eKourier April 2014

Kennards Kourier B ack in 2013 we achieved our goal of 40K in 40 years. It’s now time to set a A new goal has been set! 50K in 41 Years

April 2014

new goal and continue with our successful formula, our aim for this year is 50,000 units rented by December 30, 2014. WHY ? Held a few years ago, Momentum 12 was an important event, which set the strategic direction of the business. During this time we established our dream of becoming a “Famous Household Name”. Our goal to achieve 40K in 40Yrs was set; as was our four pillared strategy. The focus was to:

Celebrations last year when our goal of 40K in 40Years was achieved.

deliver superior value and a sustainable competitive advantage. Without a goal, we lesson the potency of our overall strategic plan. Without a goal, the plan loses currency and momentum can slow. For this reason it is important to keep our strategic plan at full strength, and give it every opportunity to succeed. The goal is important to the overall plan, because it represents the core principle of our success -“customers”. We are a service style business, completely dependent on our customers for survival. Achieving our goal is the perfect indicator (measure) that our strategic choices are working. It’s a tangible number that can be tracked, measured and ultimately

“ The goal is important to our plan, because it represents the core principle of our success - “customers” ” celebrated when it’s achieved. The 2014 target is ambitious but very achievable based on our historical perfor- mance, and our future activities. Without an ambitious target we encourage mediocrity. Getting to 50K units rented will be a wonderful milestone to reach at the end of the year and one worth celebrating. Darren Marshall General Manager

Create Exceptional Customer Experience

Find and Retain the Best People

Continuously Innovate

Grow and Strengthen “our Brand” under FREEDOM

Each of these strategic positions is a unique and integrated set of choices to

1

Kennards Kourier April 2014

WHO’S WHO

Team Member Profiles

In this issue 50K in 41 Years

Kaylene Whitfield Customer Care Team - THQ

1

Team Member Profiles

2

Career background: Part time office work for the past few years while my children were growing up Marital status: Married Any children? Bryce - All round sportsman, Stafford - Plays Clarinet and Averil - Scottish Dancer Hobbies/interests: Reading, crosswords and walking Do you play any sport or have any special talents? Not really Favourite Book: Anne of Green Gables Favourite movie: Pretty Woman Favourite restaurant/food: Greek and Mexican Where did you grow up? Career background: Gambling Industry - Horse Racing and Casinos. Liquor Industry - Licencee of two hotels, Supervisor of Leagues Club in Cessnock. Assistant Manager at Clarkes Rubber Marital status: De Facto Any children? Brianna who is 16. Has a magical talent of making money disappear! Hobbies/interests: Cooking, dining out, fine wine, travel, watching action movies, having a beer and watching the footy with friends Do you play any sport or have any special talents? Not at the moment

9 Questions with...

3

Dynamic Pricing Never Sleeps

4

Customer Feedback

4

The Road to Success...

5

Mobile Web Site Records 25%...

5

Team Headquarters Relocation...

6

No Margin for Error

7

Customer Feedback

7

New QLD Centres Rebranded 8 Where Are We on Our Journey 9 Customer Feedback 9 Wellington, an Exciting Opportunity 10 Spotlight on North Lakes 11 Expansions Far and Wide Underway 12 Kennards Amazing Race 13 Supporting Local Communities 14 Nev’s Notes 15 Kennards Community 16 Next issue Deadline: June 20th, 2014 Please send contributions to the editor Editor: Sharon Dux Email: sharon@kss.com.au Distribution: July 18th, 2014 Upcoming events 1/5 - Skillbuilder (QLD) 5-9/5 - Skillbuilder (NZ) 2/6 - Queens Birthday (NZ Closed) 9/6 Queens Birthday (NSW, VIC, QLD, ACT, SA) PH Hours 13/6 - Sunshine Coast Show (Maroochydore, Warana, Kunda Park only) PH Hours 18/7 - Newcastle Area Christmas Party 2/8 - KSS Achievement Dinner 11/8 - Royal QLD Show, Logan City and Moreton Council (Browns Plains, North Lakes) PH Hours 22-23/4 - Skillbuilder (Newcastle) 25/4 - Anzac Day - KSS Closed 28-30/4 - Skillbuilder (QLD)

Inverell - Northern NSW, very quiet but a lot of fun as a child Any pets? A dog called Uncle Scooby! Favourite holiday destinations: Ireland, Green Valley Farm (Northern NSW)

Anthony Sharpe Team Support Manager - NSW

Favourite Book: Lord of the Rings Favourite movie: Braveheart, Last of the Mohicans Favourite restaurant/ food: Cafe Sydney, Pasta Where did you grow up? Balmain, full of life, hard knocks and a wonderful community spirit Any pets? No Favourite holiday destinations: Europe, Italy. Praiano on the Amalfi Coast and San Marino

Kennards Kourier April 2014

2

WHO’S WHO

9 Questions... With Leon Sathiasothy - Manager Three Kings NZ

been doing certain things. I have found Kennards training to be really helpful towards what I am looking to achieve in my professional and personal life. What goals/changes do you have set for Three Kings? To take the centre to High Performance by August and also fine tune a few things. A key lesson I have learnt at Kennards is that if you take care of the customers then the rest will follow. Does the Kennards culture and FREEDOM values make working within the Team a rewarding one? Yes, values like FREEDOM make coming to work fun and enjoyable. The Kennards culture not only creates a real opportunity to grow and develop existing skills but also to try out new ideas. Family at the moment is mum, sister and a little nephew. At the moment I’m just enjoying being the cool uncle but still having the freedom the give the little guy back when he gets annoying! What are your passions outside of work? DIY projects that I have just enough time to start but not quite enough time to finish, photography, working on cars, discovering beautiful parts of New Zealand, Beer/Rum tasting. We hear you have purchased a new car? Yes, a Mazda RX8 which came with a couple of nice new speeding tickets. I have been looking at buying one for a while now but finally decided to go for it. And finally to sum up Kennards in one word? Passion - The Kennards team as a whole has the best attitude I have seen in any work place and I am proud to be a part of it. Tell us about your family?

How long have you been with the KSS Team and what centre did you start at? I have been with Kennards for about one and a half years and started training with Shane Pearce at Three Kings. I am amazed at how quickly this time has passed and it really has been an enjoyable experience. How does your new role as Manager differ from your previous role as Assistant Manager?

step up and take on more responsibility. I have found it to be a seamless transi- tion thanks to the training and support I have received in such a short amount of time. Could you name any significant takeaways from attending the KSS courses like “Effective Centre Management” or “PEP”? Too many to be able to pick one but I found “PEP” really useful because it gave me a great insight into my personal thought patterns and it also helped me understand why I have

It was great to have the opportunity to

3 Kennards Kourier April 2014

Dynamic Pricing Never Sleeps FEATURES O ur Dynamic Pricing philos- ophy has been embraced with success in many centres. Occupancies have improved and income has grown by the considered and thoughtful application of this philosophy. Dynamic Pricing is a fluid and effective way to quickly optimise the performance of our business.

Customer Feedback “Quick comment on the team at Three Kings Kennards in Auckland - They were AWESOME! I have left Kennards as I have moved into a bigger house, and no longer need external storage (for now). However, I could not compliment your Team at the Three Kings branch enough for their friendliness, helpfulness and overall great service with a smile. Nice work Team Three Kings!” “We have had a long move and with all the drama’s Kennards advice was spot on and their place was clean and easy to use, the only part of the move that went smoothly. Thank-you.” “I am quite happy with the service your organisation provides and indeed with the efficient and effective service of your staff both at Burleigh Junction and now at Moore Park. As a practising Barrister of about 30 years experience, you may well imagine that it is most important to me to have competent and efficient resources available to me. Your people have ticked the boxes in all respects.” “Due to my Lease being extended, I was not able to move in to Kennards, but the beautiful Team at your Customer Care Centre, namely Dianne, was so helpful with organising the whole deal. I had prepaid up front a week prior, and the awesome Team at your West End location were amazingly professional. Although I didn’t get to use Kennards Storage my experience was fantastic and I will definitely be using your services and products in the future.” “ The facility on Airds Road Campbelltown is to be commended on its cleanliness, its staff and its accessibility. They might be a little more expensive but you only get what you pay for. Thanks Kennards!“ “Very welcoming, extremely friendly service, after storing my car for a month, staff at Prospect remembered me and asked how my holiday was! Very impressed! Will definitely tell my friends to store with you.”

The integration of our management systems with our web site means potential customers can be aware in real-time. “ All out teams should be thinking about optimum pricing levels for every space, all the time. ”

It is important to remember that it is a philosophy and not a tactic. Dynamic Pricing is to live and breathe all the time for all our spaces. Airlines and hotel groups apply the same philosophy but are supported with sophisticated models to adjust the prices around season, demand, availa- bility, day-of-week and time-of-day. It never stops.

For us we don’t have the same machinery to illuminate our possible pricing decisions. All our teams should be thinking about optimum price levels for every space, all the time. If occupancy is soft, then put the price down, if it is strong then increase the price.

To consider Dynamic Pricing as something we might do now-and-then is wrong and misunderstands the philos- ophy. It is not a reactionary short-term tactic, it is not simply a response to an Operations Managers query, it must become embedded in our daily thinking. Sam Kennard Managing Director

Kennards Kourier April 2014

4

FEATURES

The Road to Success is Always Under Construction

Mobile Web Site Records 25% of Reservations in Early Days On February 4,

W e all have been there at one time or another, become complacent when things are good enjoying the satisfac- tion and success of our achievements. When I think of these situations the Nokia story is certainly one that springs to mind. Nokia were undoubtedly an incredibly successful Telco, that was, until Apple took the world by storm! For the first time National Accounts has checked in with an impressive 13,000 rented square metres. Business is good and relationships are strong but our job to provide exceptional service and continue to evolve never ends. Quite simply we should never take our customers for granted. Together we have energetically promoted our beautiful temples offering long term storage conveniences through our model. Our properties are first rate, our onsite technology is robust and our customer service and convenience features are unique to the industry. Compared to our storage competitors we provide exceptional value, but is it ever enough? Recently the term “Direct Distribution” has been whispered amongst some of our National Accounts. It highlights that our competition has shifted from our storage rivals and some may be consid- ering logistic businesses and direct distri- bution networks. It’s a healthy challenge for Kennards and reinforces the need to continually push the boundaries. Keeping in tune with our customers is certainly one way we can add value. We see things every day we could recommend to improve efficiencies, save money, or emphasise that we care. A “We noticed” gesture followed by a “How would you feel if we were to” recommen- dation shows we are committed to making their stay as simple and easy as possible. It goes beyond a signed Agreement and a monthly payment!

If collectively we illustrate and add value to all our customers it keeps Kennards on the map and makes it easy for them to justify staying. Below are some simple tips to help enhance our customers experience and focus on the long term. 1. Don’t become complacent: Customers can go just as quickly as they come. What are you doing to provide them value during their stay? 2. Always think with the customers in mind: How can we improve their experi- ence once they have moved in? It might be as simple as suggesting they use a different trolley or making sure a trolley is available for them if they come in at the same time each day. 3. Don’t let opportunities pass by: Speak up if you see an opportunity that will benefit the customer. You will be pleasantly surprised how good it feels. If you think the customer could save money by reducing their unit size let them know. 4. Stay in tune with your customers: If you see an unfamiliar face onsite introduce yourself. Greet and introduce yourself to customers, be sincere, make eye contact and smile. A personal greeting makes it easier for the customer to approach you if they have any questions later down the track. 5. Ask for feedback: When asking for feedback asks specific questions that will give something more than a yes or no. Open questions starting with “How” or “What” are the most useful; for example “How could we improve on….” or “What did you like most/least about.....” Fiona Harding Business Development Manager

2014, KSS went live with its long awaited mobile site. If early statistics are anything to go by the numbers are compelling, demonstrating the broader

use of ‘mobile’ by customers looking for storage space.

At last check 25% of all reservations were placed using the mobile site, with quotes tracking at 20%. These numbers are expected to grow as ‘smart phone’ sales continue to surge. Recognising that today’s consumers want portable ecommerce anywhere at any time with 86% of smartphone users doing their research on local businesses and services from their mobile device. Our objective was to deliver a mobile platform, punchy and lightweight, tailored for the growing number of mobile users, focussing on three key areas: Our efforts on web development focus on the customer experience and innovation to generate a larger volume of leads for our centres. Technology however is not the final answer. Follow up by Team Members is critical to complete the experience. ‘Surprise and Delight’ with a follow up call and build on the customer relationship. Technology is a wonderful tool but human interaction is the greatest tool of all. Jeff Xanthos Chief Information Officer - Generating Quotes - Generating Reservations - Locating Centres

“ Keeping in tune with our customers is certainly one way we can add value. ”

5 Kennards Kourier April 2014

FEATURES

Team Headquarters Set for Relocation to Macquarie Park

C onstruction of our new 2014.

centre at Macquarie Park is progressing well and expected to commence trading in May

In conjunction with the storage centre, work is also underway completing our new Team Headquarters (THQ) and for the first time an exciting new purpose built café has been incorporated into the design, and will be leased to an independent operator. The new THQ will occupy the upper level above the Box Shop and Café, spanning the full width of the building, featuring fully glazed windows facing Khartoum Road, to take advantage of the natural light. Access will be via a contemporary featured staircase front and centre between the Box Shop and the café. Above the stairs we have positioned our greatest prominent feature from THQ, the eye-catching wooden plane propeller. As you make your way up the stairs you will be greeted by Joanne at reception. To the right will be the modern kitchen and break out area, furnished in a way to create an inviting and comfortable relaxed environment.

THQ taking shape

is the engine room, our contemporary open work stations for the Team. To the right of reception will be a new Training/Board Room, quiet Breakout Rooms, Library and additional space for future growth. The modern designs continue out into the garden and landscaping, to create an appealing and relaxed space, featuring some unique sculptures and of course our 10 Year Plaques. The new office embraces the warm and homely style of our current office but adds a contemporary modern dimension. The new office

is seen as a chance to renew our work practices and operations in many ways. Darren Marshall General Manager

The original Brother building. L to R: Michael Macheledt, Sam Kennard, Darren Marshall and David Cahill

Through to the other side of the kitchen

Kennards Kourier April 2014

6

FEATURES

No Margin for Error...

the Best Practices (or in tune with Momentum 2012, ‘Next Practice’) and create a common platform for sharing knowledge and experience on how to improve. What are we trying to achieve? To meet or exceed customers’ expectations of product availability by maintaining the amount of each item that will maximise our gross margins and overall profitability. As a first step, let us focus on inventory control and how to build on our existing controls.

To be continued…

Sathish Gopinath Financial Controller

M ost of us keep a pretty idle.

number of centres but also due to activity. In April 2013, we switched from Visy to Amcor to achieve economies of scale and better procurement options. Beyond improved sales and operations, managing inventory better means improved cash flow and liquidity, something difficult for many businesses in today’s tough economic times. And above all, it also allows us to give customers the ‘complete storage solution’. “ Inventory Management involves determining when to order products and how much to order, as well as identifying the most effective source for each item. ” This presents us with the enormous opportunity to revisit our business processes in this area and continuously improve. And the question is “where do we start?” Over the next few editions, I want to share and discuss with the wider business,

Customer Feedback “I could not fault the Kennards Cardiff business and staff, they were very accommodating and professional. Myself and family will certainly have Kennards as the preferred business when we require this service again.” “Your staff are brilliant! Leon at Three Kings recommended a transport carrier, he also ensured my gear was loaded and took the time to call me and let me know it had left the branch which was really appreciated. Sue and her Team in Wellington ensured my gear was safely stored in the Wellington branch and I did not have to do a thing.” “Signing up with Kennards was very easy, the staff were wonderful and the storage space very clean. We liked that we had 24/7 access, that the centre is very secure and that we were refunded unused rent.” “At your store in Milton, my house mate and I were very pleased to work with a gentleman called Cameron. He was very efficient, polite and quite knowledgeable about the whole storage system/process. He made the whole situation a lot less stressful than we thought it was going to be and we were very impressed with his work ethic.”

good eye on our cash, we don’t leave it lying around uncontrolled, unattended or

Inventory and cash are the same from an accounting perspective, both are assets. While the purpose of inventory is to be sold and make a profit, the profits/ margins depend on how well a business ‘manages’ and ‘controls’ its inventory – from the point of ordering, receipting, pre and post sales activities, periodic stock takes, customer service and managing returns/buy back. Inventory control involves managing the inventory that is already in the store. That is, knowing what products are out there, how much you have of each item, and where it is. Inventory Management involves determining when to order products and how much to order, as well as identi- fying the most effective source of supply for each item. Inventory management includes all of the activities of forecasting and replenishment. As a business, our merchandise sales are currently around $6M per annum and continue to grow. This constitutes almost 50% of non-storage related income. Our average stock holdings have doubled, not necessarily due to increase in the

7 Kennards Kourier April 2014

FEATURES New Queensland Centres get the Kennards Touch!

North Lakes

Maroochydore

Kunda Park

Warana

S ince the purchase of the Kunda Park, everyone has spent the last four months actively involved in centre improvements. Depot Self Storage sites in Queensland at North Lakes, Warana, Maroochydore and Identifying wasted space in the centres and opportunities to reconfigure units and capture lost or unused square metres has been one of the main areas of opportunity and focus for the Teams. A lot of work has already been completed on this front with well over 1,000 extra square metres of MLA added initially across the four centres. Some pending unit reconfigurations will also add much needed unit sizes into the mix.

Everything has been rebranded and “Kennardised” with the properties wearing a fresh new coat of brilliant orange and blue, with enough signage to leave no one in doubt that the Kennards Team have arrived in town. Rent up across the centres has been constant and will continue to increase with the assistance of our new Team Members growing in both skill and confidence. Upcoming improvements to the buildings will be next on the agenda with North Lakes and Warana marked for some cosmetic office work to bring them more in line with the Kennards look and feel. Kunda Park and Maroochydore sites are also poised to undergo quite extensive upgrades with full office refurbishments and expanded self storage building works to be carried out.

The Queensland and THQ Team who were involved in the transformation of these centres put in a huge effort, It couldn’t have been completed without your selfless assistance. Your efforts were very much seen and appreciated, thank you. Glen Bayley QLD Operations Manager

North Lakes before the Kennards rebranding

Kennards Kourier April 2014

8

FEATURES

Where Are We on Our Journey? A: You’re a long established

Customer Feedback “Thank you for your very prompt refund on my storage costs when my goods were removed from Airds Road, Campbelltown. I would also like to pass on my thanks to you and Kennards for the very professional and efficient manner in which I have been treated whilst my furniture was stored at your facility. It will be my pleasure to recommend your facility and Kennards, with the very friendly staff and also the very professional manner in which my goods were dealt with. Again many thanks to you all.” “Everything at Yeerongpilly was great. Security, layout, payment system, customer service, tidy venue, great staff, an absolute pleasure. I can’t fault Kennards and would recommend them any day of the week.” “Booking process over the phone and customer service on site at Prospect was very friendly, enabling keypad access was great for our contracted removalists, emailed invoices, clean and tidy site.” “Went looking around for comparison and chose Kennards in 2009. Main factors were 24hr access, variety of storage options and the trailer, trolleys, hoists etc available for use. Always have had very professional staff to deal with at Huntingdale. When I’ve needed to upsize or downsize, it’s been simple. Billing has been flexible and accurate. Overall… fantastic over about 4 years.” “ I just love good customer service and your staff were fantastic at Homebush. Very friendly, informative and nothing was too much trouble. Easy access to unit and great security, will recommend to all.” “Kirrawee was spotless, which made me happy and confident about leaving my possessions there.” “Well organised office. Excellent staff knowledge and professional attitude from Hoxton Park. Clean premises and easy to understand procedures. Friendly atmosphere and “can do attitude.”

family company that people trust. I wanted to work for a company that has those sort of values. When you look at some of the marketing data its interesting how far along that journey we may be. Increasingly 42% of clicks to our website from search are branded. This means the customer is searching for “Kennards” not “storage”. When we look at some of the newer initiatives like Call Tracking we see over 60% of our paid web conver- sions are assisted by phone calls. That’s you, me, the Call Centre all contributing to build that rapport and trust, using FREEDOM and Care to reinforce the Brand. Some of you have commented to me about “Remarketing”. This is the new campaign where images of myself, Phil Howe and Sam’s girls have been following you around websites on the net. This is a new campaign aimed at customers who have already visited the website but not yet converted. Like TV or radio it’s a bit harder to determine how our Brand presence eventually leads to a conversion. The impression rate for Remarketing is staggering. February 2014 had 1.2M impressions! This is where an ad (mostly those images) appeared alongside, above or below a page of content in the Google display network. There were 1,200 clicks and 8 conver- sions in the first month. ally come back and end up in the “Just Kennards” box? Part of that depends on our journey toward that goal... Darryl Hodgson NSW Operations Manager Ultimately though - How many TV, Radio or Remarketing viewers eventu-

W hen I look at the StorMan data and Customer Surveys. I love reading the feedback and seeing the question: Q: How many storage companies did you research? A: Just Kennards.

Then there’s the comments:

“How did you find us? A: Couldn’t miss you mate!”

Or the new job applicants:

Q: What attracted you to Kennards?

9 Kennards Kourier April 2014

Wellington, an Exciting Opportunity for KSS FEATURES B y now, you will all be familiar with the latest acquisition in NZ with KSS Wellington. Acquired after a quick for strategy and planning. Ultimately we believe the reasons why this site had underperformed and went into receiver- ship, was not having the right unit mix, pricing and spending a colossal amount of money trying to convert a building into something that would only be seen in a mirage. successful Tender and subsequent negotiation just before Christmas, it then became reality with possession on January 22nd.

This site currently has a bias for small unit sizes less than 10 metres square which can look great on paper but that is not much use if you over supply too much of one product. So we see opportu- nities to expand and increase the unit mix into more traditional sizes up to 24 metres square and also incorporate

the Enterprise Space concept with larger warehouse unit sizing. We have an excited Team with Sue Solly leading the way and Amanda Thompson and Larry Incledon joining the Team. I look forward to seeing the success of this site develop over the next couple of months.

A fresh Team, opportunities with unit mix and pricing, expansion, repairs and maintenance, you name it, this site definitely needs some love and will be a good example of a genuine turnaround project. Located on the main arterial road into the Wellington CBD and conveni- ently close to

Stop the press! As we go to print, we have

We have begun implementing opportuni- ties with Dynamic Pricing and embarked on some unit conversions to make “ The recent painting in the KSS colour scheme has changed the landscape dramatically, there is no doubt that Kennards has arrived in Wellington. ” better use of the vacancy. Starting with the clearing out of a major part of the end building that has been left empty since the receivership with the previous operator.

been able to introduce Wine Storage to Wellington. A climate controlled area was constructed but not finished off completely. We have created a stable environment and converted some spaces to wine unit types. There is great opportunity in this market with the other competitors in the area currently full and supplying unhelpful long term contracts. Andrew Kirkham NZ Operations Manager

Westpac Stadium, this site has great roadside appeal and would be consid- ered the best location in Wellington. The recent painting in the KSS colour scheme has changed the landscape dramatically, there is no doubt that Kennards has arrived in Wellington! In the ten weeks since acquisition, we have managed to fit out a new office and box shop without any interruption to day to day business and last week saw the completion of outside painting in time for the main signage to be installed this week. Rebranding a site of this size is not for the faint hearted. Frustration with tradesman and their speed of work is challenging but we got there and the quality of work is appreciated. I have learnt about being two steps ahead in preparation through careful monitoring. But that is the easy work, now the time

10

Kennards Kourier April 2014

FEATURES

Spotlight On North Lakes

the thousands of vehicles that will use what is to become a major thoroughfare linking the Sunshine Coast and Brisbane. The centre currently offers a choice of unit sizes catering to different needs. While the driveway units are far and

few, the two levels above consist of more than 360 units. Work is underway to reconfigure the units as the mix that we inherited does not match our needs. Along with a few larger units, the focus will be on having a mix of smaller units. Currently housing 387 units spread over an area of 4,223 square metres. These numbers will increase once the unit reconfiguration is completed. An added advantage that we offer is undercover storage for cars, trucks, small boats and caravans. Originally used as a car park for customers and an area that Depot Storage did not exploit, the response for undercover hardstand has been extremely encouraging. Of the 15 spaces available, 12 are currently occupied. As for competition, we have a few small operators around us. However, the location, pricing and the aesthetics of the centre are a major draw card for us and it is heartening to find out that customers are happy to pay that little bit extra to store with us. What differentiates us from the competitors and has made a difference in selling units, is the availability of 24/7 access. The North Lakes Team comprising of Glen D’Souza (Top left) and Craig McCall (Top right) are making every effort to give customers moving in a “Kennards Experience”. The success of this effort can be seen in the feedback that the Team has received from customers. Current customers from Depot Storage days have appreciated the efforts we have made to streamline the processes at the centre. Team North Lakes

N estled in the midst of the North Lakes Business Park, Kennards Self Storage North Lakes is just beginning to stamp its authority in the field of storage. The business recently purchased as part of the Depot Storage Acquisition, offers not just another option for customers from the area looking to store, but has raised the bar in areas of value and services offered. With the recent exterior painting completed, the purpose built centre stands out amidst the burgeoning array of modern houses. More work will be carried out on the interior as part of the second phase, bringing the centre up to Kennards standards. The growth of North Lakes itself has been phenomenal ever since Stockland decided to change the landscape of the suburb of Mango Hill north of Brisbane. In 2006 it was officially named a suburb with its own name, even though it shares the Mango Hill postcode. KSS North Lakes is aiming to mirror this success story as we go forward establishing ourselves as a major player in the business. Today North Lakes is a self-sustained community with figures indicating that it has as many as 25,000 people living in the locality. The recent announcements from Costco and Ikea to set up shop in the area are only going to enhance the status of North Lakes as a self-sufficient satellite town. This exciting development has come at an opportune time as Kennards Self Storage continues to increase its presence in the area.

Long deprived of quality storage, North Lakes saw the opening of Depot Storage a couple of years back. Though a perfect move to operate in the area, the facility lagged behind in terms of occupancy due to various factors, one of which was undoubtedly the over pricing. When KSS took over the property occupancy was sitting at a meagre 32%, even after operating in the market for more than two years. Today we have increased to over 60% occupancy in a short span of just over four months. This number is rising continually and we are aiming to get to around 80% by the end of the Financial Year. Dynamic Pricing, online presence and the proactive attitude of Team Members has all contributed to this near doubling of occupancy in such a short span of time. Other than North Lakes itself, we cater to the surrounding areas of Mango Hill, Narangba, Dakabin, Kallangur, Deception Bay and Rothwell. At the moment there are two major projects taking shape which will work in our favour once completed. Work is well underway to link North Lakes to the neighbouring suburbs of Dakabin and Narangba across the Bruce Highway, this will offer us a bigger opportunity to tap into these areas for business.The other project is the completion of the North-South Arterial Road. Currently the centre is hidden behind a cluster of shops and the only visibility from the main road is over these buildings. However, the new road will put us right on its edge exposing KSS’s rich colours of Orange and Blue to

11 Kennards Kourier April 2014

PROPERTY

Expansions Far and Wide Underway

Pymble

Macquarie Park Box Shop

Mittagong - DA Approved DA is approved and we have moved onto Tendering. As per Warrawong we look to open this new centre this year. This will provide us with 3 fantastic new centres in the Illawarra/ Southern Highlands regions. Warrawong - DA with Council DA is almost approved and we have started preparing for the Tender process so we can hopefully open Stage 1 by the end of this year. Wollongong - Stage 3 design ready for Council Stage 2 by GWH was completed right on time and we have formalised our Stage 3 design ready to lodge a DA with Council. Pymble - DA Approved DA is now approved with the internal strip out approximately 75%. We have four builders pricing the Stage 1 fit out and preliminary advice from our engineer says we can add 2 stories to the existing structure. Maroochydore and Kunda Park - Expansion possibilities These newly acquired centres will receive refurbished retail offices and we will also look at the expansion possibilities of each of these centres. Yeerongpilly - Tender assigned for Stage 2 Local Builder Scott Harris Constructions has won the Tender

to build Stage 2, work is expected to finish before the end of the year Macquarie Park - Autumn completion The self-storage fitout component is complete with the finishing touches to the retail space & shop front underway. The landscaping will start shortly as we start to fit out THQ upstairs. Wellington - Branding underway This newly acquired centre has undergone an external branding makeover and we are now looking at reconfiguring some of the existing unit layouts to improve the variety on offer. We will also start looking at expanding the rear portion After a recent trip to NZ we have decided to complete the fit out of the basement. Pricing is underway and work should be completed in a couple of months. Chatswood - Expansion progressing well The expansion project is running nicely to time with the driveways, roof and first floor complete, just need the external walls to be installed and some internal fit out. (Main picture above) For regular updates please follow me on Yammer and Twitter. Michael Macheledt Development & Construction Manager of the site which has three more levels to fit out. Mt Eden - Basement fitout to be completed

12 Kennards Kourier April 2014

TRAINING

The Kennards Amazing Race! T he latest PEP sessions were kicked off slightly differently, we changed the timing to be mid week which appeared to On the way we participated in an “Amazing Race”! The participants were split into teams and set challenges to achieve. The results were at times hilarious and it really set the tempo for the week, bringing the Team closer together and providing an environment where they were comfortable with each other from the start of the sessions. suit most centres. We also gathered at THQ, took time to say hello to the THQ Team and each other before commencing our journey to the Hunter Valley.

One Team Member remarked, “Two hours in the car and I didn’t turn the radio on!”. Thank you to all Team Members for their excellent level of participation. Bill McClean Training and Development Manager

PEP Team Feedback “I am normally sceptical about behavioural modelling as it relies on people being honest in how they answer questions about themselves and most of the time people lie. It was refreshing to see that when it comes to Kennards people this is not the case. I learnt a lot about my colleagues and myself (all positive). The event was a great deal of fun even with the lessons. Thoroughly recommend it to all.” Steve Fone, Campbelltown1 “PEP was a great learning experience and no doubt everyone took something valuable away with them, both profes- sionally and personally. I wish everyone involved, happiness and success.” Dax Heke, Wentworthville “Was an awesome experience and opportunity. I gained some real insights into my way of thinking, that has already helped me in my personal life and without a doubt will help me in my career. Thank you for the chance to participate.” Marc Leong, Browns Plains “PEP was an extremely motivating experience and also gave me a great insight into my thought patterns. I am grateful to have been given the opportu- nity to take part in this course and also to meet all of the Kennards Team Members.

I would recommend to anyone.” Leon Sathiasothy, Three Kings

13 Kennards Kourier April 2014

CHARITY

Supporting Local Communities

years are; Sutherland Hospital Children’s Ward, NSW Asthma Foundation, Juvenile Diabetes, Cystic Fibrosis Association, Assistance Guide Dogs, Care Flight, Breast Cancer Foundation and in 2014 Bear Cottage and Steve Walter Cancer Foundation. It is a very important part of the Suther- land shire Eisteddfod to give back to the community and especially their youth, as all entries to the Eisteddfod are young performers with many suffering from minor to life threatening illnesses. To help out the Sutherland Shire Eisteddfod and their community, Kennards happily supplied donated storage space for their upcoming Eisteddfod. The children were all too eager to show their appreciation, having fun with the Kennards flag and hats!

Refugee Services, run by the Red Cross.

This quarter Little Sprouts will be giving away about $30,000 worth of baby items, as well as smaller packs and one-off gifts like cots, change tables, baths etc.

Boxes are gladly donated by Kennards.

T he Sutherland Shire Eisteddfod has been running for the past 28 years with 2014 celebrating its 29th year. Over those past 28 years Suther- land Shire Eisteddfod has run as a non-profit organisation with only volunteers assisting with the Eisteddfod. Every year the Eisteddfod Committee selects a charity or foundation, with all monies raised being donated to that charity/foundation at the conclusion of the Eisteddfod.

O n 25th March a fundraising lunch was held in Belrose raising money for some much needed help for our farmers out west. About 100 local friends donated items to put together toiletry hampers to raise the spirits of those families that are so isolated. There were also some generous donations from local businesses. On arrival in Walgett and Brewarrina, food and other items to add to the gifts were also purchased. The community raised $6,000 in cash and packed 80 hampers of goodies! The organisers behind the scenes, Megan Thomas and Mike Hartnell were very grateful to Kennards for the donation of boxes to pack the hampers in. “Thank you so much for your wonderful generosity and help”.

L ittle Sprouts is a Wellington NZ based registered charitable trust that gives away free compre- hensive and life changing packs

of baby items for babies in real need across the Wellington Region.

Each pack includes: safe and warm sleeping items, cotton and wool baby clothes, re-usable and

Some of the charities and foundations that they have honoured in the past

disposable nappies/wipes, a sling, baby books, toys and toiletries, other health and safety items (i.e. a digital thermometer, socket covers, smoke alarms), plus more. The packs are given away via wonderful organisa- tions like Barnardos, the Women’s Refuge, Salvation Army, Wesley Community Action, the Family Start Program and

14

Kennards Kourier April 2014

NEV’S NOTES

Nevs Notes... THE MARKET FAILURE INDUSTRY

Nev enjoyed expressing his ideas in this section of the Kourier. These little gems have been appreciated by many in KSS. We will continue to publish his ideas that we have in stock. Enjoy! T here are plenty of people, some in government and some in other areas, who look for signs of so-called “Market Failure”. the name of Market Failure. Businesses and industries with a product or service that will be more widely accepted if it is regulated into use, made regulation or licensing did not and could not exist.

Thus any sort of perceived Market Failure becomes an excuse for intervention. And then the Unintended Consequences create their own further Market Failures, thus calling for more interventions, more Unintended Consequences, more Market Failures … and so it goes. Market Failures, if they ever really exist, always self-correct, mostly quite quickly in a free market. The effects and problems of the perceived Original Market Failures are dwarfed by the ill-effects of the interventions and regulations and licensing and Unintended Consequences that follow. Strange, isn’t it, that politicians and bureaucrats who trust us (require us even) to vote and to pay taxes, don’t trust their citizens to look after themselves and their business and their customers.

Politicians like to find “something to do” and seeking out an examples of Market Failure is the perfect excuse for some intervention, some new regulation. They can be seen to be “doing something”. Bureaucrats too can find their self-interest is enhanced by discovering, or being made aware of some Market Failure. And the business community also can find that if they can induce bureaucrats and politicians to rectify some difficulty in their business or industry by labelling it as “Market Failure” then their self-interest can be served. Politicians look for popularity, votes and support by identifying with some cause. The Trade Unions are masters at revealing Market Failure to politicians, usually with increased pay, allowances or benefits in mind. A good Market Failure for the Unions is in the area of Workplace Safety. Bureaucrats too love to impose licensing, permits, safety regulations (and costs) so as to build up their fiefdoms. And established businesses, if they can find something that will reduce competition, will seek political and bureaucratic support for “Safety” or “Customer Protection”, often in standards from within the industry, limits the competition and thus increases the profits of existing suppliers and restricts new entrants ” “ Certified Suppliers usually licensed to

compulsory, have an incentive to get legislation passed to require its use, by “Certified Suppliers” if possible. All of this imposes costs, and can limit competition. And there are always Unintended Consequences following any intervention. The Unintended Consequences can ripple out for years, forever, and in ways and areas that can’t be predicted. Minimum Wage Laws, for example, that are intended to give low-paid workers protection against “greedy bosses” and give them “a decent living wage”, have consequences like putting some marginal workers out of work, thus reducing their dignity, and putting them on the dole; which has effects on the tax burden of those still employed. Minimum Wage Laws also deprive the community of the services of such low-paid workers and the community is thus disadvantaged. “Certified Suppliers”, usually licensed to standards from within the industry, limits the competition and thus increases the profits of existing suppliers and restricts new entrants. The Unintended Consequences are always to the detriment of the consumer, the community, the least well-off, the new entrepreneur, to competition and innovation. It is almost impossible to identify all the Unintended Consequences that flow from any restriction and regulation and tax or fee as each one seeps and permeates and infects every customer, worker, supplier in the entire chain of supply. A cosy cartel of businesses and bureaucrats and politicians become a kind of “Ruling Class” in the particular industry. Once introduced, regulation and licensing and certifying becomes the norm until no-one can remember, or even envisage, a situation where

Market Failure; what would we do without it?

February 10, 2011

Nev Kennard

15 Kennards Kourier April 2014

PEOPLE

Kennards Community

Robert Todd (Klemzig KSS) Completed the Bupa Challenge as part of the Tour Down Under in 4 hours and 18 minutes. Pictured with his daughters Caitlin and Chelsey.

Top left: Congratulations to Joel McDonald (Artarmon KSS) and his Partner Rachael on the birth of their baby girl Presley Beau, Born on the 13th March weighing 3.1kg.

Below: Congratulations to Stephan (Maroochydore KSS) and Amber Wandl, Married 22nd March at the Chinese Gardens Darling Harbour.

Left: Adam McCoy (Thebarton KSS) Completed Tough Mudder Victoria Phillip Island on Sunday the 23rd March. The only quote he remembers is: “Pain heals, chicks dig scars, glory lasts forever!”

Left: Congratu- lations to Dee (Sydney/ACT TSM) and Ronald on the birth of their son Veeraj Ronald Singh, born 19th March weighing 2.7kg. Bottom left: Congrat- ulations to Tony (NSW Ops Manager) and Lauren Vuong on the birth of their daughter Selena, on the 15th January weighing 3.82kg. Then look what they did!

Left: Sathish Gopinath (THQ) and his son Arvind, with the “2014 NRL Premiership Winning” (according to Sathish!) Parramatta Eels Co-captain and NSW Origin player Jarryd Hayne. Above: While on holiday in Western Australia Brett Leary (THQ) took time out to visit our friends Koala Self Storage.

“Logic will get you from A to B. Imagination will take you everywhere.”

16 Kennards Kourier April 2014