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Thread: Site selection
4th December 2009, 07:45 AM #1Junior Member
- Join Date
- Feb 2009
We are looking for a new site, hope can find an excellent location with a low cost.
75% of our current tenants are female, they come here by bus, taxi or mass rapid transit, because our current facility is in major CBD, Taipei, Taiwan. Therefore, a new site should be in favor of female tenants.
Now we found a good premise with the low cost, however, most of people don't know the address and no public transportation can access, only by car. Actually prospective male tenants drive car to visit our current facility, but the hit rate is low, that's why I am concerned the new site due to the public transportation issue after our study.
If you are me, would you consider the site? Any comments will be appreciated.
Last edited by Paul Smith; 5th December 2009 at 12:38 AM.
4th December 2009, 11:12 AM #2Senior Member
- Join Date
- Dec 2007
- Winchester, Virginia
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.
MisterJim444Learning Never Ends, But Will Time?
4th December 2009, 11:17 AM #3
If the majority of your tenants are female and they only ride the bus, train or cabs ---- common sense says to make sure that any new location has access to all forms of transportation!
You never want to limit your tenant base due to location.
Good luck with your new location.Wayne
All arguments can be resolved ... with high explosives and Humor!!!