By Garrett Byrd
Based on research from industry trends, unmanned self-storage facilities are not necessarily more profitable than staffed facilities, despite the potential cost savings on labor. Here's an analysis of the key factors:
Cost Savings vs. Revenue Impact
While unmanned facilities can reduce staffing costs, this often comes at the expense of rental rates and overall revenue:
Unmanned facilities typically charge lower rents, positioning themselves as budget options.
This commoditization leads to price-based competition rather than value-based differentiation.
Customer Service and Value-Add
Staffed facilities can provide superior customer service and additional revenue streams1:
On-site managers can upsell services, handle issues promptly, and create a more personalized experience.
Staffed locations can offer value-added services like packing supplies, truck rentals, and insurance.
Security and Maintenance
The presence of staff can enhance security and facility upkeep:
On-site personnel deter theft and vandalism.
Staff can quickly address maintenance issues, preserving property value.
Occupancy Rates
Staffed facilities often maintain higher occupancy rates:
Personal interactions and guided tours can increase conversion rates.
Managers can actively follow up on leads and implement targeted marketing strategies.
Technology Integration
The most profitable approach is a hybrid model that leverages technology while maintaining staff presence: (High Tech / High Touch Philosophy )
Automated systems for access control, payments, and basic customer service.
On-site staff for complex issues, sales, and facility management.
While unmanned facilities can reduce labor costs, they often sacrifice revenue potential and customer value. A strategic approach that balances automation with personalized service is likely to yield the highest profitability in the self-storage industry.
I recently wrote an article for Inside Self Storage: Zig When Your Competitors Zag: 8 High-Touch Customer-Experience Tips for Self-Storage Operators
The Golden Rule, “Treat others as you would like to be treated,” has evolved into the Platinum Rule, “Treat others as they would like to be treated.” The business translation is, “Serve the customer on the platforms and in the ways they prefer.”
We have an upcoming webinar: Why High-Touch Beats High-Tech "Skyrocket Your Profits"
October, 3rd 2024 at 1 pm EST
Live Discussion and Q & A
If you have any questions, don't hesitate to reach out to me, Garrett Byrd at Direct: 941-928-1354 or Garrett@StorageAuthority.com
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