Why and how to define your marketing budget for your self-storage

When self-storage operators think of marketing, they often assume that it involves large and extravagant expenses. But the truth is, you can market your setup without breaking the bank. The trick is to make the best use of the dollars you have to spend, no matter how many. You need to create and stick to a budget.

A solid budget will help you stay on track with your goals and control your costs. Building one can seem like a monstrous task, so let’s break it down into manageable parts:

• First, you need to identify and define your marketing goals. These can be large or small, something as simple as getting more phone inquiries or filling a specific unit size. Write them down, be specific and keep them simple. An example would be something like “rent all 10 x 10 air-conditioned units at a 12% profit”, or perhaps you would like to attract more students or commercial tenants. Set a tentative timeframe for each goal.
• Set the total amount of your budget. It involves a bit of math, but nothing too strenuous. The numbers are entirely in your control and should reflect your means and goals.
• Decide what types of marketing programs and initiatives you want the budget to cover.
• Update your budget based on the results.

Now, let’s look at these last three steps in more detail.

Set a budget amount

To set your budget limit, look at your current self-storage revenue and decide on a percentage of revenue you’re willing to spend on your marketing spend. Consider these three approaches:

Sure. A safe marketing budget would be 1% to 5% of the establishment’s revenue. You can quickly recoup that expense with unit upsells, add-ons, late fees, or retail extras. There’s a tiny bit of wiggle room so you can play around and get your toes wet. If your business is barely breaking even and you want to try paid advertising, this gives you enough to get started.

With a secure budget, it makes sense to have someone in-house to do the work. For example, if you have an employee who is good at web development, graphic design, or other marketing skills, this is a perfect way to test the waters. If you are looking to outsource, you will need to consider agency fees.

Objective. With a goal budget, plan to spend 4% to 12% of your current income. It is the best choice you are considering to outsource. It lets you use multiple avenues of marketing at once, ensuring access to a larger audience and pool of potential customers.

Most self-storage marketing agencies offer packages that you can purchase to get started. Just remember two things. First, you need to know the company’s area of ​​expertise. If he doesn’t know about self-storage, keep looking. Second, what are the guarantees? An agency should be able to show you results. What does it offer and when? Ask questions, and if you’re not comfortable with any of the answers, look elsewhere.

Adventurous. If you’re willing to spend money to make money, go with this option, which is usually 15-30% of revenue. Although this is a large number, it can pay off significantly. It’s a simple approach, really:

• Hire a full-service marketing agency with expertise in self-storage.

• Let the experts tell you where and how to spend your money.
• Sit back and let the revenue roll in! Although there are always exceptions, making this level of investment will surely yield results.

Choose what to buy

There are many ways to market your self-storage setup, and new options seem to pop up all the time. Yet they typically fall into one of four buckets: digital, print, mass media, and community (also called “base”). When deciding how to allocate your budget, you might want to try a little of each.

Digital marketing. This includes things like social media, Google Ads, and online business listings. It’s perfect for reaching a large audience and engaging customers. Digital marketing has fast availability and gives you unlimited customer interactions. You usually have exclusive control over visuals and context, and it’s easy to track via analytics. That said, it does require some know-how to leverage it properly, so if your staff doesn’t have experience in this area, consider hiring an expert.

Commercialization of printing. This includes billboards, banners, yard signs, door hangers, flyers, brochures, business cards and mailings. Printed materials are perfect for that flash of wow. Your message can be personal and local, and you can control distribution. They are also ideal for sharing with neighboring businesses! The biggest downside is that the print can be easy for customers to ignore. It’s also nearly impossible to track without specified promotions or personalized contact information. (More on that below.)

Mass media. Local TV or radio commercials, or local newspaper ads are ideal for reaching non-technical audiences and promoting brand awareness in the community. You can even target customers geographically. On the other hand, they take time to set up, and they can be expensive. They can also be difficult to track unless you use a promotional code or specific contact number or email with each campaign. There may also be aspects of the presentation that are beyond your control.

Community (basic). Connecting with local residents and businesses is the best way to become part of your community and gain brand recognition. You can participate in local events or sponsor businesses or sports teams. Consider school fundraisers, college events, and giving drives for nonprofit organizations. Much like print and media, these can be difficult to follow.

change it

Once you have decided on the marketing budget, you are by no means stuck with it. Remember, where you choose to spend your marketing money plays a huge role in the success or failure of your self-storage business.

One of the biggest mistakes traders make is sticking with a campaign or method that isn’t working. If one strategy isn’t working for your operation, move on. You are free to modify your plan at any time. It is worth noting that it usually takes up to four months to really see results from a marketing campaign.

How do you know if a campaign is working? With tracking, of course! Consider a combination of the following:

• Investigation: Ask customers how they found you. This approach is simple, straightforward, and perfect for DIYers and in-house marketing teams.
• Analytic: Most digital marketing comes with analytics. You might need some help deciphering the numbers, but they’ll show you where your traffic is coming from and what interactions were taken with each campaign.
• Unique information/codes: Use an exclusive phone number, email, or promotional code with each marketing campaign, making it easy to track the leads generated by each.

Don’t be afraid to try several strategies at once. remember to track them separately. Once you’ve gathered your tracking data, you can see each marketing method’s performance and return on investment. Based on this information, you can decide to change your allocations.

There is no exact science in marketing self-storage. It’s more of a model that leads you in the right direction. Once you’ve stumbled upon a formula that works, you’ll need to stay fluid. Marketing is constantly changing. As such, your goals, planning, and budgeting should be too. So, are you ready to market?

Mohala Johnson is the Director of Web Technology for Tellus Development Ltd., a real estate and development company that operates more than 30 self-storage facilities in the Southeast. With over 10 years of management and customer service experience, she manages digital and print marketing for the company. Writing has always been a passion for her and she is excited to share her knowledge with the self-storage industry. Connect with her @MohalaJohnson on Twitter or www.linkedin.com/in/mohalajohnson.