3 Big Rental Price Myths

The 3 Biggest Myths About Rental Prices

By Marc Goodin

First I want to show you a chart for the 22 self storages near my Coventry self storage.  As you can see there is a huge difference between the low & high prices and even between the average and the high prices.  The high prices are mine and I can tell you increasing your rates 25% will increase your profits by 50% and more!

Average Coventry Area Rental Rates

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You will get more rentals and make more money if your rates are in the middle of the pack or on the low end of the rental scale.

There is nothing further from the truth, in fact I can find the price leaders in any city and they will be the ones making the most money.  There is no other business where the owners (and managers) lack the basics of a retail business (or just are making to much to care or put in the time.)  This can be observed by the fact that so many facilities are full but have not raised their rents (in years).  Have you ever seen another business that would not raise their rates when there is such demand?  These facilities would make more money with higher rates at 95% full.

By providing the tools and training a manager, the sale manager will surprise and delight clients and provide the “just right feeling” and price will not be a factor.  Once you help clients understand and see you are a premium self storage they will be happy to pay for your services

At Storage Authority We have the best guarantee in the business and we share it with every customer even before they walk in the door!  They know we care about them and their stuff immediately – priceless!

Most owners have let their facility become a commodity by having order takers for managers and not having trained sales managers run their facility.  The difference is not what is between the four walls of a unit but what is on the out side of the walls.  A Commodity is a product or service that no one cared enough about to market and thus has to compete on price.  Marketing and sales managers create value by combining stories, design, care and over the top service.

The problem is it takes experience and work to provide the systems, manuals, guidance and training.  Starting day one I would rather insure managers know how to really explain the price and understand the basic sales and marketing, then literally leave tons of profit on the table every month.  And that is why Storage Authority has developed Dynamic Ease Series for all aspects of self storage.

Our managers are required to email us immediately if someone did not rent because of our (higher) prices and provide their phone number and tell us what they said about price.  After training I rarely get such an email but when I do once or twice a year I love to give them a call and rent to them.

TWO Most renters choose where to rent based upon price.

There is nothing further from the truth, in fact price is often 6 or 7 down on the list. Many managers think price is the major factor in choosing a self storage because this is the first question a prospect often ask.  But customers ask this because they do not know what else to ask.  Competing on price is absolutely the worst feature to use to build a profitable self storage.  During the next 5 site walks to show units have your managers ask prospects what is important to them and price will be down on the second half of the list.

The manager’s simple do not know how to make a sale and in most cases do not even take a prospect for site walk to get to know them or know how to ask for the rental.  People do not window shop for self storage.  Typically, they are going to rent from you or someone else in the next week.

THREE  It is a lot of work to keep up with the competitions prices I don’t really need to do that.

Again a myth.  The competitions prices are simple to get with a few strokes on your key board.  I use www.stortrack.com  I can check the competitions prices when every I want and Stortrack even send me alerts when prices change.  Us our code Price20  and save 20%.  They have a couple of great options to get quick mini reports when you looking at new sites.

They provide the data in a couple of great formats for easy use.  Here is a couple of screen shots of my facilities rates and my competition rates.  As you can see there is a huge difference for form the low, average and highest.  And our Coventry Facility is the price leader by a ton!

I need the competitor prices to insure I am the highest. I even bring my price list to all my competition and let them know how high I am.  Hopefully this get them to raise their prices a bit.  But more importantly when they run out of a size a customer needs they refer them to me. My competition is one of my major sources of leads.  They think customers will come back to them one day because they charge less but it never happens

 

 

 

 

 

 

 

 

Wow! My Competition just 5 miles away charges over 50% more than the competition.  The good news is I own that self storage too!

 BONUS Quick tips how to over come the price objection

Most people do not rent is because they were never asked if they wanted to rent. So ask 3 times, “lets get that 10 x 10 in your name”

Many people did not rent because you did not overcome their concerns.  There are only seven typical concerns so its time to learn them and their responses.  So again ask if they want to rent and them overcome their concerns.

Potential renters bring up prices in typically one of the two following ways:

  • Potential Renter: That’s high      

      Your response:  Why do you say that? 

 Now you can over come their concern and rent. You will be amazed at the answers.  The only price concern you really have to compete with is, so & so down the street is cheaper by $20 and that’s simple:  I am sure you can agree we are different and we provide exception value. As you shake you head yes ask would you like to get that unit in your name. The key is not saying anything and let them response.  They either rent or come up with the real concern you can overcome.

Never Never match prices.  After the customer understands your value, you are much better off asking are you ready to rent today? And if they say yes, then offer them a $25 off the first month rent and add in free lock, if they want more.  One time discounts are so much better then ongoing monthly discounts.

  • Question: Can you give me a better price?

Your Response:  I understand your concern. You want to get the most value for your money.  From what I shared with you I am sure you can agree we provide exceptional value.  We keep our rates as low as possible and still provide the services all our clients expect. Would you like to get that 10 x 10 in your name today as you put the lease on the counter.

 

Marc Goodin is President of Storage Authority Franchising, the best Franchise for the busy professional.  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 answerer your development, marketing, sales and operations questions.

3 Steps To Get Started In Self Storage.

Dear Friends,

This may be a long but I know, for a couple of you, it will change your life.

I have shared the secretes of self storage wealth with many people and of course my best friend. As the new year rolls out I want to take the time to let you know You Can Do It! Many people are going to start their self storage empire in 2017. WHY NOT YOU? WHY NOT NOW?

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Well simple put only 1 to 3% of the people are ever going to be ready to do their own thing. That’s ok. But if your in that 3% I wanted to take the time today to share the 3 steps to get started.

Just as important there are a ton of people always stuck on the fence so I am first going to share a story. I hope this will help you get off the fence on one side or the other.

25 years ago I asked my best friend if he wanted to start a civil engineering business with me. He said it was to risky and he took an engineering job with the state. I enjoyed being my own boss and all the rewards it brought me and my family. I built a very successful engineering business and sold it when I retired 10 years ago. About 12 years ago I asked the same best friend if he wanted to build a self storage with me. He said it sounds like a good idea but he wanted to see how it worked out. I built it and it helped me make the decision to retire 2 years later.

About three years later I asked him if he wanted in on my second self storage. He said he did not want to risk his 2 kids college fund. Well we both spend close to $150,000 putting our kids through college. The difference is my friend is still working 8 – 5 and will continue to work to 65. Hopefully he will have time to save up a nest egg again. He is one of the lucky ones who will also get a state pension.

Now on the other hand I took my savings, took advantage of the banks money and invested in self storage. Self storage paid for my kids college and keeps paying me every year and will put millions in my bank account when and if I ever sell. Now of course everyone tells me how lucky I am. And indeed I am because I am having a blast and enjoying everyday.. I am offering you the opportunity to join us and be just as lucky as me!

So why not take the challenge and get started now. Here are the three steps to kick start your self storage future:

3 Steps to Kick Start Your Self Storage Future Today!

1) Make a decision to do something every week. And go getter’s you can do something every day! Success does not come in a day or week it comes from one step after another.

2) Apply online for a Storage Authority Franchise today! www.StorageAuthorityFranchise.com There is no reason to start from scratch. You will enjoy getting your doors open sooner, easier and most importantly larger profits. And the real truth for most people is they simple will never do it on their own. Having help and being accountable will get you off the fence and on your way. Once you take the 15 minutes to complete the application email Garrett@StorageAuthority.com and let him know you completed the application. Take advantage of Garrett’s knowledge and experience and enjoy his mentorship. If you don’t have 15 minutes today to complete the application I dare you to email Garrett and let him know you will be completing it tomorrow.

why-not-you

3) Learn something about your new self storage enterprise every day. Here www.storageauthorityfranchising.com/news_room/  you can learn about self storage conversions, the location of 150+ Kmarts & Sears closing. And learn about how to do a mini self Storage Demand Story.

If you have questions or need to hear first hand how to get started please contact Garrett. It will be his pleasure to help you. Here is a little bit about Garrett from his press release. When you call him ask about how he took the 3 story self storage facility from the grand opening to 62% full in 6 months and you will understand why we are so excited and luck to have him on our Team.

Storage Authority LLC hired Garrett Byrd as Director of Franchising. He will over see all aspects of recruiting and assisting new franchisees. Garrett is a self storage veteran with extensive experience in self storage revenue growth, sales and marketing. He will assist new franchisees starting with finding land right through pre opening marketing, training and operations. If you are interested in learning more on the dynamics of self storage franchising please contact Garrett directly at (941) 928-1354 or email him at Garrett@StorageAuthority.com

I wish all of you tremendous success in 2017

We look forward to helping the 1% who are ready to go!

Cheers

Marc G

17-reasons-why-storage-authority

Marc Goodin is 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 or directly at 860-830-6764 to answerer your construction and development questions. His construction and marketing books are available in the ISS book store and Amazon

100 + Kmarts for you to Convert To Self Storage for HUGE Profits

100+ Kmarts for You to Convert To Self Storage for HUGE Profits!
by Marc Goodin

Conversions of exiting building into self storage is typically faster then building from scratch. And often these empty grocery stores, Wal marts, sears, Kmarts etc are located in high population and high traffic areas so they are prime self storage locations.  While conversions cost about the same as new construction your the regulatory process is much easier and you can cut your time in half.

kmart

Adding the self storage units cost aprox. $10 to $12 per square foot. And often you can expect to spend another $10/sf foot on soft costs, building improvements, office build out, signage, parking improvements.

You can find these buildings by simply driving around your neighborhood. If you have a KMART or SEARS  in your town you have a 1 in 10 chance it may be an option for a future self storage as sears is closing about 10% of it stores.

Sears announced a second wave of store closures on Wednesday, bringing the total number of closures scheduled for early 2017 to 150.

The company will shut down 108 Kmart stores and 42 Sears stores by April, according to an internal document obtained by Business Insider.
Upcoming Store Closures Announced 1/4/2017

STORE STREET ADDRESS CITY STATE

Kmart 3600 Wilson Road Bakersfield CA
Kmart 25 West Polk Street Coalinga CA
Kmart 333 Sierra Street Kingsburg CA
Kmart 363 S Broadway Denver CO
Kmart 2809 North Ave Grand Junction CO
Kmart 45 Shunpike Road Cromwell CT
Kmart 3200 Macon Road Columbus GA
Kmart 365 Habersham Village Circle Cornelia GA
Kmart 1601 Highway 40 East Kingsland GA
Kmart 2600 Dodge Street Dubuque IA
Kmart 5700 Gordon Drive Sioux City IA
Kmart 3810 University Avenue Waterloo IA
Kmart 2851 Belt Line Parkway Alton IL
Kmart 3655 Nameoki Road Granite City IL
Kmart 750 Indian Boundary Road Chesterton IN
Kmart 1460 West State Road 2 La Porte IN
Kmart 4820 S 4th St Trafficway Leavenworth KS
Kmart 4200 W Kellogg Dr Wichita KS
Kmart 115 South Airline Hwy Gonzales LA
Kmart 1400 S Clearview Parkway New Orleans LA
Kmart 29600 Ford Road Garden City MI
Kmart 3555 O’Neill Drive Jackson MI
Kmart 1396 South Main Street Adrian MI
Kmart 5400 S Cedar Street Lansing MI
Kmart 1501 E Apple Ave Muskegon MI
Kmart 40855 Ann Arbor Road Plymouth MI
Kmart 17580 Frazho Road Roseville MI
Kmart 3541 Highland Road Waterford MI
Kmart 165 Wayne Road Westland MI
Kmart 6455 US 31 N Acme Township MI
Kmart 1305 Highway 10 West Detroit Lakes MN
Kmart 1477 State Highway 248 Branson MO
Kmart 2304 Missouri Blvd Jefferson City MO
Kmart 1003 S Bishop Ave Rolla MO
Kmart 3101 S Glenstone Ave Springfield MO
Kmart 6650 Manchester Ave St Louis MO
Kmart 545 US Hwy 29 North Concord NC
Kmart 1931 Skibo Road Fayetteville NC
Kmart 201 N Berkeley Blvd Goldsboro NC
Kmart 102 New Market Madison NC
Kmart 815 S College Road Wilmington NC
Kmart 1468 Clementon Road Clementon NJ
Kmart 645 Highway 18 East Brunswick NJ
Kmart 800 Black Horse Pike Pleasantville NJ
Kmart Rte 9 & Rte 47 Rio Grande NJ
Kmart 10405 S Eastern Ave Henderson NV
Kmart 1500 Coshocton Ave Mount Vernon OH
Kmart 185 Upper River Road Gallipolis OH
Kmart 1005 East Columbus St Kenton OH
Kmart 225 West Avenue New Boston OH
Kmart 1284 Brice Road Reynoldsburg OH
Kmart I-70 & Mall Road St. Clairsville OH
Kmart 3515 N Maple Avenue Zanesville OH
Kmart 4 East Shawnee St Muskogee OK
Kmart 5820 Shaffer Road Dubois PA
Kmart 1320 E Grandview Blvd Erie PA
Kmart 1890 Fruitville Pike Lancaster PA
Kmart 5600 Carlisle Pike US 11 Mechanicsburg PA
Kmart 120 Mall Blvd Monroeville PA
Kmart 100 Cross Roads Plz Mt. Pleasant PA
Kmart 3801 B Clemson Blvd Anderson SC
Kmart 254 Highway 72 By-Pass Greenwood SC
Kmart 8571 Rivers Avenue North Charleston SC
Kmart 3020 W 12th St Sioux Falls SD
Kmart 305 W Economy Road Morristown TN
Kmart 1120 Mc Rae Blvd El Paso TX
Kmart 9484 Dyer St El Paso TX
Kmart 1101 Fort Hood Street Killeen TX
Kmart 3061 S John Redditt Dr Lufkin TX
Kmart 1153 W Highway 40 Vernal UT
Kmart 2010 N Main St Layton UT
Kmart 1419 Hershberger Road N W Roanoke VA
Kmart 3655 Plank Road Fredericksburg VA
Kmart 6101 N Military Hwy Norfolk VA
Kmart 1355 West Main Street Salem VA
Kmart 1425 E Highway 151 Platteville WI
Kmart 2211 S Green Bay Road Racine WI
Kmart 1840 Dell Range Blvd Cheyenne WY
Sears* Albany Mall Albany GA
Sears 5555 Whittlesey Blvd Columbus GA
Sears 1235 S Reed Road Kokomo IN
Sears 2259 S 9th St Salina KS
Sears* 9001 Cortana Mall Baton Rouge / Cortana LA
Sears* 197 Westbank Expressway Gretna LA
Sears* 3099 28th St SE Grand Rapids MI
Sears* 12737 Riverdale Blvd NW Coon Rapids MN
Sears* 1850 Adams St Mankato MN
Sears* 3600 Country Club Dr Jefferson Cty MO
Sears 3702 Frederick Ave Saint Joseph MO
Sears* 3902 13th Ave South Fargo ND
Sears 1000 S Main St Roswell NM
Sears* 2000 Brittain Road Akron OH
Sears* 1075 N Bridge St Chillicothe OH
Sears* 1701 River Valley Circle S Lancaster OH
Sears* Richmond Mall Richmond Hts OH
Sears 428 SW C Ave Lawton OK
Sears* 1 Susquehanna Valley Mall Dr Selinsgrove PA
Sears* 1500 Mall Run Road Uniontown PA
Sears* 3595 Capital City Mall Camp Hill PA
Sears* 1500 Diamond Hill Road Woonsocket RI
Sears* 2701 David H Mcleod Blvd Florence SC
Sears* 2101 Fort Henry Dr Kingsport TN
Sears* 4101 E 42nd St Odessa TX
Sears* 500 Gate City Hwy Bristol VA

Announced 12/27/2016
STORE  STREET ADDRESS CITY STATE
Kmart 300 Highway 78 E Jasper AL
Kmart 2003 US Hwy 280 Bypass Phenix City AL
Kmart 3001 Iowa Avenue Riverside CA
Kmart 501 N Beneva Road Sarasota FL
Kmart 1801 Northwest Hwy 19 Crystal River FL
Kmart 15271 Mcgregor Blvd Fort Myers FL
Kmart 2111 S Federal Hwy Fort Pierce FL
Kmart 1501 Normandy Village Jacksonville FL
Kmart 2211 W Irlo Bronson Hwy Kissimmee FL
Kmart 19400 Cochran Blvd Port Charlotte FL
Kmart 4955 Golden Gate Parkway Naples FL
Kmart 111 Town & Country Drive Palatka FL
Kmart 33 W Montgomery Cross Road Savannah GA
Kmart 4561 Salt Lake Blvd Halawa / Honolullu HI
Kmart 191 Outer Loop Road Louisville KY
Kmart 2945 Scottsville Road Bowling Green KY
Kmart 14662 N US Highway 25 East Corbin KY
Kmart 1501 Paris Pike Georgetown KY
Kmart 3010 Fort Campbell Blvd Hopkinsville KY
Kmart 1710 West Highway 192 London KY
Kmart 2815 West Parrish Avenue Owensboro KY
Kmart 9 Plaza Way Fairhaven MA
Kmart 1130 Newport Avenue South Attleboro MA
Kmart 222 N Point Blvd Baltimore MD
Kmart 688 Hogan Road Bangor ME
Kmart 4645 Commercial Drive New Hartford NY
Kmart 5132 6th Ave Tacoma WA
Kmart 731 Beverly Pike Elkins WV
Kmart 1050 Division Street Parkersburg WV
Kmart 250 Three Springs Drive Weirton WV
Sears* 301 Cox Creek Pkwy Florence AL
Sears 1901 S Caraway Road Jonesboro AR
Sears 90 Elm St; Enfield Sq Enfield CT
Sears* 301 Eagle Ridge Dr Lake Wales FL
Sears* 5101 Hinkleville Road Paducah KY
Sears* 262 Swansea Mall Drive Swansea MA
Sears* 10 Whitten Road Augusta ME
Sears* 1261 Niagara Falls Blvd Amherst NY
Sears* 2000 Walden Ave Cheektowaga NY
Sears* 1 N Galleria Dr Middletown NY
Sears 9605 Queens Blvd Rego Park NY
Sears 1901 S Yale Ave Tulsa OK
Sears 3245 E State St Hermitage/Sharon PA
Sears* 18600 Alderwood Mall Pkwy Lynnwood WA
Sears 225 Meadowbrook Road Bridgeport WV
Sears* Towne Center Mall Charleston WV
All stores above will close at the end of March except for the following locations:

Kmart, Cromwell, CT – mid-March
Kmart, Mechanicsburg, PA – mid-February
Sears, Florence, SC – mid-February
Sears, Camp Hill, PA – mid-February

 

Marc Goodin is 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 or directly at 860-830-6764 to answerer your construction and development questions.