Thread: Site selection
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Old 4th December 2009, 10:12 AM
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MisterJim444 MisterJim444 is offline
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Location: Central Virginia - Airplanes - Hotels
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Paul

I know that this may seem like a radical idea, but it has been successfully used by several large self storage companies in the United States in dense urban area. You supply the transportation. Let me use Manhattan Mini Storage in New York City as an example. A prospective customer can call them and arrange for a car service to pick them up - take them to a near-by Manhattan Mini Location – wait fro them while they rent a unit and then return them to their residence or business. They rent virtually 100% of the people who use this service. You might have to restrict the travel distance to make it cost effective. Here is their website for reference: http://www.manhattanministorage.com/

Offering this type of service, especially targeted to female customers, will most certainly differentiate you from any competitor. You will need to no the math calculation to determine if it can be cost effective. Instead of your own vehicles, you may be able to negotiate a very favorable deal with a local cab company. Look at the average length of stay of your current customers and the average rent that they pay during that period. Let’s say for example, they stay for 8 months on average and pay $100 per month. So on average each rental you make is worth $800 in gross revenue. What is it costing you in total marketing dollars to capture customers now and how much additional will you need to spend because the location, as you said, is not known to the people? Having the transportation method established, would also give you the ability to sell and deliver moving a storage supplies to your customers as well as anyone in need of boxes, etc.. This could generate an additional profit center for your business.

Just a crazy idea to consider from an old storage guy. Best of luck and keep us posted on your decision.

MisterJim444
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