Category Archives: Social Proof

How the Small Local Company Can Beat the Large National Company

Introduction…Analogy:  How does the small weaker army beat a large stronger army?

The small army take advantages of its strengths and exploit the weakness of the larger army.

The small army is nimble, quick to make change, can attack and then hide.

The large army is slow to move, slow to make change, can’t hide.

After repeated gorilla style attacks, the small army captures many armaments of the larger army.

The same strategy can be applied to a small local self-storage company competing against the larger highly capitalized national company.

In fact, in my example, the smaller company is a much older property in need of a facelift and yet it competes and often beats the larger but slower to react national company.

Here are three examples of how one company is doing just this.

  1. Better sign up deal…The big company has on month free, but it’s not the move in month, plus they have fees for locks, deposits and insurance. So, it ends up costing the customer several hundred dollars to take advantage of one month free. The smaller company has a true $1 first month move-in special.  The first month costs the tenant $1.  Easy choice if short on cash.
  2. The industry experts say that social media does not work for self-storage so most don’t use it to get new tenants. The manager of the small company places Facebook ads in groups seen by 1,000’s of people each week in places they are looking for things they want.  Groups Like…
  • Garage sales listings
  • Antique sales listings
  • Flea markets listings
  • Small dealers of household items

From these free Facebook ads, the smaller company gets ten new customers a  month.  For FREE.

  1. The smaller company’s property is one-fourth the size of the bigger company. That might seem like a disadvantage, except the manager of smaller company knows and loves all of his tenants.  I have not met a more enthusiastic manager at any property regardless of its size.  His enthusiasm is offer enough to get you to sign.

In conclusion…Being big has its disadvantages and being small can have its advantages.  It is the wise small company that understands and exploits its advantages.

Why Dallas Developer Entered Self-Storage

muti-story-ss

Multi-Story Self-Storage

Introduction…A Dallas developer, Baranof Holdings, has entered the self-storage arena with eight different properties in various levels of development.  Why jump into this space with eight properties to start?

What makes self-storage so attractive?  “Superior fundamentals in the space that are not found in any other property type,” says Andy Hendricks, managing partner at Baranof Holdings, explaining why the company wanted to invest in self storage.

“Large investors and institutions who have identified the storage sector for its performance during the downturn have a high demand for quality infill properties, yet few quality infill properties are available for acquisition as the public REITS rarely sell any properties of quality. The result is a void of quality infill product available for acquisition.”

“We (Baranof) continue to search for quality in-fill development sites in high barrier to entry markets. As the development cycle continues to progress in storage, we feel that developing in the right locations is going to be more important than ever. We will continue to focus on difficult but quality sites rather than any specific quantity, keeping close tabs on the overall market and especially the growing amount of development.”

In conclusion...This Dallas developer is one more example of social proof that self-storage is the real estate segment that continues to present opportunity.  Our model is to purchase and or develop properties on the edge of the metro areas that are not competition with the large public owners.

Drop an email, if you want additional information on this exciting low maintenance cash flow machine.