As a self-storage business owner, it’s important to consider additions to your business that can generate income and add value to the customer. Many self-storage businesses offer an on site rental truck to customers. How does it work? What’s the return on investment? What’s the risk involved? How does it add value? Today we will cover these questions.
How does a self-storage rental truck work for your business?
Many self-storage businesses offer a free rental truck to customers signing a new lease. It is common to require a deposit on the truck prior to using it. The deposit is returned when the truck is returned without any damage. A free rental truck available on site is a nice option for customers seeking storage within a budget.
What’s the return on investment?
ROI can be challenging, though not impossible to calculate because some self-storage owners say that they make sales because they have a truck on site, and some say they don’t make the sale because they don’t have a truck. If you don’t get the sale, it’s a challenge to calculate unless the customer specifically tells you it’s because you don’t have a truck available.
What about risks and benefits?
The risks involved include the cost of insurance depending on business ownership of the truck, damage to the truck when in use, theft of the truck sitting on site, and general wear and tear.
The benefit of having a truck is passive marketing. Provided that your business is located in a heavy traffic area, having your business name and phone number provides passive marketing as people drive by. Additionally, as your truck is in use, you benefit from visibility on the road.
How does it add value?
The value it adds to your business is in new customers reached by offering a one-day free use in addition to the passive marketing available while the truck is in use. A knowledgeable tax professional can assist with the proper deductions related to a business expense like a truck as well as depreciation of the asset.
Some options to consider as you assess this business purchase is to become an affiliate of a nationwide truck rental company like UHaul, Penske or other brands. Becoming an affiliate where UHaul or other trucks can be rented is a great option with lower risk; however, the competition from other locations may be challenging to overcome initially.
Additionally, you can purchase a truck using a company On The Move Trucks. On The Move Trucks provides a complete truck rental program with the option to purchase the truck at the end of the lease. A benefit of using this service is that your brand and business name would be on the truck which provides brand awareness and passive marketing. Inside Self Storage provides insight in this article on the benefits of truck rental as well as mistakes you can avoid.
As the Argus Network Affiliate in the states of Florida and Georgia, Weaver Realty works diligently to provide expert consulting on the purchase of self-storage properties as well as ways to expand and grow your business. We look forward to working with you as your business grows. Call us today at 903-733-0039 to find out more about Weaver Realty.
