StoragePug is a modern marketing company for self storage. We create intelligent marketing websites that allow you to rent units & take payments through your facility’s website.
You’ve done it. You’ve been thinking about getting a piece of the 38 billion (with a B) dollar storage industry, and you finally pulled the trigger. Congratulations! Only now, you’ve got to figure out what to charge for these spanking new units.
No worries. We’ve got your back.
Everyone loves to be a pioneer. We get that. In fact, we’ve often heard the old saying, “Nothing worth doing is easy.”
However, our favorite saying? “Why should our clients recreate the wheel?” Instead, locate other facilities in your area, pick up the phone, and ask them what they’re charging.
Talk about their pricing model for each unit size and type. Create a simple spreadsheet with the company names, addresses, and phone numbers, and enter their responses in real time. Don’t forget to find out if they give discounts to increase occupancy rates.
Do they offer incentives for renting multiple units? Do they have any coupons or discounts for things like AAA, or AARP? Calling and talking to your competition is a Two-fer tip™ (okay, not really ™ but we think it looks cool), because not only will it help you know when you’re starting, you’ll also appreciate having your competitors’ pricing information at your fingertips down the line when answering customer questions or negotiating.
If you feel weird about it, don’t. Chances are you’ll be on the other end of a call like this in the near future. It’s just smart business.
Get out there and pound that pavement. Go check out your competitors’ facilities. Talk face to face with their rep and have them give you a tour of the place.
Talk pricing and take notes. Another Two-fer tip™, because you’ll also get the skinny on how clean (or not clean) the facility is, how easily accessible the units are, their security methods, etc. You can leverage that information when talking with potential customers who are shopping around before selecting a facility.
Feel even weirder about this one? Wear a fake mustache and glasses or send a trusted employee.
Don’t like talking to people directly?
Most storage facilities have their units available for rent on Sparefoot. This is a great resource to check your competitions' rates.
You might miss some of the details regarding special deals a facility might be inclined to offer a real person or potential customer on the phone, but there is loads of information available on the internet that doesn’t require you to put on your shoes. Or pants, even…
This is just our fancy way of telling you to hit the books (or book). Find out what pricing has been historically in your area.
Check out the Self-Storage Almanac for that and all sorts of other information, including facility data by state occupancy rates, market supply and demand, property valuation, capitalization rates, top operators, market share and more.
There are some super smart people out there who’ve put all this data right at your fingertips. Not only that, but they also offer free demos on how to use their products.
This type of software can be another excellent resource for all self-storage industry performance data, including prices, occupancy rates, yield, and rental volume. Check out the different options available, weigh the pros and cons of each, and considering investing in one for your business.
Hopefully, you’ve got a good handle on how to go about defining a competitive pricing model for your units now.
Check back soon for our upcoming post on Consumer Trends in Self Storage! We don’t want to brag, but we’re pretty sure it’s going to be awesome.
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