A focus on Rate Optimisation will drive Self Storage performance in the future
With interest rates on a downward spiral for the last 25 years, income growth at historical lows and even lower inflation, it’s my view that these economic indicators could apply pressure for Self Storage rate increases.
Self Storage has enjoyed a rate growth over many years, a factor of being in catch up mode from the heady days of the GFC. Some operators applied regular increases especially through the mid 90’s – you could set your alarms by them.
We live is a vastly different economic world post GFC. Wage growth has declined along with interest rates and inflation, last quarter we actually saw deflation.
Evidence still exist that many operators provide very generous offers of prepayment discounts. These discounts cost much more than just the percentage on discount offers.
With a prepayment discount, you deny your facility of any planned rent increase for the period of the prepayment, adding to the discount offered.
Every time rates are adjusted to meet the market or to promote a specific sized space, all those who occupy a similar space end up with a concession.
Modern Self Storage software, like SiteLink Web Edition, has an inbuilt feature called “Price Optimiser”.
There is a big relationship between the price you offer and the prices that spaces are rented for on a daily basis.
The science behind rent increases are complex – and whilst we have some great mathematicians working on the complex calculations behind rent increases (so that you don’t have to); the question remains, how do you create a supply/demand model to your pricing?
- You must capture every inquiry and log them. Every call, every web inquiry. You must capture your market size, and the demand in your area.
- Understand your competitor. Understand their pricing logic, even if they don’t seem to have one.
- Understand the supply of spaces in your local area. Is there a new site with plenty of occupancy?
- Your web presence must be on trend and on message.
The basic law of supply and demand dictates that as the supply of a certain space dries up, the price increases. But how do you manage this?
SiteLink’s “Price Optimiser” technology employs powerful models designed by industry pros that have been proven to work. Ask our support team to show you how Price optimisation can reduce your dependence on price increases and discounting, to earn a higher income.
Book an online demo today and see for yourself how SiteLink makes it easy to manage your self storage facility to the highest standards. Simply fill in the form below to get started.
"I've had a consistently positive experience with the Sitelink Support Desk. The team is responsive, knowledgeable, and always willing to go the extra mile to resolve issues efficiently. They understand both the technical and user-experience sides of support, which makes communication smooth and effective. Tickets are usually resolved same day, and I appreciate the follow-up after resolution. Highly recommend their support team — they're a crucial part of our success."
"The team at R6 / SiteLink support are second to none when it comes to their understanding of the self storage industry. They provide a great product with a support team that can guide you through all the complexities of the day to day running of your sites. SiteLink software will enhance both the facility owners and their storers experience when it comes to selling space and driving revenue!"
"I have been dealing with Site Link for several years and am thrilled with their customer service and how approachable they are and easy to contact. They have a quality product which is hard to match. The Site Link team headed by Dallas, Curt and Michael are true professionals. They have my tick of approval. How is it that they continue to improve upon what is a great service and product already? Don't know but they do."
"We recently changed our franchise network onto SiteLink after years of average customer service and questionable software performance. At all times we have found Michael, Curt and the rest of the SiteLink team to be incredibly helpful. We have relied heavily upon the support staff to train us in what is a very fast paced working environment. There has never been a phone call unanswered or a question too stupid. Highly recommended!"
"Thank you Sitelink & your support team for shining the light for us towards a more streamlined, efficient management system. I know help is only ever a phone call or email away & things get sorted very quickly. You are a great team with a wonderful positive attitude & you deserve to feel proud of your excellent customer service."
