In the industries of airlines, hotels, and car rentals; value pricing (as known as value-based pricing, convenience pricing, or value-optimized pricing) is a common practice to maximize profits and revenue. Value-based pricing is one of a few different methods to price goods and services. The basics of the methodology are stated as the ability to price units based on the various degrees of value they provide to each particular consumer segment. Similarly, services can have various tiers of service cartered to the varying levels of entry or acceptance each different consumer segment desires.
Deciding what to price your storage unit rentals is a challenging endeavor.
As a self storage operator, you can do some market research to see what competitors are charging, but that process will only reveal so much. You can peruse a competitor's website or have a friend go to their facility and talk to a manager.
However, the price they offer will only get you in a ballpark. If a competitor's facility has different amenities, sizes, or numbers of units, then your rate will have to be tailored further.
If you are coming to Las Vegas, NV for the SSA's Annual Trade show September 3-6th, then please make sure you are attending this panel.
StoragePug is participating in a "Value-Based Pricing" panel that will get a lot of people excited.
The panel is happening Thursday morning at 8:45 - 9:45.