The Next Generation of Self Storage Software | Self Storage Virtual Workshop

Gabfocus Episode 63 | The Next Generation of Self Storage Software

Why and when should you upgrade your PMS and other software? Do you need all the tech bells and whistles at your facility? Or are you content with the software basics? We're inviting a panel of self storage software experts to discuss how to figure out the best match for your facility and what's on the horizon for storage software.

Featured Speakers: Jason Palmer, Alyssa Winkelman, Jack Colemanzo, & Steve Smith
Moderators: Tommy Nguyen & Melissa Huff

Category: Operations & Technology
Focus: Owners & Operators
Aired: August 22, 2024
Duration: 1:21:57

Overview

If you don't have time to watch the whole session, here are some of our favorite parts:

At 4:40, our experts discussed software trends they've seen emerge in the industry over the last couple years, including automation and a focus on tenant lifecycle.
9:20, the guests discussed what factors about your own business you should consider when shopping around for a software partner.
Starting at 13:50, each expert covered how you should prioritize the software features that matter most to your business.
At 16:40, our guests highlighted the questions you should ask each vendor when trying to select software for your facility.
21:00, our experts shared how some vendors offer a centralized selection of services to go along with their software.
Around 25:50, the guests answered questions about vendors that require you to use an in-house credit card service and the reasons behind it.
At 30:00, our guests covered what every operator's typical software stack is comprised of, and then some that are in the stacks of more niche operators.
36:00, the experts touched on the features and offerings that good storage software will provide.
43:40, our guests discussed the software features and needs that they have operators asking them about the most.
46:12, the guests highlighted kiosks and whether they felt they were still worth the cost or not.
At 50:37, our guests talked about integrations with accounting software and why they can sometimes be difficult to arrange.
Starting at 57:00, our experts discussed features of storage software that can help with the daily on-site tasks that managers often handle on the property.
Around 1:00:10, our guests talked about how they get feedback on the various features their softwares offer from customers.
1:10:30, the guests talked about revenue management partners that can integrate with various software.
Starting at 1:12:40, the experts gave advice to someone looking to get started in the industry.
1:15:50, the experts answered the question of the week!

Resources

Gabfocus Takeaway

The world of self storage software has rapidly changed over the last several years, and vendors are now offering more and more operations to streamline and simplify the day-to-day operations of self storage owners and managers. When shopping for a new software partner or when looking to upgrade your current software stack, first identify your daily pain points and the pain points of your customers, then select a software partner who can help you solve those problems. There are constantly new software offerings in our industry, so make sure you choose partners who will allow you to integrate with other services and vendors as your business scales and grows.

What are Gabfocus Sessions?

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

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 to learn more about self storage? Join us on select Thursdays for Gabfocus.

Questions Answered in this Session

What are the big software trends you've seen emerge in the industry over the last few years?
Have there been any big advances or innovations in storage software over the last couple years?
What factors about your business should you consider when choosing software?
What is your typical operator's software stack composed of?
What should good software do?
What online rental capabilities matter most?
How important is it for your software to have open access to various other techs?
What are ways you've seen owners and operators use their software better or differently than others?
What are storage businesses biggest tech/software blindspots?
What tech are self storage operators using wrong? Or not making the most of?
How does a storage business know it's time to upgrade their software?
What new software are you expecting or interested in seeing come into the storage industry?
What updates are already coming in the world of storage software?
Is there any software that the REITs use that independents should be using as well?
Is there any new or coming tech/software that you're not sold on?
Which 1 upcoming software update or new tech are you most excited about?

Jason Palmer

Storable

Website: https://www.storable.com/
Email: jason.palmer@storable.com

Alyssa Winkelman

Alyssa Winkelman

6Storage

Website: https://us.6storage.com/
Email: alyssa@6storage.com

Jack Colemanzo

Storeganise

Website: https://storeganise.com/
Email: jack@storeganise.com

Steve Smith

Storage Commander

Website: https://www.storagecommander.com/
Email: steve@storagecommander.com

Resources from this session

Awesome Quotes

“Once your operation is in place, you can become more dynamic with your pricing, but that requires data. You need some method of being able to record the data that you need to know whether your price is in the right place - whether you need to move it up or start giving some concessions.” - Warren Lieberman

“I never want to downplay to what someone else is doing. I'm better than they are, then I'm going to be worth a higher price. That's what value is. If you go out to a restaurant and get really good service, would you go back? Yes! What if it was pricier? You'd still go back because you got better service and a better product.” - Jim Mooney

"It's good to be informed on your competition. I don't want to ignore them, but I don't want to respond too strongly to them either." - Warren Lieberman

"We did a survey of 10,000 facilities on their pricing. We found out that two-thirds of those operators didn't change the price of a single unit of the course of a month." - Warren Lieberman

“Rate increases and value pricing are the number one ways to grow your revenue.” - Jim Mooney

"Tenants in more convenient units tend to be less price sensitive." - Warren Lieberman

"The size of the unit is only one aspect of what people are willing to pay for." - Warren Lieberman

Highlights

Foundational marketing strategies to have in place - whether leasing up or stabilized:

Website
Set up listings (Yelp, Google My Business, Apple Maps)
Social Media
Establish Local Partnerships

Lease up marketing strategies:

Lead Generating Strategies (like digital ads)
Aggregators (Sparefoot, Storagefront, etc.)
Awareness Campaigns (like billboards, flyers, and sponsorships)

Your average customer value
Find the average stay length of all tenants. Next take your economic occupancy and divide by how many units you have. That will tell you what the average customer pays.

Multiply the average length of stay by what the average customer pays, and that's the average value of a customer.

For example, if a customer stays for 12 months and pays $100 per month, then their value is $1,200.

Your average lead value

Figure out your closing rate (or conversion rate) i.e. how many leads do you turn into tenants? Multiply that by your average customer lifetime value to figure out what your leads are worth.

Pro Tip: see which lead sources are converting the best. It may be that certain sources have a higher conversion rate, so those leads are worth more to you than a source that barely converts.

Typical Lease-up timeline

According to our panelists, it's typical to see a 3-4% increase each month, putting your facility at 36% after the first year, and 72% after the second.

Alternately, you can look at your lease up goals through the lens of your units, aiming for 20 units rented per month.

For Nick and StorageMax, they pro forma their economic occupancy at 85% with their sweet spot at 92%.