While we collectively learn to navigate the current uncertain economic climate, it is important for self storage owners and operators to avoid panic. Instinctively, many will want to drop rates to reel in new customers but industry experts agree that the best practice is to leave your rates in place. The previous economic recession left owners and operators struggling for years to bring rates back to pre-recession levels. Instead, storage operators should focus on maintaining current rates and offer other incentives to attract new customers. In markets where large operators are the leaders the need for smaller operators to maintain a smart pricing strategy still remains. Now, more than ever, operators will need tools to track any sudden fluctuations in the market which may arise.
Smaller operators face many challenges when competing against REITs and other large operators. Large operators have the resources to implement sophisticated pricing strategies and boost revenue significantly. One of the strategies used by most large operators is the ability to dynamically change rates multiple times per day. To understand how common this strategy is StorTrack did an analysis of the REIT operators and found that across all the stores operated by them, 91% changed rates more than once within a single day. If you are a smaller operator competing against one or more REITs, you should consider understanding how frequent rate changes are impacting rates not only across your market but impacting your business directly. Additionally, StorTrack found on average, the REIT stores are making price changes to 41% of their inventory throughout the day, potentially leaving you to miss out on opportunities.
Self storage is set to remain mostly unaffected by a potential recession but operators should continue to find ways in which they can remain competitive. Whether it is offering more automated ways to conduct rentals, or using data to understand the economic impacts in their local markets, operators should take advantage of the number of tools available to them to ensure they continue to be successful businesses, even when the horizons look very distant. Learn More