I enjoy receiving Ben Silverman's free weekly email newsletter called PR Fuel which chronicles the PR hits and misses of companies big and small. In a recent newsletter, Silverman described the PR missteps of Public Storage, Inc., one of America's largest storage companies, that have been widely reported in the media (see the story on the CBS News website).
He details how an American soldier returned from Iraq to discover all the items that he had put into storage at a Public Storage, Inc. facility in Missouri were sold. During the soldier's wartime service, through no error of his own, his monthly payments lapse for his storage space lapse and Public Storage, Inc. auctions off his belongings. When the soldier tries to get reimbursement, the company initially offers just $2,000 on what the soldier claims is $8,000 worth of goods.
Eventually, due to media attention, Public Storage apologizes and tries to explain, then settles for $4,000. Not surprisingly, many media outlets assail the heartlessness and stupidity of Public Storage. Silverman writes:
"If I was in charge, Rogalin (the soldier) would have received: $15,000 in cash; free self-storage for a year; a year of college tuition (he's currently in school); and, a phone call with a personal apology from the CEO. Had Public Storage done that, it would have cost the company about $23,000 (based on the company's rates at the facility where Rogalin's belongings were, and Missouri State University's in-state tuition).
Instead, Public Storage, Inc. saved $19,000 and probably lost ten times that - if not more - in business from people who now have a bad perception of the company. Nice job, folks."
