I get tired of hearing about the “new reality” we are in due to COVID-19. I am sure many of you do too.
However, in the world of self storage, as we try to figure out what works and does not work, let’s stay on the subject a little longer.
What we did in 2019 to fill up our facilities just doesn’t work in 2020. At least that has been my experience.
If you have projects in lease-up, you know what I mean.
The Current Landscape
Let’s get a higher, overall view of the current landscape, then go deeper into marketing.
First of all, customers are more empowered today than ever before. On their phones, or their pads or computers, they instantly have access to more information than you can imagine.
If someone is considering self storage, they know about you (if you show up online), your competition, how you compare to your competition, your pricing, your condition, and, most of all, how easy it is to do business with you if they choose to.
Even baby boomers, who just last year couldn’t figure out how to use Siri, are now ordering their groceries and take-out meals online.
If you are not online and have no intention of doing so, my suggestion is to list your facility for sale now, while you still have some income.
With an empowered consumer, who for the most part is staying home more than ever, scared about their economic future and the economy in general, who has access to more information about you and your competitors than you can imagine; what do you say or offer them, that will have them choose your facility over your competitions?
Perhaps what we end up saying tells more about us than anything. Maybe not.
Your Message
The first thing I would do is create a story.
The story of your business and where your business fits in the world today.
You may be reading this because of my story. I was a commercial real estate agent living from deal-to-deal, then I saw and got what self storage was, and it’s potential.
Then I tried to figure out how a guy like me could get in the business. And I did.
Now I share what I learned and continue learning with other smaller investors.
Your storage business has a story, as well. Create it out of why you are in the business.
For example, one person I have worked with owns a facility in a market where a REIT has a large market share. The pricing is very high. His story is they have made storage rent artificially high for the customers there, and he is in business to offer a real alternative to consumers.
The good guy, the white-hat person who is in business to help you.
Part of our story is that we are a small storage company, competing in a sea of large REITs. At our facilities, we have a community. We treat you differently. We are like you. We won’t raise rates every chance we can, so we look good to our shareholders. We would not do that to our family members, and if you are a customer of ours, you are part of our family.
It is good to have your story in a video format on your website. But, even if you don’t, your story informs you of your marketing, words you say, specials you offer, and what you say to customers as they interact with you.
I suggest creating or fine-tuning your story and make sure all your team members know it and relate to it. That is the culture of your company.
Your Offers
Now, given the backdrop we find ourselves in, and the story that is your company, what offers can you create that would make a difference to the potential customers in your submarket.
No matter how good we are, or other storage companies are, I still do not think we can create demand.
I relate to our job as to differentiating us from the rest and having someone in the market area who needs self-storage chooses us.
One of the big players is known for offering the first month for $1. If we are going to do that, our offer is inside the context of our story. We may say, for example, yes, we will match their offer, but unlike them, we will lock your second months’ rent in for six months or a year. We would not be raising the rent three to five times a year for our family members, so we won’t do that to you, because when you are our customer, you are part of our family.
Or whatever you can create that is inside your story and would make a difference for your customers.
Would this marketing strategy be good today?
I don’t know. But I would sure test it.
We know the average value of a customer (it is different at each facility), we can figure out how much rent we are giving away and the cost of the advertising campaign. Therefore, we can determine how much we can give away and spend and still make a profit.
We will try something like above, another offer, and always look to see which one is doing better. Then select the best, scale it, and start over again with another offer.
Especially today, we have no idea what will work. What works at one facility, often does not at another, even in the same city.
Marketing is an ongoing learning process today. My coaching is to try to have fun with it, explore it, and don’t just turn it over to someone else.
Let us know what you are doing today that works, especially if you are in lease-up.
