Obviously your competitor seeks to set their business apart from the rest with the pitch you have described.

What is your pitch? What do you offer that sets you apart from the rest? I am sure you can find something and it probably can be more convincing than your competitors story.

Also, what forms of advertising does your competitor use? Are you using the same methods? Perhaps you can advertise using different methods, (ex. the internet) than your competitor. Different advertising methods attract different customers. People who call you from these sources are probably unaware of your competitor.

When people call your store do you ask them what they are looking for from a storage company? You might also ask them if they have called any other facilities. These questions will give you the opportunity to address the customer's concerns and address the issue of water damage.

Good luck.