Competition can be healthy, and in the case of the Storage Business Alliance, it's now possible that your competition can make you even BETTER.
The Storage Business Owners Alliance LLC (SBOA) is an organization that enables small to mid-size self-storage operators to take advantage of enhanced buying power. By leveraging the combined strength of numbers, SBOA members can take advantage of savings on expense items such as tenant insurance, credit card processing fees, payroll processing, and retail product for resale.
The SBOA was founded by Ian Burnstein and David Levenfeld, owners and operators of multiple self-storage facilities. They developed the alliance because they understood the power that the larger self storage operators had when negotiating contracts with vendors: sometimes size matters. "We believed that storage companies working together on certain aspects of their operations can increase revenues, reduce expenses and improve bottom line profitability," explained Burnstein, president. "By joining forces with others in the industry with the purpose of enhancing group buying power, we knew that even owners with significant portfolios could enjoy the buying power and savings that previously were reserved for only to the very largest companies in our industry."
Since launching in 2010, the group now has 2,500 member-facilities and more than 30 vendor partners.
Vendors can be hesitant to join a group such as they SBOA. They worry their profits will diminish if they provide discounts to a group. But the truth is the exact opposite. "Minor discounts offered quite often are more than offset by the lower expenses and increased profits that result from building market share and lowering the cost of customer acquisition," said Burnstein.
The vendors range from national brands such as UPS, Paychex, ADP and Staples, to prominent industry brands SiteLink, OpenTech Alliance, and CubeSmart. Members receive significant discounts from all of these vendors.
"The SBOA allows our Members to gain a competitive edge by working WITH their competitors," Burnstein explained. "It's a unique idea, but our 2,500 member-facilities certainly understand the benefits."