Why Storage Is So Sticky

On today’s show we are taking a look at pricing practices in the storage industry. Storage is a product that is fairly sticky.

That is to say, moving a lot of personal belongings into a storage locker is time intensive. It often involves renting a truck and taking a Saturday afternoon to make a few trips. The decision to rent a storage unit is often event driven. The storage company might even have a truck that they will rent you for “Free” to move your belongings on the way in.

But renting a truck is a hassle. It’s more expensive than renting a car. Even U-Haul has an inexpensive daily rate, but a high mileage rate. So while you might rent the truck for $29, you’re looking at a few hundred dollars when you take all of the extras into account.

Moving belongings has friction. The more friction, the more people will delay moving their belongings out of the storage.

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Host: Victor Menasce

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