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This self storage episode will be short but could be worth, let’s say, $40,000 of value.
Perhaps worth reading.
I am talking about a way to increase retail sales.
No matter where we are in retail sales in any given facility, we always look to improve it. This amount has been calculated into our total revenue, and appraisers and buyers always apply the full CAP rate to it when we sell or refinance.
And we have done one thing that has dramatically increased our retail sales.
First of all, if at all possible, we do not use cylinder locks. Nothing wrong with them, and we have purchased some facilities with them, but I like selling locks.
Why?
Well, everyone who moves into our facilities will need a lock.
And we train our managers to sell disk locks. And that is all we sell.
Yes, I know, if we have to cut, they are a pain, but they are well worth it.
We train our managers to teach that even though we have cameras, gates, etc., a disk lock is the best deterrent to a break-in.
Disk locks are expensive locks, and we have a great markup. But that is not the only reason.
Let me explain.
For us, they help sell everything else.
Each facility has a different percentage, but a high rate of all move-ins buy a disk lock.
And even if they don’t, our managers are trained to walk them over to the disk lock display.
This is where all other retail sales are helped.
We post the disk lock prices at other locations in that market, just for the locks and nothing else.
And we always try to have one other place less expensive than ours.
A sign might look like this:
Our Locks: $15.00
Lowes: $17.00
Home Depot: $16.50
Walmart: $14.00
Now, think about yourself as a buyer.
What is the main thing you are on guard for at a small, independently owned store?
Overpaying. Right?
By posting the prices, and these will be the real prices, it takes that question away. You know you are not overpaying, and if our lock is slightly more expensive than one or two locations (for us, usually Walmart), then the extra dollar or so is worth the convenience.
Right?
But here is where the magic is.
Most people, if not all, will transpose this onto all our other retail items for sale and feel safe buying boxes, bubble wrap, tape, tape guns, etc.
It really has worked for us.
So, I said this could be worth $40,000.
Let me do the math.
Let’s say this gets you an extra, let’s say, $200 per month in retail sales this year.
That’s an extra $2,400.
Can you use $2,400 more dollars this year in income?
I know I can,
$2,400 at a 6% CAP rate IS $40,000 of value.
There you go; let’s say $40,000 of value from some training and a sign.
Not bad, right.
Let me know and share with everyone anything you may have done to increase your retail sales.
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