Stop Discounting Your Self-Storage Rates!
To many if not all self-storage operators, “discounting” is a four-letter word. Agreeing to reduce your rent is about as pleasant as getting a root canal, yet it’s often seen as a necessary evil. Why are discounts viewed so negatively? Because they hit directly at the bottom line—and not in a good way. Discounting immediately reduces a facility’s economic occupancy. It’s money lost that’s never recovered, and less income means lower facility value. However, there’s an alternative to discounting. It involves simple, commonsense investments you can make in your facility that create a willingness in consumers to pay more rent because they believe it’s worthwhile. This creates more income and higher facility value, too. Following is a brief discussion of these investments and how they enhance revenue. Many can be implemented with little or no cost to ownership. This is by no means a complete list, but food for thought.