By Marc Godin
One of the main reasons self storage sites get rejected is the competition rates are too low. But First, who says we have to charge the same as the competition? In fact, it is our goal at Storage Authority is to charge 30%+ more than the competition.
If you are rejecting sites based on the rental rates provided by any of the storage data providers or even a phone call you may be rejecting great sites.
This site was easy to take off the competition site for a few reasons including if you were not scared off once you got there, then you had to go find the office - who knows where.
I can tell you my wife would not rent here for multiple reasons - no need to count them as competition.
Let's say there are 7 exiting facilities in your 3-mile search area with the following rates $110, $120, $120, $125, $130, $139, $179.99. The average of the 7 rates is $132/month. This is not a high enough rate to provide for a good six-figure profit so many people would reject this location. But what if you could reject the lowest 3 facilities for various reasons?
What if the 4 facilities with the lowest rates accounted for 20,000 rentable sf and the 2 facilities with the highest accounted for 160,000 rentable sf? Then the weighted average would be significantly more and likely the 2 facilities with the highest rates are the competition you should be building your rates off of.
Bob wire fence, very outdated buildings, uninviting office, and gravel driveways - If there is a better place in Town most people would be happy to pay more.
This is a picture of a real self storage facility. I don't care what they charge my clients are not renting here even if the price is literally half price.
The real question is what rate can you charge at the property we are checking out? The first question are whether any or all of the facilities real competition. The only good way is to visit each site and secret shop them to determine:
1)The curb appeal or lack thereof.
2) The physical quality of the facility, gate system, camera system, perimeter fencing,
3) Is the site paved
4) How full are they
5)The size of the facility.
6) Maned or unmanned. And if even if they are manned is the manager even there daily?
7) On a main street and how easy is it to get to the site
8) How good a job the manager does at renting a unit.
Often you can justify eliminating small facilities as they are often off the beaten path, not well kept, and hard to rent.
Is my stuff going to be dry after a major rainstorm at this location? For sure my feet aren't going to be dry at this location.
If a facility is in rent-up mode they may have lower prices. If the facility looks new ask when it was built. Always ask how long the rental rates are good for. Reits are known for low initial rates and then raising the rents twice in 9 months.
The 2 main reasons people rent are convenience and safety. But it also needs that "It just feels right" feeling. A site visit to the proposed site and all the competition is step one in reviewing a land parcel.
One more secret - you want to call all the pipeline facilities to see when they will start construction. Some will never be built which can make a big difference. Ask if they are for sale, it good be your lucky day.
Do you want to have a 15-minute call to learn how Storage Authority helps improve the systems, sales, marketing, and profits at your existing facility? If you are building from the ground up let's also review how we help you find land and get your facility designed, approved, and built.
Please send me an email or call me – no appointment is needed:
Marc@storageauthority.com or 860-830-6764
Get more information on Storage Authority Franchise at www.storageauthorityfranchise.com/opportunity3
Marc Goodin is the President of Storage Authority Franchising. www.StorageAuthorityFranchise.com He owns 3 self-storages he designed, built, and manages. He has been helping others in the self-storage industry for over 30 years. He can be reached at marc@StorageAuthority.com or directly at 860-830-6764 to answer your franchising, development, marketing, sales, and operations questions. His best-selling self-storage books are available on Amazon.
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