This article takes the view of the consumer, "Why do so many people pay to store items they almost never use?". But in actuality, the interesting part of this is why is there so much supply of self-storage businesses?
The answer is: cash flow. Self-storage businesses are the almost perfect solution for someone with a good size (but not enormous) bucket of money that they want to put to work generating cashflow:
1. Cheap build out (cheap land, cheap facilities)
2. Almost entirely hands-off (no employees, automated entry)
3. Low liability (low risk of customers suing you)
4. Low overhead (just pay for taxes, electricity, minimal maintenance)
5. Reliable monthly cash flow
The abundant supply of these businesses, I suspect, tends to generate demand: it's easier to pay $80/month to store your junk than spend the time and emotional labor of picking through what you want to keep and what you want to get rid of. That ends up being captive long-term revenue.
You are missing the biggest benefit of a self storage business - the appreciation of the underlying real estate. When you dig into the financials of the major self storage businesses you'll see they are essentially REITs that have better cashflow. They can pick an up-and-coming area, do a minimal build-out with low annual overhead, and then down the road when the facility would be needing overhauls and maintenance the underlying property has typically appreciated so much that it dwarfs all other associated revenue streams and makes sense to sell and raze the existing structure. Great business model if you have a long enough timeline.
This is also why some startups trying to revolutionize the self storage model had extreme headwinds - if you are renting the underlying properties and trying to make the storage business profitable you are at an extreme disadvantage to the larger players who can subsidize operating costs with portfolio appreciation.
Yeah, came here to post something similar. I used to hang around in real estate circles, and two businesses come up often: Self storage and car wash. These are two things people just can't get enough of.
(Car wash usage doesn't go down even during a recession, apparently).
Or a garden hose, bucket of soapy water, and a sponge. At least if you have a house with a garden hose. Many apartment complexes offer the amenity of an area for washing cars though.
Yes. In the same way that dishwashers are an order of magnitude more water-efficient than washing by hand. (But consume a kilowatt of electricity heating the water and running the pump, which is the part that everyone always leaves out.)
When my water heating was electric, switching to a dishwasher consistently led to lower electric bills compared to a year prior (confirmed for 12 whole months).
You heat the water when you wash dishes by hand too, don't you? It's not very hygenic to do dishes with just cold water.
Given that by hand you use much more hot water than the dishwasher would, you're using more electricity (or gas). Since a little pump doesn't use much at all, it's mainly just the drying heat that matters. Though nobody is forced to use the drying cycle - if one enjoys drying dishes by hand, they can still use the dishwasher to do the washing.
You're assuming an absence of solar hot water heaters - the world isn't homogenous.
eg. Our household conserves water (we track every litre we bring up to the tanks and filter) and we don't have a dishwasher - hot water is heated by the sun and run-off goes to the grey water tank for the garden.
No I'm not. I don't care how you heat your water. I'm saying you (should) heat it either way, and you use more of it when hand-washing so if you do pay to heat it, you pay more by handwashing.
And in your case, you use more water because you hand-wash, than you would if you used a dishwasher. You use slightly less energy because of the pump but also a lot more of your time, so... obviously how you relatively value those different things is up to you.
You're a bit all over the shop in that answer.
Our concern here, and that of many people in the area, is total water usage per household - and to a large degree water usage for washing, showers, and toilets is a small fraction of the total usage - and one that can be ignored as most people have grey water capture (as do well planned and infrastructured cities).
Water used inside the house runs out to water food, shade, animals, etc. and that use can be deducted from the water that is required for those uses.
Energy is no great cost, it comes from the sun - both as electricity via panels and directly as heat via solar hot water systems.
In my house you don't heat the water but it's been sitting in a metal water tank at equitorial latitude for hours so is generally quite warm for evening dishes.
Is it safe? Not for a restaurant where the temps need to get to parasite killing temps to pass muster.. but if I had to guess, the odds of getting killed by a bad-tempered cow outweigh it by 10x.
epochbtc · · focus · HN ↗
The answer is: cash flow. Self-storage businesses are the almost perfect solution for someone with a good size (but not enormous) bucket of money that they want to put to work generating cashflow:
1. Cheap build out (cheap land, cheap facilities) 2. Almost entirely hands-off (no employees, automated entry) 3. Low liability (low risk of customers suing you) 4. Low overhead (just pay for taxes, electricity, minimal maintenance) 5. Reliable monthly cash flow
The abundant supply of these businesses, I suspect, tends to generate demand: it's easier to pay $80/month to store your junk than spend the time and emotional labor of picking through what you want to keep and what you want to get rid of. That ends up being captive long-term revenue.
jboggan · · focus · HN ↗
This is also why some startups trying to revolutionize the self storage model had extreme headwinds - if you are renting the underlying properties and trying to make the storage business profitable you are at an extreme disadvantage to the larger players who can subsidize operating costs with portfolio appreciation.
BeetleB · · focus · HN ↗
(Car wash usage doesn't go down even during a recession, apparently).
encrypted_bird · · focus · HN ↗
SoftTalker · · focus · HN ↗
linkregister · · focus · HN ↗
bityard · · focus · HN ↗
BeetleB · · focus · HN ↗
You save water and electricity.
BobbyTables2 · · focus · HN ↗
jorams · · focus · HN ↗
xp84 · · focus · HN ↗
Given that by hand you use much more hot water than the dishwasher would, you're using more electricity (or gas). Since a little pump doesn't use much at all, it's mainly just the drying heat that matters. Though nobody is forced to use the drying cycle - if one enjoys drying dishes by hand, they can still use the dishwasher to do the washing.
defrost · · focus · HN ↗
eg. Our household conserves water (we track every litre we bring up to the tanks and filter) and we don't have a dishwasher - hot water is heated by the sun and run-off goes to the grey water tank for the garden.
xp84 · · focus · HN ↗
And in your case, you use more water because you hand-wash, than you would if you used a dishwasher. You use slightly less energy because of the pump but also a lot more of your time, so... obviously how you relatively value those different things is up to you.
defrost · · focus · HN ↗
Our concern here, and that of many people in the area, is total water usage per household - and to a large degree water usage for washing, showers, and toilets is a small fraction of the total usage - and one that can be ignored as most people have grey water capture (as do well planned and infrastructured cities).
Water used inside the house runs out to water food, shade, animals, etc. and that use can be deducted from the water that is required for those uses.
Energy is no great cost, it comes from the sun - both as electricity via panels and directly as heat via solar hot water systems.
fahrvrgnugen · · focus · HN ↗
Is it safe? Not for a restaurant where the temps need to get to parasite killing temps to pass muster.. but if I had to guess, the odds of getting killed by a bad-tempered cow outweigh it by 10x.