It used to be that a self-storage facility’s level of retail sales depended on the number of new customers who came through the door. Retail was just a byproduct of rentals, responsible for a paltry 5 percent or so of revenue. These days, however, retail sales are actually driving unit rentals. It’s a case of the tail wagging the dog, so to speak.

I recently visited a newly acquired facility, a third-generation site upgraded into a model corporate enterprise. Along the entrance of the site was a propane-exchange cage complete with signage. When asked, the district manager said the business has a lot of regular propane customers, some of whom rent storage from time to time.

Inside the facility was a fully loaded, well-designed retail display. What raised my eyebrows, though, was the thriving parcel-mailing and mailbox-rental service. Plus, the facility offered carpet-cleaner and truck rentals. The manager said these ancillary sales account for up to 20 percent of the company’s income. 

Retail Can Act as Advertising

“As near as we can figure, all those people that come in to buy boxes and tape and stuff, or FedEx a package, or rent a truck or trailer, make up a decent portion of our new rental customers, too, ” one facility manager told me. It makes sense. If folks frequently visit a facility and have good service experiences, where’s the first place they’re most likely to turn when they need storage?

Americans are bombarded with hundreds, even thousands, of signs, billboards, ads and commercials daily, not to mention Internet pop-ups, e-mails and banners. To prevent information overload, consumers have learned to filter out messages that are of no interest to them. For example, if you’re driving and you’re hungry, you’ll notice restaurant signs and food billboards. If you’ve already eaten, you’ll be nearly oblivious to them.

What does this mean to you? That even if the same drivers pass your place twice a day, every day, they can be unaware of you. All your eye-catching signage and architecture may go completely unnoticed ... until someone finally needs storage. But when he does, he could turn first to the Yellow Pages or some online search engine where you’ll be competing with the guy four miles away before he figures out (maybe) that you’re just down the street.

So how can you get people’s attention before they need storage? Offer them something else they want, something you already stock, such as boxes and packing materials. And promote the heck out of it.

You already display those “We Sell Boxes” banners and signs. That helps, but are you listed in the Yellow Pages under “boxes” or “moving supplies?” That’s where people will look. How about giving renters coupons they can pass on to friends? Consider distributing these as door hangers on units or buying an insert in a direct-mail pack. In short, really work at establishing your business asthe community’s source for boxes and moving supplies. If you don’t, you could miss out on a major market opportunity.

Cornering a Retail Market Ensures Future Rentals

Consider this: Home-improvement centers, big-box stores, plus some office-supply and pharmaceutical chains have dabbled in box sales, but none areknown as the definitive source. It shows in their lackluster sales.

The fact is the only retail category that has been gradually establishing itself in the public’s mind as the place to go for boxes is self-storage. If you’re not building on this growing awareness and selling boxes and packing supplies to people other than your renters, you’re losing more than retail sales, you’re losing future rental business.

Price is not the only thing or even the most important thing customers consider when renting. Amenities, proximity and the “likeability” of the staff are often more important considerations. How better to have people experience all these factors than to sell them something? I’ve discussed boxes, but any product or service can work equally well.

Advertising That Pays for Itself

If you accept that people who have visited your facility for non-storage reasons are more likely to rent from you, then you need to think about products or services to lure them in. Since drivers can’t see into your store, you need to consider ways to let them know what you’ve got to offer. That includes outdoor displays, signage, Yellow Pages, ads, mailers and publicity.

People who visit a facility to buy boxes, send a package or rent a truck can often make up a portion of new rental customers. Those products and services will bring in new customers, just like advertising. But unlike advertising, these sales leads don’t cost you money. Instead, they pay you money.

Imagine adding up to 20 percent in revenue while also increasing your occupancy, which could lead to higher rates and margins. What if your add-on services and products increased your sales by even a modest $3,000 per month? A few hundred dollars here and there adds up. Before you know it, you’ve also increased the value of your facility. And that, my friends, would be a case of the tail wagging the dog we can all appreciate! 

Rob Kaminski is the vice president and general manager of Supply Source One, a division of Schwarz Supply Source, a retail supplier for more than 100 years. With a dozen warehouses nationwide, the company offers the self-storage industry a complete selection of retail products and office, maintenance and janitorial supplies that can be ordered in combination to simplify delivery and reduce costs. For more information, visit www.supplysourceone.com.

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