Building Momentum for Your Brand-New Self-Storage Facility

“Wow! Good crowd,” I thought, while standing in the drive-thru of our new ProSafe Storage facility in Little River, South Carolina. I was impressed by the more than 100 attendees who showed up for our catered grand opening on a blistering July day. Our guests remained cool inside the climate-controlled building while enjoying the best local barbecue around.

Our district manager seemed to agree. He was grinning from ear to ear as he shook my hand and said, “This feels good.” It did! I was happy until he added, “We just have to keep those rates low to fill this thing up.” I couldn’t believe what I was hearing.

We just spent $20 million to build the biggest and best self-storage facility in the state, in a prime location within a growing market. Our site managers worked hard to network with local businesses, clubs and the chamber of commerce to spread the word about our property. We also sent thousands of mailers to the community. A local TV news crew even showed up to cover the event! Yet here we were, concerned about lease-up.

New stores aren’t operated like stabilized ones. With a new self-storage facility, we’re stealing market share, and we must be aggressive to fill units. The days of being complacent once the doors open are gone. It’s now larger investments that on the line, and a development boom has made many markets more competitive.

If you’re opening a new location this year, read on. I’ll share tips for my fellow self-storage operators and developers on how to win new business from the very start—and keep it for the long-term.

Offer Personal Service, Not Algorithms

My mentor, self-storage veteran Jim Chiswell, drilled one mantra into my head: “We’re in the service business.” He reminded me that our new tenants aren’t coming to us on their best days. They’re often dealing with at least one of the many Ds that drive industry demand: decluttering, death, disaster, dislocation, divorce and downsizing. How we treat them during these stressful times matters; and because of their trying life circumstances, what we sell them is deeply personal.

In recent years, some members of the self-storage industry have tried to say that service no longer matters. Every time I hear an operator defend their low introductory rates or aggressive concessions by saying, “We let the algorithm determine that,” I roll my eyes. Algorithms don’t think, but our customers do.

Consider your own emotions the next time you’re stressed over an insurance claim or medical appointment and the robotic voice on the other end of the line says, “Press one for X, two for Y,” or “I’m sorry, I didn’t get that. Let’s try again.” That’s the algorithm at work, and it’s anything but personal.

Offer Better vs. Best Unit Options

Some shoppers want the cheapest option available, and that’s fine because there’s a market for that. Different people prioritize different things. But when it comes to choosing a self-storage unit, I believe that many customers want the best they can find for their belongings. Price matters, but it isn’t the only factor in choosing where to do business.

A friend recently shared the results of a six-month beta test conducted at nearly 100 self-storage facilities. The manager and call center for each site were tasked with presenting clear standard and premium options to every new tenant. The results? Twenty-five percent of customers chose premium option over a lower-priced unit.

Note the verbiage on that: The best approach is to present “standard” and “premium” options, not “discount” and “standard.” Why? It positions the choices as being about selling a better service and product, not just a cheaper one.

Sell Value Over Price

Recognizing that many of our self-storage tenants first arrive at our facility while experiencing one of those Ds I mentioned, the manager who makes the transaction easy and best meets the customer’s needs will have the advantage of winning their business. Good service will frequently supersede a lower price elsewhere.

We instruct the managers at our new Little River site to sell its features and benefits and not treat our investment as a commodity. The primary goal is to serve the customer first and make their experience better.

If you can win with low rates and aggressive pricing strategies at your facility, go for it. But if you offer the best products, superior service or other benefits that differentiate you from the competition, don’t be shy about selling it for what it’s worth. Just like Chick-fil-A wins customers with exceptional service and attention to detail despite being more expensive than its competition, your self-storage operation can stand out by offering personalized service and emphasizing value over price

The self-storage competitor down the street may be old and tired, but their sign has been visible to the market for years. Overcoming that kind of established presence requires effort and strategy. A new facility must actively show customers why they should choose that property over well-known businesses. Relying solely on online ads or social media won’t be enough to chip away at their market share.

Online marketing is essential in self-storage, but its results are passive. Search platforms and social media accounts are part of the playbook, but there should be many other pages in it.

Grassroots marketing still matters because people do business with people. Managers should actively engage with the community by canvassing local businesses, schools, fire and police stations, and other organizations. A simple gesture, like bringing sweet treats, can generate goodwill and make your facility stand out. Sponsoring youth sports teams or community events is another effective way to build relationships and establish your presence. These efforts are inexpensive but impactful, helping your business gain visibility and trust in the market.

Passive strategies alone won’t cut it. Success requires hard work and active involvement. It also takes money.

If you’ve invested millions in steel, brick and roll-up doors, protect that commitment by empowering your management team with a robust budget to fill those self-storage units. Your initial marketing expenditure for the first year and through lease-up should include two to three times the allowance of an established store. The faster you reach 80% occupancy, the quicker your business will stabilize.

Stellar online reviews are critical to attracting new self-storage customers as well. Managers should be incentivized to deliver service so exceptional that tenants want to give them five stars. But beware—if your strategy relies on bait-and-switch tactics with low introductory rental rates that are quickly increased, you’ll pay double the price in negative reviews when angry customers feel duped and lash out online.

Remember: The Manager Matters

One of my esteemed industry colleagues has a sign on her desk that reads, “It’s All About The Manager!” I couldn’t agree more. Unfortunately, many self-storage companies fall into the trap of hiring cheap, unmotivated staff to handle customers in expensive, state-of-the-art facilities. For a new store, you need aggressive, sales-oriented managers, not passive gatekeepers who simply take orders.

Invest in your self-storage team. Pay them well and provide meaningful incentives to help them achieve your goals. A motivated, well-compensated manager will drive results and create a positive customer experience.

Final Advice

When it comes to launching a new self-storage facility in the market, success boils down to this:

Ensure your managers understand the difference between value and price and how it aligns with your profit goals. Value is what you deliver; price is what the customer pays. Focus on selling the value of your facility and services, not just competing on rates.

Take an active approach to selling. Don’t sit back and hope for rentals; meet customer demands head-on. Market your new self-storage business aggressively, and don’t rely on outdated strategies or mimic the tired model down the street. Stand out and be different!

Finally, start doing things correctly from the very beginning. Don’t wait for someone else to come in and fix what should have been done right from the start.

Benjamin Burkhart is the owner of StorageStudy.com, a self-storage feasibility and consulting firm based in Richmond, Virginia. He’s also a managing general partner with ProSafe Storage, a self-storage development and investment company that operates four facilities in Ohio, South Carolina and Virginia. To reach him, call 804.598.8742 or email [email protected].

About the Author

Benjamin Burkhart

Owner, StorageStudy.com

Benjamin Burkhart owns StorageStudy.com, a self-storage feasibility and consulting firm based in Richmond, Virginia. He’s also a co-owner of Community Self Storage in Powhatan, Virginia, a facility he developed and now actively manages. Contact him at [email protected].

See more from Benjamin Burkhart

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