Removals and self storage
Move your business into the fast lane with self storage!
- Are you looking for a way to maximise revenue on your warehouse?
- Do you want to find a business solution that works in synergy with your existing removals operation?
Why not dip your toe in the water of self storage, one of the fastest growing industries in Europe and one that’s also proving resistant against the economic downturn.
Whether you are currently involved in bulk storage, you have a removals operation or simply if you have a warehouse that is not in use, speak to us about how you can diversify into self storage.
What are the benefits?
- Excellent return on investment
- Synergy with your removals operation
- Higher rates achievable per square foot
- Low staffing levels
- Combat empty property rates
- Getting started is easy
- Low running costs
Read below how one of our customers, Mathew Elbro of Luker Bros in Oxford, found the integration of self storage into his removals business:
· Why did you decide to enter into self storage?
o Decline of containerised storage along with shortage of drivers to maintain high level of moving turnover
· Was your location suitable (in the traditional sense ie good visibility with lots of through traffic) for self storage?
o Yes, on Oxford Ring Road (in the UK) although the entrance is through a housing estate.
· What research did you do on the industry?
o I researched expenditure and expected return, visited sites and went to a self storage conference which was very important
· How many square feet of net lettable self storage do you have?
o 2,000 sq m
· What format is it in? ie converted building or external units
o We have a converted building
· What was your initial investment cost?
o Phase 1 and Phase 2 cost us €390,000 each but this included everything for the complete set up including CCTV, Access Control, fire and intruder alarms, reception , lift and flooring.
· What additional marketing, if any, did you undertake to attract self storage customers?
o We created a different brand (Self Storage Centre) and used local press in addition to our website but the most important aspect is our signage.
· Is there a cross over from removals side of the business in terms of cost sharing, customer base, staffing or marketing?
o Yes, self storage can be fully integrated with your removal business
· What is your return on investment?
o Our total investment since 2006 has been €780,000 and our return to date has been €585,000
· How long was/is your payback period?
o Our first phase was 28 months. We are still paying back phase 2 and anticipate a little longer in the present economic climate but we are now into good profit for phase 1.
· How did you determine your pricing structure for self storage?
o We looked at our competition
· What is your fill up rate/occupancy?
o Our occupancy is 45% but we have only recently completed phase 2
· Cost vs Benefit of converting building/area for self storage vs staying empty?
o With no empty rates relief we needed to utilize the space that we had.
· What staffing levels are required for the self storage section of your business?
o We need one person at all times per 1,000sq m of net lettable space, although you need to have a back up person if two customers arrive at once and need to be dealt with.
· How high are your everyday running costs of the self storage business?
o The only running costs we incur are for one wage and electricity.
· Actual running of facility – easy or difficult?
o I find it easy
· Which side of the business is more profitable?
o Self Storage
· Which side of the business are you now predominantly known for?
o We are still known for our removals business
· Would you recommend it as a business venture?
o I absolutely would
· How did you find working with Steel Storage for the building of your facility?
The best, Steel Storage are the industry experts.
A GUIDE TO SELF STORAGE
A step-by-step guide to self storage, and storage as a business opportunity
CLIENT COMMENT
"Steel Storage provide a hassle free, flexible approach to their projects and this, along with their high quality of workmanship has resulted in a successful partnership which I would be happy to recommend to anyone interested in developing a self storage facility"
