Greed from Sloth -- Storage and the like.

[CCdaCE]

I've had an idea rolling around in my head.

Setting up a business based on America's propensity to collect "stuff" and the like.

When I hear about the prices that mini-storage places command, and the amount of "Rubbermaid/insert-name-brand-here" storage containers available in "big box store".

... when I see/hear all that, I wanna build a storage place to store boats/jet-ski's/antique cars/etc. or sell a product to the "stuff collectors" like Rubbermaid totes.

Preying on the "weak".

Is this market cornered? Does OfficeMax have the office storage market cornered?

I know my BIL was looking into starting a mini-storage place, but he failed to pull the trigger, mostly because of laziness and/or he felt the market was saturated in his area.

Edit: What other angles could you work to benefit from American's propensity to collect stuff, such as "scrapbooking"?

-CC

 

[OAG]

Re: Greed from Sloth -- Storage, etc.

Recently returned from a 2,500 mile trip to VA down to FL and back to OH. We usually try to take back roads and stay away from the Interstates as much as possible. Early on along the way DW made the comment "there are lots of storage places". Of course after that comment we seemed to spot every one along the way and even along the Interstates as we drive. IMHO I think this market is really saturated. However, having said that the way I would go about it would be to get a job in one of these things and learn all I could and THEN assess if I really wanted to go it alone or buy a franchise. There is a "not in my back yard" thing about these things also -- most areas try to restrict them and those they do allow must "look nice". The further out you went the easier it would be to set one up but the harder it would be to get tenants.

I did have a friend that ran one down in south FL for a few years -- he was the manager and not the owner but he virtually ran everything for the owners. Not a hard job but you need to get the vacancy rate as low as you can -- and humidity and heat controlled storage is pretty expensive to run either up north or down south.

Good luck.

 

[wabmester]

I had the same idea. Storage places are great businesses.

Market isn't saturated in our area, but land is expensive, and we have strict zoning that limits such businesses to very rare light-manufacturing zones.

 

[lazygood4nothinbum]

you could always try the niche storage market

www.parkplacecarcondo.com

or the really neat niche markets (for the stuff that won't fit on your boat)...

http://tinyurl.com/2c9plb

 

[CCdaCE]

The bathroom in each stall of the car condo confuses me, but OK.

-CC

 

[lazygood4nothinbum]

The bathroom in each stall of the car condo confuses me, but OK.

-CC

for what these people are paying you better offer them something besides just concierge service. so if this helps unconfuse: it is, after all, built for those with--pardon the expression--a pot to piss in.

 

[Khan]

www.parkplacecarcondo.com

What an annoying website.

 

[cute fuzzy bunny]

Indeed. I hate flash based web sites. If you want a real annoying one, go to chipotles web site (the restaurant) and try to learn anything at all about the place in a timely manner.

I'm going to take a guess that the 'car condo' place falls into some sort of zoning ordinance as a living space rather than a storage space and due to the same building ordinances therefore needs to have a bathroom. Maybe if people go to it more than once or twice a month on average or spend more than a certain number of hours per week being inside of it, it changes the requirements.

 

[bbbamI]

I worked for a storage facility for 3 years (about 15 years ago). They were profitable, but became even more so when they starting renting U-Haul trucks. The local truck rentals were a pain, the "one ways" were not.

The owner had several facilities scattered around the area. The ones that made the most money were in the nicer neighborhoods. The managers that had the facility where I worked lived there. They were paid a small amount, but got their apartment free along with the utilities. It is certainly not an 8 to 5 job. Then there's auctioning off stuff that people left behind, or were late on their rent payments. That could get interesting to say the least.

A good location is a must. Money can be made in storage facilities because in good times people buy stuff that they need to store and in bad times they need a place to put the stuff so that they can move in with mom and dad.

 

[Martha]

I know someone who had a bunch on land in a rural area, but near a lot of lakes. He spent about $50,000 putting up some ministorage units. They filled up right away. He then built a much larger building that included mini units plus a place for boats and other big toys.

All his renters are cabin owners who either have too much junk for their cabin or want to keep more valuable stuff in the storage unit in the off season.

Cash cow.

 

[Nords]

Cash cow.

I want to invest in a REIT that buys storage units...

 

[jazz4cash]

What's that saying?.........location, location, location?
If you were here in the mid-atlantic area, that storage unit idea is about 3-5 years too late. Nearly all the facilities around here prominantly advertise 1st month free, so what does that tell ya? The newspapers are full of offers in the franchise section. They've converted all sorts of abandoned commercial sites around here into mass-public storage. I went to one with a relative to retrieve his recently deceased fathers goods. I drove around 15 minutes looking for him until we realized he was standing "out in front" of the mass storage building 1/2 block from the one I was driving back and forth in front of. When we hooked up and went inside, the front lobby looked like a 3* hotel, but beyond the lobby, it looked like crap. I realized that I could not consider using such a place for my personal goods since you cannot isolate your items from the funk, grit, and vermin associated with the other tenants.

A mile or so away are the brand new purpose built storage places that have the expensive landscaping out front...it's gonna look like a park once the trees grow, and you will pay for the ambiance.

As far as the REIT idea, check the local business section of the Monday Washington Post............most of the high dividend local stocks are REITS, and many are the public storage outfits.

My personal ambitions along these lines are to keep an eye on smaller scale properties.....going to check on some individual parking spaces in downtown DC !

 

[wabmester]

I want to invest in a REIT that buys storage units...

Public Storage Inc (PSA), but the REIT bubble has pushed the yield down to under 2%.

 

[Sheryl]

I've had an idea rolling around in my head. ... Setting up a business based on America's propensity to collect "stuff" and the like.... Preying on the "weak".

Is this market cornered? Edit: What other angles could you work to benefit from American's propensity to collect stuff, such as "scrapbooking"?

Re the other angles - I've been thinking about some ideas for "semi-retirement" careers. One that I see popping up all over is the "professional organizer." There was a lot of buzz about this in relation to new year's resolutions to get organized.

Apparently there are people with too much money (or too much willingness to spend it) who will pay other people to come in and organize the too much junk that they own, and to sell them expensive but pretty storage containers. With my design background I think I could turn this into a fun little side business with flexible hours. There is even a "Professional Organizers" Association out there I think. They probably offer some sort of certification in the field. :

I certainly don't see it as preying on the weak - more like giving people what they think they need or want.

The other new angle I've been interested in is not so much related to stuff organizing, but there is also a newly evolving "profession" for stagers. Once again, complete with certification criteria.

http://www.stagedhomes.com/

Going in and fixing up the home to make it more salable - Again something I could target with my design background.

 

[jazz4cash]

Going in and fixing up the home to make it more salable - Again something I could target with my design background.

Well if are good enough stage homes for sale using the furnishings that folks are willing to pay to put into storage, maybe you could get paid on both ends.

 

[Sheryl]

Well if are good enough stage homes for sale using the furnishings that folks are willing to pay to put into storage, maybe you could get paid on both ends.

Good idea. Most of it seems to be clearing away the crap. Maybe having a collection of furnishings that you move from house to house to spiff them up.

Browsing that website, it appears that she has a racket created an industry similar to some of the finance seminars - she's now making her money by putting on seminars rather than doing the staging herself.

 

[wabmester]

Wow, I love the way you think.

Joe wants to sell his house. So, you charge him to move his stuff. Charge him again to store his stuff. Again to rent your stuff. And again to stage the stuff.

Finally, charge other people to learn how to charge Joe for all of these services.

 

[CCdaCE]

Wow, I love the way you think.

Joe wants to sell his house. So, you charge him to move his stuff. Charge him again to store his stuff. Again to rent your stuff. And again to stage the stuff.

Finally, charge other people to learn how to charge Joe for all of these services.

Premium!

Thanks everyone for your replies. Keep 'em comin'!

-CC

 

[jazz4cash]

Public Storage Inc (PSA), but the REIT bubble has pushed the yield down to under 2%.

This will probably drive members away from PSA:

http://tinyurl.com/38osgy

 

[thefed]

I ALWATS wabted a self storage unit, but never had the capital availabole. seems to be saturated, however the ones in my area seem to do quite well.


id like to buy one already built, BUt if the owners selling, what does that tell ya?

 

[free4now]

There was a post a few years back on one of the motley fool boards (the REHP board IIRC) where someone described in great detail how they had bought and run one of these storage businesses. It was definitely an interesting read.

Nearly all the facilities around here prominantly advertise 1st month free, so what does that tell ya?

Advertising the first month free seems like a very good way of getting people in. The major thing you count on in the storage business is that people are lazy and won't move their stuff to another place once they have it stored. So the marketing approach is to charge high ongoing prices, but to do whatever promotions are necessary to lock people in. The margins are high enough that it makes perfect sense to give away the first month free if it locks in a stream of cash flow.

 

[jazz4cash]

I agree 1st month free is a reasonable marketing strategy, but my point was that apparently there is more supply than demand.

The latest trend is whats called PODS...........Portable On Demand Storage. They use a truck to deliver a steel shipping container to your property. You can fill it at your convenience. Then they pick it up and either store it or deliver to the next address. One of the interesting elements here is that I understand there is a glut of steel shipping containers accumulating around the country due to our trade deficit. Various attempts to take advantage of the glut include stacking them like lego blocks to form modular housing units. I think one of these projects was completed in London.

 

[saluki9]

id like to buy one already built, BUt if the owners selling, what does that tell ya?

That he is trying to capitalize on a profitable business? Plenty of people sell profitable and sustainable businesses. Heck, that's why a lot of people go into business in the first place.