By Drew Case
Storage Authority Franchise
I have had countless conversations with Small-Ops over my 30 years in self-storage. The owners are great people and pioneers in self-storage. Unfortunately, many of them are stuck in their outdated ways. Furthermore, they don't want to be told about it. They are very proud of what they built and they paved the road for many others to follow. However, in too many cases, their own pride is what keeps them from continued success.
Many small-ops were built years ago and their owners are happy to be their own boss. They are often the lowest rate in town and allocate minimal spending to update their facility. They keep their customers that have become their friends over the last 20+ years and also use several units for their own storage uses and are almost always fully occupied. The barbed wire fence, no landscaping, faded doors, WARNING signs all over the property, lack of upgrades or even a website are all aspects of numerous small-ops. For example I evaluated a facility for purchase less than three years ago that had three mismatched, 8"-10" black and white monitors stacked on the counter. It was a 5 floor building with cargo elevators and the owner ran it with a spreadsheet in a major metro area. It was the most unorganized self storage I have ever seen. The most curious and beloved one that many of us have seen is the "push pin, color coded vacant, paid, delinquent facility map on the wall.
They can have a nicer facility, offer more, generate more revenue and ultimately more profit. Let's do some simple math to gauge what many long time small-op owners are missing out on. Furthermore, what they can cash in on if they decide to sell.
400 units (The starting point)
10' x 10' = $100
100% occupied
Income = $40,000/ month
400 units
10' x 10' = $110
91% occupied (36 fewer customers)
Income = $40,040/ month
Let's consider these numbers for a moment. Does anybody reading this blog think that 36 customers will move out over a $10/month rate increase? Highly unlikely!
Let's say they lose 5 customers, because that is more realistic. For fun, let's say 8.
400 units
10' x 10' = $110
98% occupied (8 fewer customers)
Income = $43,120/month ($3120+ additional income to improve the facility)
Now, when they answer the phone, they can say "YES, I have one available!!!"
They should take this extra money ($3,120 per month or $37,440 annually) and start fixing up their place and add some upgrades to be more competitive. All those features the new places have can be incorporated into the older facilities. The owners can continue to drive up their rates and the condition of their facility. If they continue to own it, then their facility is more desirable and more profitable to the customer and themselves. If they sell it, it has more value when they put it on the market. They win either way!!
Want to take your facility to new heights??? The team at Storage Authority can provide guidance via their franchise program to existing facility owners. Check out www.StorageAuthorityFranchise.com to learn more and contact the team with any questions about how to go about updating your own facility.
Many small-ops are one newer facility being built in the area away from their own demise. These owners need to be open to accepting guidance on how to go about enhancing their facility and increasing rates. Its doable or the end result is sell to somebody that will do exactly what they could have done all along. In fact, an updated facility helps keep the competition out and plays a part in continuing to be the self storage place people want to utilize.
In summary...
Dear Small-Ops,
Raise your rates and update you facility!!!
Storage Authority's guidance in self-storage development underscores the intricate balance between meeting storage demands and environmental sustainability. By aligning with Storage Authority's principles and leveraging our team's expertise, along with your engineer, architect, and general contractor we can navigate the complexities of impervious coverage with confidence, ensuring the creation of self-storage facilities that are both economically viable and environmentally responsible.
Storage Authority Franchising is all about owning your own local self-storage business, supported by professional systems and expertise. We like to say, "You're in business for yourself but not by yourself." If self-storage is on your mind, don't hesitate to reach out to Drew Case at Direct: 513-582-0125 or Drew@StorageAuthority.com to learn more about the Storage Authority Franchise opportunity. Your self-storage journey awaits!
If you would like to learn more and start your journey to self-storage ownership click the link here:
Your success story begins with Storage Authority!
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