“Competition is always a good thing. It forces us to do our best. A monopoly renders people complacent and satisfied with mediocrity.” – Nancy Pearcy” Competition is always a good thing. It forces us to do our best. A monopoly renders people complacent and satisfied with mediocrity.” – Nancy Pearcy
In the business of self-storage, you won’t have to look far to find your business competition. With over 51,000 self-storage facilities in the United States, there are likely several within a quick driving distance (Sparefoot.com). Florida alone has over 2,600 self-storage businesses (selfstorage.com).
Competition keeps good businesses on their toes, and it keeps the best businesses at the front of the pack. When there is no competition nearby, it can be easy to become relaxed and think there’s no need to be the best, offer the most value or even put forth much effort with things like social media, marketing, adding value or even customer service.
In preparing articles, there are usually two self-storage businesses that come to mind. Both see lots of vehicle traffic every single day. Both exist in close proximity to thousands of households. As a self-storage manager, it should make you wonder why a customer chooses one over another. With consumers it generally comes down to price or value and then availability. Some customers want the lowest price, and some want the best value. If one facility is at occupancy or close to it, this also becomes a factor. Urgency drives decision-making. Let’s discuss today why a great self-storage manager needs to know their competitor’s pricing and how to get it.
- Website research.
Start by checking the map feature on your smartphone. Search for self-storage nearby. You’ll see a list of businesses located nearby and each one will have contact information, usually including a website. Sort by distance and then create a list of those businesses using a spreadsheet. Take the time to visit each website and assess amenities, security features, available options, accessibility hours, and even pricing. Make note of anything that is valuable to customers by category to fully understand your local competition. If pricing is not available online, leave that column blank for the next steps.
- Social media research.
From a personal social media account, (to preserve anonymity) check each social media page for the businesses you added to your spreadsheet. It’s recommended to actually follow or like the page. (If your business is on social media, you can bet that competitors follow or like your page.) Take some time to scroll through posts and notice what they’re doing versus what they’re not doing. It’s shocking that not every business makes use of social media today, but this may be an advantage to your business if you do. Make note of any competitors that use social media actively and well.
Pay attention to the details of their online presence. This will actually help narrow down which businesses are actually your main competitors. Things to pay attention to are complete lack of social media presence and very little website information. Why wouldn’t you make use of free advertising through social media to generate traffic?
Some businesses will provide pricing information online via their website or social media, and some will not. Some will offer information on the sizes available with a “contact us” button for availability and pricing, which leads us to number 3.
- Make phone calls.
Pick your top competition businesses that most closely match yours and make phone calls inquiring about availability and pricing. Every industry mystery shops in this manner and while it is slightly uncomfortable, it’s necessary. Revisit your spreadsheet and fill in as much information as you can on your competitors. Businesses will likely offer discounts up front to new customers. Promotional incentives are common. As a result it is necessary to inquire about any price changes once the promotional period is over.
How to use this information going forward
It’s important to know your competition well. This process is a great first step to providing information on how to better serve current and future customers. Look for ways to add value along the way. Good businesses will tell you up front about the great things they offer. It will be available on their website and social media because they know that making information available to customers is one hurdle that is easy to overcome. Some business owners think that if you provide all the information online that a potential customer will never call to learn more. However, some customers will skip over doing business with anyone who makes it difficult to access information. Today’s customers want the process to be easy, and having to make unnecessary phone calls is one hurdle they simply don’t want.
Use the information you found to assess your own business. How is your website? How strong is your social media presence? How active are you online? Do you make it easy for customers to find you and your business information? Make sure your online profile pages via Google Business, Facebook, Instagram and even LinkedIn are complete and accurate. Strategize on how to better use these platforms for free advertising.
If you’re not sure where to start with social media marketing, it’s wise to consider hiring a social media expert. Great social media management companies can create a plan for you to complete on your own with their guidance, or they can provide the service to you within your budget. Social media marketing is a great way to grow your business for a small investment.
Adjust your prices accordingly. As you compare your business to competitors, you may find that your prices are in line with theirs. You may also find that some of your units need adjustments either direction. Knowledge is power to make better decisions. Always seek to add value to customers whenever possible. The goal isn’t just to beat your competitor. The goal is to be the best self-storage company available.
Weaver Realty is the Argus Self-Storage Network Affiliate for the state of Florida (excluding the panhandle) since 1999. Our team of experts can assist you in acquiring or building a new self-storage as well as consult on ways to improve your existing facility. Call us today at 903-733-0039 to find out how we can help grow your self-storage business.