The-Storage-Competitor-Self-Storage-Park-Construction-Project

Revenue perspective outweighs purchase price

We don’t beat around the bush, our containers are pricey to buy. There is also little or no second-hand market. This is because almost all of the 200,000 containers sold are still being used for what they were purchased for; the storage of goods. Also, our containers are not a residual product from another market, as is often the case with shipping containers.

Much higher rent
The good news is that an end user is willing to pay much more for storage in our container than in, say, a shipping container. The rent can easily be 25% higher. That price can go up further by offering the storage container in compartments. Something that is very easy to achieve with our containers. Four customers who all rent 25% of the container’s available space together bring in more than one customer who rents a full container. In total, up to 40% higher rent can be realized with our container compared to a shipping container. When this is not the case in practice, I would venture to say that the spaces are rented for too low an amount.

Turnover above purchase price
When you factor such large differences in rental rates into the overall picture of the purchase, the math will end up being quite surprising. Especially if you look at it over a five or ten year period.
Using this graph, we can easily visualize that. The prospect of a structurally 35% higher rent ultimately far outweighs a high purchase price. So the revenue perspective is many times more important than the purchase price of your asset, in this case the container.

Would you also like to know how beneficial the purchase of one or more of our containers could be for you? Then get in touch with us!

Maarten Streppel

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