Why Your Self-Storage Facility Needs a Retail Store and How to Make It SucceedWhy Your Self-Storage Facility Needs a Retail Store and How to Make It Succeed

While your self-storage facility primarily provides space for individuals and businesses who need it, it can also be a robust retail store. Common items sold in this industry include moving boxes, packing tape, door locks, bubble wrap, markers, box labels and many others that facilitate the transportation and long-term storage of people’s goods. But the question you may be wondering is why you should offer these products when there are so many other places where people can buy them?

First, selling retail merchandise at your facility provides tremendous convenience to your self-storage tenants, as they won’t need to go elsewhere to purchase the items they need. Everyone loves a one-stop shop! This improves their experience with your operation and increases their level of satisfaction.

If your facility offers high-quality retail products that are essential for moving and storing, such as durable door locks, super-strong boxes and easy-to-tear packing tape, you’ll double down on customer satisfaction and will begin to earn tenant trust and loyalty. When a person knows that you offer helpful products at fair prices, they’re more likely to feel valued, remain loyal to the brand and refer others to your facility.

But let’s not forget the greatest benefit of all: Retail sales create a new—and sometimes substantial—source of revenue for your business. Many of these products have relatively high margins, meaning that even small sales can lead to significant profit over time.

Related:5 Easy, Effective Ways to Refresh Your Self-Storage Retail Store

Determine Your Self-Storage Retail Pricing

Yes, much of the stuff you’ll offer in your self-storage retail store can be purchased from other sellers, but what you’re really selling is convenience. Still, you must price your products competitively. You can implement any or all of these strategies:

Cost-plus pricing. Take the wholesale price each product and add a markup to achieve the desired profit margin. For example, if you buy boxes at $2 each and want a 50% margin, sell them for $3. This ensures that all costs are covered while ensuring profitability.

Psychological pricing. This approach can encourage more purchases by making items seem more affordable. For example, if product is worth $10, price it at $9.99.

Tiered pricing. To drive higher sales volumes, consider offering discounts for bulk buys, such as 10% off a purchase of five or more boxes.

Dynamic pricing. Adjust prices based on product demand and seasonality. For instance, during peak moving season, you might raise your prices on boxes, packing tape and bubble wrap. On the other hand, you can discount products during slow periods to stimulate purchases and clear excess inventory.

Manage Your Self-Storage Retail Inventory

A key to running a successful self-storage retail store is keeping tabs on your inventory. You must know what’s selling, what isn’t, how much of each time you have in stock, and when to order more. An inventory-management system can help ensure the right stock is always on hand, automatically updating product levels with each sale and generating alerts when items run low. It can also help you avoid overstocking and stockouts, which can lead to lost sales or wasted storage space.

Demand forecasting is also essential to managing your retail inventory effectively. Historical sales data can offer insight to which self-storage products are most popular at different times of the year. For example, boxes may be in higher demand during the summer when people tend to move more frequently. Adjusting inventory based on these trends helps you optimize stock levels and reduces the risk of over-ordering.

Finally, maintaining solid relationships with your retail suppliers creates flexibility, as a reliable vendor partner can help you restock quickly if necessary. You’ll also be able to negotiate terms for returns or exchanges to minimize losses if certain products don’t sell as expected.

Market Your Self-Storage Retail Products

While many of your self-storage prospects tenants will seek out boxes, locks and other supplies on their own, you can’t rely on this to drive profit for your retail store. Rather, you should take a proactive approach.

First, leverage your in-facility advertising. Strategically placed signage in critical areas such as the front office, elevators, stairwells and corridors can remind customers about the products available. Displays near the front desk or customer-service area can increase visibility and encourage impulse buys.

Next, consider some simple promotions. For example, when a new customer rents a unit, mention the availability of packing supplies and organizational tools. Maybe offer them a discount. You might also run specials during peak moving season.

Many self-storage facilities have a website where customers can manage their accounts or make payments. This can also be an effective platform for promoting retail merchandise. Create a landing page dedicated to your moving and packing supplies so customers can browse products before they even arrive at your site. You can also use email campaigns to promote your products and showcase sales.

Finally, social media platforms like Facebook and Instagram are effective places to connect with your self-storage tenants and the broader community. Post images of available products, share customer testimonials and offer limited-time discounts to create buzz. Social media ads targeted at individuals who’ve recently searched for moving supplies or who are in the process of relocating can also drive traffic.

Have a Strategy for Self-Storage Retail Sales

While your self-storage customers may wander around your retail store looking for specific items for their moving and packing needs, there are some sales tactics you can employ to encourage their purchases. One of the most common is to offer bundled packages of popular items. For example, create a “moving kit” that includes boxes of various sizes, packing tape and bubble wrap. Customers often prefer the convenience of buying a pre-packaged set, as it saves them time and money. For you, it can increase average transaction value.

Also, all facility staff should be trained in suggestive-selling techniques. When a customer rents a unit, point out that the renter may need a lock, packing materials, labels or markers. By recommending these products, you can increase sales while helping people solve unanticipated problems.

Understanding what each customer intends to store is crucial, as it allows you to recommend the best products to enhance their experience and safeguard their belongings. The time you spend with each tenant is highly valuable, especially since the initial rental process may be their only in-person interaction with you.

Don’t forget about point-of-sale marketing. Offering small, easy-to-forget items at the checkout counter, such as locks and packing tape can prompt last-minute purchases. Even displaying these items at the front desk might remind customers that they need something else they forgot.

Last but not least, consider a loyalty program to encourage more frequent retail sales. For example, you might give your tenant a discount on their next purchase of packing supplies if they buy five boxes. This can incentivize them to purchase storage-related items from you rather than the big-box store up the street or even an online retailer.

Selling retail merchandise allows you to enhance the self-storage customer experience and differentiate your brand, all while increasing revenue. You can create a profitable and convenient store by focusing on pricing, inventory management, marketing and sales strategies. Ultimately, success depends on understanding the customers' needs and efficiently offering high-quality products at a competitive price.

Joseph Ortiz is director of operations for StoragePro Management Inc., a self-storage management firm launched in 1986. As an experienced leader with more than 23 years in management and operations, he’s deeply passionate about team development and achieving collective goals. He’s responsible for managing staff, optimizing processes, implementing strategic initiatives, and maintaining high productivity and performance standards. To reach him, email [email protected].