How much should I charge for my self storage units?
This is a question that I get asked most often. Even once owners settle on their self storage unit pricing, they still need to increase rates on a regular basis. I have been helping owners set self storage rates and raise self storage rates for years and here are the top 4 mistakes that I see when it comes to pricing self storage units.
Mistake 1: Keeping Up with the “Joneses”
When I discuss self storage unit pricing with most storage owners, they talk about price shopping their competition and little else. If you are just keeping up with your competition and not digging into the supply, demand, customer needs and other data, you are losing money.
Owners that are followers look over at their neighbor and price the same way that he does. You aren’t a follower. You are a leader in the industry. You want to gather information and run your business the best way that you can. Do better than just keeping up with the Joneses! There is an entire process behind how to correctly set and raise rates that you have to understand to make as much money as you can.
I created the “Price With Confidence: Self Storage Revenue Management” Course to teach self storage owners this process. Learn more about the course below.
Mistake 2: Not realizing WHY people buy
Too many owners want to be the cheapest facility in town so that they get rentals. What they don’t realize is that they are also getting the most problems. Being the cheapest in town usually gets you the most uncollected rent and the most auctions, which no one wants. People buy for reasons that have nothing to do with your self storage unit pricing. Get instant access to my FREE Guide “It’s Not About Price: 17 features your self storage facility needs to attract customers”.
Mistake 3: Not offering choices
We all like to feel like we are getting a deal on something, but that doesn’t mean that you have to lower your price without giving up something. If you have someone in your office that wants a deal, offer them choices so that they can decide what is right for them. If my 10×10 rents for $100 but someone can only spend $90, I can offer them a unit in a less than ideal location to make up for the price reduction. There are numerous ways to provide choices in the self storage business so get creative and help your customer buy exactly what they want.
Mistake 4: Not raising rates
Are you in business to make money? It seems obvious, but you have to raise your rates! Many owners are scared of raising their rates for a variety of reasons. They think everyone will move out. They believe that they will lose money. They believe that people will hate them, and the list goes on and on. None of it is true. It is all in your head! The easiest way to make money in self storage is to focus on your self storage unit pricing.
You should have a structured rate increase program in place that is considerate of the customer and will also make you money. I have been working with customers for years on implementing a program that they feel comfortable with, and now I am launching an online course to help you do the same. This course will hold your hand and bring you through all the steps necessary to decide what rates you should be charging and help you get there.