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On-Demand Storage Startup That Picks, Packs & Delivers

by Y9gvFGIPMP
February 25, 2020
in Lifestyle
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On-Demand Storage Startup That Picks, Packs & Delivers
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Blurb from the author: When I heard about Storage Bloc in a BFM podcast episode, my first thought was that you are not doing anything new here. So I was interested to find out how they stand out from the competition and how they can make their business future-proof given the growing rental culture in Malaysia.

Jessica and David Buri, two twins from Miri, Sarawak, founded Storage Bloc in early 2017.

It is an on-demand
Start of storage offering packaging, pick-up, storage and delivery services for
Individuals and e-commerce companies.

Starting a joint venture had always been the siblings' dream, but it wasn't until David finished his business studies in 2016 that they thought it was the right time to respond.

While she was alone
In her family home, Jessica told David about her difficulties in finding it
Space for your personal belongings as your siblings left their valuables behind
moved out there despite.

When she jokingly told it
David got an idea that she wanted to see storage units for rent.

After doing theirs
After doing research, they found the concept of valet storage as a viable business model
You could afford to start.

A steady growth

friends and family
were quick to invest in their business, and the only loan the twins took out
out was van for her company.

Photo credit: memory block

David declined to disclose
the amount of monthly earnings they earned but proudly shared that they were now
in the dark.

Memory block started
Out in Glo Damansara with a 3,000 square foot warehouse, but they moved in
The new warehouse doubles when the 100% capacity in the first warehouse is reached
Early last year.

A team of four (soon)
five) mans the warehouse and performs the medley of services they offer.

They offer 3 types of
Camp:

  • Signature storage box (RM20 / month for 1 box that
    The more boxes you keep, the cheaper the prices are and it comes with insurance
    Coverage up to RM1,000),
  • Bulky storage of objects (depending on size, price
    can range from RM19 to RM32 / month),
  • Storage unit per cubic meter (RM44 to
    RM300 / month, the more space you rent, the cheaper it is).

Their characteristic storage boxes have a fixed dimension and are recommended for small, packable items such as clothing, books, kitchen utensils and the like.

Photo credit: memory block

Bulky items can be
classified into items that do not fit in a box, such as luggage, golf sets and
Lie. Meanwhile, storage unit per cubic meter is for those who already have
their own boxes.

Store both bulky items
and storage units per cubic meter offer insurance protection up to RM8,500.

Your unique packaging
and transportation services come at different prices, however
For those who run e-commerce, Storage Bloc now offers an order fulfillment service
from RM309 / month. This includes storage, picking, packaging and delivery.

A look at the
store

When customers decide to do so
Pick up or return, they are only allowed in the reception area
locked from the actual warehouse.

The interior of the warehouse is largely filled with high-performance shelves that are divided and named.

Photo credit: memory block

Any object that enters
The warehouse is individually provided with a barcode and placed on a rack, depending on availability.
Weight, size and shape.

The location of said
The item is then added to the Storage Bloc system.

“Every customer will get it
an inventory list of barcodes and descriptions of their items so they can be kept
Track everything they have with us, ”said David.

"When retrieval is required, the customer only has to tell us which barcodes to retrieve, and it only takes a few minutes to find the item and bring it out for him."

Photo credit: memory block

But what happens when
A customer gives up his articles?

Based on memory blocks
Terms and Conditions: If payment is not made within 3 months, the items will be considered
abandoned (although they still keep the items for about 6 months).

"We will make an effort
in contacting customers, but if there is no response or payment, we
I have no choice but to confiscate the items for auction, ”said David.

This is
understandable because every place that abandoned objects take up, money is lost for the company.

There is enough
Space for everyone

While Storage Bloc offers the package from A to Z for storage needs, this was done by TresGo and BEAM Space, who I would consider their closest competitors because of their service offerings.

Using the information available online, I quickly compared their services, prices and more.

bearing block BEAM Space TresGo
pack Yes Yes Yes
Choose Yes Yes Yes
Deliver Yes Yes Yes
pricing RM100 / month for 1.83 m3 area RM100 / month for 1.4 m3 of space Offer based
app No Yes No
target group B2C, B2B B2C, B2B B2B

Every startup has its own
own unique selling proposition, whereby Storage Bloc has the slight advantage
be more affordable. “We believe that storage is not a problem with our tariffs
Luxury, but a commodity, ”said David.

But I still had it
Business questions.

P2P article rental platforms like Borobear and Pinjamla in Malaysia have increased, and I asked how Storage Bloc would survive if fewer people owned articles and therefore didn't need storage.

"This is a good point. However, we believe that there are still some things that cannot be rented, such as beds, sofas and refrigerators. I would say that most of the things that people keep cannot be rented." David replied.

"As much as we are able to minimize the need for certain non-essential items, people will still buy things, so there will still be people who need storage – either personal storage or for their small business," concluded he.

Her numbers for now
reflect that. 66% of their business still comes from individuals and small businesses
Companies that need storage for household items and documents.

Photo credit: memory block

34% now come
of e-commerce companies, but David definitely sees the business of these
Customers grow with the growth of the e-commerce industry.

What can you expect?
The future?

"We had over 500
Customers have been coming and going from our warehouse since we opened, and we are now
Storage for around 200 people and companies, ”he said, adding:“ Our oldest
The customer who started storage with us in March 2017 is still with us. "

With the support of
Storage Bloc hopes to open a second location for its customers in the near future.

You are looking too
David said that this is currently the case
Working on a model where people can rent their signature boxes a day if
They move.

“We also hope to minimize the need for boxes by promoting the use of reusable plastic boxes during the move. It is better for the environment, it produces less waste and in the end it should be even cheaper! "

ultimately: Since the storage industry in Malaysia is pretty saturated (a quick Google search can produce about 9 other players), I would say that Storage Bloc has reached 100% capacity in its first warehouse and is already profitable surprise for me.

  • More information about other Malaysian startups can be found here.

Selected image source: memory block

Y9gvFGIPMP

Y9gvFGIPMP

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