How much you should charge your customers for renting your store unit is an important question that you need to answer before you think of establishing yourself as a reputed warehouse. Even after you have established yourself in this field, you may have to re-look periodically at the self storage rental you charge to stay competitive in the market. Many factors determine the amount that you should charge your customers. Some of the factors are under your control while others you have to live with.
Some of the factors which help you in determining the Toronto mini storage facility rental are -
Cost And Margin
Gone are the days when people could simply charge cost plus margin to their customers. In that scenario, nobody was too much bothered about how to reduce their costs. But with so much of competition in the market, this is not possible. Everybody has to find ways of giving the best facilities at the least cost. So you can decide the rent for your store unit after considering the cost but you have to remember that the price that the customer has to pay should not be too different from the market trend. In the long run, you have to keep reducing your costs in order to offer your store unit at low self storage rental . There are various best practices like value management, lean management and Six Sigma that help you in keeping your waste at minimum and thus reduce your costs.
You have no control over the competition, but you can always decide your pricing strategy based on your competition. You can decide how you want to position yourself before your customers. If you are offering more high tech facilities than most of your competitors, then you may think of positioning yourself as a high tech low cost store house provider. The image that you build of yourself will help you in determining the self storage rental that you can charge.
Facilities And Features
The facilities and the features you offer will finally decide how much rent your customers are willing to pay for the store units. If you are offering features that customers want, then they will see value in it but if you are offering features that customers do not want then they will consider it as non value added. You have to identify all non value added facilities and features in order to cut costs and remain competitive. Moreover, you can add more value added features as perceived by customers to enhance the value of your services. This will help you in fetching more rent as compared to your competitors. As long as you are offering innovative features and services to your customers, they may be willing to pay you more rent.
The rent you can charge basically depends on the location of your store house. If your store house is located at the outskirts of the city then your fixed cost will be less as compared to if it were located in the middle of a city. This helps you in offering low self storage rental . Location also decides your competition and clientele. The prevailing trend in that location also decides the rent for the warehouse units.
In short, you have to take into consideration various factors while deciding the rent for your store units. Whatever you charge, you have to ensure that you remain competitive in this market either through innovations or through low cost solutions.
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Disclamer: This entry is intended to promote our partner StorageMart and some or all participants received compensation.