By Sascha Zuger

t can be difficult to form a positive strategy on how to improve sales and service in times of financial uncertainty. Keeping the customer top of mind and sticking to the basics can go a long way.

One of the biggest misconceptions in self-storage is that lowering rates is the best way to boost occupancy during tough economic times.

“While rate adjustments can be a necessary strategy, blindly slashing prices can lead to long-term revenue loss and attract tenants who may not be your ideal customer base,” says Sarah Beth Johnson, vice president of sales and development at Universal Storage Group (USG). “Knowing your competition, inside and out, can help you avoid reacting and instead focus on what sets your facility apart.”

Proactively manage pricing rather than lowering without a good revenue management strategy. Emphasize value (superior security measures, better service, top-shelf amenities) rather than price. This can even help increase revenue alongside smartly timed rent raises.

“If I get a new gate or redo the asphalt, paint the facility or get a new roof, I time the increases around something very visible that I’m doing to improve the customer experience,” says Carol Mixon, president of SkilCheck Services, Inc. “I think it helps customers feel a little bit better about storing where they’re storing, because even while increasing rates, you are communicating how you are directly helping them.”

Managing customer satisfaction is key in tough times. “To survive in this market, you have to be adaptive,” says Jessica Johnson, business development manager of StorSuite, a vertically aligned service provider with decades of experience in the storage industry. “Cater to the 90 percent of your tenant base and how they react, versus the low hanging 10 percent that typically overreacts. You have to be willing to test and track results to make better future business decisions. You have to get creative most days as sometimes you are making every dollar stretch until it cannot stretch any further.”

“The headwinds we face in the current economic climate are not an excuse to let go of the basic fundamentals of renting space,” says Scot Vayo, COO of Guardian Storage, with 37 locations across three states. “Our goal is to contact prospective tenants within minutes of receiving their inquiry. We don’t know if Guardian is their first stop or their fifth, but by being the first to respond, we maximize our chances of earning their business.”

To ensure fast response times, Guardian Storage partners with an affordable third party to simulate rental inquiries. The moment an inquiry is submitted, the clock starts ticking.

“Response times are measured in minutes,” says Vayo. “This allows us to recognize strong performance and provide coaching opportunities for our team. In a competitive and uncertain environment, I find myself relying on those same core principles: controlling what we can, focusing on customer engagement, and ensuring that every interaction reinforces the value of storing with Guardian Storage.”

There are professional storage- specific companies who specialize in evaluating customer interaction.

“We monitor service levels at storage facilities,” says Mixon. “We don’t just call stores; we have shoppers who put in requests for information. One check this week, it was five days before the manager got back to the shopper. They’re obviously not prioritizing the customer and not thinking through that they might have needed storage within a day or two. That shopper requested information about storing her things on a date, and they didn’t even respond until after that time. I know this is going to kind of blow people away, but a response should be within 10 minutes.”

Achieving this quick response is even more important for smaller organization facilities. “Individually owned facilities really don’t have much time because the big guys are responding quickly,” says Mixon. “They not only have call centers, [but] they [also] have other digital ways of getting back to that customer, knowing their competitors can’t keep up. We test non-manager employees by going through the website or calling and leaving an after-hours message. Last week, one facility we were testing waited seven days to send anything out to the customer. Seven days! You should be looking at seven minutes!”

Even if the customer didn’t need the storage within a tight time frame, they owe no loyalty to one business over another, so they simply move on to the next company. It’s a race to respond. Returning calls at the end of the day often means they’ve already made a reservation with another company while they waited.

“The expediency is what we need to impress upon managers,” says Mixon. “The problem is, it’s very common for managers to get sidetracked doing something else, showing a unit, sweeping the exterior. Ten minutes passes quickly. I have kids in their early 20s. They have no tolerance for waiting. Even if they like one item better, they will go with option two because it is instant. It’s just a culture of immediate reward. Everything comes so much quicker with technology.”

The key to improving sales and service without taking a hit to the budget is to improve efficiency in day-to-day operations.

“Another of our services at SkilCheck is having shoppers send an email to see not only how long it takes them to respond but what they respond with,” says Mixon. “I realized one manager was handwriting full emails back every single time. Sometimes there might be misspellings or strange formatting and off grammar.”

To save time and improve the level of professionalism, Mixon set up templates that included directions, hours, basic information, and links to reservation systems—all ready to simply add a personal greeting at the top and send within seconds.

“Be sure to give customers several different ways to reach you,” says Mixon. “They could go to the website, or they can call or text, or add the directions with a map link so they can come in person right to the facility.”

Technology helps in the initial stages of customer engagement and throughout the entire relationship, even in a down economy, offering simple ways to pay to stay on track.

“Regarding delinquency, our rates have remained within expected seasonal ranges,” says Vayo. “For several years, Guardian Storage has prioritized enrolling tenants in our autopayment program, which now covers approximately 70 percent of our tenant base. As a result, delinquency fluctuations are minimal. To sustain occupancy without engaging in a ‘race to the bottom’ on street rates, we focus on lease incentives that align with our business model.”

For those tenants who are not enrolled in autopay and face challenges meeting their payment obligations, a mix of automated and personalized touchpoints ensures regular communication to keep outstanding balances top of mind.

“We utilize a ‘good-better-best’ pricing structure (or a similar model), which enables us to upsell premium unit features or more desirable unit locations on the property to maximize profits from those not facing economic hardship,” says Vayo. “Coupled with size-based upselling and merchandise sales, this strategy leverages no-cost techniques that enhance tenant satisfaction while driving revenue growth.”

The self-storage industry, like many others, faces challenges in an uncertain economy. Staying ahead can feel like an uphill battle. As an owner or investor, you might wonder: Is it more cost-effective to take on management responsibilities yourself rather than hiring a third-party management company?

It might seem counterintuitive to take on additional costs bringing in a management team in a down economy. However, by trying to cut costs by self-managing, you might be losing money by missing out on revenue opportunities. Today’s self-storage industry is no longer a “build it and they will come” game. You must fight for every dollar. Johnson shares four insights and assets the pros can bring to your facility.

1. Revenue Management Expertise – Professional managers know how to optimize pricing strategies to ensure your units are not just occupied but also generating maximum income.
2. Sales And Marketing Know-How – A well-trained team can boost your closing ratios, enhance community presence, and drive more high-quality leads to your business.
3. Technology And Industry Insights – With new tools and automation constantly emerging, professional management teams stay ahead of the curve, leveraging the latest innovations to improve efficiency and customer experience.
4. Training And Staff Development – Hiring and training the right team is critical. We train managers in advanced sales techniques, customer service, and operational efficiency to ensure your facility thrives.

“Some owners value their time more than the cost of hiring an outside service,” says StorSuite’s Johnson. “When bringing on a third-party team, there are absolutely costs an owner will incur, as they are paying for management services. The goal is to hire a good team that will get you desired revenue results and treat your expense lines as if they are using their own personal bank account.”

If you do opt to bring on professional management, considering these tips from USG’s Johnson on how to make the most of the relationship. An important first aspect is to be open-minded to change. Being receptive to new strategies and operational shifts designed to increase efficiency and revenue can make a big difference in your bottom line.

• Educate Yourself On Metrics – Partner with your management company to understand key performance indicators (KPIs), pricing strategies, and revenue projections. The more you understand the “how” and “why,” the more aligned your goals will be.
• Invest Wisely – Making money requires smart investments. Whether it’s marketing, technology, or staff training, cutting corners in these areas can cost you more in the long run through lost revenue and inefficiencies.
• Collaborate On Local Branding And Community Engagement – While a management company will bring industry-wide expertise, nobody knows your local community like you do. Work together to enhance branding efforts and community partnerships.

Even those not opting for third-party management can enhance their business without breaking the bank. StorSuite’s Johnson shares three budget-friendly strategies to increase sales in a down economy:

1. Join your local chamber of commerce and use it as a networking platform. Many chambers will allow you to sponsor a breakfast or networking event where you can highlight your business. Historically, business clients have longer lengths of stay, rent larger units, and are not terribly price sensitive. Give your fellow chamber members a VIP code with an exclusive offer when they rent from you.
2. Social media influencer partnerships can be another great strategy. Find high-profile realtors in your local market producing quality social media content with a decent following. Realtors talk to people who are moving every day. Offer them a free unit as a trade for recording a series of videos of themselves at your facility. Offer an influencer code with an exclusive offer and track the redemption of offers.
3. EDDM (every day direct mail) is making a comeback. Print advertising is not dead. While it’s not the preferred method over digital, it is still an effective and inexpensive method if executed properly and results are tracked. In a down economy, keep a pulse on measurements and where you can save costs if results are not meeting expectations.