Joe DownsCEO & Co-Founder, Belrose Storage Group. Founder, Storage Moguls.

Why Lowering Rates Can Be a Dangerous Move for Businesses

2 Jun 2026 · 1 min

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Cutting prices without first confirming customers know you exist or actually want what you sell is a common mistake. Lower rates only work if you have a plan to make money back through upsells or volume, and successful cheap competitors actively manage their pricing instead of just dropping it and hoping.

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The first question I always ask everybody is, is there demand? I mean, are you turning people away? Are people coming to you or is the phone just not ringing? The biggest mistake I see people make is that they lower rates, not understanding that nobody's seen their, their rates in the first place, or maybe they're on a back road and nobody even knows they exist. I'm always amazed that that's the first thing that everybody gravitates to. And I can tell you that having the lowest rates, again, if you want to go that route, you better have a way to recoup that or have some type of mechanism in place to get that back up because the guys that are doing that, they're good at it. They're not going to leave those rates sit there.