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FINDING THE PERFECT MATCH
Software For Mobile Storage
By Elizabeth Ferrin
From logistics and management to sales and service, today’s mobile self storage owners and operators wear many hats. To be successful, they must do everything from converting callers to renters, optimizing pickup and delivery routes, tracking units that are both inside and outside the warehouse, and providing quality customer service to all of their customers.
In the face of so many responsibilities, industry professionals rely on their management software to help them deal with all these hats and run their daily businesses. As an irreplaceable tool of the mobile storage professional, finding the right software program is vital. Fortunately, it takes only a solid knowledge of the mobile storage business and a little research to uncover the best software to lead the way to optimum efficiency, productivity, and profitability.
Assessing Your Needs
A good place to start is by looking at the individual mobile self storage facility itself. Assessing the facility’s needs and business practices can help pinpoint the unique features needed in a management software package. Using a product that lacks the necessary capabilities for everyday business operations can create additional work and headaches rather than offering quality management solutions.
“The software has to match your business operations,” says Randy Weissman of St. Louis, Mo.-based Storage Banc. “If you have mobile and self-storage, choose software that can handle both. If mobile storage is added to an existing moving business, then there are different requirements. Also, avoid running two different systems simultaneously—one program for routing, inventory, and scheduling and another for billing.”
In addition to being tied to two or more software programs, many mobile storage stores also struggle when attempting to use traditional self storage management software programs. Although some mobile self storage stores successfully use this type of software, most professionals strongly advise that operators select a product specifically designed for the mobile self storage sector. Mobile self storage professionals face additional business and logistics issues in their everyday operations.
“If you try to use a traditional storage product to manage mobile storage, you’re going to miss out on a great deal of flexibility,” says Steve Hyman, president of DHS Worldwide Software Solutions, headquartered in Orange Park, Fla. “It’s important to have the extra features that enable you to continue to operate the way you need to. Trying to run a mobile storage business without a product designed for mobile storage hamstrings your operations and creates additional problems.”
Understanding The Features
When comparing management software, which features are most important to effectively run a business? “Our clients have told us, the more features you have, the higher the likelihood that you will not lose a unit,” says Markus Hecker, marketing director for Raleigh, N.C.-based SMD Software, Inc. “Our clients have also said that the more features you have, the lower your operating expenses month in and out, and the more reservation calls you will convert to rentals.”
Most traditional self storage management programs offer basic accounting features such as general ledgers, billing, and a trigger for automatic late charges. Many also provide the ability to print various forms including leases, purchase orders for commercial clients, and work orders. Mobile self storage owners and operators should, at minimum, look for a software program that allows users scheduling, routing, and tracking abilities.
Scheduling features give operators the ability to quote customers on the availability of storage units. This allows users to quickly determine what openings are available and what days and times units can be delivered. “It’s important to manage the resources that you have as a part of the management process,” says Hyman. “You need to know how much manpower you have to drive trucks, and how many trucks and forklifts you have so you don’t over-schedule.”
Routing is also an important factor to consider. “Routing involves calculating the best route for trucks to drive,” explains Hecker. “Routing manually takes a lot of labor time and wastes gasoline.” Also, an accurate mapping feature and a solid dispatching process should be included.
This becomes especially important in the real world when customers are not quite sure how many containers they need. If they order too few, additional units will need to be sent out immediately. Likewise, customers may find the containers are more spacious than they realized, causing them to send the excess units back. A good software program should handle either situation.
Software that offers tracking capabilities gives users an easy way to locate storage containers both inside the warehouse and outside the storage facility. “One of the main capabilities people should look for is the ability to track the location of the containers because they are not stationary,” says Hyman. Often, the tracking system can be combined with GPS technology, which allows operators to nail down the exact physical location of each storage container.
The best software programs will also help owners and operators properly bill their customers and provide them with the correct dollar figure for taxes due. Generally, mobile self storage owners pay taxes based on where the units are delivered regardless of the actual location of their mobile self storage stores. “This means you’re dealing with multiple tax authorities,” says Chuck Sowers, vice president of sales at Orange Park, Fla.-based DHS Worldwide Software Solutions. “Your software needs to provide a report to support multiple tax codes.”
Web-based capabilities are also important for stores that want to give customers the flexibility to see their bills, manage their accounts, and pay their rents online. To activate this feature, the store will need to create a company Web site. If one does not already exist, seek out a software program that has a usable Web page and Internet functionality already integrated into the management software.
Automatic billing is also an important feature. In addition to automatically charging tenants’ credit or debit cards every month, find a program that allows for ACH bank drafts. “ACH bank drafts are automatic deductions from a checking or savings account,” says Hecker. “They are not a debit, so the fees are much less than with automatic credit card charges.”
Credit card fees are generally two to three percent of the total amount, which adds up to about $2.50 for a $100 rental. ACH bank drafts, on the other hand, are generally a fixed fee of about three cents per transaction; hence, the customer using the credit card payment is costing the owner about $30 per year in fees, while the customer utilizing the ACH bank draft feature carries fees of only 36 cents. When multiplying this small cost by 100 customers per year, the fees rack up to $3,000 versus $36—a substantial potential for savings.
Other Considerations
With their own unique needs in mind, some mobile storage professionals have developed custom software programs for their individual stores. “Most of the industry pioneers have developed software in-house,” says Weissman. “The advantage is that it contains the features you want and is customized for your business. The disadvantage is that it is costly, not only in the development stage, but with ongoing maintenance and upgrades. However, I have seen budget-conscious companies manage inventory with Microsoft Excel® and scheduling with Microsoft Outlook®.”
The final feature to consider is the cost of the management software. Generally, the price for software programs varies greatly depending on the owners’ needs and the capabilities offered. When comparing costs, be sure to consider support fees, ongoing maintenance, and necessary hardware upgrades into the total price. These factors alone can add several thousands to the total price tag.
On a final note, it is a good idea to check a software company’s references and ensure they have a number of satisfied mobile self storage clients when considering a new management software system. It is also wise to ask for a free trial of the software and test it out before making a final purchase. There are many good software programs available, but the right software program will give owners a great place to rest some of their many hats and allow them to focus on daily management and business success.
Elizabeth Ferrin is a freelance writer and editor based in Maple Grove, Minnesota. She is a frequent contributor to the Mini Storage Messenger, Mobile self storage Magazine, and RV & Boat Storage Today.
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