BBC #12: 5/28/13

Chris Diller and the Development of his Art Studio

Chris has spoke several times about the progress of his Art Studio.  He recently finished what he expects to be his primary piece to start with, a panoramic painting of Camden Yards during a playoff game last year.  The piece is finished and Chris has a few main goals he is working toward between now and the end of the year.  First, he wants to create more sports related inventory (a Lombardi trophy painting is already in the works) so he can sell copies of those works, printed on canvass, in the $100-$150 price range to start.  Second, he wants to develop an online presence so he can lock in an audience and develop a loyal customer base that regularly pays attention to his new projects through a website.  Third, he wants to dive into making Photoshop prints and putting them on canvas.  He can create significantly more projects in less time this way, and he’ll also have some freedom and techniques available that are difficult to duplicate with a paintbrush in a timely fashion.  Lastly, he is working on building his inventory to set up a booth at his first art show this coming fall.  Although still an after hours hobby, it will be interesting to see if Chris can begin to monetize an activity he enjoys over the next few months and build a legitimate side business from that passion.

Kennon Pearre and Small Storage Solutions

Kennon gave the primary presentation during the meeting and discussed his experience rolling out a start up company in the warehousing and logistics industry.  After he graduated from Dickinson College in 2010, Kennon worked for a think-tank in DC and got involved in a Baltimore planning and development firm as an intern.  In the second half of 2012, an opportunity came up to work for Ruxton Services, a local warehousing, contracting, logistics, and stevedoring company with over 20 years of experience.  However, Kennon’s focus did not include the main business.  Instead, he held major responsibilities with the launch of a new company owned by Ruxton Services called Small Storage Solutions.

Small Storage Solutions offers residents and businesses the opportunity to store unused items in a warehouse for $25 a month.  The idea developed when the owner at Ruxton realized he had way too much stuff in his house and wanted to store it.  Fortunately, he had several hundred thousand feet of warehouse space.  But most people don’t have that option, and the idea for SSS was born.  The service they offer today allows you to drop off stuff you don’t plan to use in the short term, but don’t want to throw out either, and keep it in your own box in a Ruxton warehouse for $25 per month.  This is a significantly cheaper solution than something like PODS.

The business really began to get off it’s feet this past January.  A common thing we continually talk about in these meetings revolves around customer acquisition.  This conversation was no different.  Kennon explained how they initially sent out direct mail pieces throughout the city and had some moderate success.  Direct mail through the post office is “on special” right now and comes relatively cheap, but SSS is also looking for ways to further increase their base revenue.  We discussed social media and if that channel could lead the business closer to a target market as well as a variety of other inexpensive marketing avenues.

Another piece of the discussion centered around growth and the different customer segments open to this type of service.  Immediately, many members in the group jumped on the idea of offering this service to college students over summer break.  The market potential exists there, but Kennon and his team are operating under the Clay Davis mantra, “crawl, walk, then run.”  The hope is that operations can be improved and they can build on their current customer base, allowing them to possibly dabble with a university move out next Spring.

Another market segment they are trying to attack is restaurants, bars, and seasonal businesses.  Many places store decorations (whether it’s for Xmas, Holloween, or St. Patty’s Day), by throwing everything into a back room with the hope they can find it next time they need it.  SSS offers the ability to store all these decorations off-site for $25 per month.

One of the more interesting pieces of the discussion centered around the product/service offering.  SSS currently offers the option to pick up a clients stuff for $45.  They figured many people would use this option but in reality, they have not utilized this service at all.  Everyone prefers to avoid the fee and hand deliver to the warehouse in Dundalk.  It will be interesting to see how their product/offering continues to develop over time as they get more feedback from the marketplace.

Overall, Kennon had an excellent perspective on the topic, being a major contributor in a new company with minimal financial resources.  It will be interesting to see how Small Storage Solutions continues to maximize a minimal marketing budget, develop new services based on customer feedback, and grow its current customer base.

http://www.smallstoragesolutions.com/default.asp