5 Things to Consider When Budgeting for 2022

As we enter the fourth quarter of 2021, most storage managers and operators will soon be preparing and planning the process for 2022 store budgets. In 2021, managers and operators learned to navigate the unique challenges left by the ongoing pandemic in 2020.

As you prepare your 2022 budget, it is important to first assess this year’s successes and shortcomings. A great starting point is reviewing reports you can compile from your property management software. Another great tool is OPTIMIZE, which can help lay out the current state of your market(s) and help you map what to expect in the coming year.

Here are 5 things to keep in mind:

1. New Supply
2. Rate Trends Over 12 Months
3. Rate Volatility
4. Market Activity
5. Store Operating Hours, Contactless Features 

1. New Supply

While you are likely very familiar with your competitors, you should also be familiar with any proposed new stores in your area or stores planned on opening in the near future. This can, of course, have a direct impact on your occupancy levels and rates.

2. Rate Trends Over 12 Months

With 2020 mostly behind us, you are now able to look at a year’s worth of rate trends that you can use as reference for seasonal averages and trendlines, without the skews of last year. With OPTIMIZE you can look at average rates for any of your inventory – at the store or market level.�

3. Rate Volatility

Rate Volatility measures the pricing activity at a store and market level. A higher volatility rate means there are many rate changes taking place (whether rates are being decreased, increased, removed or added from online). OPTIMIZE offers a month-by-month view of this and can help you identify which unit types have the highest rate volatility in your area.

4. Marketing Activity

Review the ROI of your 2021 marketing efforts – understand what marketing initiatives are bringing in the most foot traffic. OPTIMIZE offers a Marketing Scorecard, rating every store in your market, including yours, based on a number of categories such as SEO, SEM, website navigation, social media, etc. The Marketing Scorecard helps you understand where improvements can be made and what your competition’s marketing activity looks like.

5. Store Operating Hours, Contactless Features

Staff shortages are impacting businesses across the country. The pandemic has also catapulted the implementation of contactless technology to minimize in-person interactions. Some stores in your area might be operating on limited or no staff. Keep this in mind if your store is being affected by staff shortages or need to consider offering contactless options.�

As you plan your budget for next year, we hope that you consider the points mentioned as a starting point. Feel free to reach out to our team if you have any questions on how OPTIMIZE can help you during the planning process.�

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