Monthly Archives: March 2017

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 Baby Boomers Love Self-Storage…Revisited

 Boomers Driving Self-Storage Demand

Introduction…One major force driving the demand for more self-storage are the boomers.  The boomers are those born between 1946 and 1964 whose age range between 51 and 69 in 2015.  Almost nine months after World War II ended, the cry of the baby was heard across the land.  More babies were born in 1946 than ever before in the U.S.: 3.4 million.  This was the beginning of the baby boom.

There were 76.4 million “baby boomers” in the United States and they made up 40% pf the nations population.

As the boomers grew older, every segment of the economy was impacted from the selling of baby products, building schools, building automobiles and houses.

Bulidng Self-Storage for Boomers…Now we are building self-storage because the boomers were the most prosperous generation we had ever seen  and represent $2 trillion in spending power.  Is it any wonder they have more stuff than any previous generation.

Now that they are getting to the age where they are beginning to start downsizing, they still have more stuff to store.  So, rather than getting rid of those things they worked to obtain, many are choosing to store it.

In Summary...Nearly 1 in 10 American household uses one of the 50, 000 self-storage facilities.  And now the boomers are increasing demand for self-storage like we’ve never seen before.  Is it any wonder that experts predict it will be 2022 before the industry meets the demand for self-storage?

Click here to “Get 9 Little Known Secrets For Steady Real Estate Income.”

Once Again: Distaster Relief Provided By Self-Storage Co.

Crews fight fires in Colorado, Texas, Kansas and Oklahoma

A pair of fires in the Texas Panhandle burned more than 100 square miles. One of the blazes near Amarillo threatened about 150 homes.

In Colorado, a fire in rural Logan County burned more than 45 square miles, forced the evacuation of three schools and threatened as many as 900 homes. The Logan County Emergency Management Office said at least four structures, including three homes, were destroyed.

 Numerous wildfires are burning in Oklahoma and evacuations have been ordered in the state’s northwest.

Woodward County Emergency Management Director Matt Lehenbauer (LEE’-en-bower) says up to 200 people had to leave their homes late Monday afternoon in Woodward County and Beaver County officials told residents of Gate, a town of about 90 people, to leave their homes. Evacuations were also ordered near Laverne and Buffalo in Harper County.

The Oklahoma Department of Emergency Management says one fire has burned more than 15½ square miles in Beaver County and another 62½ square miles in neighboring Kansas.

Once again:  Self-storage owners have offered relief to victims of this disaster with free storage.  If you are searching for you possessions that have survived a disaster like this fire, it great to receive free storage until you get your possessions sorted out.

Click here to read Disaster Relief: Midwest Tornado Victims Offered Free Self-Storage

Conclusion: It is heartwarming when industry reaches out to victims of natural disasters with relief.  The self-storage industry has space to offer.  So, those who have lost their home or business can use free space to store what valuables recovered.

Disaster Relief: Midwest Tornado Victims Offered Free Self-Storage

 Midwest Tornado Victims Comb Through Rubble 

Introduction: Fifty-eight tornados were reported hitting the Midwest including Missouri and Illinois February 28th killing eight reported victims.  The storm system posed a risk to 45 million people that included 180 mile per hour winds and hail.

Disaster relief: If your home looked like the one in the above photo, where would you store your valuables that you recovered?

The self-storage industry to the rescue: Several companies including UHAUL and Tri-State Storage offered free storage to Midwest tornado victims.

SquareFoot of Austin, Texas, offers online marketplace for self-storage units, established a Storage Industry Disaster Relief Fund to help victims of recent tornado outbreaks and future disasters.

Conclusion: It is heartwarming when industry reaches out to victims of natural disasters with relief.  The self-storage industry has space to offer.  So, those who have lost their home or business can use free space to store what valuables recovered.

Safe Clean Secure/ Top Storage Concerns

Safe Clean Secure

The concerns for those renting or looking for self-storage are easy to identify:

  1. Safe- Everyone wants to walk into a storage building or property where safety of the renter and family is not at risk. Antidote: The man who lived onsite at one for sale storage property I reviewed said he was disturbed late at night by what he though was a Meth lab.  I was convinced and did not return.
  2. Clean- Everyone wants to be free from the neighbor’s roaches due to storing dog food or smells from junk getting into their unit.
  3. Secure- Renters want to can store his or her property in a unit that can be properly secured.

Since 70% of our renters are woman and 92% of storage is used by households, the above list resonates.

Location is also important.  Tenants often pick the property that is closest to their home or work. However, in general the above list is how the best one will be sifted out.

One study showed most renters, 65%, were not that concerned with price. That’s why most properties are able to achieve a price increase once or twice a year.

What if I could satisfy the above concerns and cut my development and lease up time in half?  Well, then my return on investment skyrockets.

Our plan is to purchase and develop a series of properties with similar look and management tools to facilitate a future sale to a bigger fish.

Summary: One owner of multiple self-storage properties said he was selling his portfolio for $200,000,000.  Does that intrigue you?  If so, contact me.

This has been Bill Moist, MS, CPA.  Click here to watch “Safe Clean Secure: Top Storage Concerns