Americans spend nearly $40 billion each year on self-storage unit rentals. Need for storage units is expected to remain high in the decades to come.
This demand creates tremendous opportunities for storage businesses to thrive nationwide. Many storage businesses are at risk of missing out on these opportunities, however. Too many simply aren’t charging enough for their units.
Keep reading now to find out how to determine if your storage units are properly priced or if you should be charging more.
What Factors Influence Storage Unit Cost?
Determining storage unit prices can be complex. While size is an obvious factor, there are numerous other considerations to take into account. Anything that adds value or enhances customers’ experience can be grounds for higher rates.
Prime examples include:
- Climate Control
- On-site security measures or personnel
- First floor or indoor access
- 24/7 access
- Powered units
- Superior insurance coverage
Market demand is also a key factor. Rental storage units in high-demand areas can and should be priced higher than equivalent units in low demand areas.
Average Unit Pricing
On average, self-storage units in the United States cost just under $1 per square foot. While this provides a convenient baseline, actual pricing varies widely depending on demand and amenities.
To illustrate the difference that location and amenities can make, here are some standard storage unit sizes and the ranges of pricing commonly associated with them.
- 2’x5’: $25 – $45
- 2’x7’: $25 – $50
- 5’x5’: $38 – $100
- 5’x10’: $31 – $120
- 8’x15’: $167 – $250
- 10’x7’: $43 – $60
- 10’x10’: $55 – $230
- 10’x12’: $65 – $95
- 10’x14’: $79 – $130
- 10’x15’: $75- $285
- 10’x20’: $170- $460
- 10’x30’: $507 – $590
- 13’x14’: $164 – $200
- 12’x20’: $177 – $225
Nationwide, climate-controlled units cost between 30 and 50 percent more than non-climate controlled units.
Smaller units also tend to have wider price ranges than larger ones. This is primarily because renters who need large storage units have fewer options. As such, a storage rental business can charge more with confidence that renters will pay it without complaint.
Alternatively, small units are ideal for special pricing programs. Customers who might otherwise consider stashing items at the homes of friends or family can be readily drawn in by the allure of small cheap storage units during promotions.
Pricing Programs
Savvy storage unit business owners do not rely on a single set price for each unit size. They understand that rental prices can and should change. This pricing flexibility gives operators the opportunity to maximize both profitability and customer appeal.
For example, operators who build a little extra room into their pricing give themselves the option to run programs that offer:
- Free trial periods
- Reduced initial rates
- Discounts to customers who use cost-saving online reservation or automatic payment options
- Discounts for renting during the off-season
Setting your “standard” unit price near the top of what your market will tolerate allows you to offer discounted rates that still turn a profit for your company. At the same time, customers paying the discounted rate feel they are getting cheap storage units which makes them happy and creates a win-win situation for everyone.
Evaluating Your Unit Pricing
There has never been a better time to reevaluate the pricing on your storage units. If you aren’t sure your units are bringing in all the revenue they could be, check out our guide to How to Get the Most of Small Business Storage Units today. Or, if you’re just thinking about getting started in the business explore our guide to Starting Your Own Storage Unit Franchise for everything you need to know to build a successful business today!