The Little Things Can Make Money in the Self Storage Industry

By Winnie Hsiu
The hit FOX show In Living Color used to have a skit where the two actors would say a phrase, “Mo’ money, mo’ money, mo’ money!” There isn’t a businessman alive, self storage or otherwise, that does not want to make just that—mo’ (more) money.
The question is how. When it comes to a business like the self storage industry the earning potential for a facility is pretty cut and dry unless you increase rent. Of course, the problem with that can be if you raise them too much current tenants may look somewhere else and future tenants may be future tenants for another facility.
Since the idea of being in any kind of business is to make money, does that mean that a self storage facility can only turn a profit depending on how many units it is able to rent out? The answer to that is absolutely not!
Regardless of the reason people are in need of a self storage unit, there is something that they are all in need of—supplies. Whether the renter is trying to reduce clutter at home, find new home for old business records, or have to downsize their living arrangements they all need things like boxes, tape, and other moving-related products to get the job done.
“It’s a perfect fit,” Ron Harris, owner of Rainbow Self Storage in Humboldt County, California. “Our tenants tend to be people in motion—getting divorced, moving. They’re in transition. So, they need boxes and packing materials and things like that... It only takes a few minutes to sell boxes, and it goes along with the storage.”
The best part is that the products will essentially sell themselves since they are all things that people need or could really use during a move. Since tenants are typically concerned about the moving process they’ll be happy to have the convenience of being able to pick up supplies when they rent their self storage unit.
To some it may seem like it is not worth the trouble. These types of products typically don’t bring in more than a few hundred dollars a month (and possibly a few thousand a year). While there is no such thing as a bad profit, offering moving-related products serves another purpose. Tenants have enough to do when they are moving. They don’t want to have to worry about making another trip to the store for supplies.
In short, it makes them happy. There is nothing like a happy customer to talk about your self storage facility to their friends who might be in need of a little extra space one day.
Sources Used:
“What Role do Ancillary Products Play in.” SSA Globe; January 2012.
“Ten Reasons to use Self Storage.” Portable Storage; 2007.