Fri 28th Mar 2008 03:37PM
Ring. Ring. Thank you for choosing 123 Self Storage.
Yeah, what is the price of a 10 x10?
Well, the price is $89 for a 10x10. Would you like to reserve that?
No, that price is way too high!
As a call center representative in the self storage industry, that price is way too high is something that we hear on a regular basis. What a lot of our customers fail to realize is that pricing is not just some arbitrary number that a manager decides to slap on to the self storage unit just because it is their favorite year or their lucky number. It happens to be a culmination of things such as competitor pricing, security features, convenience, the safety of the area itself, and more.
The facility has security features that are a main factor in price. For example, XYZ Self Storage has individual door alarms, video surveillance, and a manager who lives on site. On the other hand, 123 Self Storage has no gate, is in a bad neighborhood, and has a history of break-ins. Of course, 123 Self Storage is going to be cheaper. Less money is going into maintaining their facility. But, XYZ Self Storage is going to have to charge a higher price to compensate for the higher quality service. In addition, peace of mind comes into play. Knowing that your valuables are well protected should be valuable to a self storage customer.
Convenience makes a difference as well. Say you have found a location with great pricing that will fit your budget perfectly. But wait, this self storage facility is all the way across town. What good does a great price do if it costs your ten dollars in gas money every time you want to access your self storage unit? You might as well add that to the price of your monthly rent. For instance, you have to access your unit five times a month, at least. That is an extra 50.00 that you pretty much can add on to your rent. Not to mention the mileage fees for a truck rental, if you must go that route. It is important to weigh ALL costs, not just the rent itself.
A competitors pricing definitely has an impact on a self storage units price. Of course, while other factors are apparent in pricing, they cannot price themselves out of the market altogether also. Just like in real estate, there is a cap on pricing in different markets. Just as you cannot price identical homes in Los Angeles and Kansas City at the same prices, you cannot price identical self storage units the same as well.
When it comes down to it, a lot goes into the price of anything. Of course you are going to pay more for a luxury vehicle than you will for a compact model. The higher pricing implies a higher quality. There is no comparison! If all else fails, and the customer fails to understand what we are trying to convey we will just tell the customer to go check out the facility and see in person what they are paying for. Most of the time, they will go to the lower priced facility and be disappointed in what they find.
The original article is located at: A Lot Goes Into Pricing Of Self Storage