March 1, 1998

4 Min Read
Attracting Business With a Discount

Attracting Business With a Discount

DEAR WALDMANS: I am an avid reader of your column andenjoy reading about the different experiences of storageoperators. I have owned a facility for about two years. It isevident that I need to do something different from the normalrental-unit rates. I want to run some specials that will increasemy occupancy, but I really want something distinct in addition toour usual telephone advertising. Can you give me some advice ondifferent kinds of discounts and what works best? I know everybusiness offers sales, but it seems different in the service areathat we are in. I want to lure more tenants, but I also want tomake money in the process. Please share some of your experienceswith various discount programs.

--How to Make a Discount in Euclid, Ohio

DEAR DISCOUNT: You are right. It does seem likediscounting is quite different in a storage facility. Basically,it all works out the same. Maybe the rules are different, but adiscount is a discount and people love saving money. Departmentstores advertise (sometimes with extremely large ads in thenewspaper) in order to get the public to respond to sales.Surveys show that people responding to department store sales buyitems they really don't need, but because they appear to be sucha great deal, they cannot resist the temptation.

Our line of business is different. One is not going to see awonderful ad for a discount storage facility and rent one becauseit is too good to pass up. Therefore, the consumers that youreach with your discount theories really do need a unit forstorage. It could be that the discount you offer is just betterthan the one down the street.

Keep in mind that your facility needs to make a good firstimpression. Neatness and cleanliness are very important. Even ifyou give a tremendous discount, if your facility does not showwell, people will not rent. After all, they are storing theirbelongings. That means when people store something, it must meansomething to them. Why waste the time and money storing valuablesthat aren't valuable?

Put on your thinking cap and determine where your nearestcustomers may be hiding. Sometimes, we have potential tenantsnear us that we just haven't tapped. OK, if you have a collegeclose to your facility, what a great source of summer income.Lots of students need to store their books, clothes and furnitureduring the summer. I realize these customers are short term, butI will bet you will enjoy seeing the students return year afteryear. Place several brightly colored fliers on the bulletinboards at the school just before summer break. Call the schooland find out where you can place your fliers. This has workedvery well for us. We place fliers in as many locations aspossible. After a while students will tell others about yourfacility. Offer a student discount with the proper ID.

Find out where the apartment complexes in your area arelocated. Contact the property manager and build a rapport withthat person. Maybe they will have a place for a flier and bewilling to let tenants know about your services. After all, it isjust another courtesy on the property manager's part to havehelpful information. Then, there are probably businesses thatneed additional space. Call and make an appointment to speak withthe person in charge of that area. It just takes a little extratime and energy, but it is worthwhile in the long run. This ideadoesn't require a lot of extra money for advertising, just alittle more planning in your marketing strategy. It really works.

Other great discount ideas include offering one-year rentersthe last month free and offering new customers and the person whoreferred them a discount. Don't forget holiday specials. Forexample, give customers who store over the July 4th holiday thenext month free. There are so many great discounting ideas thatyou will be able to use. We wish you luck in finding newbusiness.

A father-daughter team, Stanley and Jill Waldman are self-storage owners/operators and attorneys. In addition, Ms. Waldman holds a master's degree in labor and employment law from Georgetown University. Together they have co-authored a number of books on self-storage operations, including Getting Started in the Self-Storage Business, Self-Storage Business Management Forms, The Policy & Procedure Manual for the Self-Storage Business, Selling Your Self-Storage Business and The South Carolina Tools Manual for Self-Storage Operators.

Comments and questions may be sent to: Ask The Waldmans, P.O. Box 21416, Charleston, SC 29413; or via their Web site: www.askthewaldmans.com.

Editor's Note: Views and opinions on legal matters are those of the authors. Professional counsel should be obtained before any determination or positive action is taken.

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