27
Sep

Average Revenue

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An increase of two months in length of stay could easily increase the average revenue per customer by 20%. Wouldn’t you feel good about a 20% increase in revenue? An increase in length of stay would also have a tremendous impact on occupancy rates and time-on-market ratios of empty units. What would happen to the value of your business if your occupancy rates jumped 10%?
In many cases this would cause your property to be considered “stabilized” or “highly occupied”, which lenders love. You could refinance your property under much more favorable terms, which would allow you to send even more dollars to the bottom line.
 If your selling culture is working you’re also cross-selling and up-selling with better proficiency, moving more products and supplies out the door. This might mean your $1,000 customer is now a $1,100 customer. It just keeps getting better.
The ultimate result of your selling culture is a significant rise in your asset’s value. The value of your business is its revenue times your cap rate, correct? It is not unusual for your value to be ten or twelve times revenue. If this is true, then every dollar you create translates into ten or twelve dollars in value. This ought to be enough motivation to make you a passionate selling culture maniac.
It sounds easy enough, doesn’t it? Well on the one hand it is very simple. The whole storage experience can be boiled down to pain-and-pleasure stimulus. The behavior of customers continues to be strongly influenced by basic instinct: avoid pain and seek pleasure.
Is it a pain to move into your place, or do you make it easy for people? Is it a pleasure to stay there? Is it a pain to move out? Or do people move out because it’s a pain to stay? Managing the pains and pleasures people associate with your business lays the foundation work for creating your sales culture.
 
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