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Marketing is a crazy world, and there are tons of ideas about what works and what doesn't. This goes double for online marketing. The problem is that not every marketing strategy works for every industry or even every business in a given industry. Plenty of marketers who don't know the industry try to apply strategies that work in other industries but don't quite fit the landscape of self storage. Check out this Gabfocus to hear from marketing professionals that actually work inside the self storage industry!
Focus: Owners & Operators
Aired: August 25, 2022
If you don't have time to watch the whole Session, here are some of our favorite parts:
We asked our experts: If you had a month to “level up” a facility’s marketing, what would you do?
If I only had 30 days, and an owner was like I need more leads, I need more rentals. I'm going to say, then we need to focus on pay-to-play options... Because that's a turn on and turn off." - Grace Totty
"My first place that I would start is check everywhere that your phone number and your address show up. Start there. Because maybe the phone number is wrong, and you don't need better SEO because you already show up great but people can't find you... Number two, if you have the capability to do it, go ahead and turn on the ability to do ecommerce." - Tommy Nguyen
SEO. Blogs. Pay-per-click ads. Paid aggregators. All of that works, but they're not where you should start. Make sure you have a working website and a well-maintained Google Business Profile. THEN you can start getting into all of those other things that go on top. Make sure you can track them all, too, so that you don't invest time and money into something that isn't working for you.
Gabfocus Sessions are virtual workshops for self storage owners, managers, and operators. Brought to you by the team behind Gabfest: StoragePug and Affordable Storage Guys Management.
Each session features hand-picked industry pros who will dive deep into relevant topics surrounding our industry, share best practices, and explore trends in the market. It's our hope that these sessions help you navigate your self storage business better during these uncertain times.
Want to learn more about self storage? Join us on select Thursdays for Gabfocus.
Our panelists will be happy to answer any questions you have. We hope you enjoyed this Gabfest Session. Talk soon!
“Once your operation is in place, you can become more dynamic with your pricing, but that requires data. You need some method of being able to record the data that you need to know whether your price is in the right place - whether you need to move it up or start giving some concessions.” - Warren Lieberman
“I never want to downplay to what someone else is doing. I'm better than they are, then I'm going to be worth a higher price. That's what value is. If you go out to a restaurant and get really good service, would you go back? Yes! What if it was pricier? You'd still go back because you got better service and a better product.” - Jim Mooney
"It's good to be informed on your competition. I don't want to ignore them, but I don't want to respond too strongly to them either." - Warren Lieberman
"We did a survey of 10,000 facilities on their pricing. We found out that two-thirds of those operators didn't change the price of a single unit of the course of a month." - Warren Lieberman
“Rate increases and value pricing are the number one ways to grow your revenue.” - Jim Mooney
"Tenants in more convenient units tend to be less price sensitive." - Warren Lieberman
"The size of the unit is only one aspect of what people are willing to pay for." - Warren Lieberman
Lease up marketing strategies:
Your average customer value
Find the average stay length of all tenants. Next take your economic occupancy and divide by how many units you have. That will tell you what the average customer pays.
Multiply the average length of stay by what the average customer pays, and that's the average value of a customer.
For example, if a customer stays for 12 months and pays $100 per month, then their value is $1,200.
Your average lead value
Figure out your closing rate (or conversion rate) i.e. how many leads do you turn into tenants? Multiply that by your average customer lifetime value to figure out what your leads are worth.
Pro Tip: see which lead sources are converting the best. It may be that certain sources have a higher conversion rate, so those leads are worth more to you than a source that barely converts.
Typical Lease-up timeline
According to our panelists, it's typical to see a 3-4% increase each month, putting your facility at 36% after the first year, and 72% after the second.
Alternately, you can look at your lease up goals through the lens of your units, aiming for 20 units rented per month.
For Nick and StorageMax, they pro forma their economic occupancy at 85% with their sweet spot at 92%.
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