise staticunits; the containers are moved and stowed by fork-lift truck.

In the same building, their removals company also offersfurniture storage. The removals and specialist packing servicesare carried out by the family’s sister company, which tradesunder the name of Kristiana Visergutkontor AS, and servesprivate and business customers.

The sizes of the individual units vary from 6 m3 to 60 m3 andthe company also offers winter storage for motorcycles and carwheels. In mountainous, northern European countries it is

often necessary to fit winter tyres, and car owners usually keeptwo sets of wheels and tyres. Customers who have limitedgarage space, inevitably use self storage facilities to store suchitems. This generates all-year-round storage requirementsfrom regular customers, who can take up more space, or otherservice options.

All the units are equipped with alarm systems and customerscan only gain access to their units via the reception area.

Units are primarily rented by private clients; however, becauseof its removals company, there are some business customers.

...continued on Page17

The North and South of it!

Inside one of the Holmen Minilager facilities



17


And, a number of the smaller companies have contractedHolmen Minilager to act as a receiving depot for deliveries andthey use storage units for their stock, to avoid long-term leasesand the vagaries of seasonal trade and stock holding.

At present, the demand for self storage is very high andHolmen is already negotiating to build a new facility.

The company, which remains a small, family-owned business,advertises its services on the Internet; but, as is typical of close-knit communities, many new customers come fromrecommendations from existing customers.

Holmen Minilager is a fairly new member of the NorwegianSelf Storage Association, having joined in 2009. Its first facilitywas opened in 2002 and its latest in 2009; the family ownsone building and the other two are rented. All the buildingswere specifically rebuilt with self storage in mind.

The three Holmen facilities are close to full capacity and anyunits that are vacated are usually filled immediately. And, theymaintain a waiting list; so the next facility it opens should be offto a good start.

While there is a constant demand for storage space, there hasalso been an increase in the number of customers defaultingon payments; so, a fund has been set aside to cover bad debts.The company has also started a credit-check system for all newcustomers to help reduce this trend.

The family business was started in 1894 by a relative of EirekTaasen, the present manager and partner of Holmen Minilager.

From the start, the company offered everything from courierservices to removals and storage. The management noted thatpeople are basically “collectors” and that many new buildingsin the Oslo area have limited storage space. Also, familiesand students move to Oslo for career and study purposes,which has resulted in a large number of new apartments andhouses being built.

It is for these reasons that Holmen has focussed on thedevelopment of self storage and Eirek and his team are eagerlyanticipating the opening of their next self storage facility in2011. As Eirek said: “This industry is growing.”

We look forward to hearing more from Eirek and to follow thedevelopment of this well established but forward thinking andprogressive family business.

...continued on Page18


18

Espaço Para Tudo (Portugal)

While a National Association for self storage operators has notyet been formed in Portugal, this go-ahead company ispioneering self storage in Portugal and we hope that it will notbe long before an association is formed, so that we canwelcome them into the FEDESSA family.

To date, Espaço Para Tudo has established four facilities in:Amadora, Cascais and Rio De Mouro near Lisbon andMatosinhos near Porto. The Matosinhos facility is the latestventure, which opened in 2008. The first Portuguese facilitywas opened in July, 1998 which was before many otherEuropean countries.

Each facility has 2,500 m2 of storage space; two facilities areground floor only and the other two have ground and first floorlevels. On average, each facility has 240 units varying in sizefrom 1.6 m2 to 34 m2.

24 hour access is offered and each facility is covered byindividual alarms, CCTV and 24-hour security to givecustomers the most flexible service and peace of mind.

To date, storage space has been rented by domestic/privatecustomers, commercial/small business operators and serviceproviders. But, no special effort has been made to attract othertypes of storage, or to get involved in community or charityevents, creating innovative marketing techniques orincorporating special “greening or environmental”developments. However, such ideas may follow at a later date.

As is the case in many areas of southern Europe, bureaucraticconditions and laws can be over complicated; some mighteven say “archaic”. Therefore, all credit goes to Espaço ParaTudo for persevering with their business plan, which has earnedthem the position of “leaders of the self storage industry” inPortugal.The present facilities are a mix of new-build and renovations ofexisting buildings, and they are between 70 and 80% full. Espaço Para Tudo is already planning to increase the rentalspace in two of its facilities and is determined to expand southof Lisbon. However, purchasing power is generally low inPortugal, compared to other European countries, and its weakeconomy is only slowly starting to pick up.FEDESSA is impressed by Espaço Tudo Para’s expansion plansand wishes them well for the future. We also hope to see themin 2011 at the European Self Storage Conference in southernPortugal. Who knows, Espaço may even be opening a facilityin the Algarve by then.

Self Storage Europe COMPANY FEATURE


19


Inbox Storage was established in November, 2006 by Rik andNico Snelleman, and trading began in a former pottery factoryin Waddinxveen, Holland. The facility had 266 storage units,16 direct-access units and 800 m2 of passive storage space,which was used for bulk storage, mobile storage and for thestorage of summer/winter tyres. Recently the Waddinxveen sitewas dismantled and integrated into Inbox Storage’s new sitein Gouda, which has a potential 7,500 m2 of storage spacespread over two and a half floors. In addition, this site has upto ten office units with a shared pantry and conference room.Inbox Storage started in a vacant business unit. It filled thissite up in nine months and carried out several internalimprovements. However, it always knew it would have to moveto a better location, closer to its primary market in Gouda,when the right opportunity arose. And, by the end of 2008 abuilding was located on highway exit “Gouda Centre”, fullyvisible from highway A12/A20 which has around five millioncars passing by each month. Additional exposure is plannedin the form of a 16 metre high commercial pillar erected nextto the facility. Also, the site is located on the entrance road toan area that is being redeveloped into a large retail estate. At first plans progressed as expected, but during the purchasingphase of the new facility, the global financial and real estatecrisis hit the Dutch economy. The situation suddenly createdmarket uncertainty, leading to governmental and financeissues. It was no mean feat, therefore, that Rik, Nico and theInbox team managed to surmount these difficulties and startbuilding work on the 26th of April, 2010. During the design phase of the Gouda site, Inbox Storage wasgiven the opportunity to rent out their Waddinxveen businessunit. A condition was that the first floor of the Waddinxveen sitehad to be empty before the 1st of June, 2010. This left only45 days to get the Gouda site operational, dismantle the firstfloor in Waddinxveen and to move its customers to Gouda!Despite the considerable time pressure, Inbox was very pleasedto achieve its deadline, which underlines the determination andenergy of its go-ahead team.Inbox Storage firmly believes that rapid response to marketchanges pays off. By drastically modifying its marketing

approach, and adapting to conditions in the housing market,it was still able to attain its growth targets for 2008/2009. The new approach led to the establishment of a nationwidepartnership with “House of Kiki”, a training institute for interiordecorators. With this partnership, City Box has become itsstrategic partner and provides it with nationwide coverage.Together with “House of Kiki”, the partners now provide localreal estate agents with a home seller’s full service, “hands onsolutions”, presenting their properties in the best way possible. Based on Rabobank’s 2010/2011 quarterly housing report,small signs of recovery are now expected in the Dutch housingmarket. Since self storage is an industry driven by change,Inbox Storage is anticipating that a restored market andconsumer confidence will result in consumers making moredecisions that lead to change (planning rebuilds, havingchildren, moving, becoming self employed, etc.). Secondly,the housing market recovery will definitely help the sector togrow. In line with macro-economic tendencies and byreadjusting its company focus, Inbox Storage fully expects toattain its planned goals for the next three years.

Inbox Storage bucks the economic trend


Documents

Europe V4 2010:Layout 1 · Have we turned the corner? 3 Europe V4 2010:Layout 1 25/10/10 15:54 Page 3