Gavin ShieldsCEO Driving Innovation in Self Storage Tech

Raising prices in self storage? Here’s why losing aome customers Is okay

15 May 2025 · 1 min

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Gavin Shields argues that losing 3-5% of price-sensitive customers when raising rates is worth it for self-storage operators. A 1% price increase typically boosts net profits by 10%, making some churn acceptable when pushing toward market rates.

Questions this video answers

About 3–5% of clients per year.

For every 1% increase in price, you get a 10% increase in net profits.

Chapters

It's understood that having churn a small amount of churn due to price increases is a good thing. So what I mean by that is it's understood that if you lose 3 to 5% of your clients every year because you're pushing up the price, the upper price limit, that's a good thing. Many business owners are terrified of losing customers, but it's okay to lose the small customers who are very price sensitive and they're often the most problematic. Right? Right. There's a good rule of thumb in terms of price changes. So McKinsey often quote this, which is that for every 1% increase in price, you get a 10% increase in net profits.