Super Easy Storage built its reputation on providing simple self-storage solutions. Now it has turned its attention to disrupting the removals business.
Cameron Robertson, general manager at Super Easy Storage, says “For the last 12 years, we’ve successfully run a mobile storage model based on convenience: we bring the storage units right to your home or office, you load them (or we do), and we take them back to our warehouse.
“Customers love the value proposition because it makes moving to storage so much easier. You only have to load everything once, and we pass on some cost savings,” Cameron says.
It’s a model that’s worked brilliantly for franchisees too.
“Historically, getting into the storage business was capital-intensive, at least $1 million just to lease a facility, or up to $30 million to buy an existing business. That’s a huge hurdle. We broke that down with our fresh thinking on storage,” he explains.
“Now, we’re ready for the next big step: diving into removals and offering a brand new opportunity called Super Easy Moves.”
Lowering the barrier to entry
This exciting new model follows Super Easy Storage’s winning business template: lowering the barrier to entry for franchisees.
“With Super Easy Moves, we’re tearing down that barrier,” he says.
The business is franchising its transport arm and removals service, which allows new partners to get started with an initial investment level between $100,000 and $200,000 (including a truck). It costs less than $50,000 if franchisees lease a vehicle.
Franchisees have two main options for how they run the removals business: they can be the hands-on operator leading the move in the truck, or they can focus on managing enquiries and relationship-building.
A Super Easy Moves franchise is territory-based, focusing on local house-to-house moves, initially in Sydney, Melbourne, Brisbane, the Gold Coast and Perth, where Super Easy Storage operates warehouses.
Of course moving house is a major, but irregular activity. While New South Wales and Queensland have the highest rates of housing mobility in the country, with more than 40 per cent of people moving home in the last five years (according to IBISWorld), typically households only make the big move once every seven years.
A second, passive revenue stream
Storage, however, provides a long-term, recurring revenue for franchisees. Increasingly Aussies are downsizing, moving into smaller high-density housing options with less storage.
Last year, the Self-Storage Association of Australia (SSAA) State of the Industry Report revealed 9.2 per cent of the adult population makes use of a storage facility.
The 697,000 storage units across the country had an 87 per cent occupancy rate, the Association reported, with self-storage customers paying an average of $380 per sqm annually.
With 2000 units, the Super Easy Storage business sees 200 to 250 moving transactions each month.
“We are looking to pass on the responsibility of work and revenue to new franchisees, so they are starting with existing customer bases,” Cameron says.
“We focus on residential customers in our storage business, and this will translate into the removals market. We will look at commercial customers too for our Super Easy Moves business.” he says.
The real gem in the Super Easy Moves model is this second, passive revenue stream. When a franchisee handles a move and, as is often the case, the customer requires a storage facility, they can access Super Easy’s core storage business.
“The best part is the franchisee gets a share of that recurring storage income for the entire time their client is with us,” Cameron says. “This is a game-changer because it gives our partners exposure to the stable, long-term revenue of self-storage without having to own a single warehouse.”
Super Easy Storage has proved a resilient business model
The combination of removals and storage services forges a resilient business, he says.
“We’ve found that both segments are largely recession-proof; people always need to move and store things, regardless of the economy,” Cameron says.
The SSAA forecasts stable and long term growth for the self-storage sector as people continue to move home. The Australian Bureau of Statistics reported in 2019–20, 12 per cent of Australian households (1.14 million) moved at least once in the previous 12 months.
“We’re excited to partner with new franchisees who are ready to build a strong, diversified business with a national brand in this dual-revenue model,” Cameron says.