Self-Storage Revenue Management: The Art-Meets-Science Approach to Pricing | Inside Self-Storage

Self-storage operators across the nation face increased competition as real estate investment trusts move into their markets and Wall Street pays closer attention to historically strong profit margins. Technology has helped smaller operators level the playing field to some extent, but setting proper street rates and creating a program to raise rates on existing customers is still a mystery to many owners. Be a Better Facility Operator,Make More Money Make the most of your business by following the best management tips and strategies.

Mystery shopping your competition once a year is no longer enough to stay agile in pricing. While larger operators are getting more sophisticated about adjusting rates daily or even hourly, those with smaller portfolios or sites can no longer avoid creating their own competitive plan. The best revenue-management strategy is a mix of art and science.

Know Your Market

Pricing shouldn’t be a one-size-fits-all approach. A storage facility in New York City needs a different plan than one in Lake City, Fla. Smaller operations have the advantage of being able to customize a program that works their own employees and customers. Tackling pricing from different angles (art and science) will yield the best results, giving you and your team deep insight to your market.

We all tell ourselves stories about why we can or can’t do certain things. If you’re telling yourself that your customers will move out if you increase their rates, you’re failing before you start. Challenge your internal narrative and be mentally prepared to raise rates and make more money.

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Self-Storage Revenue Management: The Art-Meets-Science Approach to Pricing.