Pricing Strategy Fundamentals
Master the art of storage pricing — when to raise rates, how to identify gaps, and why high occupancy means opportunity, not silence.
The Golden Rule of Storage Pricing
High occupancy = raise rates. Never reduce ad spend.
At 90%+ occupancy, you have pricing power. Every new customer at that level is near-pure profit because fixed costs are already covered. The common mistake is to "go quiet" when full — this is backwards. You keep ads running AND raise rates.
When to Raise Rates
You're in the "raise rates" zone. Increase street rates 3-5% and monitor demand. If move-ins stay steady, raise again.
If move-ins consistently exceed move-outs, you're underpriced. The market is telling you there's room to charge more.
Check competitor rates quarterly. If Extra Space or Public Storage raised 5%, you likely have room to follow.
If new move-ins pay more than move-outs, your pricing is healthy. Keep pushing — the market supports it.
The Below-Street Problem
"Below street" means tenants paying less than your current advertised rate. This happens from old promotional pricing, legacy rates, or inconsistent ECRI execution.
| Issue | Solution |
|---|---|
| Tenants at old promo rates | ECRI campaign — bring to street rate over 6-12 months |
| Street rate hasn't been updated | Quarterly rate reviews — adjust based on occupancy |
| Inconsistent unit pricing | Normalize by unit type — same size = same rate |
ECRI: Existing Customer Rate Increases
ECRI is how you capture pricing power from existing tenants. Done right, it's a major revenue lever. Done poorly, it drives churn.
Key Takeaway
Pricing is not a set-and-forget exercise. Review rates quarterly, run ECRI annually, and remember: at high occupancy, price up — don't quiet down. Every percentage point of underpricing is money left on the table. REITs optimize rates weekly. You should review at minimum monthly.