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$1.00 Move In Specials - Driving down pricing

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  • $1.00 Move In Specials - Driving down pricing

    Why does anyone offer a $1.00 move in special? Does it really generate more revenue, do these people stay ? How many of these $1.00 move in's just use a facility for a dumping ground and have no respect for your property.
    We have two huge big box companies in our city and these $1.00 specials are getting me so frustrated. Every call I receive for prospect tenants want to know if we have $1.00 specials. How do I justify this? Our occupancy used to be near zero . Another big box came in and bought out two locally owned companies and our numbers dropped . We're now at just shy of 80%. They've also dropped the prices for smaller units. So, they are driving down the prices. How do I compete with this? Yes, I do my sales pitch. etc but it's not working. Advice ?

  • #2
    I stopped the $1.00 move in when I got here. I am next door to the PS that still does it. I also get the people who say next door does it. I let them go, If they are looking for the cheapest place then they are not going to be good tenants. I love it when they come back here in 5 months and say "they raised my rent after 5 months and there are rodents in my unit" Yeah should have come here first.
    Make sure to give the features and benefits of your property. I have 24 hours access and you don't have to pay extra for it. And alarms on the doors. I am at 93% full. Soon the others will be full or people will catch on and you will get rentals. Good luck.
    Janice - Maxi-Space Storage and Business Solutions

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    • #3
      We just don't do any move in specials and if I hear of them and the caller wants me to match, I just tell them no. I have great word of mouth advertising. The neighborhood I am in helps as well. storage-gal, sorry you are having to put up with this but something at your place needs to stand out. While 80% is not the best, it is not the worst. Especially if you have good tenants. Maybe a rent credit to existing tenants that recommend people and they actually rent from you.
      "Never let the inmates run the asylum!"

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      • #4
        In my opinion the $1 move in gets the worst of storage tenants. You'd be better off with 'Move in and get a free lock' or no admin fee. We use the First 2 Months half off on Sparefoot. It works, sort of but I limit it to 5x10 units or larger so I don't get a bunch of $40 units for dirt cheap. When someone calls and asks if you offer the $1 move in, tell them, "We are the newest, or nicest with security cameras (or whatever) so we don't offer that particular special. We do offer *insert whatever special that you have here*, in addition to *insert whatever other benefits you have*.
        When I had all of my ducks in a row-I realized that most of them were not even mine!

        WA State

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        • #5
          Please do not let them discourage you!
          When you hear "do Y'all have any specials like $1. pays the 1st month?"

          Do not be afraid to say NO, I'm sorry we do not.
          My property certainly has extreme value and although my rates may seem high to you, in fact, they are not.
          Nothing in life is FREE and if you look the monthly rate over there is X amount higher than mine, so that "FREE" or $1. pays the 1st month, isn't really any savings at all.
          Don't put off until tomorrow, what you can do today.

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          • #6
            I used to think that the only way to get rentals was to compete with the PS next door that offers the $1 move in specials. After many years of getting of customers renting, moving out the 5th (should have been by the end of the month), leaving all their trash that they don't want and being taken advantage of I began saying No, I am sorry I do not have that special offered. I do offer this special ( free lock, pay this month get next month 50% off, or whatever ). I was surprised that customers rented with ME!!!!!! I gave a couple $1 specials this month because a local apartment complex had a fire and I moved them in to units I have alot of.

            Our best employees are the next door PS. People will walk in and ask our rates, tell me that we are higher than PS but because they were rude to them or the units looked so run down and they would rather rent with us no matter what the cost. Sometimes you get what you pay for. They would rather stay with a company that is clean, has security, no rodents, nice employees and free bottled water ( we have a neat machine that dispenses free water ) than a place that doesn't. We are not a large city but word gets around about the differences in facilities.

            PS I would love our occupancy to be higher ( 83% now ) but our revenue keeps increasing year after year. My job is to make $ for the company. The boss is happy. I am happy.
            The future depends on what you do in the present.

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            • #7
              The REITs focus their time on occupancy and market value (stock prices). They are always working to maximize occupancy even if they have to buy it. There are numerous strategies to overcome this. One way is to go in a different direction by focusing on revenue management. You could earn more revenue than you are currently generating from a lower occupancy through various pricing strategies. Donít be afraid to raise prices and segment units. Test, test, test.

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              • #8
                I am glad someone else has said this. We use it if we must to get the move in. However we also make them pay the following month up front to avoid trash dumping. 80% have stayed 4months or more, making it worth our while. I hate the price dropping though. Ours have not dropped. We charge the highest rates in our area. Our numbers are lower than I would like, but I have had a few move ins in the last couple days and seems we are on the upswing again. Sell, your places qualities. Ours are our property upkeep/ upgrades, great cameras, security patrols and no BS Tolerance policy.

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                • #9
                  A lot of good comments on here. We don't offer the $1 move-in, never have, never will. We rarely run specials, but if we do, we always require payment in full for the first month at normal rate (whether it be the 2nd, 3rd, whatever). When you look at occupancy (saying you're at 80% full or whatever), look at the income you are generating instead of just the occupancy. If you stay at 80% but increase revenue (through rent increases, street increases, whatever) then you are doing a good job. You are doing a really good job if you aren't the cheapest in town either, and don't ever want to be.

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                  • #10
                    Storage-gal, I can't tell you whether you should or shouldn't try to compete with their discounts, but stay positive. Remember that PS doesn't have the best reputation among self-storage users. There will always be prospective tenants willing to pay a higher rate to a company that isn't PS because they've been burned before, or they read the tons the negative reviews. Perhaps the longer PS is in town, the more of their tenants will call you up looking to change providers. Keep fine-tuning your sales pitch.
                    You can tell a lot about a tenant from his padlock.

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