Devon Self-Storage Rolls Out VRMS

by Alden Chang

Devon Self Storage, with 25 years of experience in Self Storage, chose the Veritec Revenue Management System (VRMS) for its pricing system. Today Devon has self-storage facilities across the U.S. in 12 states with more than 23,000 tenants. Over the past 25 years the company has operated in 27 US States and internationally in Europe. The company takes pride in their selection of facility features, upkeep, and knowledgeable storage professionals. Their dedication to customers is illustrated by consistently high reviews and returns.

“Veritec Solutions is proud to be a partner with a company of such high caliber as Devon Self Storage. We spent a lot of effort in making sure our software was easy to operationalize, so that our customers like Devon can be up and running quickly,” said Dr. Warren Lieberman, President of Veritec Solutions.

Earlier this year, Devon began rolling out VRMS throughout its facilities. Within weeks of beginning to work with Veritec, Devon was already obtaining revenue benefits.

“We rolled out VRMS across our facilities in April 2018. VRMS has three modules that are currently integrated with SiteLink, our Property Management System: (i) Value Pricing, (ii) Guidance for Monthly Starting Rates, and (iii) Guidance for rent increases. By using Veritec’s system we were able to augment our already strong revenue enhancement capabilities,” according to Ken Nitzberg, CEO of Devon.

Devon’s efforts to configure VRMS included the following activities:

“The first step in the process was to rank all units in each size category based on their relative convenience within the category. We did this on some 27,000 units. Once we completed this, we were able to benefit from VRMS’s fully automated Value Pricing system as every day VRMS evaluates and dynamically assigns all available units to Standard, Best Value or Deluxe rates, accounting for the prior day’s move-ins and move-outs,” said Angus Morrison, Executive Vice President of Operations at Devon.

Jim Mooney, Vice President of Operations and the primary interface between Devon and VRMS added that “Once we completed that process, VRMS was operational. The system also helps us set street rates for incoming customers. We use the system on a regular basis to help us set base rent levels. I am particularly pleased with the ease at which we can see what our competitors are charging as well.”

After a prospective customer begins renting a unit at Devon, VRMS continues to guide the pricing process. “There is a Risk Score tool that helps the system assess the financial risk that Devon is exposed to, should a customer move out due to a rent increase. The method even includes whether the customer is renting a highly convenient or lesser convenient unit. By doing so the system helps ensure that we determine the appropriate rent increase for each customer. In June, Devon sent out 1,107 rate increase letters…,” according to Mr. Morrison.

While being able to set up VRMS quickly is all to the good, what really counts is the level of benefits the system provides. What are the results? We will revisit Devon in a later blog to review the revenue increases they have achieved with VRMS.

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A Worthwhile Journey

by Alden Chang

It’s been quite a journey. In 2015, after providing Life Storage (formerly Uncle Bob’s Self Storage) and StorageMart with state-of-the-art Pricing and Revenue Management systems, Veritec launched Veritec Revenue Management System (VRMS), a cloud-based subscription service for self-storage owners and operators. We never could have predicted what was to come.

By mid-2018, VRMS was serving approximately 35 brands, and our client base is growing each month. Veritec’s pricing analytics are now being used to manage web-rates and customer rents at more than 2000 self-storage stores worldwide. We attribute this explosive growth to the low risk, effectiveness and easy-to-use sophistication of our software. (As always, though, we would be interested to hear your feedback.)

Low Risk: Not only do we always look at our customers’ pricing, but we also looked at our own pricing model: thus, we began a subscription-based service. This substantially reduced any perceived financial risk for our customers. Typically, within 3 – 4 months, self-storage customers are ROI positive and by the end of the first year have earned incremental revenues that are at least 2 – 3 times their configuration and monthly operating fees and the ROI becomes even greater after that. For Lease-Up stores, the ROI ramps up much faster.

Effectiveness: We have been happy to see that VRMS has shown, time and again, revenue increases in the typical range of 9% to 12%. Such benefits are simple, clear, and compelling. Coupled with our low-risk pricing model, there is only upside for our customers.

Easy-to-Use: For many self-storage companies, VRMS can be up and running in a matter of weeks, not months. We integrate with some of the most popular property management systems (PMS), such as SiteLink and Yardi Store Enterprise (previously Centershift). Your data is transferred seamlessly and automatically between the PMS and VRMS.

The second easy-to-use aspect is the carefully thought-out graphical user interface. We strove to provide a highly intuitive way to set and manage more profitable starting rates as well as guidance for rent increases, that would ultimately generate greater revenues.

Sophistication: Even though VRMS is easy-to-use, it is driven by state-of-the-art technologies. We have been careful to use a balance of predictive analytics and our Multiple Signaling technology to help guide you confidently to the best price for your situation.

Our journey in Self Storage goes back nearly twenty years and we now offer our fourth-generation self-storage pricing analytics. Over that time, we have developed deep expertise in the industry with a specific focus on pricing. That means our software not only utilizes smart technology, but it also codifies industry best practices that we have gained over the years. As pricing experts across many industries, we can even provide best practices guidance. We are excited to see our list of Self Storage customers grow…Indeed, it’s been a journey worth taking and we look very forward to what the future holds.

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Latest Self-Storage News, plus more…

by Jim Mullin

Veritec continues to grow its self-storage business and is excited to be expanding our work with both National Storage Affiliates as well as National Storage of Australia. National Storage Affiliates has continued to roll out our pricing analytics product to several of the Participating Regional Operators (PROs). This includes iStorage, their recent acquisition!

In other news, we’ve also recently completed a revenue management assessment with Virgin Trains in the UK. The team on this project included Paula, Michael, and Warren.

Finally, we’d like to officially welcome James Kosic to Veritec. James has been working with us as a contractor for the last couple years and is now a full time member of the team. Several of us also worked in “previous lives” with James at Decision Focus/Talus.

Please contact us if you’d like more information.

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