by Marc Godin
Obviously, they all work for someone because they all exist. But which one works for you?
The Good = $160+/month rent - maybe around 10% of the facilities
The Bad = $130/month rent - maybe around 40% of the facilities and growing
The Ugly = $100/month rent - maybe around 50% of the facilities and declining.
All three of these 3 types of self-storage can be in a given 5-mile radius. If you are building a new self-storage you need to beware of how you are going to compete with each of these types of facilities
The ugly is typically the mom & pop facility that is charging $100 for a 10 x 10 when the Good and Bad are charging. $150 or more for the same unit.. Sometimes the rent is low because the facility is old, run-down, does not provide state-of-the-art amenities or the "Just right feeling " needed for a premiere facility does not exist. Or maybe they have a good manager but they just don't feel like raising rents. And their mortgage is so low they are making lots of money (just not nearly what they could be making.
The problem with this type of facility is how do you change $160/month when they are charging $100/month. It is not hard if you know self storage inside and out and have a written plan. The problem this plan is a couple of hundred pages + because it includes manuals and how to's for desing and operate to be a premier facility.
This group is declining because as they are bought out by the they are upgraded. New construction typically is not in this group because new construction is not affordable at the lower rental rates of this group.
The Bad self storage is typically a facility run by a good management company like cube storage. They are a corporation and typically can not operate like or feel like a locally owned and operated premium facility. They charge $130 but will be raising the rent between 2 - 7 months and most likely at least twice a year.
Occasionally you will get a mom and pop facility in this category.
You know they are corporate when they have 3 phone numbers on their website: 1 for new customers to rent, number 2 for existing customers, and number 3 to make a payment. Their manager is the least common denominator when it comes to making a profit. Just the opposite of self-storage which charges the most in the area, and whose manager is a sales & marketing
expert.
The good self-storage is typically locally owned and operated. It is a premier self-storage that charges the most and makes the most profits.
Few facilities ever get to this level because it takes a great manager, a great system, and an owner willing to put in the extra work to be the best. It sounds easy but it is not. A new owner must take the time to learn the ropes even before they open and then after they open for a year or two spend 8 hours a week coaching the manager and becoming a self-storage expert.
I was just doing a facility review in Bangor Maine and found all three types in less than 5 miles. If you want to check them out:
Bad group: Cube Smart: 3 phone numbers on the website and the manager could not tell me when my rent would be raised.,
Good group: Maine Self Storage - must have a super good team & systems. One of the better operations I have seen.
Ugly group: Several to choose from.
If you are willing to do the work give me a call for a free 15-minute introductory call on the world of self-storage. Marc 860-830-6764 - no appointment needed.
To Your Success
Marc
ps
Conclusion From Crush The Competition
The Good, The Bad, The Ugly
The Good
Your success and your dreams are up to you.
You have the knowledge for a very successful and profitable self storage business. By now you realize the competition does not have to have any impact on your business. Most self storage businesses and in fact most businesses rarely do enough to satisfy, much less delight their customers.
The bottom line is you can’t change what the neighboring self storage business is doing, but you can realize your biggest competition is yourself and all those negative thoughts in your head. And you can crush all those negative thoughts with actions. You are the magic.
Remember self storage is an acquired taste, like wine or beer. You questioned what was the big deal after your first sip, but now that you’ve acquired the taste you can’t live without it. Give your potential clients what they need or want, and you will find out you have an unlimited client base and they will make you wealthy. Keep asking yourself what do people love, share your story every day and the future is yours. Remember the side effect of making people happy is they will open their wallets.
Enjoy the journey.
The Bad
Your success and your dreams are up to you.
I have so often heard people saying, “I understand” and then I see them doing the exact opposite of what they thought they had understood. It is only when you put into practice what you have understood that you can really say that you truly understand. Several ideas have been repeated in this book and even repeated more than once to help you truly understand. Don’t wait! Get started today! Actions will give you all the results and belief you will ever need.
The Ugly
Your success and your dreams are up to you.
Unfortunately, we have to admit that perseverance is not the most human trait. People often refuse the truth because it is inconvenient. Accepting average or status quo is the enemy of great success. Don’t wait! Get started today. Action will give you the results and belief you need.
Make A Decision
Now you have the rocks you need to load your snowballs to make the profits you deserve. All you have to do is start and make the choice to be better every day! Now you no longer have to take a leap of faith. Now you can take action and reap the reward of your actions.
For maximum results share this book with everyone in your organization. Read it twice. Read it every year. Have potential new hires read the book prior to the second interview.
I have one more very important thing to share with you. I could tell you it is a big secret but it’s not (or maybe it is?). But it is reality. Do your marketing and non-marketing tasks alike with passion and belief. Success will come ten times faster with passion and belief!
Personal Story
Before I even finished construction on my first self storage facility I had well over 100 people tell me they were planning on building a self storage facility as well. Since that time, I have had many many more friends, coworkers, contractors, acquaintances and even some strangers tell me that I “beat them to the punch”. Now, a few years later, not a one of them has even started to build one and I have built and own three and we are helping many others build their own self-storage empires via www.StorageAuthorityFranchise.com Why are some people so lucky? It is simple. If you have a dream and take action, the facts don’t count. Make a decision and Catch Your Dreams.
I hope your self storage business is extremely successful and that I have been a small part of that success. If you have any questions, I might help you out with please email me at Marc@StorageAuthority.com
To Your Success!
Marc Goodin
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 25 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.