Thread: Self Storage vs PODS

Recently, I see more and more PODS's advertisment and it seems like POD is gainning more market share. Do you, self storage owners, consider PODS as a threat to your business in future? or you think they're going after a different type of demand?

We have had three POD customers switch to self storage this month! This is ironic that you have posted this thread!! I combat the POD two ways, number one, PODS are way more expensive (at least in our market) and number two, you cannot access your POD just any time. We offer 24 hour access at our facility so you can come visit your precious belongings any time!!

I don't know that this is an either/or question. More advertising doesn't mean more market share; it could well mean just the opposite - an industry that is struggling and making efforts at raising awareness of what it offers. While there may be some crossover, I think we're talking different customers with different wants/needs and different expectations.

thanks for sharing. convenient location, easy access and price is what make self storage win over PODS

As a vendor that manufactures both buildings and portable units, and someone that has moved too many times in the past few years, here's my thoughts.

From a consumer standpoint, a portable storage unit is usually a different product that meets a different need than fixed traditional storage. If you do lose any business to portable operators, it's most likely someone that would have only rented with you for a month or two.

I think the bigger threat is to truck rental and moving companies, since using a portable unit and moving yourself is a cheaper alternative to professional movers.

And yes, the portable rates are more expensive. I see that monthly rental rates are usually at least twice what a comparable size fixed unit costs. And that doesn't even account for delivery fees. Sea containers are a different animal, these are going to rent for closer to regular self storage rates, but again it's a different product. Most conumers and few businesses have space to store a sea container.

From an investment point of view, there are a number of differences... the portables can be depreciated quickly and don't incur real estate taxes. But they also have a shorter lifespan and don't appreciate over time as a self storage facility does. Financing is very different... loans on self storage are about 20 years typically and portables about 3-5.

This said, portables can be a nice way to add on to a self storage business... they expand your market area and provide a great marketing tool, since they are like mobile billboards. T

Steve
Trachte Building Systems
www.trachte.com

In my area I really don't see these being much of a factor, with that said, I agree with Steve about a customer with a different need -vs- conventional self storage...

I agree the bigger threat comes from movers and truck rental. It's a hassel that tenants need to deal with if they want to rent self storage instead of PODS. That's why it's a good idea to offer free movers (maybe 1 hour) if the tenants rent more long term, say 6 months. Also, we can partner up with the movers and put advertistment of the storage in his truck.