Why a Storage Unit is a Good Alternative to a Warehouse for Your Business

Business Storage

Reno Gulch Self Storage
June 20th, 2023

business storage
Many businesses require storage to manage their inventory. Owning a warehouse to conduct professional business and store merchandise is expensive. Not only do you need to pay for the space, but you may also have to sign a long-term contract. Plus, it isn’t always the safest. One of the best alternatives is using a storage unit to store your items.

If you’re interested in learning more about why a storage unit is an inexpensive alternative to a warehouse for your business, you’ve come to the right place. Read on to learn why this tactic is an excellent choice for your growing company. Reno Gulch Self Storage provides business storage in Hill City, South Dakota.

Deciding on Whether to Get a Storage Unit or Warehouse for Your Business

Cheaper Insurance

Insurance is always a good idea when you are storing equipment for your business. However, in a storage unit, insurance is much cheaper. Insurance for a storage unit is on average $10 per month. Warehouse insurance is on average $100 per month. This difference in spending could be cash in your pocket or put toward new inventory.

Choose the plan according to the value of your inventory. Although it’s cheaper, you still get protection for your equipment. The policy will still cover everything inside the unit. For example, if a fire occurs due to the facility’s negligence or your items are stolen, you are protected.

Higher Value

Operating costs are always a priority to build a successful business. The cost of a warehouse can easily push you over your budget.

Typical storage units cost $.60-$.80 a square foot, while warehouses are upwards of $1. You will save hundreds of dollars by picking a storage unit instead of a warehouse. If you need 1,000 square feet, a storage unit will cost $800 at most, while a warehouse will cost a minimum of $1,000, plus utilities.

As your business grows, you will probably have to get a warehouse. However, it is important to wait until it fits comfortably into your budget. The less you pay for a warehouse, the more options you will have to invest in your business.


With a warehouse, you usually sign a long-term contract. The contract can vary from one – five years. Storage units are month-to-month. With a storage unit, you can rent a large space or shrink it to a smaller one depending on the room you need and the growth potential.

If you need to save money, you can pack inventory into a smaller room. If you want to prepare for an expansion, you can preemptively move your stuff into a massive unit. There isn’t a drastic price difference between each size. You can also choose to rent two large units.

With a storage unit, you get extensive flexibility with how much space you require. Flexibility is important with new businesses.

Safe Accessibility

Warehouses are often open for business use. However, they are not as secure as storage facilities. They are not fenced and often don’t have cameras. The only security most warehouses provide are a lock and key.

On the other hand, storage units have extensive safety measures for products and people storing items in this business. There are lights, cameras, fences, and alarms. Many of them are gated, requiring a code to enter. There is also a manager on duty during business hours.

Additionally, storage facilities provide defense for your items. They are less at risk of being stolen in a highly guarded storage unit than in a warehouse with all the extensive security measures.

Need A Storage Unit for Your Business in Hill City, South Dakota?

Looking for a storage unit as a warehouse alternative for your business? Reno Gulch Storage is a premium storage facility in Hill City, SD. We can help keep your items secure. Book a unit online or call us at (605) 574-2106.