Three Types of Storage Tenants

There are three groups of people who use self storage:

First Time Users; Return Users; Last-Minute Users

The First-Timers nowadays are amazed at the price of storage. You often hear them say, “Wow, it’s more than I thought”. Rates have increased over the years due to new “standard security requirements” and higher real-estate costs. These have had profound effects on the self storage industry. However, once learning that most storage facilities rates do not differ drastically from one location to the next, many First-Timers simply choose the most convenient location. It is very rare for a first time storage user to want to travel far from home to store, and they often turn into long-term users if storing personal items they cannot part with.

Return Users consist of business owners, “seasonal usage” for boat, vehicle and RV owners, and individuals or families who are relocated frequently by their employers. Most in this user group are on the hunt for the best value. They are often subject to budgeting requirements and are often willing to search in a wider radius for the best price as opposed to the most convenient location.

A Potato Chip vendor, for instance, would more than likely travel citywide during the course of one day to distribute his chips. Why bother choosing a convenient location if he could plan his weekly route to begin near whatever facility he chooses and save $100 a year. Why would an RV owner need to store their vehicle near home if they will not be using it until spring?

People who relocate frequently are already familiar with using storage, but if their company is paying for it, they must often find the best rate possible.

Last-Minute Users are very unpredictable. This includes people who have been evicted, and may be limited in funds, as well as home-sellers who sold before they were ready. They can also be husband, wives, boyfriends, and girlfriends who are divorcing or separating and are required to vacate a shared home or apartment. This group covers every end of the spectrum and may choose to rent a unit anywhere or to whichever storage facility can serve their immediate need. Facilities that offer extended gate hours, 24-hour access, truck rental, and moving and storage supplies will fare well for users in this group.

Asking the questions, “Have you used storage before?” and, “When do you need a storage room?” might be an excellent sales technique. They will help you as a self storage business owner or manager to gain insight toward the specific needs of a potential renter, whatever “User Group” they may fall under.

Written by Laurie Cox, PhoneSmart Outbound Projects Manager.

Thank you for visiting the PhoneSmart call center blog. We offer an insider view of the self storage industry.