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2021 has just about come to a close. We took a chance to catch up with some familiar faces, wrap up the year with some final thoughts, and to talk about what waits ahead in 2022!
Category: Marketing & Operations
Focus: Owners & Operators
Aired: December 16, 2021
If you don't have time to watch the whole Session, here are some of our favorite parts:
We asked our experts: What’d we learn in 2021? and What’s coming in 2022?
In 2021, I learned that people matter. We've got all these systems in place... which are all very import and very helpful. But the people matter. Your technology can't work if people aren't fully bought into it." -Grace Totty
Expect the unexpected... Things are changing daily." -Jim Mooney
Patience and compassion. I really had to step back and learn some patience, but you also have to realize there are people less fortunate than all of us, and you have to have some comapssion towards people." -Chad Lundberg
Getting out of my comfort zone... I've got to expand my network of new people." -Alonna RossGabfocus Takeaway
The last two years have been crazy for everyone. A lot of changes have come about due to COVID, and we are still figuring out what changes are temporary and what changes are here to stay. It's not all been bad—it's given us time to catch up on things we were neglecting, and it's helped some people realize the value in technology and the internet. There is still a lot of waiting and watching to do in order to see exactly what new things are sticking around, but there's no time to sit around with a new year right around the corner. 2021 is just about over, and 2022 is sure to see more changes that anyone involved in self storage will need to be ready to adapt to.
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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