Self Storage- Deal 9, Marketing Play

[Henry Clark]

Just checking the internet and I ran across a thread I responded to below, trying to help them out.  On the flip side, this would be a great deal.  All of the "Work" is done; this is a Marketing play.  Several states away, but what a great location to go to summer or winter.

@?????????, on your background it says the unit is in ?????????, ??.
Looked out on Sparefoot, without knowing your Locations name, here is the info I see. It is better for you to check with Boots on the ground:

a. Great market almost everyone is full. By looking at their listing of sizes, they should have a lot more sizes available, thus they have them turned off, since they are full. If I was there, I would build more units.
b. 10x10 (15 of 22 available); ($105 to $198 price range) Avg $140
c. 10 x 15 (9 of 22 available) ($126 to $274) Avg $170
d. 10 x 20 (14 of 22 available) ($169 to $380) Avg $190
e. A lot of competition, does not use Sparefoot. Only 22 out of 82 listed, use Sparefoot.

Recommendations:
1. Put up a road sign. This is the cheapest and most effective advertising. Everyone that sees it is a potential customer since they are in your neighborhood. It imprints on their mind. Keep it simple. Name and phone number. I know your buildings are storage and customers should know its storage, but you have to tell them it is storage.
2. @????????????; look at his "all encompassing" comments. Most people are using their cell phones to find a storage location and then to price comparison. I have a small town of 5,000 people and our location is on the main road. Buildings say storage and the sign says storage. Most customers still reach me through the internet and don't call my direct number on the sign.
3. Work on your website and other presence, but your fastest (next day) impact will be using Sparefoot. You will have immediate presence. Some people don't like Sparefoot, but they aren't missing out on the extra income or paying the bank. You can always turn them off.


Why do anything? Lets run some numbers. Change according to your actuals:
Since your location has a manager, I will assume 300 units.
Above you say 75% full consistently on average.
Will use the avg unit 10 x 15 with an avg price of $170.

Units available 300 x 25%= 75 units available
Avg price= $170
Potential extra income = 75 x $170 x 12 months= $153,000 extra

Actions:
With $153,000 extra income to work with, here are my recommendations.
a. Install a road sign $20,000
b. Don't mess around learning about internet marketing, your potential rental income is to big. Hire an SEO firm for $1,500 per month ($18,000 annual) that just does Storage. Possibly change your management software. To @???????????? points, if you can automate Rentals/reservations/payment your google ranking will go up, due to customer ease. Some software's have their own SEO products which may be cheaper than hiring a standalone SEO. Only downfall is some of your competition might also be using them. Have a conversation with your SEO around: Google Ads, Facebook, Google map ranking, website, blogging, youtube, internet pictures,
c. Don't leave work today without joining Sparefoot. Cost 1.5 months rent for each new customer. Cost, assume a 12 month rental. 1.5 x $170 x 75 units= $19,000 Sparefoot fee for 12 months of rentals. You will be immediately ahead of 60 out of 82 of your competition.
d. When you reach about 95% or about 3 units of each size available, turn Sparefoot off. Turn back on when your occupancy starts to drop. Towards the end of the Fall season, turn Sparefoot on, until all of your units are filled. An empty unit over the winter doesn't earn any money. Drop your price seasonally in the Fall. You can keep your Street price higher and your Sparefoot price lower.
e. Product mix, even if you are out of a size (except your largest) keep advertising and renting them. Example: out of 10 x 10 still advertise, but give them a 10 x 15 for the same price; out of 10 x 15 still advertise, but give them a 10 x 20. Stop this practice when you get near 90 to 95% full. Your Vortex of prior and existing customers will keep you at that level in the future.

Good luck. Your only one week away from taking the actions needed to get to 90/95% full and an additional $153,000 profit per year.