When I first entered the self storage industry, I attended the Self Storage Conference and Trade Show in Las Vegas. At the time, I had only been in the business for a short while and was operating a single self storage facility near Liverpool in the UK. Like many new operators, I was obsessed with occupancy. Every customer was a victory. Every empty unit was a concern.

During the conference, I got chatting to an experienced operator who had been in the business for many years. When I told him enthusiastically that we were full and having to turn people away, I expected congratulations. Instead, he looked distinctly unimpressed.

“If you’re full, you’re not charging enough. You should never be full. Aim for 90% occupancy.”

When I returned to England, I decided to test his theory. We reviewed our pricing strategy and increased our rates. The result was immediate: revenue increased significantly, occupancy remained strong, and that single conversation paid for my entire trip to Las Vegas many times over. More than twenty years later, I still see operators making the same mistake.

The Las Vegas Lesson

Lower occupancy. Higher revenue. Higher profit.

Understanding the True Market Price

Before discussing occupancy, discounts or revenue management, there is one question every operator should be able to answer: what is the true market price for storage in your area? Surprisingly, many cannot. Operators often know what their competitors advertise online, but that is not necessarily what customers actually pay.

In many markets, advertised rates bear little resemblance to reality. A competitor may advertise £25 per week but then offer 50% off for the first three months, free van hire, free insurance, free locks, manager’s specials, and negotiated discounts over the telephone.

The Only Way to Know: Mystery Shopping

This information forms the foundation of an effective pricing strategy. Without it, you are effectively pricing blind.

Pricing Changes Throughout the Life of a Facility

One of the biggest mistakes operators make is treating pricing as a one-time decision. Pricing should evolve continuously throughout the life of a facility. The strategy that works when a facility first opens is rarely the strategy that maximises profitability once occupancy reaches 90%.

1. 0%–40%: Building Momentum

   When a facility first opens, occupancy is king. Nobody knows who you are. You have few reviews, limited market awareness and little trading history. Empty units are your biggest problem. Focus on filling units, generating enquiries and building awareness through introductory promotions such as 50% off for the first two to four months, first month free, free lock, free van hire, discounted insurance and reduced deposits.

2. 40%–70%: Transitioning to Revenue

   As occupancy grows, the facility begins establishing itself within the market. This is where operators should start gradually reducing promotional activity, increasing advertised rates, monitoring enquiry levels and tracking conversion rates.

3. 70%–85%: Revenue Management Begins

   Pricing should become much more sophisticated. Each unit size should be managed independently. If a particular size is consistently selling out, increase the rate. If another size has weak demand, maintain the rate or introduce targeted incentives.

4. 85%–92%: The Sweet Spot

   In my experience, this is where most facilities achieve maximum profitability. There is sufficient occupancy to generate strong income while maintaining enough availability to accommodate new customers.

5. 92%+: Managing Scarcity

   Once occupancy exceeds 92%, pricing becomes your primary management tool. Every remaining unit becomes increasingly valuable. A waiting list can be the market telling you your rents are too low.

Existing Customer Rate Increases

One of the most overlooked opportunities in self storage is existing customer rate increases. Many customers initially plan to stay for a few months. In reality, many remain for years. As operating costs rise and market rents increase, existing customer rates should also be reviewed.

I recently worked with an operator who was completely full but had not increased customer rates for several years. After reviewing the market, it became clear he was significantly underpriced. His response was predictable: “But they’ll all leave.” They didn’t. A handful complained. A few moved out. Most stayed. Revenue increased significantly.

Rate Increase Guidelines

Measuring What Matters

Too many operators focus on occupancy alone. Occupancy is important, but it should not be the only metric you monitor. The most successful operators track a far broader set of indicators that provide a much clearer picture of facility performance.

Conclusion

One of the most attractive characteristics of the self storage industry is that substantial revenue growth can often be achieved without acquiring more land, constructing additional buildings or expanding a facility. Instead, growth can come from something far simpler: better pricing.

The most successful operators understand that self storage is not simply a property business. It is a revenue management business. During lease-up, occupancy is king. As a facility matures, revenue becomes king. Ultimately, however, profit is what matters.

Understanding the relationship between occupancy, demand and pricing allows operators to maximise both revenue and profitability throughout the life of a facility.

“If you’re full, you’re probably not charging enough.”

The lesson from Las Vegas that changed everything.