Top Financial Metrics For A Caravan Storage Facility
If you are considering opening a caravan storage facility, here are some of the key metrics to measure your business by:
What percentage of the total number of storage units available at your site are currently in use. The higher this is, the higher the utilization of your facility.
Rate per square foot:
How much revenue are you receiving on a per square foot basis? As a rule of thumb, a single axle caravan stored for a year will generate anything from £300 to £1,000 of revenue per year depending on location. If the space given to each caravan is, on average, 200 square feet, at £400 a year you would be getting £2 per square foot. This metric is crucially important as it can be used against the cost of the land you are using. Don't forget that there will be unused land as well for driving space, space between caravans, etc.
Revenue is ultimately the output driven by your occupancy levels and your rate per square foot. Drop your prices and your occupancy might increase quickly to raise that number. Increase your prices and your occupancy might drop, but overall revenue will increase. The key to running a successful caravan storage business is getting the right balance between rate per square foot (how much you charge customers) and occupancy. Bottom line: being full doesn't necessarily mean you are maximizing revenue.
If you are using Stora to run your Caravan Storage business, our world-leading live analytics and reporting dashboards will help you stay on top of how your business is performing.