Article

Is that a self-storage kiosk in your pocket?

Will a website created to help consumers rent self-storage units via mobile phones be the end of kiosks in the industry?

January 31, 2011

The self-storage industry is steadily embracing kiosk deployment to allow customers to rent and pay for storage units, according to research conducted by OpenTech Alliance, Inc., a developer of self-storage solutions. And that trend is still growing, said Robert Chiti, president and CEO.

"We saw the actual number of rental transactions per facility increase on average from 2.7 rentals per month in 2009 to 3.4 rentals per month in 2010," he said.

Chiti's data reflects the self-storage kiosk industry as a whole, as his is the only company that manufactures kiosks for self-storage operators. Last year, consumers used kiosks to rent 19,135 storage units, to make 167,565 payments and to purchase 9,752 locks, representing $18.8 million in self-service transactions.

"We believe we'll see the average number of rentals per kiosk reach six per month in the foreseeable future," Chiti said. "While some may see this as an aggressive goal, today the Top 100 kiosk installations are already exceeding that objective."

However, Tron Jordheim, said mobile transations are about to push kiosks out of the market. In fact, his company, PhoneSmart, a call center that fields help calls for self-storage facilities across North America, has developed a website that he predicts will replace new deployments of kiosks.

Self-storage-kiosks.com allows consumers to rent storage units from their Smartphones instead of using on-site kiosks, that Jordheim said, can cost storage operators up to $50,000.

The website's slogan, "You have a self-storage kiosk in your pocket," speaks to the recent advancements in "smartphone, tablet technology and website development that allowed for the creation of virtual self-service kiosks that cost next to nothing," Jordheim said in a press release.

How it works

Self-storage-kiosks.com features a three-step process that makes it seem easy for operators to set up the mobile process.

• Step 1: Generate a free Quick Read (QR) Code using free websites, such as qrcode.kaywa.com
• Step 2: Print a sign from your local printer who can create filers, banners and signs
• Step 3. Hang a sign and let your QR codes do the rest.

Jordheim said customers rent by phone using the QR codes on their phones but then check in at the storage facility office to pick up keys.

But is it really that easy?

Chiti said that although people may eventually use mobile phones to rent units, it won't be anytime soon. And even when that day comes, consumers will probably use both technologies.

"We tell our customers they should accept payment any way their customers want to give it to them," said Chiti, who noted the average cost of kiosks actually range from $5,000 to $18,000. "The world is about choices, not about forcing behavior."

The kiosks are equipped with call-center services that help consumers through kiosk transactions over the phone, an element that Chiti said has been crucial to his success but also puts him in direct competition with PhoneSmart. Instead of storage operators buying kiosks from OpenTech and then hiring another business, such as PhoneSmart, to field its customer help lines, OpenTech offers both services.

Chiti said the fact that people still need help with kiosk technology is proof that the learning curve is too high for mobile technology to overtake kiosks any time soon.

"So let's think about this with mobile," Chiti said. "Even if you get people who know how to use the technology, do they have the right phone? If they do, do they have the right app? And if they have the right app, has that business owner opted into the service? Some day it will happen, but not any time soon."

Cash may not be king, but it's still important

Versatility of payment is another reason Chiti predicts people will still use on-site kiosks to rent storage facilities. Last year, cash accounted for 26 percent of OpenTech's payments, and 19 percent came from checks.

Chiti doesn't think any type of technology – even kiosks—should rule the self-storage industry. He said the best way to ensure success is to let consumers have a variety of options.

"It's not kiosks vs. mobile," he said. "It's about finding the most convenient way (to do business)"

And Jordheim thinks that's mobile.

"Companies that already use kiosks are stuck with them until they decide to stop paying their monthly maintenance charges, but companies who have been entertaining the idea of buying a kiosk will probably pass and just print a QR code sign. So yes, kiosks in self storage will disappear as mobile service use increases."

However, Chiti said Jordheim's website is good in theory, but the practicality isn't there, yet.

"It's easy to say renting units from your phone sounds like a great idea since the technology is there, but that's the easy part," he said. "It's about all those other pieces."