Patent Coming: Good, Better, Best, Pricing

We are incredibly excited to announce that Veritec Solutions will soon be granted a U.S. patent to our Dynamic Differentiated Value Pricing system. This is otherwise known as self-storage “Good, Better, Best Pricing”. In particular, the patent will apply to the Value Pricing module of our flagship product, VRMS.

What is Good, Better, Best Pricing?

For years, Veritec Solutions has been powering the self-storage industry with Good, Better, Best Pricing. This means that even with physically identical units—the same unit type—further pricing tiers can be distinguished. More pricing tiers means more opportunities for increased self-storage operator profitability.

Equally important, more pricing tiers must be tied to commensurate value tiers for the customer.

But how do you obtain more value from identical storage units?

Here’s the secret: More customer convenience means more customer value.

Much has been written about convenience from a technology and online perspective. The same holds true in self-storage. Other than a contactless rental experience, there are convenience differences once the customer reaches the self-storage premises, even with identical units.

The more convenient the unit, the more value. The more value, the more the customer will want to pay. Our experience shows that, over 30 percent of the time, the customer chooses to upgrade to the “Better” or “Best” unit.

The self-storage customer, and only the customer, should make this choice. We strongly advise the store operator to simply present the options of “Good, Better, Best”, and let the customer decide. There should never be any pressure sales tactics of any sort.

So, can you have more convenience with identical storage units?

Absolutely.

Even with two physically identical units, customers will value the one with easier access and more comfort. Easier access and comfort, quite simply, mean more convenience. These factors include distance from the facility entrance, floor level, distance from the elevator, number of turns to reach the unit, and even sun/shade. Every self-storage operator knows their facility well, so there may be additional attributes that affect access and comfort.

Equally important, the self-storage operator needs to really know their customer. Seemingly mundane facility artifacts can be extremely important. An operator needs to sit in their customer’s shoes, and “experience” the move-in and move-out process from vehicle to storage unit. When moving a bulky item such as a sofa, or carrying a heavy item weighing 100 pounds, or pushing a cart full of boxes—every step, every turn—can make a big difference.

Added to the fact that the customer may also be considering frequency, age, or physical ability, access plays an even bigger role.

Simple yet complex.

The beauty of Good, Better, Best Pricing in its simplicity: Three choices and that’s it.

However, a lot of behind-the-scenes methodology, computations and technology make this simplicity work. How the three price points are determined, how are they assigned in a hundred-plus storage facility, and when should the prices be assigned are all done automatically by the VRMS Value Pricing module.

This heavy lifting is what the upcoming patent is all about! We look forward to continually transforming the self-storage industry with Good, Better, Best Pricing.