We are acutely aware of the excess capacity of 15-20,000 rooms nationally. What is of interest to us is whether or not they are fundamentally viable on a medium-term basis; in other words, whether they are capable of generating sufficient sustainable cash flow to service the debt associated with them. With that in mind, we will review in detail the business plans of the debtors and assess rigorously their price and occupancy projections for the hotels. As there has been much misinformed talk of NAMA keeping so-called zombie hotels on life support, let me be clear about this point: if debtors cannot demonstrate that their hotel businesses are viable, NAMA has no intention of pouring taxpayer’s money into black holes. In fact much of the so called predatory pricing is in our view driven by non NAMA Hotels.”

 This is an extract from a recent speech given by Mr. Daly, the Chairman of the Government body NAMA, set up to acquire loans from the banks and secured on property. The intention of NAMA is to hold onto the assets until they can be sold sometime in the future, hopefully at a profit.

 The above article shows many hotels in deep financial difficulties. They are either in the hands of NAMA, foreign banks or are being managed by receivers. Some should be shut down but the philosophy of the government is to “wait for economic value”, based on the questionable belief that in time property will once more grow in value and then they will be able to sell these hotels at a profit. (In time we will all be dead). The implications for the once dynamic tourism business are terrible.

The self storage sector is aware of the problems of the hotel industry and is reacting accordingly. In an earlier article we warned our industry leaders about this. The reaction from some of our colleagues was horror that we should raise such a terrible scenario for the self storage industry. They were afraid that we would damage the sector. However, is it not better to face up to the dangers and take appropriate action now rather than bury our heads in the sand?

It is not an accident that Elephant Self Storage coined the catch phrase “The Hotel for Your Goods”. A modern self storage facility is very like a hotel. Both share much in common. Instead of “storing” people a self storage “hotel” provides rooms for people to store goods. The economics of running a hotel and running a self storage facility share much in common. Therein lies the problem

Both businesses have substantial fixed costs including rent or loan repayments on premises, capital investment in fitting out the premises, staff wages, parking, depreciation, wear and tear, rates, electricity, security, administration costs, housekeeping, insurance, maintenance, and of course marketing costs. Both businesses depend on occupancy levels. Critical to both businesses is the income generated from letting the rooms. If the occupancy level is not sufficient to cover costs or if the rental income from letting the rooms is insufficient then the business fails. That is what is happening to hotels in Ireland.

So far only one self storage facility has followed the route of the hotel industry. A very large facility in Dublin went into receivership last year. It was charging too little for its rooms and the occupancy level was too low to cover its fixed costs. The rest of the industry comprised of about 22 facilities spread around Ireland is aware of the dangers and has learnt some lessons from the causes of the hotel crisis.

Everyone knows costs must be kept under a tight rein. Marketing must be designed to show the advantages and benefits of self storage, not just to the important bread and butter business of home owners, but crucially must be directed towards business and professionals. Here the industry is making sound arguments for using self storage such as the saving in rent costs and flexibility in leases. In a normal business premises about one third of the space known as the “common area” is used for moving about the building and covers corridors, hallways, loading areas, toilets, reception, lifts, and so on. In a self storage centre there is no charge for this wasted space. There is an immediate saving in costs of one third. The space rented in self storage is 100% usable.

The cost of security in most businesses is extremely high. In a self storage facility it is included in the rent.  Elephant has over 80 CCTV cameras monitoring our premises at all times. We also have an outside firm monitoring on 24 hour basis, with the ability to call the Gardai if they suspect something. Other business costs when renting typical premises have to pay rates, electricity, maintenance, premises insurance, cleaning, heating, parking, wifi and so on. However when using a well organised modern self storage facility there is just one charge and it includes all these hidden substantial overheads.

The modern progressive self storage business has taking steps to avoid the fate of the hotel industry by showing the many reasons why intelligent business owners are increasingly using self storage. Here in Elephant we have added a Business Incubation Centre for small business, and a Business Centre for our more established clients. We have a large trade showroom for exhibitions or conferences and a training room for about 75 people. Businesses can locate their entire operation in our facility with the flexibility of changing space from time to time and the option to stay as little as a day at a time.  

When you are considering where to locate your business or just to meet storage requirements, consider the lessons of the hotel industry with cancelled wedding receptions and a receiver appointed out of the blue. If you are offered a price by the self storage facility which seems too good to be true, then that is just what it is. Your storage operator has to manage the business in a sustainable manner or else NAMA will come calling. Be alert!

Student Deal - Storage Rooms & FREE Collection service*.

Students!

Going Home or Travelling for the summer?

Need Storage?

Secure Own key Storerooms. 

€10 - €12 per week!

FREE Collection Service

Students store their personnel belongings in secure own key storerooms, nobody else has access to their room. Our facility has 800 rooms, it’s very clean and dry and security is at the highest level. This storage is hassle free and easy to organise.

4 Easy Steps to Storing

1. Pack your belongings

2. Meet us to show ID and sign in

3. We will arrange collection time.

4. You lock your unit

We are now offering a FREE Collection service for students, when they prepay for 3 months.

Go to www.elephant.ie

info@elephant.ie or ph: 01 494 0000

How to book either book online

Storage Rooms

Thank you Letter from SVP

To all the generous people who dropped off toys at Elephant Self Storage in Tallaght, thank you from the St Vincent de Paul. John Brady has ensured the toys will be disturbed to children in need this Christmas in the Tallaght area.

Jude O'Meara

'TOYS FOR TUBS' - Third week now and the presents are pouring in. Thank you to all the generous people who have dropped toys off at Elephant Self Storage and other self storage centre’s around Ireland in association with the Irish Self Storage association.

We are storing the toys in a secure, dry and clean storage room ready for collection on the 8^th December 2010.  Plenty of room in the storage unit so find out how you can Join In!!!

Count Me In!

Ryan Tubridy from 2fm wants lots of toys for Christmas. Not for himself, but for all the children around the country who will be in need this Christmas. We're working with our friends in St Vincent de Paul to make sure that no child is without a toy this Christmas morning. Are You In?

For more info on the Toys For Tubs appeal, click here!

TOYS FOR TUBS  FOR SVP - GIFT IDEAS:  

 No large presents – size wise..   Vouchers are perfect.

 Click to download the Toys for Tubs for SVP Gift List Nov 2010.doc

Get what you would like …for yourself or family…

Ask in your local BOOKSHOP. Book sellers are always able to recommend good books for kids of particular ages, and they will know what is popular.

Vouchers… ‘One for all’ are great. … and they can be used in a variety of shops and not supporting any one store/company.

Do not wrap the presents… unwrapped

Minimum value €10.   

New- no second hand toys………  please

Thanks 

 Elephant Self Storage team

Network Van rentals offers Van and Truck hire to Elephant Self Storage clients

at the best rates in Dublin.

Network offer  a wide range of self drive van and truck hire vehicles to both Business and Private users in Dublin.  If you are moving house or business stocks, clearing stuff or moving office goods they offer a low cost and flexible service .

The long hours of opening to collect and return vehicles will suit most users and you can rent a van for just 1 day or 6 months, or anything in between.

Should you need a van driver they will organise this for you once you book in advance.

Elephant clients rent at special Low Cost:

Van Hire for just €40 + vat per day or €200 + Vat per week.*

Why Network Van Rentals?

o                 100% Irish Owned

o                 AA 24/7 break down assistance for peace of mind

o                 Insurance can be provided on vans and trucks up to 7.5 ton

o                 Van Rental to UK and Rest of Europe

o                 Insurance cover provided

o                 Best Rates Dublin

o                 Drop back up to 9pm everyday

*There are some terms and conditions but nothing complicated.

PH: 01 4426640 (Mention that you are an Elephant client)

SO, HOW CAN YOU HELP?

Buy a toy.

Don't wrap it! (Thanks)

Drop it off at Elephant Self Storage in Tallaght.

Drop off times are between our working hours Monday - Friday 9.30 - 17.30, Saturday 10 - 14.00 Closed Sundays.

Ryan Tubridy wants lots of toys for christmas. Ryan and the Society of St Vincent de Paul are working together to make sure that no child is without a toy this christmas morning. Elephant self storage in assocaition with The Irish Self Storage is a drop off point.

You care for your property at home/in business.

What about where you store it?

The financial crisis in Ireland has reached the self-storage business. In recent days a very large storage facility in Dublin has gone into receivership.

A trawl through the accounts of other storage businesses can help you decide where to store as much as the cheapest price. One large firm has written off €29 million following expansion at the height of the Celtic Tiger. Another firms accounts show it has borrowings in excess of €10 million. Other storage firms accounts show serious losses. Some storage firms are highly exposed to their banks including Anglo Irish Bank. Most of our competitors show an excess of liabilities over assets. Be careful where you store your goods; the cheapest price could turn out to be the most expensive!

Why is this?

In recent years a number new firms entered the storage business. Property was purchased at the height of the property market. Some existing firms expanded, borrowed serious money and bought premises at ridiculous prices. They are now caught in the financial crisis with falling rents and unsustainable bank borrowings.

Unsustainable Pricing.

How have they reacted? The firm which has just gone into receivership was offering rents at as low as a €1 a month. Other firms are dropping their rents in a race to the bottom. It is only a matter of time till some of these firms follow the same path as the large firm in receivership here in Dublin.

A complex business.

The operation of a self-storage facility is a complex mix of many things. There is the substantial capital requirement for the purchase of premises. Then there is the fit out cost of the individual rooms and the provision of fire safety requirements. The cost of providing security is massive. In Elephant Self Storage our facility in Tallaght we have invested huge capital in electronic and physical security. We have seven levels of security including over 80 individual CCTV cameras with 24 hour live monitoring and remote security monitoring which will talk live to anyone attempting to enter our compound. Management systems are installed to control the hotel-like facility with numerous different size rooms for clients staying from a day to years with some moving between different size rooms as their businesses change from time to time. Then there is the investment in staff, training, marketing, offices, rates, insurance, maintenance, cleaning, special designed lifts, parking and loading areas and exclusive to Elephant storage, a Business Incubation Centre (www.ebic.ie) to allow business clients not only to store their goods but to run their entire business from the one location.

How can a self storage facility provide that level of professionalism demanded by discerning clients for silly rents? The answer is that it is not possible.

Cheap?

If you just decide to rent from the cheapest storage centre then perhaps you should ask a friend to loan you space in a garage or buy a garden shed. Perhaps you are not worried about damp or theft. Your friend will not mind giving you access when ever you want to visit your goods. Insurance is not important and cleanliness is unimportant. Then that is the way you can save money.

Silly.

On the other hand if you value your possessions you must decide if you want a cut price operator with a very real danger that they will go bust whilst storing your goods or alternatively you decide to store  in a facility like Elephant Self Storage that has been run by a family in business for over 50 years and is financially strong. Check us out. Our annual accounts are looked after by KPMG and Smith & Co, Chartered Accountants. Our bank is AIB, Crumlin Road, Dublin 12 and our solicitors are Eversheds O’Donnell Sweeney. Unlike most other self storage facilities our accounts show we are well capitalised, and well financed.

We monitor our competitors to make sure we are highly completive. Our prices offer excellent value but they are not silly. Your goods mean a lot to you and the last thing you want is to find yourself caught up in a receivership. If a price is too good to be true, then most likely” it is too good to be true". Be careful,

( And, we want to be in business for another 50 years! )

NOTE: The sources for the data in this blog are available on request.

 We have all sorts of interesting customers in Elephant Storage. I would like to share a lovely story of a couple retiring and starting a new life aboard in Israel.

Five years ago a doctor from Tallaght Hospital and his wife were one our 1^st customer’s when Elephant self Storage opened in Dublin in 2005. They decided to sell their house and took a small storage room to de-clutter as they prepared to sell up.  As Elephant is convenient to Tallaght Hospital in Dublin it was easy for our clients to drop in and out with   their belongings and over time I got to know them like good friends. 

After successfully selling their home in 2007, they took another room to store the rest of their belonging that they didn’t use on regular bases. They took to the sea on their modern catamaran to exotic places like the Caribbean. They spent the last couple of years sailing around the world, popping back home to friends and family on a number of occasions. These trips home also included a visit to Elephant Storage in Dublin to pick up a few things and put things away.

I enjoyed meeting them every so often and finding out where they had been and where they were setting sail to next. It was clear that the new life really suited them and they were enjoying it.  The final time I saw them was in August 2010 when they were packing up the last of their belonging and shipping them over to Israel from our Storage Centre. They were excited about their next venture and are looking forward to starting a new adventure in Israel where they will be settling with friends and family.

I wished them all the very best in their new start and thanked them for their custom over the last five years.

It’s sad to see one of our first customers leave as they had become part of the Elephant family.

Have you an interesting story? Why not drop in and tell me about it or email it to me. JUDE.

• Will friends and family be able to help?
• If they are, will you have someone to help you when you arrive?
• Make sure you have enough time to pack and unpack not just boxes but the van?
• Check what size van or trailer you’ll need?
• If you are hiring a large van or using a trailer check that you have the correct drivers licence?
• Do you have the strength to lift and carry all those boxes or do you need assistance?
• How long is the journey to your new home? Allow time for breaks
• Will you have the energy to unpack the van when you arrive or should you hire the van for an extra day?
• Are there special requirements for moving heavy appliances?
• What about the family? Will they travel with you or separately?

If you’ve answered these questions satisfactorily then DIY moving may be best for you. Have a look at our Moving Tips articles for general advice and guidelines on the best way to move appliances, equipment, pets and children.

Don`t forget that the staff at Elephant Self Storage are here to help at every stage whether you need short, medium or long term self storage. So do contact Jude, Joanne or Marius we'll be delighted to help where we can.

phone 01 4940000 or email info@elephant.ie

Jude

Full Time Office & Field Sales Job 

Initial 3 Month Contract leading to a permanent position for a suitable candidate

About the Job We are a leading Irish Self Storage company based in Dublin 24. Our clients are local, national and international and we operate as a small team in a facility with over 800 different sizes storerooms. We require a person to sell our services to clients as varied as Medical, Solicitors, Furniture Designers, Retail, Distribution & IT, etc. There is great scope to grow the business with potential earning in excess of €50,000 per year.

About You You must be an experienced sales person who can demonstrate sales achievements in a similar business but we will train you about the storage industry. Are you an effective communicator that can develop new business accounts and service established ones? Are you a goal oriented team player that can self manage and achieve results? Are you: Entrepreneurial? Ambitious? Goal Oriented? Enthusiastic? Then you are the type of person we are looking for. You will need excellent Interpersonal skills ,
enjoy working with people and be a trustworthy, self motivated, career orientated team player who is target driven, decisive and ambitious. You will have a full clean driving licence and your own car

We offer: Performance Based EarningsFull Training

Apply by email with a covering letter to jude@elephant.ie

DUE TO THE HIGH VOLUME OF APPLICATIONS RECEIVED WE CAN ONLY RESPOND TO CANDIDATES WHO MEET THE ABOVE CRITERIA.

Elephant Self Storage