Revenue Management | Gabfocus | Self Storage Virtual Workshop

Gabfocus Episode 6: Revenue Management

What are the major expenses of running a facility? How do you know what parts of your business to adjust? How do you best monitor your revenue? Check out this Gabfocus Session to hear how self storage experts and operators keep track of their bottom lines.

Moderators: Melissa Huff and Tommy Nguyen
Featured Speakers: Peter Spickenagel, Jim Mooney, James Appleton, Jim Ferguson, Denise Bowley, Scott Worden, Bob Vamvas

Category: Operations
Focus: Owners and Managers
Aired: May 14, 2020
Duration: 1:12:05

Gabfocus Sessions

Gabfocus Sessions are weekly, virtual workshops for self storage owners, managers, and operators. Brought to you by the team behind Gabfest: StoragePug and MR Management.

Each session features hand-picked industry pros who will dive deep into relevant topics surrounding our industry, share best practices, and explore trends in the market. It's our hope that these sessions help you navigate your self storage business better during these uncertain times.

Want more tools for your managers? Join us on Gabfocus weekly on Thursdays.

Top Questions Answered in this session

What are the major expenses of running a facility?
How do you set your initial budget?
How do you figure out what to charge?
What’s a typical revenue projection for a facility?
How do you know what parts of your business to adjust?
How do you know how much to spend on different parts of your business?
Are there any revenue trends to expect?
Are there any other surprise expenses to look out for?

These are just a few of the questions answered during this session! Get your pen and paper ready!

Jim Mooney

Freedom Storage Management

Website: https://freedomstoragemanagement.com/
Email: jmooney@freedomstoragemanagement.com

James Appleton

Minico

Website: https://minico.com
Email: james.appleton@minico.com

peter-spickenagel

Peter Spickenagel

CallPotential

Website: http://callpotential.com
Email: peter@callpotential.com

Denise Bowley

Self Storage Science

Website: http://selfstoragescience.com
Email: denise@selfstoragescience.com

Scott Worden

CallPotential

Website: http://callpotential.com
Email: scott@callpotential.com

Bob Vamvas

Amy's Attic Storage

Website: http://amysatticss.com
Email: bob@amysatticss.com

fancy-pug-filter

Jim Ferguson

Storable

Website: https://www.storable.com/
Email: jim.ferguson@storable.com

Resources from this session

Awesome Quotes

“The more digital marketing is optimized and effective it is, the more is lowers the cost to rent. A key data point to track every month is cost to rent." - Bob Vamvas

“With my unit rates, I like to come in a little bit higher than everyone else because we're going to better, we're going to be cleaner, we're going to be newer, we're going to be more well-trained. If my rates are just a little bit higher, I can make concessions without hurting my bottom line.” - Denise Bowley

"Your rates depend on your micro-market you're operating in. It depends on your occupancy, your pricing strategy. We like to get creative and not just charge one price for a 10x10 - try the good, better, best option to explore different pricing structures." - Peter Spickenagel

“People respect what you inspect. If you're looking at things on a daily basis, your managers will pay attention. If they seem something become a focal point for you, it become a focal point for them.” - Jim Mooney

Terms to Know

Preventative Maintenance
Broker Packages
Feasibility Study

Resources Mentioned

Question of the Week

We asked our panelists: "What’s a key factor for an owner to evaluate who is trying to grow their revenue?"

I would start with an exhaustive market survey. Be sure you're comparing apples to apples. You have to collect data for a specific location. - James Appleton

Software is the key factor. Software makes you more efficient, helps you capture leads and follow up. Have that software assist you in capitalizing on every opportunity presented to you. - Peter Spickenagel

Don't be afraid of change. I hear a lot, 'that's the way we've always done things.' Embrace the change. Technology is always evolving. Be able to make changes and grow. - Jim Mooney

Automation. If you're focused on creating a standardized process and automating as much as you can, you're going to reduce the number of delinquencies, your cash flow is going to increase, and overall it's going to give you a better competitive advantage. - Scott Worden

The easiest way to increase revenue is to increase rates. That's how you get the most bang for your buck. It's based on occupancy, by type, by size, and by location. I let my managers tell me how much they think our rates should increase, then their bought in on the prices. - Denise Bowley

You have to create a sales-driven culture. But, within that culture you also have to have the right tools - the CRM, you've got to track your prospects. - Bob Vamvas

Good revenue management means looking at data. And, to have good data you need a good system. You need a management software that allows you to get the data points you want and need. - Jim Ferguson

Gabfocus Takeaway

Data is King. Without good data on your facility, without asking the questions and tracking the answers, you're flying blind. All our experts this week agreed, you have to track everything. How much do you spend on Marketing? You need to know how much a lead is worth. How do you know how much a lead is worth? You need to know your Lifetime Tenant Value. Good revenue management at its core is good data management.