In the self-storage industry, when occupancy remains steady around the national average of 91%, revenue generation becomes easy to predict without significant changes. When owners are growth-minded, it is essential to think outside of the storage units to generate and increase revenue.
Retail sales are the best way to increase revenue at a self-storage facility when done correctly and efficiently.
Let’s discuss the best products to sell and several important details of each.
- Retail merchandise
- Truck rental
- Moving services
Retail merchandise
Retail merchandise is an easy way to generate revenue if you are considering the specific needs of the community and marketing the products strategically. Retail merchandise is only great if you offer something that the public knows you have available, and it’s something they need.
- Boxes
- Packing tape
- Scissors
- Permanent markers
- Stickers for labeling boxes
- Packing paper
- Mattress covers
- Furniture dollies
- Packing supply bundles
The easiest retail category to consider is the most obvious one: packing supplies. Any customer moving into self-storage will need packing supplies. Advertise this offering regularly and mention it when speaking with the customer. Include the information in any email or electronic communication with the customer.
There’s a local box store that’s about 11 miles from our house. We have used that box store so many times in 8 years, I can’t keep track of it. We also have a storage unit that we visit weekly, about 3 miles from home. Do you know how quickly I would forget my favorite box store in town if I could access the same boxes at the storage unit that I’m already frequenting regularly? Honestly, as busy as the box store is in town, I wish I owned the box store – and the self-storage.
One advantage of owning a self-storage unit is the available storage for inventory. Using one storage unit (the least desirable size) to hold inventory makes it easy to create a retail plan that can succeed. Make it easy for customers to get what they need all in one place. It simplifies their move, and it lets them know the business is a one-stop shop for all of their packing, moving, labeling, and lifting needs, and tracking inventory that sells quickly and easily will be necessary to avoid overstocks of inventory that are less popular. With 6-9 months of sales tracking, it will be easy to determine which items are the best sellers and to always have on hand. Supply bundles are another great tool to showcase inventory.
Drinks and snacks are another great addition, but may not be your most profitable. Complimentary water bottles are always nice to offer. A clean, well-stocked refrigerator with some tasty beverages and snacks may be needed to power through on moving day. These are impulse buys, so they may not move as quickly, but they’re good to have because they are less expensive to keep stocked.
Truck rental
Truck rentals are a great incentive for gaining new customers in self-storage, but they also provide additional income from people who just need a truck. Many self-storage facilities offer free moving truck incentives to new tenants, but the same trucks can be available for rent to other customers who just need a vehicle.
Truck rentals through businesses like U-Haul or Penske are also good to consider, but they do require space for storage and a franchising fee through the parent company. You can read more information about becoming a U-Haul dealer here.
Moving & packing services
Moving and packing services are great for generating revenue. Some individuals simply need moving services to bring their items to storage. Others may need help with packing. While the staff required to accomplish these tasks may seem overwhelming, these positions do not have to be full-time. Consider contract labor for moving and packing needs. Offering these services is a great way to increase revenue and bring awareness to your business within the community. The self-storage business you operate is simply the hub for all of the services you offer.
There are many ways to increase revenue outside of rental increases within a self-storage facility. It’s important to be smart about what is offered and to track what works and what doesn’t. Additionally, it’s imperative to advertise these additional services well within the community. It would be valuable to create a separate Google Business Profile just for the packing supplies store within the operation. Someone searching for boxes may not find you within a self-storage facility, but they will find a business that sells boxes when listed separately.
For some really creative ideas, we love this article. There are some creative, out-of-the-box ideas that might work for you.
Read it here: https://stora.co/blog/alternative-income-self-storage
At Coastal Storage, we focus on self-storage. We love everything about the self-storage investment model. Call us today at 904-591-0140 to speak with our experts about your next self-storage investment.