Page 1 of 3 123 LastLast
Results 1 to 8 of 22

Thread: One month Free?

  1. #1
    Dennis is offline Junior Member
    Join Date
    Jun 2008
    Posts
    11

    Default One month Free?

    I am a private storage owner having to deal with 2 big name competitors and the one month free deals. I am losing potential customers when they call asking if I offer one month free and the answer is no. They hang up. Offering the one month free take serious cash flow away, and I have the fear that some customers are just looking to drop off unwanted junk that I will have to pay to remove the second month. What are your ideas? Is there a way to compete with the big name competitors?

  2. #2
    Dennis is offline Junior Member
    Join Date
    Jun 2008
    Posts
    11

    Default

    Thanks for the vote of confidence. It gets frustrating when potential customers call and then hang up once they cant get the first month free. Are these one month deals gimmicks? or are they legitimate?

  3. #3
    faerieflora's Avatar
    faerieflora is offline Junior Member
    Join Date
    Jun 2008
    Location
    florida
    Posts
    29

    Default

    dennis,

    a lot of these $1 a month move-ins require that the tenant stay at least 3 months. remind people that there is no requirement (if there's not) to stay. we aren't running any free month, or half month specials, we just remind potential customers that are prices are just a little lower, but in the long run, they end up saving because are prices *are* lower and we don't have the added fees for start-up or require lock purchases. you just have to remind them that they get the service they pay for - if it's only $1 to move in, what quality of service will they get?

    -kat

  4. #4
    Autodoc's Avatar
    Autodoc is offline Mod eMeritus
    Join Date
    Jan 2008
    Location
    Jamestown, ND
    Posts
    2,870

    Default

    Most of the people who are looking for the "special" are looking for a place to dump the junk.

    I have had reports from some of the managers or the "big guys" that it is a rare month that they don't find a unit full of trash cos it was cheeper then going to the dump!

    Not gonna happen here!

    If they are serious about renting a space they soon learn that there is a price to be paid for that "special" in higher rents. I have those people move their stuff over here all the time.
    Wayne
    Jamestown, ND


    All arguments can be resolved ... with high explosives and Humor!!!

  5. #5
    howardlbelz is offline Junior Member
    Join Date
    Jun 2008
    Posts
    14

    Default The true cost of 1 month free

    Dennis,

    The reason I quit 1 month free was I was taught the true cost in profit reduction for the company.

    If your prices are right and your occupancy is 90% you are getting about 10% of gross income for profit. If your average length of stay is 10 months you are giving 100% profit each time you do it. If your average length of stay is 15 months you are giving 50% profit ect.

    Try this: Add the monthly cost of one free month up, move that to advertising budjet and imagine the impact on calls per day to close from.

    The second reason I quit was, I try and track where my customers go from here and I saw the type of customers who were going to the one free month option. Some move around just for the free storage.

    If a customer is not closing because of price I will explain the true cost to him if I used this system: Basicily I could not give the services or quality of service he is currently experiencing from me.

  6. #6
    Dennis is offline Junior Member
    Join Date
    Jun 2008
    Posts
    11

    Default

    Yes these are all great responses. I have heard of the junk yard dump offs. That is one that needs to be avoided. We are listed cheaper than the one mont free guys. I guess the position to take is, If the customer only wants the one month free deals, we dont need their business. Thank you all for the great answers.

  7. #7
    alexlekas Guest

    Default

    Quote Originally Posted by Dennis View Post
    Thanks for the vote of confidence. It gets frustrating when potential customers call and then hang up once they cant get the first month free. Are these one month deals gimmicks? or are they legitimate?
    Dennis,
    Nothing free is ever really 'free'. There is invariably some catch associated with the bait, whether it is a time commitment for the tenant or something else. Don't get caught up in trying to be the low price leader; anyone who bases what will likely be a long-term decision on whether they get the first month free or not is likely to be a hassle of a customer.

    Go with what differentiates you - you are not a chain, you live right there and go to the same stores as your customers, enjoy many of the same activities, etc etc. You're part of the community, not just someone looking to profit from it.

    Took me a while, too, to get over the price thing when a prospect mentioned it. I don't apologize for it anymore; in fact, it helps to reinforce what folks get for their money, as in "since we're not the low price king, what do you think that thousands have seen that makes them comfortable with paying a little more?"

    There are people who will always be driven by price and there are people who respect and appreciate value for their dollar. Give them reason to see the value and you won't just have satisfied customers, you'll have loyal customers.

  8. #8
    hogboy is offline Junior Member
    Join Date
    Jan 2008
    Posts
    10

    Default

    I have used the first month free successfully. I dont like giving up the month anymore than anyone else. However, if it gets renters that stay for 8-10 months, it is definitley worth it. Obviously, if you are full you dont need to offer the special.

 

 
Page 1 of 3 123 LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •