Expanding community reach is a top priority for self-storage owners seeking consistent customer traffic. One effective way to boost revenue is to offer moving trucks for rent. Before moving forward, owners must ask a key question: Will adding a moving truck truly add value for their customers?
- Is there enough demand to support the investment of a moving truck at a self-storage facility?
Before investing in a moving truck and the necessary insurance, assess how often potential customers inquire about truck rentals and whether the demand supports such an investment.
Demand
A future tenant needs a way to transport items from point A to point B, and a rental truck offers flexibility and value. The crucial decision point is: How often do customers request trucks? If such requests are frequent, demand may justify the investment. Gather specific data to support your conclusion.
Investment
The investment includes more than just the truck. Consider that the owner will need to purchase the truck, insurance, hire a qualified driver, purchase gas, provide maintenance, and add appropriate branding to the truck. All of these items together comprise the total investment being considered. A rental truck will add significant costs to the overhead of the business. The rentals must more than cover the costs, and they must add revenue to the business. Rental trucks should not be a break-even business model. Eventually, the maintenance will become too taxing on the business if the demand is not there.
Goal
The goal of adding a rental truck or multiple trucks to your self-storage business is to grow the business. Self-storage businesses can be a one-stop shop for their customers, meeting many needs, including self-storage, boxes, organizational services, and now truck rentals. It is essential to think clearly and strategically about the growth of the business rather than make a quick decision about adding a truck.
Owners must consider things like permits and certification, and tracking costs, in order to determine if the investment makes financial sense.
There are several ways to accomplish this business supplement.
- Purchase a truck that is available for customers to rent. This would be a truck that is similar in size to a U-Haul or other similar trucks that don’t require a commercial license to operate. This truck would be available for customers to rent and use at their convenience, and based on availability.
- Purchase a truck that is available to provide moving services to customers, along with a driver and possibly other staff capable of assisting with loading. The truck would be available to provide the service by reservation, but would require a driver provided by the self-storage.
- Use a third-party provider like U-Haul or others, where trucks are available to rent as needed. This splits the revenue generated by rentals between you and the company providing the trucks.
Where to start
Start by considering the demand of the area. Are there other rental trucks available in the immediate area of the self-storage business? How many moving truck rentals are available? What are they charging for truck rentals? What are the financial demands of owning the truck? Are there required permits from the local municipality? Once a feasibility study has been completed, you can decide if this will be a benefit to your business and your customers or not.
At Coastal Storage, we work with investors to grow their business not just by adding new locations, but also by thinking strategically about how best to serve customers. We love self-storage, and we love to see our clients grow smart and sustainable self-storage businesses. Call us today at 904-591-0140 to learn more about our team of experts and to find your next property.