Reaching the maximum capacity of your self-storage center is a significant achievement that speaks to the growing demand for your services!
However, this doesn’t mean you’ve reached your profitability potential. Once you achieve an occupancy rate above 70%, it’s time to consider strategies to optimize your revenue and make the most of your investment.
Here are some key steps to increase the profitability of your fully-capacitated self-storage center.
1. Increase Your Pricing Grid
Reviewing your pricing model can be a highly effective strategy to boost your profits. Self-storage units are subject to supply and demand dynamics. If demand exceeds supply, you can gradually raise your rates!
It’s possible to double your unit prices within 3 years, greatly enhancing your profitability. But be cautious to remain reasonable in order to maintain a very high occupancy rate.
2. Maximize Available Space
When every square meter is valuable, make the most of your space.
Do you have an unused corner in your building? Turn it into a self-storage unit!
No more space left? Create some! We recommend our partners to build a few smaller units stacked over two levels, allowing you to rent out 2 units in the same floor space. Customers will be satisfied with renting an economical unit, and you’ll be delighted to increase your price per square meter!
3. Offer Additional Services
Expand your offerings by providing complementary services. Options like delivery service, professional packing, rental of moving equipment, or even temporary office spaces can attract new clients and generate additional revenue.
Note: The moving profession is regulated! More information on the State’s website: link
4. Technology for Automated Management
Invest in technological solutions that optimize your center’s management. Automated management systems can simplify operations, reduce labor costs, and enhance overall efficiency. Implement a user-friendly online reservation system to attract customers who prefer digital transactions.
Your access management system should also be automated to spare you the hassle.
5. Referral & Loyalty Program
Implement a referral program for your existing clients. Offer discounts or benefits to those who recommend your storage center to others.
Moreover, you can reward the loyalty of regular customers with special benefits, preferential rates for future rentals, or exclusive promotional offers.
However, if your occupancy rate is above 90%, applying specific discounts is not recommended.
6. Increase Low Rates
Ensure that each self-storage unit’s rent is not significantly lower than your current target rate. It’s common for older customers to benefit from “opening” rates. It’s crucial to anticipate rate changes in your legal documents (contracts, terms and conditions) to avoid being hindered.
Announcing a rate increase is never an easy task, but it’s essential for your profitability’s development. Assess according to your overall situation, of course!
7. Track Down Poor Payers
Establish a strategy to track late payments to minimize revenue losses. Most importantly, don’t let customers with overdue payments slip through. Feel free to block their access to both the building and the self-storage unit, as agreed upon in their rental contract.
We recommend collecting a security deposit of one month upon the arrival of customers. This provides a small buffer time in case of payment rejection.
8. Invest in Marketing
Effective marketing is crucial to attract new customers and maximize your profitability. Use online SEO and targeted advertising campaigns to increase your center’s visibility. Highlight your competitive advantages such as security, ease of access, and additional services.
Conclusion
Once your fully-occupied self-storage center is thriving, it’s the perfect time to explore profitability-enhancing opportunities. By analyzing your pricing, optimizing space utilization, offering complementary services, and utilizing technology, you can maximize your revenue while providing an exceptional customer experience.
By investing in marketing and fostering customer loyalty, you’ll create a virtuous cycle that will benefit both your business and your tenants.
Feel free to contact us to receive guidance on implementing strategies to increase your revenue and profitability!
