Terry D. Anderson is CEO and president of Arizona-based Tenant Property Protection, dba, RV Park ‘n’ Protect, which partners with RV, boat and self-storage operators nationwide to provide protection of tenant goods/vehicle assets while maximizing facility revenue. He has 37 years of experience in nonprofit, retail and professional services. Terry is also Chairman of the Toy Storage Nation Executive Board, where he provides a wealth of experience to entrepreneurs and veterans alike through presentations at Toy Storage Nation Executive Workshops and resourceful articles published the TSN website.
- Why should RV and boat storage operators consider inclusion of ancillaries within their business plan?
Ancillary products and services provide a nice, unique cash-flow center for an RV and boat storage owner and operator. The best ancillary products or services are the ones with the lowest upfront investment and the highest ROI for the facility. The inclusion of ancillaries must be considered to optimize this “ready-made” customer base of a facility who need these products and services. This ancillary revenue center provides an easy upsell opportunity for additional cash flow to the facility. With a well-thought-out investment in inventory and storage space, it is easy to answer the “why” – good products plus services = profits!
- Does it matter how large the facility is, or should all facility operators dive into ancillary offerings?
It does not. The only consideration pertaining to facility size and ancillary products/services would be the upfront cost, selection, space to sell and inventory storage needed to serve one’s tenants.
- What can owners expect if they provide ancillary products and services?
If the owner/operator creates an intentional plan, they may bring in an additional 3 to 10% revenue through these ancillary sales.
- Can you provide a list of ancillaries, and put them in “must haves” and “could haves”?
Must Haves for the Executive RV and Boat Storage Facilities:
- RV & Boat Protection Program
- Electric or Solar Battery Trickle Charges
- Oil Pans and Chalks
- Disc Locks, Pad Locks, Wheel Locks
- Concierge Services
Could haves for the Executive RV & Boat Storage Facilities:
- Magnetic LED lights and Power Adaptor Plugs
- Heavy-Duty, Extension Cords
- RV/Marine Toilet Tissue (100% Biodegradable)
- Tarps, Trailer Balls, Gas Cans
- Humidity Absorbers
- What level of financial commitment should they budget for to begin adding ancillary products/service to the facility? Does it make the best sense to include them in the initial design plan and budget? Or, should they focus on just getting opened for business, and add ancillaries down the road? Why?
Minimum to start. There are products/services that can be obtained with no upfront cost or on consignment or a small deposit. Start there.
Yes, it makes sense to make a plan for ancillary revenue in the initial design plan and budget for a facility. Why? It impacts office space, personnel, inventory storage and more that needs to be pre-planned.
Yes, an owner can wait. But why lose the income on a simple add-on like an RV & Boat Protection program. Many owners learn that the way you start will make all the difference in the “lease up” and “revenue up” start-up phase with a 5-10% revenue boost!
- What ancillaries should be free to tenants (included in their monthly fees) or add-on fee-based services?
The best free offers are RV rinse bay, water for vehicles and an ice machine. The best add-on fee-based service example – inclusion of an RV and Boat Protection Program in the lease price for marketing purposes.
- How important is it to offer tenants’ insurance policies, and what, if any, should they offer? Do storage operators have to make an initial investment to offer insurance policies to customers?
VERY Important due to the vehicle insurance coverage “gaps,’ large deductibles, lowered or nonexistent comprehensive/collision coverage, and non-existent or liability-coverage-only with owners who only use their RV and boat 45 or less days a year! The only one out there that stands alone and is the industry standard everyone is trying to copy – RV Park ‘n’ Protect (formerly RV Gap Coverage)! There is no initial investment and only underwriting approval needed to offer.
- Can you explain the different types of insurance that facility operators can provide?
First, facility operators cannot legally provide insurance unless they are licensed insurance agents or state limited licensed entities. And the only insurance that can be provided would be tenant insurance. Tenant insurance policies are limited to “content-only” coverage or external-damage only coverage. However, an RV Park ‘n’ Protect product is a comprehensive (accidental protection while within the facility grounds, deductible reimbursement and contents coverage – both onsite and offsite) protection plan sanctioned through an owner’s lease and a third-party agreement between the owner and RV Park ‘n’ Protect. Then, an owner/operator/manager may sell the protection plan over the counter (just like at Best Buy or Verizon). The percentage for an owner is based upon their sales of the product with as high as a 60% commission earned for this new, ground-breaking product.
The “RV Park ‘n’ Protect Lunch and Learn” at Toy Storage Nation Executive Workshop provides a great overview of the ancillary products and services an RV and boat owner can provide for additional revenue. This presentation is led by Terry Anderson, who keeps the topic lively and relevant. The session concludes with a great Q&A session that is both interesting and informative. The next TSN Executive Workshop is June 16, in Colorado. Learn more and register today.