Your Movable Billboard

Take Advantage, Get Results

by Jason Kolivoski

Self storage owners today are being more creative with move-in incentives for new customers.  With increasing competition in the marketplace and better educated owner/operators, thinking outside the box leads to new innovative marketing ideas.  Obviously, new marketing ideas need to be tailored toward your customer’s needs and will vary depending on each individual market.  When talking to self storage owners, there are many opinions as to what works and does not work.  However, one thing that still holds true is the power of advertising.  Advertising is the most effective marketing tool when implemented correctly.

Moving trucks are one of the more effective marketing tools used to increase your facility’s advertising, providing a useful and beneficial service to your customers.  There are three options available when considering the implementation of moving trucks.  One, you can purchase a new or used moving truck. Two, you can lease a moving truck from a third party dealer.  Or three, you can become an agent for one of the big three truck rental companies.  All three options have pros and cons associated with them, so it is up to you to decide how to proceed.  Let’s take a moment to evaluate each option.

Purchasing or Leasing

If you are interested in providing a moving truck for on-site rental or free use, then it is recommended that you purchase or lease the truck.  This way, you can brand it with your facility’s logo, name, telephone number and color(s).  The purpose of a branded truck is considered solely from a marketing and advertising standpoint.  Whether the truck is parked on-site or being driven around town, it becomes a valuable marketing tool on wheels.

When purchasing or leasing a moving truck, you, the owner, have bargaining power.  You can structure the moving truck rates around your terms and conditions.  For example, you may offer the use of a moving truck free to new customers.  Providing this incentive is an effective way to increase occupancy and better serve your customers.  In the end, you are giving a little but gaining a lot, since the average customer rents a space for a six to eight month period.

On the downside, purchasing or leasing your own moving truck is much like purchasing or leasing a car; you are responsible for the routine maintenance such as tires, oil, inspection, and damage.

Becoming an Rental Agent

The best part about becoming a rental agent is that you are paid a commission by the truck rental company for renting their trucks.  If you are in a high traffic and densely populated area, the monthly commissions can be very attractive and help to increase your bottom line.  On the other hand, you can’t brand those trucks, and if the trucks on-site are underutilized, the truck company may limit the number of trucks allowed at your facility.  In order for the big three truck rental companies to compete, they track each truck’s rental penetration and gross earnings compared to the daily carry cost on a per-truck basis.  It is strictly a numbers game.

Becoming a rental agent can be a very positive and rewarding experience.  You are not expected to invest any capital, since you are not purchasing and do not own the moving trucks.  Routine maintenance is the responsibility of the truck company.  Please note that routine maintenance responsibilities vary by company.  There are also strict guidelines in place for weekly and monthly paperwork submissions.

Your Decision

The toughest decision is whether to purchase, lease, or become a rental agent.  After deciding which option is right for you, be sure to market and advertise the moving trucks to your current and potential customers.  An on-site moving truck is an excellent choice for self storage facilities that are in lease up.