If you own a self storage facility, you probably have had your fair share of customers who do not pay their bills on time — if even at all.
When customers do not pay on time, time and revenue are lost.
There is an easy way to cut down on delinquencies and get the most return on investment — by offering auto-pay.
With auto-pay, customers are automatically billed each month.
There is no longer a need for the customers to remember to send in payments. There is no longer a need to call or email a long list of forgetful clients. Recurring rental payments become automatic.
Many other industries already offer autopay.
Insurance companies routinely offer discounts to customers who agree to recurring payments. This incentive is a tactic to persuade clients to sign up for this process.
Netflix and Hulu automatically bill their customers using auto-pay - this benefits the customers too by never lapsing their service. Netflix has 128 million subscribers, and Hulu has 32 million. Part of the reason that these streaming services have such high numbers of subscribers is that these companies use auto-pay to bill customers.
Auto-pay offers numerous benefits. The ability to auto-pay provides peace-of-mind for both the business and the customers. Payments are effortless and always on time.
Here are five reasons to offer autopay to customers looking for solutions in the form of storage units at facilities, mini storage, or portable storage containers.
- Autopay Reduces Legwork for Employees
- Autopay is a Modern Convenience that Makes Customers Happy
- Autopay Creates Predictable and Consistent Recurring Revenue
- Autopay, Specifically Online, Reduces Office Waste
- Autopay Reduces the Reliance on Cash Transactions
Customers won’t have to take the time to mail in a check. Plus, they won’t have to worry about forgetting when life becomes too busy.
Customers can save money with auto-pay as there are never any late fees. Even late fees are because of an honest mistake, fees still feel like punishments, but with automatic payments, this is no longer an issue.
Auto-pay is not only great for customers but for self-storage owners, as well. Here is a short list of why you should consider auto-pay for your self-storage business.
Auto-pay reduces legwork for owners and self storage operators. Simply setting up an initial payment schedule, and then customers are locked in.
Occasionally, customers will decide to vary their payment method. However, this shouldn’t happen regularly.
A facility manager may be available to help the customer set up a new payment schedule with a different source or offer a way for customers to manage payment methods online.
With auto-pay, optimizing mailing paper invoices is possible or can be digitized through email. This automation will make managing finances for the business more manageable and more accurate. Best of all — you won’t have to spend time following up with customers on late payments.
Retaining loyal customers is the primary goal of almost any business. After all, it costs a lot less to keep the customers that you have then to find new ones.
Auto-pay can help improve customer satisfaction. Customers will love the fact that they are saving time and stress with the convenience of auto-pay.
Plus, you can avoid awkward late-payment conversations. Customers don’t like these conversations any more than you do.
Offering auto-pay means, businesses know exactly how much revenue to expect on any given date — no waiting around for customers to send a check or credit card payment.
The payments are processed immediately, giving a precise snapshot of cash flow and accounting.
Running an eco-friendly business helps the planet, and it also helps the bottom line.
Making an effort to become more “green” reduces waste — saving money.
Plus, eco-friendly business practices improve the image of your brand.
An easy way for businesses to be more eco-friendly is to adopt auto-pay and move their record keeping of these transactions to digital platforms. By emailing receipts and invoices. By showing rental prices and payment options on an online dashboard.
No More Cash Transactions
Cash is no longer king.
The differing availability of debit and credit cards, as well as services like PayPal and Apple Pay, are changing the way that people pay for things.
Many businesses are choosing to go completely cashless as it is a more natural payment method in this day and age.
Going cashless reduces the risk of theft. Storage unit prices are high enough to realize that not all customers will feel safe carrying around that much expendable cash.
Without large amounts of cash on premises, the worry of criminals breaking in and robbing the facility or employees diminishes.
The fact of doing business is offering services for money. Self storage provides helpful services to various groups of people.
The continue to serve these customers without lapses in service or having to turn away people or having to kick people out of units then facilities have to collect payment to keep up with all of the costs associated with business operations.
Developing a process for customers to opt into automatic pay, especially at the beginning when initially renting a unit, then both self storage operators and the people they serve will optimize their interactions, honor agreements, save time, lower stress, and enjoy a successful transactional relationship.
For more self storage articles, take a look at:
- Self Storage Websites that are Fast, Modern, and StoragePug-Managed
- Selecting the Right Delivery System for Your Portable Storage Business
- Target Audience Building for Self Storage [Digital Marketing]