“We do not consider parking to be a revenue source.” I read that quote in a blog post from a Director at a University in the midwest and thought did I read that correctly? It got me thinking, I wonder how many other educational organizations have the same outlook as that above statement? Which has prompted me to write this post to offer some advice- parking is a significant revenue source that organizations must take advantage of.
An estimated 30% of traffic congestion is created by drivers looking for parking, making the availability of parking vital and a stable revenue stream. Parking is as viable as any other service you are providing your clients and therefore must be managed efficiently and cost-effectively with a high level of customer satisfaction.
Some industries have greater parking challenges and revenues than others. Municipalities, airports, educational institutions, hotels, hospitals and housing developers all struggle with parking issues and it’s impact on the bottom line. Implementing a smart parking solution gives you the flexibility to create strategies to improve revenues while reducing expenses. Some expenses of operating a parking lot may not be reduced with the implementation of technology such as insurance, property taxes, utilities and maintenance, however, labour for enforcement agents and lot attendants would be all the while simplifying the infractions and payments on any tickets issued. The results can be less stress, a better experience for the business and the customer as well as an increased revenue structure for business.
Let’s look at the numbers for different strategies for improving revenues using smart technology. An easy way to increase revenues involves splitting your parking spaces into Premium and Standard spaces.
A standard property has 500 spots split into 2 physical lots. Both price points are very inexpensive at $4-5 dollars a week.
Lot A , 250 spaces @ $240.00 per year ( $20.00/month)
Lot B , 250 spaces @ $180.00 per year ( $15.00/month)
Annual revenue generated is $105,000.00
Now let’s apply premium spaces to our two lots. 20 % of each lot will be assigned as premium parking which will give access to the spots closest to the entrances.
Premium prices will be $ 360.00 per year ($30/month) and $ 300.00 for non premium ($25/month)
Annual revenue generated is $117,000.00
That is a 12% increase in revenues just by implementing a premium service with no extra overhead costs. This is just one of the many ways OPS-COM can help improve your bottom line.