Self-Storage Price Dynamics
As a customer, the words “price increase” makes us want to jump ship. They never come at a good time nor are they welcome, however they are inevitable.
From the point of view of management, increases to utilities, taxes and insurance are costs that cannot be controlled and management is then only able to focus on operating their properties in the most cost efficient manner. We balance the need to keep self-storage facilities appealing and well maintained while providing an affordable, secure, worry-free place to store your valuables. This may involve facility modernization resulting in economic benefits or introducing improved technology leading to a reduced amount of labor intensive tasks.
The decision to increase prices is not an easy one. Many factors, such as competitor’s rates, market conditions, and the specialized product offered are the chief considerations however attention must also be given to increasing operating costs, service and life cycle expenditures.
Providing a written notice, well in advance, that a fair and reasonable price increase is forthcoming is the approach that facilities employ.
Feedback is the final step in the whole price increase process. Good or bad, this helps management keep perspective in the reality of the market conditions and measure price tolerance sensitivity.
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