EP. 1397 Storage King and Kennards Make Money?

Have you ever driven past those massive Storage King and Kennards facilities popping up everywhere and wondered how they make money? We certainly did, which sparked our deep dive into the fascinating economics behind Australia's booming self-storage industry.What we discovered was genuinely surprising. These businesses charge extraordinary rates – up to $1,010 per month for a garage-sized unit or $405 monthly for a space comparable to a bedroom. Even the smallest lockers command $37 weekly. Despite these premium prices, occupancy rates consistently hover near 100%, with some facilities housing over 1,000 units under one roof. Most fascinating is how direct competitors like Kennards and Storage King frequently establish locations directly beside each other (breaking conventional retail wisdom) yet both remain fully booked.The customer demographics tell an equally compelling story. Downsizers form a significant market segment – older Australians unable to part with decades of possessions when moving to smaller homes. International travelers store their belongings during extended absences. Some speciality users emerged in our research as well, including someone who rents a unit exclusively for Christmas decorations. The industry has masterfully tapped into our emotional attachment to possessions, charging rates that exceed any other property class on a per-square-meter basis. Ground floor units with drive-up access command the highest premiums, while upper floor spaces cost significantly less due to accessibility challenges.What does your relationship with possessions look like? Could you adopt the ruthless approach of the executive we discussed who discards anything that doesn't find its place within a month? Or are you more like those willing to pay hundreds monthly to maintain connections to rarely-used items? Let us know your thoughts and whether you've found self-storage units to be worth the investment!