Norman A. Kotoch, Jr.

By Victória Oliveira

orman A. Kotoch, Jr., worked as an attorney for almost seven years before joining his family’s self-storage business, Security Self Storage. At the company, he was able to grow it from a single facility to seven, three of which were built from the ground up. The building experience taught him skills of the craft literally from its foundation, as he was responsible for site selection, entitlements, and construction oversight.

However, the skills he developed from it that impact his day-to-day life the most now were his experiences overseeing the hiring of staff, training, and managing facilities. These roles gave him the chance to learn invaluable people skills, which are an integral part of his new business and the expertise most clients look to him for guidance.

Kotoch, Jr., entered consulting when he sold one of Security Self Storage’s facilities to Merit Hill Capital, the top operator that brought him on as a consultant for the business right away. He never thought of becoming a consultant up until that point, but it has become a big part of his work, and it’s where he truly found himself, even though he’s been a part of the industry for almost 30 years.

Alongside his family, Kotoch, Jr., made the executive decision to start selling some of their Security Self Storage facilities approximately seven years ago. Then, three years passed, and they had already sold six of the seven facilities in their portfolio. In the meantime, with the support of Merit Hill Capital’s CEO, Elizabeth Raun Schlesinger, he reinvented himself professionally, mostly working at his very own venture, NAK Management and Consulting LLC. “She gave me the opportunity around seven years ago to offer these services to them, and that’s how I got my start,” he says. “I never thought that I would be here; it was just kind of a natural progression, and I’m very grateful for it.”

When consulting for small business owners, much like the one he once managed with his family, Kotoch, Jr., suggests focusing on their strength: their ability to offer a personalized experience. “With one to five sites, they are able to be there more often and offer a personalized touch while doing things their competitors probably can’t do, like a more personal relationship with their customers, which I highly recommend,” he states.

However, Kotoch, Jr., has a business motto he works by and teaches others to do the same. “I believe that owners and managers need to have interactions, not transactions, with customers,” he says. “I always trained my managers to treat people like you care about them and don’t just go through the paperwork, [but rather] listen, understand, and guide them through the process. Often, I see managers not even standing or greeting customers with a smile when they come into the office. Then they ask the customer questions like, ‘What size do you need?’ That drives me crazy, as most of the time a customer has never used storage before. They are looking for us to help them.”

Kotoch, Jr., advises his clients to make sure to “at least acknowledge customers entering your facility if you are busy talking to other clients. A simple smile and letting them know they will be with them shortly makes a world of a difference.” Another important practice he ensures his clients put into place is to always get the person’s name and contact information for follow-ups, which he’s noticed most companies are failing to do. “Letting them walk out [of the facility without acquiring their personal information] is similar to catching a fish, letting it off the hook, and hoping you will catch the same fish later, rather than just bringing that fish in and being able to connect with that person at a later date.”

The market is “the worst that I have seen in my 28 years in the business,” says Kotoch, Jr. As such, he points out the increased value of every customer who calls or visits the store. “Converting the fewer number of customers is critical. If you just lower prices, that’s a race to the bottom. I have always felt that providing exceptional customer service with a quality product, unlike your competitor, differentiates you and ultimately leads to greater profitability. Those whom I consult for understand that and are adapting successfully to this market.”

Instead of lowering prices, it’s better to research your competition and offer a service they might not have. “You should differentiate your product from your competitors,” says Kotoch, Jr. “[For instance], if your local competitors have standard storage, you have to put climate-controlled storage up. Find ways to create a better product, whether that is adding more security features or improving customer service. You have to differentiate yourself from your competitors, so you don’t solely need to use rates to compete. Because when you do that, it’s ultimately a race to the bottom. No one wins.”

One thing he always teaches managers is that you can’t be apologetic for rates. “Don’t be apologetic. Instead, be honest with customers,” says Kotoch, Jr. “Tell them you are not the cheapest option, but you will offer them the best products and the best customer service, and that sometimes your services are not for everybody. If they are shopping around the price, that’s OK. That has really worked in our favor because people appreciate quality, service, security, and cleanliness. If you excel at those, you don’t have to compete in price as much.”

He also highlights the importance of ensuring your facility is clean, well-lit, and secure. “We have found that cleanliness and security are probably the primary things people look for, especially women, when they look for self-storage, so make sure you offer that.”

Kotoch, Jr., believes a positive self-storage business customer service starts with empathy. “In addition, [customers] are typically going through a stressful time in their life, such as moving, relocating, divorce, remodeling, and even a death in the family,” he says. “It is our obligation to assist them, take control, and guide them through this process with comfort and knowledge. Building rapport is more important than trying to make a sale. If you take care of the first, the second inevitably follows, so always be human and don’t treat people like they are just numbers.”

For investors looking to join the market, he advises doing ample due diligence beforehand, as he has seen a fair share pull the plug on entering the industry after doing so. “I always tell people to get a feasibility study done before purchasing any land to find out what that market can bear,” he states, adding that it’s probably a good idea to get a specialized company to do so with no other ventures correlated to the business. “There are entities out there that offer those feasibility studies that aren’t management companies or construction companies. If you can find a third party that does nothing to the industry, it will probably be the best way to find out how the market actually works. And spending $10,000 on a study will be a lot cheaper than building a facility for several million dollars and finding out it’s not feasible later on.”

As for the future of customer service in the industry, Kotoch, Jr., says, “As technology creates more situations with less human interaction, finding a way to use technology and not lose that personal interaction is important. For instance, if you are going to use technology in a video screen to greet a customer, you can still reach out with a follow-up email, or even a phone call, or some type of gesture to show that they are appreciated on more of a personal basis. It’s OK to use technology, but still make sure to find a way to make it personal.”