How To Manage Business in the Self Storage Industry

It must be boom time for self storage managers now. Just as an undertaker’s business is extremely busy during the times of an epidemic, a self storage company would be doing large volumes of business in these times of economic slowdown, shutting down of businesses, loss of jobs and so on.

What makes this time significant for a self storage industry owner is that prior to the economic crisis, large parts of the world - both developed and developing countries - saw unprecedented growth in consumer spending, investments in real estate and a marked increase in luxury and lifestyle products in people’s homes. That included fancy refrigerators, flat panel televisions, fancy cars and what have you! Now that the recession has set in and people are finding it difficult to get buyers who will pay good money for their pricier acquisitions, the only option is to store these belongings safely. This is where it becomes very interesting for a business owner in the self storage industry.

Now that you know it is a good time to be in this business, let’s examine some tips for managing the self storage industry.

1. Analyze your target customers. Are they the ones with cheap/inexpensive and large volumes of domestic items or are they people with expensive and large items of storage? Make allowances for a bit of both in planning your storage area.
2. Remember that people are entrusting their precious belongings to the self storage company; there is a high emotional value attached along with the cost of investment. A good self storage company must, therefore, instill oodles of confidence and permanency amongst its customers.
3. Additionally, the storage facility should be well located, maintained in a clean and tidy manner and must appear to have a strong, lasting appearance. It should not only be highly secure, but must appear to be discreet from the outside to the discerning customer.
4. Collect payments in advance and never let a fee remain unpaid beyond a quarter of the value of the items stored at the self storage facility. Examine the laws in your state for appropriating the stored items in case of prolonged non-payment or if the customer cannot be traced for any reason.
5. Project an image of permanency; a business that cannot be affected by events such as an economic slowdown. To achieve this, display signs to this effect. For example, if the business is old and well-established, state the year of establishment in all forms of communication, on the signage and on the front door. If it is a new business, then project an image of strong financials of the investors and owners of the self-storage company.
6. Price your offerings well. It should be reasonable enough to encourage short to long terms of usage by existing and potential customers.
7. Since the essential element of a self storage company is its physical space, it makes sense to own the facility and the land it is located on, to avoid increasing costs of rentals.
8. Invest in remote facilities and offer safe transit for large items like sofa sets and furniture that cannot be dismantled often.

Follow the guidelines listed above and you can ensure a successful self storage business!