“We’re spending $1 million a month with Google,” Woolley says.
Although about a third of Extra Space’s customers come directly from the Internet, almost half pick their storage company by driving around the neighborhood. For that reason, customer service is a high priority.
Extra Space office staff are expected to make sales and convert as many customers as possible to credit card automatic payment, thereby prolonging their tenure. Employees are paid $10 to $30 an hour, and in some markets managers get on-site housing.
“You might offer an apartment in New York, New Jersey, Miami or Dallas to hire a more qualified candidate,” Kirk says. “That’s very appealing to a lot of folks.”
Extra Space taxes its long-term tenants for their loyalty. Rents are raised after five months and then every nine months after that. The company earns extra money by offering insurance on the items stored, starting at about $10 a month.
Insurance Profits
“We earn 80 percent margin on that,” Kirk says.
Tenants are required to have insurance, which can be via an existing policy. Extra Space also sells company-branded items such as locks, packing tape and boxes.
Kirk talks the language of Silicon Valley, describing his job as “evangelizing” the corporate culture, one of continuous improvement.
“The best at getting better” is the motto on a company PowerPoint.