About Mobile Self Storage | Archived Articles | Buyer’s Guide | Mobile Survey | Media Kits/Advertising

Mobile Self Storage

ISSUE: 2^nd Quarter 2009

SELLING PRODUCTS FOR MOBILE:

A PASSIVE MONEY MAKER IN A LABOR-INTENSIVE BUSINESS

By Elizabeth Ferrin

Mobile self-storage is undoubtedly the most labor-intensive model in the industry. With pickups to be scheduled, routes being maximized, and deliveries being planned, mobile owners and operators must work hard for every penny they make. While owners and operators are focusing on the highly-detailed, day-to-day operations of their business, some may be missing out on an easy and profitable revenue stream: product sales.

Show Me The Money
Ancillary product sales, a long-time staple of the conventional self-storage sector, are a simple way to add to a business’ bottom line profit. While the amount of money generated varies greatly between storage facilities, even small scale operations generating only one to two percent of net income through retail sales are still seeing significant levels of additional income each month. “It’s difficult to say how much money is made because of all the variables involved,” says Jim Bryan of Move ‘N Store, a division of Pioneer Packaging. “As with traditional self-storage operations, there is an opportunity to sell $8,000 to $12,000 per month of these products at a very good margin.”

In terms of product offerings, mobile self-storage businesses should look to their conventional counterparts to get a good handle on what sells best. Most types of moving and packing supplies are excellent bets.

“Look at whatever traditional customers are buying—the products are no different for mobile,” says Rob Kaminski, vice president and general manager of Chicago, Ill.-based Supply Source One. “Stretch film, tape, bubble wrap, mattress bags, and boxes designed for moving are all top sellers.” Moving products are traditionally mobile storage’s bread-and-butter retail items. “Mobile products are not dramatically different,” says Bryan. “The big difference is that by definition, you’re generally talking about a move with mobile self-storage. With traditional, you may or may not be moving.”

Bryan goes on to explain that the moving process gives mobile operators an advantage over their conventional counterparts in that successful moves require specific products. He says that items like hand trucks and furniture dollies can be top sellers or may be offered to customers for rent. Other items like rope and furniture pads also do well. In short, Bryan is quick to emphasize the fact that there is a great need for any and all products that secure and protect goods during a move.

This type of set up generally comes with the added
benefit of the supplier taking care of all customer
service issues for the boxes and moving supplies.
If there are any complaints, they are usually
managed by the supplier in-house.

Locking Up Profits
Locks are an ever popular retail item for mobile storage facilities. Almost all new customers want the ability to secure their containers with high-quality, weatherproof, and tamper-resistant locks that also meet the unique size requirements of mobile storage units.

“The very many kinds of doors of containers have created extremely complicated demands for a very big variety of locks, latches, and hasps,” says Leonard Rose of Cornelius, Ore.-based Chinrose International. He says that heavy-duty hidden shackle or hockey puck-style locks are the most requested, followed by block or warehouse locks. He also stresses that quality is the key to success when it comes to lock sales. “Buyers are learning very rapidly that low-priced locks usually turn out to be expensive bargains.”

Box sales can also be especially lucrative for mobile businesses, as the margins are good and the required investment is fairly low. Most mobile storage customers need quality moving boxes and will look to other retailers if they aren’t available at the mobile storage facility. “We don’t want them going somewhere like U-Haul for boxes where they can actually steal the customer from us,” says Kaminski. His solution is to offer every new customer the opportunity to purchase boxes when they reserve their storage container.

With so many benefits, there’s really no reason to shy away from the retail business. Mobile operators can launch or expand their selection of retail product offerings with just a few phone calls. The first step involves reaching out to industry suppliers. “Start by talking to companies with a history and expertise in self-storage products,” says Bryan. “Remember, the products are similar—if not identical—to conventional storage, and there are experienced companies out there that can help you.”

Marketing And Advertising
Once a mobile storage facility has made a decision on both products and suppliers, the company must then turn its focus to advertising and marketing the retail items. “My primary advice would be advertise, advertise, advertise,” says Bryan. “Let customers know you’re in the business. I’ve seen a dramatic difference once operators start telling people they sell boxes. It’s remarkable how much your sales can increase once you tell people you’re in the business.”

A Web site is a must for mobile self-storage businesses. Unlike traditional self-storage facilities, where customers often visit in person, mobile operations must rely on their Web site or phone orders to sign new tenants and sell retail products. Although some mobile businesses instruct the driver to show up with a small retail selection when delivering the storage container, most businesses report very few sales using this tactic. Instead, it’s best for the phone operator and Web site to specifically ask new customers about their box and moving supply needs.

In a call center environment, operators should take the time to ask customers about their requirements when they are scheduling a pickup or drop off. On the Internet, company Web sites can ask new clients about their product needs before the transaction has been completed. Simply asking a few questions can spur customers to think through their individual situations. “Often, when they’re calling for a mobile unit, they haven’t thought about what they’ll need,” says Gary Crawford, president of Hide-Away Storage in Florida, which operates both mobile and traditional self-storage facilities. “Since they have to call in advance to schedule a particular time, mobile gives the customer more time to think about products.”

Links To Success
Some mobile storage businesses have found success in linking their sites directly to a supplier’s Web site to ease the ordering process for customers. “On the mobile storage Web site, it will ask customers if they need boxes,” says Kaminski. “They can click on a hyperlink and it will take them to our company’s Web site. It’s a smooth transition with the same look and feel of the mobile storage Web site,” he says, adding that most customers will not realize they have actually left the mobile storage Web site at all, which increases the customer’s comfort level and willingness to place an online order.

This type of set up generally comes with the added benefit of the supplier taking care of all customer service issues for the boxes and moving supplies. If there are any complaints, they are usually managed by the supplier in-house. The revenue generated from the sales is then split between the moving supply company and the mobile self-storage business.

Web site orders are also shipped out directly from the supplier’s warehouse, and customers usually receive their products within two to three business days. The shipping then eliminates the need for a stop-over at the storage warehouse between drop offs simply to pick up the box order. “Much of the time, units aren’t coming back to a central hub,” says Kaminski. “They’re going from location to location. The driver preps the unit and takes it directly to the next location.”

Delivering Products And Revenue
Whether the retail products are shipped directly from the supplier or brought over to the customer in the mobile storage unit, the option to have moving and packing items delivered is a huge plus from the renter’s perspective. “To a degree, I think that mobile operators have a bit of an advantage over traditional facilities in terms of marketing their products,” says Bryan. “Having to call a call center or visit an Internet Web site gives the operator an opportunity to talk about moving products. It’s easy to go a step further and ask them if they need boxes. Plus, they have a great advantage in that they can actually deliver products in the container.”

Some mobile storage businesses have found success
in linking their sites directly to a supplier’s Web site
to ease the ordering process for customers.

In spite of its competitive advantages, mobile storage retail sales have significant room for growth. “Right now, our mobile product sales are only about a quarter of what we sell with traditional storage,” says Crawford, adding that he expects future sales to continue to grow alongside the mobile business, itself.

With so much potential for revenue growth, retail items and mobile self-storage remains a winning combination. It is important to remember that product sales provide an added service to customers while bringing in some additional cash flow, the end result of which is an improvement to the overall rental experience and the company’s bottom line.

Elizabeth Ferrin is a freelance writer based in Maple Grove, Minnesota. She is also a frequent contributor to the Mini-Storage Messenger, Mobile Self-Storage Magazine, Self-Storage Now!, and RV & Boat Storage Today.