I read an article in the Wall Street Journal in January about all the new self storage space coming online. It was the typical, overbuilt sector article we are seeing today.
But one thing got me thinking hard. It was the quote from an Extra Space Executive. “Our ability to out perform the Mom & Pop’s has gotten bigger and bigger.”
The article discussed tools that they implied are not open to the smaller investor. The “wide range of new technologies such as data analytics and search engine optimization to find and keep customers.”
That is what I have been meditating on for the past few weeks. As small investors how do we stay relevant in this fast evolving landscape of self storage?
I have said before that REITs force us to up our game. That’s true now more than ever.
I spent most of last month discussing online marketing concepts. I also provided some training on one of the technique for marketing your facility online (Episodes 147 – 150).
There isn’t much talk about using the Facebook platform for self storage marketing. For the most part, the “SEO” the article talks about is throwing a lot of money at Google advertising (pay per click) to show up at the top of Google searches.
Do that if you can, but it’s hard to outbid or outspend the REITs. They have more money than I do. So let’s talk about the other reference – “data analytics.”
Fortunately, I know what they are referring to. I have spent the last six months looking at “data analytics” and how small investors like us can use them to help us operate our business.
Over the next few episodes, I will go into the “data analytics” that are available to us which are just like what the big players use to run their business.
What It’s Going To Take to Pivot in This New Self Storage Landscape
Before we talk “Data Analytics,” let’s talk about what it’s actually going to take to be successful in this business in the future.
I talk a lot about mindset and how that is 80% of what determines your success. It is particularly important to this conversation.
This industry attracts a lot of people who are very independent. We like to be on our own. This business attracts us much like
the move west drew settlers in the 1800’s. The chance to claim our own homestead (business) and work it with our two hands to reap the rewards.
It requires something extra from you.
I’m not trying to scare you out of getting in or staying in the business. The fact is that the REITs are increasing the speed of the evolution of self storage. To stay relevant in this new landscape we have to be willing to grow, try new things, fail, and try agian in a different way.
I know I may be an extremist. My wife loves to tell me that, and as I have learned, she is usually right. But as I write this episode I am getting ready to board a plane to California and attend a convention of online marketers.
Why?
To learn what they are doing so I can see what I can apply to our self storage company’s online marketing strategy.
(By the way, I will share what I learn with you.)
Again, an extreme example, but perhaps not.
To stay relevant, I am exploring all angles of the “wide range of new technologies such as data analytics and search engine optimization to find and keep customers.”
I will take the next few weeks to cover what tools I have already found that we, the smaller investor, can use to understand our pricing and the value of our customers.
It has been a critical tool already for us in the markets where we have a new space coming online and are competing with REITs.
We will look at a new “upgrading” technique to add value without a price increase.
W will discuss some “demand pricing models” again.
To get the most out of these discussions it is critical for us to have what the Buddhist call a “beginner’s mind.”
For those of us that know a lot, it’s hard to put much new information in our brains.
“Beginners” are eager to learn and soak up everything.
I have never felt more like a “beginner” than I do now.
Let’s learn together over the next few weeks.
The Assignment
Come to the next Episode with:
- Your competitions current pricing
- What their specials are if
- Where you fit in the market compared to your competition.
Also, be just as interested in how to obtain this information, how complete and accurate it is, and how often you should do this.
The more competitive the submarket is, the more critical this data is. I will show you how we use it next week.
