Living out of a Box: The Rise of Subcom

subcom

Subcom in a Box

Mail carriers across the globe are feeling the strain of increased package deliveries. If you’ve been keeping up to date on our blog posts, we’ve discussed this online retail boom. There are the obvious contributors such as Amazon.com, Wal-Mart, Apple and Staples, but a new category is making waves. It’s not the newest concept, but since 2010, this category has made a huge impact in how people shop. That category is subscription box services or “subcom” for short.

Birchbox. Dollar Shave Club. Plated. These subcom services differ in their products but offer a central idea. They deliver goods to millions of Americans alone on a weekly, bi-weekly or monthly basis. A customer simply enters their payment information, and like clockwork, boxes appear at the door. They only stop if the customer cancels or changes the subscription. It allows a “set and forget” type of shopping. Instead of going to the local drug store for razors, why not just pay a flat fee to have them delivered to your door once a month? And the category isn’t only limited to toiletries and food; if you can dream it, there’s a service for it.

Subcom Offers Life in a Box

Ranging from $10 and up, the subcom model was born out of convenience. No longer does one have to spend hours grocery shopping; just sign up for Blue Apron and have 3 meals delivered to your door once a week. Hate shopping for new clothes? Try Trunk Club, where clothing is handpicked by stylists for your size and tastes. Like what’s inside? They just charge your card for what you keep after mailing back the rest. No stores. No lines. No hassle.

So what does this mean for multifamily? We think the subcom model will only gain in popularity, meaning more deliveries to communities. Properties are already seeing 15% to 50% increases in deliveries with no signs of slowing down. Not all subscription box services will last but the idea is here to stay. The Blue Aprons (valued at $500 million) and Birchboxes ($96 million in sales) of the world aren’t going anywhere. Convenience is king and it doesn’t get any easier. A Millennial alone already gets 22 to 24 packages per year and being the most tech-savvy group the world has ever seen, subcom will continue to grow. If you haven’t future proofed your property yet, now might be the best time to do so.

 

 

 

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Package Management Is the New Expectation

Package Management

Package Management More Than an Amenity – It’s Expected

According to a recent National Multi-Housing Council study on renter preferences, package management ranks second in importance after fitness centers and before WiFi, shared Barry Hume, president of Package Concierge.

Hume moderated the Package Management, From Courtesy to Competitive Necessity: Why It Matters session at the 2016 National Apartment Association Education Conference and Exposition in San Francisco.

“NMHC has done study after study on the topic and package management comes up as one of the most important amenities to residents every time,” Hume says. “There’s going to be a point in the not too distant future that it will become the most important amenity.”

The panel shared that Amazon Prime now offers free memberships to college students while its general membership has more than doubled in the last two years. The service now boasts 64 million paid memberships. Further ramping up the package delivery game, the e-commerce juggernaut has launched same day delivery in 27 regions across the country.

“Residents are ordering packages, and their expectation is that the packages will be delivered to their homes,” Hume says. “Residents also believe it is our problem to deal with the packages, not theirs. As an industry, we need to figure out how tackle the problem.”

Package Management No Longer Optional

Fellow panelists Dean Holmes, COO, Madison Apartments and Craig Meddin, COO, The Postal Solutions Companies echoed Hume’s sentiments in that now is the time for apartment owners and operators to shift their view of package management from one of a resident courtesy to being a competitive necessity.

“A proactive and well-evolved package management policy can be a competitive differentiator,” Holmes says. “Most of us are choosing to find solutions to manage packages for our residents.”

But why should an apartment community justify the shift from courtesy to competitive necessity? The answer, according to the panel, is two-fold. First, it improves resident satisfaction and, second, the return on investment can be profound.

It was shared that although the direct impact of package management varies, 30-60 percent of residents indicated that package management solutions/effectiveness have a positive impact on their decision to renew.

“A planned package management solution is definitely impactful,” Hume says. “There’s a real business case for having something in place that will affect the resident.”

If resident satisfaction isn’t enough of a reason to make package management a must-have amenity, the numbers are intriguing.

It is estimated that the time it takes on-site personnel to deal with a single package is five to six minutes, according to the panel. That is roughly one hour for every 10 packages. Data shows that a 250-unit property averages 30 package deliveries per day, which equates to three hours of package management. When processed manually, the average cost to accept and deliver a package is $2.08 per package.

“Package management is an expectation now, an expectation that most of our residents and prospects take for granted,” Holmes says. “It’s not an optional amenity anymore.”

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Future Proofing for Packages

future By Georgianna W. Oliver, Founder & CEO of Package Concierge

The Future Is Just Around The Corner.

To use a term I credit to Jennifer Coogan at Avalon Bay, “future proofing” your community is essential to assure you are not only meeting the resident demands of today but also preparing for future demands. Can you imagine your current holiday-season package rush becoming the year-round norm for your property?

Currently, one of our clients receives over 600 packages per day on one property. They currently have the package situation under control, but will it be enough in future years? Smaller properties with less than 250 units can probably handle the influx of packages more easily, as they currently average 40 package deliveries a day. But larger properties are more complicated and will require a more robust future proofing plan.

For the Package Concierge team, that means arming you with the innovations and technologies to manage the escalation of packages in the future. We accept the challenge of continually innovating our technology to address all of a community’s package-handling needs, now and in the future.

A Solution That Matters

Our high-quality lockers are designed to resist wear and tear. Our advancing technology handles all aspects of delivery and provides a secure method of communication between the locker system and residents. It also features the industry’s only mobile app.

We offer all the tools and reporting needed for the management of packages. Returns and shipping capabilities are coming soon as well. But, it is not enough. Today, we are addressing overflow options and developing a Package Concierge Smart RoomTM solution to meet the needs of tomorrow.

We understand package management solutions are more than locker systems or smart rooms. To that end, we are in constant communication with communities to improve our training for UPS, Fedex, and USPS carriers, discuss data management and advise about how to handle Uber and Lyft drivers showing up on-site to deliver more and more packages.

The solutions for handling packages will continue to evolve and so will the engineers at Package Concierge. We are working to stay ahead of the curve. You can count on that.

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Package Concierge and MTEC 2016

MTEC: Shape Your Future

MTEC Not all conferences are created equal. They come in many different shapes and sizes while staying true to a central idea. Package Concierge tries to attend as many as possible and we’re excited for our next one: The Multifamily Technology and Entrepreneurship Conference (MTEC for short). This exciting event has a lot to offer to those working on a new product or company idea in multifamily.

Held at the InterContinental San Francisco, MTEC is not a technology show despite the name. The conference’s main focus is education and networking for the industry’s entrepreneurs. If you’re a startup in multifamily, this conference is where you need to be. This isn’t just a social hangout; attendees are CEOs and private equity investors alike. On the conference’s website, MTEC states, “Conference speakers and advisors include some of the most successful multifamily entrepreneurs of the last decade.” Anyone has a great chance at making the right connections through MTEC.

The broad range of the conference is also another reason why MTEC is so exciting. From lead generation to energy management solutions, you’re going to learn something new. Panel discussions will be running throughout both days and led by the best of our industry. Our founder and CEO, Georgianna Oliver, will be participating in a panel about the Internet of Things (IoT) and multifamily. New business opportunities are popping up for the industry since connectivity is everything. Others joining the discussion are Felicite Moorman, CEO of StratISDavid Taylor, Senior Vice President and Chief of Operations of WaterSignal; and Ron Reed, SVP, Utility Management of RealPage, Inc. serves as moderator.

MTEC 2016 promises to deliver a networking and educational event to remember. Full of insights and opportunities, everyone in attendance will take away something. Whether it’s a few connections or new ideas, it’s a win either way. Interested in attending? See below for details and we hope to see you in San Francisco.

Register here

MTEC 2016

June 14 & 15

12:00pm – 12:00pm

InterContinental San Francisco

888 Howard Street

San Francisco, CA 94103

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Summer Move-In Success

Move

Warm Up To New Residents On Move-In Day

As we all know, summer is upon us. The season filled with barbeques, vacations and shorts is also known for something else: moving. According to moving and storage company U-Haul: “17 to 20 million people may move this summer” and “Nearly 45 percent of all moves occur between Memorial Day and Labor Day.” That’s a lot of people relocating during the warmest time of the year. Reasons vary on why many commit to a summertime move and many of them may be moving into your community. If this is the case, many in multifamily have an opportunity to make a good first impression. Just because a resident signed the lease doesn’t mean they feel comfortable and welcome in the community yet. We have a few ideas on how to break through this barrier to make a lasting impression.

  • Prepare the Property – If you’re about to see an influx of new residents, have the property ready. Will moving trucks be able to easily navigate once on site? Are there any obstructions in the hallways, breezeways or stairwells? Don’t forget that residents may have only seen the property a handful of times before moving in, so they may get confused. Is there any way to help this? These small fixes will make moving in a smoother experience for everyone. Even just being there to assure and answer questions will stand out to new residents.
  • Have Water Ready – Summer is hot. Moving heavy objects in the summer is even hotter. A great way to maintain the rapport you’ve established is to provide cold bottled water on move-in days. Think about it: new residents already feel the stresses of moving and this simple necessity may be overlooked. Your generosity can reinforce their decision to why they wanted to join the community in the first place. As we’ve always said, “A happy resident is a loyal resident.” There’s no reason why this can’t start over some H2O.
  • Summer Swag Bags – Before a resident begins to unload their belongings into their new home, they need to go inside it first. An awesome way to welcome them is to have a summer themed swag bag on the counter waiting for them. From some simple sunglasses to sunscreen, anything that can help the summer moving process is a good start. Not everything has to be summer oriented; throwing in a few essentials that can get overlooked work just as well. Coupons to local establishments are also a great incentive for residents. They can save money while exploring their new surroundings. The only restrictions on swag bags are budgets and imagination, but a little goes a long way! Check out sites like Pinterest for ideas.

Summer is a wonderful time of the year. But moving during it can potentially wear out a future resident. By taking the initiative to make the process slightly easier, you’ll be a hero! And there’s nothing wrong with sharing the move in excitement with social media either. Don’t get burned by summer moves; turn them into the best experience possible.

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