By Drew Case
Storage Authority Franchise
Truck rental can provide the good, the bad and the ugly. I have seen locations manage self-storage and truck rental well. I have also seen otherwise. Here are three reasons why you should and three reasons you may not want to add truck rental.
Why ADD:
1.) Increased customer convenience. The customer will not need to go elsewhere for a moving truck or van. Allowing the customer to visit another location may result in them visiting a competitor that also offers self-storage. They will work to steal your customer away. Instead, help them right at your facility and also make some money.
2.) Additional revenue stream. Just like anything else you might offer at your facility, truck rental brings in commissions. There are various ways to add this service. Review various ways that truck rental can be an avenue that is profitable and will also offer flexibility to be able to serve your customers. Owning your truck entails insurance and maintenance expenses along with payments. Aligning with a company that provides the equipment and maintenance relives you of expenses and provides commissions. Do your research on what is best for you.
3.) Reels in additional customers. Not only are you serving your self-storage customers, depending on the partner you select to provide this service, you may extend the service to the general public. Some locations only rent to storage customers and some rent to everybody that qualifies for a rental. 1 in 4 customers renting a truck are utilizing some form of self-storage. Is it yours? The larger customer base, the more likely you will pull in additional potential storage customers, leading to additional potential occupancy.
Why NOT:
1.) While truck rental can bring in outside customers, it may serve as a distraction from your actual customers and take away from a premier level of service of your core business. Your manager focus should always be on the self-storage customer as they are your primary source of revenue at the facility.
2.) Increased liability risk and facility damage is a potential issue. Sure, customers will be using moving trucks to move in and out of your facility either way, but having them on your property takes up space and causes the manager to move them around. Accidents happen and that opportunity is increased. Having too much inventory also may get in the way of of customer access.
3.) High cost and complexity of operations. Depending on how you offer the service, the costs may be high. Owning your truck is an expensive option. Utilization usually drops off in certain months and you may paying to offer a service. Options of adding in a company that covers the majority of the costs and maintenance will are likely be profitable, but will come with other limitations beyond your control. Even if your costs are reasonable, are your personnel comfortable with moving around the equipment and doing inspections.
Again, I have seen both sides of this work well for a self-storage location. If you are struggling to add occupancy, truck rental is an excellent option if you are already maximizing your level of service to the customer. However, if you find trucks are in the way and taking up too much time to offer premier service to your self-storage customers, the trucks ay be your problem. Various aspects to consider, so again...do your research.
Related Blog: https://www.storageauthorityfranchise.com/post/clean-your-restroom-and-increase-your-occupancy-say-what
Storage Authority Franchising is all about owning your own local self-storage business, supported by professional systems and expertise. Reach out to Drew Case at Direct: 513-582-0125 or Drew@StorageAuthority.com to learn more about the Storage Authority Franchise opportunity. Also, check out more blogs at www.StorageAuthorityFranchise.com.
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