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Thread: Discounts: What Do You Offer?

  1. #1
    acampbell is offline Community Manager
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    Default Discounts: What Do You Offer?

    Hello Everyone!

    Do you offer a discount on rental rates to new tenants? If so, how often and how much? Is it only when you need to fill a specific unit size? What's your reasoning behind the discount? Is it successful for your facility in the long term?

    Tell us your story!

    Amy
    Amy Campbell
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    Inside Self-Storage
    acampbell@vpico.com

    @AmyCampbell_ISS

  2. #2
    SMSSId's Avatar
    SMSSId is offline Senior Member
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    Default Re: Discounts: What Do You Offer?

    Do you offer a discount on rental rates to new tenants?........ Just a few; however we do not advertise the discounts

    If so, how often and how much?........ Fire, police, military, paramedics, and full time students. 10%

    Is it only when you need to fill a specific unit size?........ No, It’s when we know the prospective customer qualifies.

    What's your reasoning behind the discount?......... We've been on the other side of the fence, so it’s our opportunity to give back to the community.

    Is it successful for your facility in the long term? ........ Not 100% sure, however, it makes us feel good.

    I am not an advocate of giving away the farm. i.e. The first month free, $1 move in, 1/2 off X months, etc. only contribute to reducing the value of your business and quality of tenants. Bottom-line whatever one facility can do, the other facility down the street can do one step cheaper. Everybody comes out on the short end of the stick.......
    geraldine1051 and StrongTeam like this.

  3. #3
    Lisa T's Avatar
    Lisa T is offline Senior Member
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    Default Re: Discounts: What Do You Offer?

    We have a free moving truck, which only one of our competitors also offers....just refill the gas. So we try to use it as our "discount"...saving about $100 on a U-Haul.

    It does seem like a lot of prospective tenants call here expecting some sort of "move-in special" discount...as I have 2 competitors who do the 1st month for $1, and one who does 50% off the first month.
    So we offer a 25% off the first month if pushed and want to rent the unit. I have always been surprised at how many will rent with that offer....because none of those discounts compare the monthly rental rate, however the combo of the free truck and 25% off will usually do the trick, I guess people just want to feel like they are getting some sort of "special" if all the others are offering one. We do not offer the 25% off special in the Spring/Summer months, or if over a certain occupancy.

    As far as long-term discounts off of rent rates, we do offer a "large-group" discount of 10% for those residents of a nearby 4,000-resident assisted living/retirement center, the staff and employees only of the local university, and police, firefighter, teacher, military. The assisted living center and the university have us listed as the only storage facility on their website and refer everyone over here to us in exchange for the discount. We have the same deal with the 3 large apartment complexes in our area, but don't get many rentals, as all 3 have their own garages and small storage units on site to rent...so basically we get referrals from people moving out of the apartments, or for those who need climate-controlled storage.

    We do not offer a student discount, as Spring/Summer is our busy period and I don't want to fill up the facility with short-term students, as we can fill it up with new people moving into the area instead.

    By careful management of move-in and long-term discounts, they are successful for our facility without "breaking the bank"

  4. #4
    Gina6k's Avatar
    Gina6k is offline Moderator
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    Default Re: Discounts: What Do You Offer?

    Do you offer a discount on rental rates to new tenants? Nothing other than our standard coupon IF they come in with it.

    If so, how often and how much? $50 off the initial rent

    Is it only when you need to fill a specific unit size? We will very rarely run a special on a certain size unit.

    What's your reasoning behind the discount?
    If we have a handful 5+ of a particular size we may run a small discount to rent those up. It depends upon the market conditions, the time of year, whether or not we see movement across the board and if maybe that one size is just an anomaly. Say one tenant moved out of 3-4 units of that size (usually a business account) and we had one other one open. If that is the case, within a couple weeks or so, those units are usually re-rented at street rate.

    Is it successful for your facility in the long term?
    Yes, it has been. We can take a hit square footage occupancy-wise but still maintain our income levels.

    I'm in agreement with SMSSId; Giving away the farm only cheapens your product, and we work too darned hard to provide a Barney's, Bergdorf or Bloomingdale's quality product to give it away at 99 cent store prices.
    Gina 6k
    CochraneStorage dot com
    Morgan Hill, California
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    You only live once, but if you do it right, once is enough!
    I am not an attorney, just an experienced manager who is willing to share what I have learned. Your thoughts, practices or opinions may vary and neither of us may be right.

  5. #5
    RichardandBeverly's Avatar
    RichardandBeverly is offline Senior Member
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    Default Re: Discounts: What Do You Offer?

    We offer no discounts of any kind for any reason. There is no storage in Odessa. Well there is some, but it costs almost twice as much. So we don't offer any. It is unusual for me to have a unit open more than two days.
    Richard and Beverly
    Park Inn Storage
    Odessa Texas

  6. #6
    Billings Storage's Avatar
    Billings Storage is offline Senior Member
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    Default Re: Discounts: What Do You Offer?

    Only one we do is Pay 6 months, 7th month is free, or pay 12 months, 2 months free. Lots of business like this, not so many regular customer, but it has kept many business here since we opened in 2004.

  7. #7
    YourStoragePlace22 is offline Junior Member
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    Default Re: Discounts: What Do You Offer?

    Our facility offers several discounts :/ I don't particularly like it because like stated several times.. "it 'does' give away the farm". We prorate our customers in with rent due on the 1st.
    We have 1st month free - that can be applied to the current month or next month depending on the move in date
    1/2 off 1-4 Months
    Senior discount
    Military discount
    Pay 12 get 1

    Our corp has 1st month free plastered all over the web, yard signs, and banner flags. It's a $21.95 rate (admin + ins) This promo I hate, its available on units with lower occ%, and we typically avoid even mentioning it. The customers are short term(just that month) or they go into lien status.

    I have 1 major competitor with two stores less than a mile from me that offer $1 move in. Good for me, in a weird case, our store typically gets confused with them... So I get alot of their potential walk-in customers.

    When it comes to promotions, we don't mention them unless the customer inquires. You can tell if they are serious about renting or not, if they need to think about it or let me check some other places... then "promo is only good for today".. They typically come back.

    The sad part is roughly 40% of the time, if there's not a promo available here, we loose the customer.

  8. #8
    Advantage IT's Avatar
    Advantage IT is offline Senior Member
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    Default Re: Discounts: What Do You Offer?

    Do you offer a discount on rental rates to new tenants? Yes and it works long term.

    If so, how often and how much? Every move in...almost. One month free and then up to 2 months @ 20% off if needed.

    Is it only when you need to fill a specific unit size? No. It's for every unit, regardless.

    What's your reasoning behind the discount? Get them in cheap raise their rent later.

    Is it successful for your facility in the long term? Absolutely!

    Our philosophy is this: Get them in cheap and raise it later. We pride ourselves in having the nicest facility but also the highest price. Our average stay is 16 months. We also price ourselves in having the highest street rate. We know that everyone here is giving one month free, with the exeception of one the does first month for $1. Even if we have to give a unit 2 @ 20% in addition to the one month free we are still getting as much as the competition. At 5 months in we give a rate increase of at leeast 5%. 9 months later another rate increase of at least 5%. It works incrditbly well. Of the 280+increases I have sent out in the last 3 months only 5 have moved out. It has worked great for us.
    Customer Service always wins out

 

 
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