Revolutionizing Self Storage Revenue Management
Check out this video presentation by Dr. Warren Lieberman as he discusses dynamic value pricing (“dynamic differentiated pricing”) in the Self Storage industry. This talk is part of the INFORMS Practice Section series on advancing the practice of analytics, operations research, and management science.
INFORMS is the leading international association for professionals in operations research, analytics, management science, economics, behavioral science, statistics, artificial intelligence, data science, applied mathematics, and other relevant fields.
The traditional method of pricing uses “static purchase fences”. That means prices remain fixed at product segments. Dynamic value pricing takes a different approach. This approach adjusts prices for various changing factors, such as inventory availability. This allows customers to choose the product they want based on their specific preferences at a given time. Warren even discusses how the interplay of psychology fits into customer pricing choices.
Self storage has come a long ways. The product, a self storage unit, is often the same, only varying by size and climate control. Veritec Solutions has long advocated additional factors, such as ease of access, that significantly affect value to the customer. As such, pricing is also affected. Customers see more choices, while self storage providers see more revenue increases.
Now, with dynamic value pricing, Veritec Solutions’ thought leadership is really revolutionizing the way the self storage industry thinks about pricing. Warren also touches on how the self storage operator can practice dynamic value pricing.
Implementing dynamic value pricing can be complex. Information technologies is the key to implementation and ease-of-use. The good news is that VRMS, revenue management system for self storage, has built-in functionality that includes dynamic value pricing.