09 May 2024
During the recent ISS Las Vegas World Expo, we had the opportunity to engage with industry experts, gaining insights into the current self-storage landscape. Mark Bukich from StorageMart shared insights on their international operations spanning the UK, Canada, and the US. They've experimented with pricing strategies, notably introducing weekly rates in the UK, which they're now testing in Manhattan.
James:
Hey everybody, I'm with Mark from StorageMart, an international franchise, and third party manager. So Mark, we've been hearing a lot about how you guys operate out of the UK, Canada, as well as the United States. What are some differences or similarities you've applied to these different countries really? Is there any difference in pricing strategy you'd like to talk about?
Mark:
Yeah, so in the UK primarily, when we first took over that portfolio back in 2016, pricing was different. People listed their prices online. And we went in, we said, okay, we're an American operator, we're going to list our prices online and see how it works. Well, we found out that our competitors looked at those rates, and we saw a real big dip in volume and people trying to rent units. So going forward into the present day, weekly pricing has been a big staple in the UK. We've rolled it out in Canada. And recently we're experimenting, we're doing some beta testing in Manhattan, New York. And we're going to see if that gives us any more volume and an increase in occupancy. It's more of a testing phase in the US.
James:
Mark, we love that you guys are trailblazers. We're willing to try new things, trying to give customers a better experience and attract people to a facility that might not otherwise have needed storage. Do you think that pricing weekly will almost psychologically lead to a shorter length of stay or do you think once they're in, the fundamentals of self-storage will keep them for a longer term rental? What are your thoughts on that?
Mark:
Well, it's interesting. We advertise it weekly but it's going to be billed monthly. And so with that being said, we're still in these testing phases, but I think if we can attract more tenants and people are more apt to take on that lower weekly rate, then hopefully we can keep them for longer. But I think the story is going to tell us, in Canada and the UK, it's been hard because those markets are just so much different than the US. The length of stay in the UK versus Canada versus US, it's all completely different.
James:
We love that you guys are innovating. You are absolute trailblazers, Mark, and I'm looking forward to what you guys turn up as this progresses. Thank you so much for your time today.
